A group of friends discussed whether the rules of investing differ for the rich. Should they do anything differently?  As with most things, the answer is not a simple yes or no. The definition of who is rich and who is not is arbitrary. For example, the mutual fund association in India defines a high…

A reader says, “I am attempting to start an experiment within my family. The plan is to create an inheritance pot each generation tries to hand over to the next generation. If they can add to the kitty, then great, but that is not an expectation. It is good enough if they can sustain and…

We discuss how to plan for financial goals 5-10 years away. They are neither long-term to include equity nor short-term to avoid equity completely. Financial goal planning is all about setting the right priorities. If my need is within five years, it would be prudent to avoid all equity. Equity returns are volatile regardless of…

Often, readers ask us, “How do we plan for holidays abroad once in 2-3 years? Our robo-advisor tool has a recurring financial goal calculator module, which you can use to plan for all such goals. This can be used to plan big-ticket annual expenses like school fees(!). Suppose we wish to go on a holiday…

A reader says, “I want your insights regarding my investments”. Age:32 Profession: Consultant Emergency fund – building Term insurance – yes Health insurance – yes “Equity investments as of July 2024 – 12 lakhs (I’m not going to touch it anytime ). From next month, I can invest at least 75k, which is 50% of…

Sometimes, an idea, phrase, or action becomes so commonly used that we take them for granted and don’t stop to think about why they are used. So, can we pause momentarily and ask, “Why should I diversify my investment portfolio?” When we push ourselves into a corner and force ourselves to answer, we will probably…

A reader says, “I am an Army Officer and have been a DIY investor for some time now, thanks to the invaluable lessons from you and many other knowledgeable teachers on YouTube. My investment approach has been quite sufficient for my requirements, and being in a pensionable service (by the grace of the Almighty!), I…

A reader wants to know, “Is it better for a young family (couple plus two children) to live in a rented flat rather than to buy a home with a 20-25-year mortgage?” Buying a house is often an emotional decision; as I have argued before, it makes no sense to use buy vs rent calculators. …

Over the years, many have asked us, “How can we be sure of the assumptions used in retirement planning?” For example, a reader writes, “One of the big unknowns is the real expense during retirement. We can make an educated guess based on current living expenses, etc. However, surprises are likely to come and be…

If the markets move up over a few weeks, investors are worried that they will crash and wonder if they should stop fresh investments. If the market moves nowhere, it frustrates investors, who start looking for new pastures. If the markets tumble, they begin to panic. Can we build an investment strategy that is independent…

AI, particularly AI with deep research options (e.g., Perplexity, Gemini, Grok, etc.), can handle the most complex questions and provide amazing answers.  Perplexity Pro (free for iitm users) even has an option to search from only academic sources, which I use if I ask it health-related questions. Please note: I fully understand that AI can…

A 32-year-old reader asks, “Should I redeem investments and reduce my home loan burden as much as possible?” This is the comparison he sent us. “Cost of land: Rs. 70 Lakhs (including registration). Cash in hand: Rs. 50 lakhs. If I get a home loan for Rs. 50 Lakhs, I would be left with Rs….

Investors get jittery and unsure what to do when the stock market is overheated or when the stock market goes nowhere. Here is a simple market-independent strategy via systematic risk reduction that would be far more productive. Why? We have no control over market returns. Yes, asset allocation with regular rebalancing and diversification within each…

Life has a strange way of teaching us lessons: through wisdom, for some, and through heartbreak. Today, I’m sharing a deeply personal story. It’s not fiction. It’s not borrowed. It’s real. This story continues to haunt me because I witnessed it unfold before my eyes—and I wish it had had a different ending. About the…

A young reader recently asked us, “How much equity should I invest in for a long term goal?” This is a tricky question to answer! On one corner is a technical answer: Using reasonable return expectations for equity and debt (after tax!) and considering the inflation for my goal, I can arrive at an approximate…