Skip to main content

Cobbler, Cobbler, Mend my Investments!




I know a relative of mine who opts for an Insurance policy for every investment need of his. He has a friend who is an Insurance agent, and whenever my relative has surplus to invest, he calls his friend and invests the amount in whatever plan his friend suggests. So, let me ask you a simple question – is this the right approach to manage one’s surplus monies? I am sure most of you will be with me in saying a big NO. It is like visiting a carpenter and asking him to fix your fever. All our investments are to be done with a certain perspective in mind. You cannot choose one asset class for all your investments and vice-versa. For managing your investments the right way, you need to take note of few things.
1.       Qualification of your Financial Planner/Advisor: Is your Financial Advisor aptly qualified to guide you on your investments? Or he is simply selling you the products which give him the maximum commission. Your investment is not to be treated as a source of more revenue for your Advisor. You are investing because you want your money to grow and beat inflation. So, you should go to an Advisor who is professionally qualified to do that.
2.       Are you taking holistic approach towards your investments: You should not take your investments randomly. Each and every investment of yours ought to have a purpose, there should be a financial goal assigned towards it. Only if you are serious about your money, will your financial planner be serious about you.
3.       Don’t do same kind of investments every time: Your investments should be a basket of different financial products and not products from the same basket. That doesn’t mean you should have each and every product available on the face of this earth. It simply means your portfolio should be diversified enough to take care of the market highs and lows. It should not be hugely diversified.
So, make a note of these points and next time you visit your financial advisor, ask yourself a question – Are you visiting a Cobbler to mend your investments?


Charu Hastir, CFPCM is founder of www.theriteplan.com. Rite plan is an online financial planning portal created to achieve a single objective of providing easy and Do It Yourself Financial Planning to netizens. Rite Plan is wholly owned by Tikkun Olam Financial Planning Services LLP. Please visit: https://theriteplan.com/index.php?route=common/home/

Comments

Popular posts from this blog

Is everybody else richer than you?

Our neighbours are going on a vacation again…
OMG! How many times he changes his mobile phone…
What! She bought a new car…

I am feeling stuck
You open your Facebook account and see most of your friends enjoying, having fun time, going on long trips, showing off their newly bought car as if it is just a toy car. In the end, you log out from Facebook wondering what on earth are you doing? How do they get to spend so much of their money while you are entrapped in this vicious saving cycle – saving for your Retirement, saving for your child’s education, paying EMI for that Home loan of yours, etc. etc.
What we forget to understand is that there are sides of people’s life which we can’t see. We are only seeing the happy parts – thanks to Social Media. We don’t see the hardships people undergo to possess what they have, or worst their wrong money decisions and its impact on their life in the long run.
PEER PRESSURE Peer pressure is the direct influence on people by the peers (people who are pa…

How to set your Long Term Financial Plan?

Let me start this blog with a question? Do you dream? I’m sure all of us have dreams some fulfilled, some yet to be fulfilled. How do you hope to accomplish the unfulfilled dreams? These dreams do surely need financial aid in the form of savings. And for that you have to think about your financial future. A survey done by Aviva India reflected that Indians lack the discipline to create robust financial plans to secure their future hence exposing them to uncertainty.
If you don’t have a financial plan, it would be difficult to make your money work for you. Without proper planning and goal, your money in the bank account will yield no results. Here are a few steps to help you build a financial plan.
I.Financial Assessment
You need to know where you stand in terms of your finances. Your current assets, liabilities, savings, and your financial goals. For making a picture, you need to have the frame first. Similarly, for building a financial plan you need to have a fair idea on your curren…