A retirement planning calculation is defined by its inputs and assumptions. This article discusses what portfolio return we should assume while planning for retirement. A return has little meaning as it has to be benchmarked to inflation. Also, we should not forget to factor in taxes. Another common mistake investors make while planning is using…
Continue reading →A reader writes, “I am a subscriber to the freefincal newsletter. They have been very insightful. Portfolio rebalancing is very easy to understand but equally difficult to implement, it needs a lion’s heart to move from equity to debt. I have one question about what can be treated as debt”. “I have been investing in…
Continue reading →A reader says, “I have a query regarding mf investment vs loan prepayment. I have an SBI MaxGain home loan account where I can park surplus funds and save on interest. Now I’ve approx 20L outstanding there, and I’m about to receive approximately the same amount from a different venture”. “I have two options. 1….
Continue reading →Phrases like “guaranteed income” or “guaranteed returns” are used to sell thousands of insurance policies or products because they strike an emotional chord within us. Sadly, even in 2024, many investors are unaware of the risk they pose to our lifestyle and our aspirations. So many investors want to buy guaranteed income plans, arguing that…
Continue reading →So many investors search for the best investment strategy and products offering the highest returns (and lowest risk and tax!). When we tell them these do not exist, they get irritated and move to someone who hopefully can offer them these. Investors want constant confirmation that they have chosen the right products and are on…
Continue reading →In this article, we discover what a 35-year-old reader who wishes anonymity should do to retire by age 55. He is married to a homemaker aged 30. We shall plan for retirement income from when he reaches 50 to when his wife (or, generally, the younger spouse) reaches 90. Therefore, he has 15 years to…
Continue reading →This article compares my stock portfolio with an equivalent investment in a Nifty index fund and the Nifty 100 Low Volatility 30 TR index. We post this comparison each month. Before we begin, new readers need to appreciate the context of these investments. I started direct equity investing only after achieving a comfortable level of…
Continue reading →Paralysis by analysis is a common issue in personal finance, affecting individuals in varying ways. It is, however, somewhat healthy, often indicating a concern for money and its future. Taking time to make a decision, be it a week or a month, is acceptable, provided a decision is eventually made. If not, it signals a…
Continue reading →A Let’s Get Rich with Pattu podcast listener writes, “If I have invested ~40-50% of the house price, is it a good idea to take out that amount and pay as a downpayment, or take the max loan amount possible, keeping the investment intact, paying more EMI and hence lesser investments thereafter till the loan is…
Continue reading →This is a debt mutual fund screener for portfolio selection, tracking, and learning. It also includes hybrid funds that invest in bonds. It will satisfy investors who wish to invest in money market funds, banking PSU funds, etc. The credit quality of the bonds in the portfolio and the bond maturity profile can be tracked….
Continue reading →In response to Portfolio Audit 2023: The annual review of my goal-based investments, a reader asks, “Why are you recommending index funds when your portfolio has beat the market?” If you take a casual look at the growth of my retirement portfolio*, it may seem like my portfolio has comfortably beat the market. *compared with…
Continue reading →In social media forums, many investors ask if they could stop their SIPs because the markets have hit an all-time high. We show that this is a needless and pointless thing to do, The market hitting an all-time high is a fairly common event. This is not some “signal” for the market to “correct”. The…
Continue reading →A Let’s Get Rich with Pattu podcast listener says, ” I learned about your podcast today and watched an Episode on Stocks vs. MF Investing on YouTube. It was interesting and packed a lot of common sense in a simple and interesting way. I have a question which I request you to answer”. “I shall…
Continue reading →This index fund screener is based on tracking error and returns difference wrt benchmarks (aka tracking difference). The screener will help users evaluate how efficiently an index fund has tracked its underlying benchmark. It will also help to understand how tracking a midcap index or the Nifty 100, 500 differs from tracking the Sensex or…
Continue reading →Many investors seem to believe their long-term goal planning is done if they choose an index fund or two! Unfortunately, an index fund is just a product. Choosing a product without due process won’t get us anywhere unless we ride on luck. The first step is always when we need the money and how we…
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