This is the archive of all our articles related to goal-based investing
When gold prices fell steeply earlier this year, we were flooded with ‘told you so’ articles. No one seemed bothered at that time to emphasise that gold is meant for long term investing only, and that such volatility is natural. Before the crash everyone was saying, ‘buy golf ETFs’, ‘allocate 10% of your portfolio to…
Continue reading →A long term investor should: recognise all the risks associated with the financial goal estimate the monthly investment needed (estimate not determine) understand the need for spreading the investment risk (asset allocation) understand the need for diversification within an asset class, choose investment vehicles wisely initiate investments as quickly as possible without worrying about perfection…
Continue reading →Worried about fluctuating stock market returns? Worried about sliding gold prices? Not sure how much to invest in equity or in gold? Here is an example of a portfolio based on an ingeniously simple notion that has proved to be remarkably stable irrespective of market conditions – stock/commodity/debt/currency markets! The Permanent Portfolio in an alternative…
Continue reading →Rajesh Dalmia a certified financial planner and director of Mandar Learning Academy has authored an impressive do it yourself financial planning guide for investors to understand the basic features of insurance planning and goal-based investing. The guide has four excellent calculation charts that enable one to calculate Necessary life insurance cover Corpus’s needed for retirement,…
Continue reading →‘How much risk an investor can take’ and ‘how much risk he should take’ are two very different things. ‘Invest as per your risk appetite’ is half-decent advice. However it is not universally valid. A person who hates equity can choose to avoid it only if he can afford to regularly invest a sizable (often…
Continue reading →One of the first steps towards taking control of ones financial life is to list down all long-term and short-term goals that one needs funds for. The next step is to use a calculator to estimate how much one needs to invest for each goal independently. The results can often be frightening and sometimes even…
Continue reading →Beginning to invest for a long term goal in accordance with a plan is an important first step. Once the investing process is underway, performance of the instruments chosen have to be monitored the portfolio rebalanced the goal plan re-evaluated annually and a few years away from the goal-date a plan to shift funds from…
Continue reading →Thanks to the untiring efforts of many personal finance bloggers, the message “Don’t mix insurance and investments” is spreading fast and creating awareness. The message is intended primarily for those who are thinking about buying a pension-plan, child-plan, ULIP, endowment plan etc. but have not yet done so. Unfortunately the message strikes fear and panic…
Continue reading →Among the many methods available to safeguard ones investment from stock market volatility, the most popular is to invest a fixed amount at periodic interval irrespective of market conditions. This is of course known in India as systematic investment plan or SIP. One could add an aspect of market timing by gauging returns with respect…
Continue reading →He never said it! Said what? “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” “The most powerful force in the universe is compound interest” “Compounding is mankind’s greatest invention because it allows for the reliable, systematic accumulation of wealth.” Einstein’s discoveries…
Continue reading →Jago Investor authored by Manish Chauhan is one blog known to most Indians who use the internet. Even those who are chronic procrastinators with respect to their financial life know about it. My own ongoing journey of financial awareness started with Jagoinvestor. A few years ago Manish started the JagoInvestor Forum, a place where investors…
Continue reading →Secure the future of your children with this comprehensive insurance with goal planner! This insurance with goal planner allows you to determine: 1. the insurance amount need to secure college and marriage expenses of two children 2. the amount need to save for college and marriage expenses 3. insurance amount need to provide inflation adjusted monthly expenses…
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