Can you visualize yourself twenty years later....

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at:  reachyourviews@gmail.com)

A lot of people feel retirement is ages and ages away; hence think they have more than enough time to start saving for their retirement. And that's a real bad idea as procrastination breeds procrastination. 

At Stanford and various other universities, computer scientists, economists, neuro scientists and psychologists are teaming up to find innovative ways of turning impulsive spenders into patient savers.  

Standford researchers seem to have found a solution by nipping this procrastination problem in the bud by experimenting with a virtual reality world which assigns a specific look to the participants who can have a glimpse of their aged visual of themselves. If I want to see my face resemblance after 20 years, this technology precisely helps to do that. 

But the crux of the issue is that, are we ready for our retirement financially after fulfilling all our family and financial commitments.....

Interestingly, findings show that young participants who saw their virtual aged images in the screen said they would save twice the amount of their peers who didn’t view elderly images of themselves. So aging process is scary for most of them, but inevitable...

I roughly attempted to see myself 20 years later and really got scared, not for looking old... but when I thought about my financial future after 20 years.... 

Aging is a natural process.. but plan it wisely and retire peacefully....

Do speak to experts @ Money Avenues to know more about investment opportunities and financial planning for your retirement.

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at:  reachyourviews@gmail.com)

Missing the opportunity...

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at:  reachyourviews@gmail.com)

Amazing study on the people on money....


http://www.youtube.com/watch?v=ZsN8FUV9nS4&feature=player_embedded#at=269


My primary interpretation is that "In general, people miss opportunities around them to make more money out of their money (of course not by this way of making money, as this was just a study).... 

The reason being we are so pre-occupied with our day to day life that we tend to miss out opportunities like the people who totally missed to see the money tree in this video...


Do speak to experts @ Money Avenues to know more about investment opportunities and financial planning. Otherwise YOU would miss on opportunities like the people who missed to see the money tree..

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at:  reachyourviews@gmail.com)

Ten definitive financial tips for ensuring your child's future...

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at:  reachyourviews@gmail.com)

It's going to be tough and tougher to fulfill the aspirations of the kids of today... Their dreams are getting unlimited and unconventional... The dreams come at a huge cost.. Not so with us when we grew up... It makes a compelling case for planning for their future. Here are ten effective tips for ensuring your child's future...



1. First things first; make your financial plan


 









Fundamental aspect for planning for your child's future is to first plan for your and your family's future. Then comes the other plans for your family. 

A financial planning coach will be an ideal person to plan out these things.



2. Ensure financial security by covering and comprehensively insuring:

As a responsible parent, its your duty to ensure no mishap ruins the future plans for your family and kids. Ensure you are adequately insured which can give immense financial security to your family.

A financial planning coach can help you assess your needs and advice accordingly..






3.Identify key goals for your child's future, RIGHT NOW:

It's important that the goals are first identified for planning their future.

The goals can be -

School education 

College education

Entrance coaching for higher education

Overseas education

Everyone carry dreams for their children and their future.. But make it more methodical and systematic by planning for them. 

A financial planning coach can help you identify many more such goals and help plan for them too...

4. Plan for their future, RIGHT NOW:





























Don't delay this process. Whatever goals you aim for your children, plan it Right Now... There is a definite financial cost for the delay one has to pay...

A financial planning coach can help you plan for the future right now...



5. Make a comprehensive financial plan for your child:


















With the help of a financial planning coach, you must make a comprehensive financial plan keeping the goals and the objectives in mind for their future. Not making a structured plan will lead one to no where in the current dynamic scenario.



6. Education is key; plan it RIGHT NOW:

Education is the key for the kids' future. Give them the best by planning for it right now. Proper planning can take you to greater heights in terms of giving them the right kind of education.



7. Plan based on a precise target:

Any plan which does not aim @ a target is of no use. Whatever goals being planned should have precise targets which should be measurable, attainable, reasonable and time bound targets...


A financial planning coach can assist you with targeted planning.


8. Beware of "Expect the unexpected" factor:

Planning for children is like playing a cricket ODI. Before getting onto the field one must have a clear game plan. But a smart captain will always expect the unexpected and have ways to handle them. A coach's role is to help the captain with such plans to tackle unexpected situations.

Same is the case with financial planning, as external and internal factors play out now and then..

More so with the kids, as their educational systems are undergoing massive transformation. Fifteen years later, one can hardly guess what kind of scenario would be prevailing then...

A role of financial planning coach is important in this perspective...



9. While planning have an eye over the future costs:

Costs of education are expected to escalate in the future by leaps and bounds. In my earlier blog updates, had estimated future costs to spike exponentially. 

For eg., Professional education which costs Rs. 7.5 lakhs now can cost Rs 61 lakhs after 15 years. 
Foreign education now costing Rs 15 lakhs can cost Rs 1.23 crores ( Yes, 1.23 Crores) after 15 years. These are based on some broad estimates of future costs and they are fairly realistic. 


A financial planning coach can guide to handle these rising costs and maximize your returns accordingly.

10. Keep a track on the plan, ALWAYS...

Mere planning doesn't work out; they have to be constantly monitored and re-adjusted according to the future scenario. That's why the role of financial planner is very crucial as he is the one who helps you monitor and review the plan.


Do talk to experts @ Money Avenues for making comprehensive children plans.

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at:  reachyourviews@gmail.com)

Seven financial parenting tips for your kids...

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at:  mailvgopal@gmail.com)

Financial matters are no longer matters pertaining only to adults, and nevertheless not all adults are glued on to the financial matters themselves. Kids of this age are growing fast and smart, compared with our childhood and the generations before that and the world around them has changed their lives and outlook drastically. 

It's important to involve kids in the process of financial planning in whatever way they can understand and appreciate depending on their age. It's also the time you should act as a responsible financial parent and teach them the basics of money, money management and values of life. 

Here are seven tips for becoming a responsible financial parent:

1. Open a savings bank account for your kid and inculcate the habit of saving:

Open them with a bank account and get them familiarized with the money, however little it may be and however young they may be. That's their baby step in understanding money matters. It also gives them a sense of pride of having a bank account @ an young age which itself could be a good sign of financial responsibility. More than anything else, this would teach them the importance of independence at a very young age...


2. Give them a daily/weekly/monthly budget to spend:

Assign them a budget to be spent on a daily/weekly/monthly basis. This sends a very important message to them, that they have to live within the means. They understand, at an early age, as to what is being spent and how it is being spent. Two, that the money is not easy and should not be taken for granted, is another important message. Three, they adjust to spend within the allocated budget.


3. Make them achieve a target and reward them too: 
 

Give them reasonable and attainable targets for doing things and reward them with cash prizes (and of course to be put into their bank account :-) . Targets could be on their studies, extra curricular activities etc. 

Messages are three in this: One, they develop the competitive spirit @ early stages. Two, money comes as a reward and not as a free gift. Three, you excel and get rewarded.



4. Say No to "One" habit of theirs which may have a serious financial implication:

Knock off one unwanted habit of your kid which has a financial implication for you. It could be a food habit or a wasteful entertainment expenditure or anything which drains your money. Act now; say no to that habit, which will go a long way in understanding the importance of financial responsibility.



5. Encourage the kid to acquire a new skill:

Future is about the skills the kids acquire now. Encourage your kids to take up learning a new skill which can be career oriented and beneficial @ a later stage. A foreign language can be a good example. But any skill which can add value to their future will be a good investment. And don't forget to reward them for making progress in the new skill development.

6. Teach them the most important value "Money isn't everything":

Share with them the values of life., mainly "MONEY ISN'T EVERYTHING"... 

Use story telling and your own experiences with them to emphasize that there is a life beyond money. Encourage them to look at society at large in promoting peace and harmony and human values.

Remember, money and wealth you leave behind for them may not last beyond a point. But the values you leave behind for them will go on for generations.... Think about it.

7. Plan for their future and tell them too:

Plan for their future RIGHT NOW!

Make a financial plan for securing their future by doing the following things:

a. Make sure you have enough and more life insurance cover for your family's financial benefit. It's a paramount security for your family.
b. Make a regular saving for their future which can grow as a big corpus @ a later stage.
c. Make separate plans for their college education, post graduation, foreign education and marriage expenses.

Most importantly, broadly share with your kids of the plans you have made for them. It's to let them know that you are responsible and meticulous about their future. 

Do speak to the experts @ Money Avenues to secure your kids' financial future...

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at:  mailvgopal@gmail.com)

Seven myths of investing and financial planning

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to reachyourviews@gmail.com)

We are growing in our life and our income levels are steadily rising; so does our bodacious goals about our own future. It's highly important that you get the basics right in terms of securing your financial future. Lots of myths hang around the financial planning; let's understand them one by one...

Myth No: 1 - Investing involves tension:

1.  "No tension for me. My money is safe in my bank"

2.  "Don't want tension. My capital should be safe"

3.  "Don't want tension. I am not keen on returns"

What in life has no tension. We have cleared our school, college exams; got good courses in PG with lots of tension; cleared tough job interviews; waited for right life partners; got admission for kids in the school which is no less easy these days.... So it is a continuous  process.

On the other hand, you should not feel tensed for  planning your investments, but, for not planning your investments. No results come with least efforts. After all its your hard earned money and you need to put in efforts to understand and make your money work harder. 

A financial planning coach can make your planning easy...

Myth No: 2 - Planning is a time consuming and wasteful exercise:

It may be time consuming but certainly not a time wasting exercise. After all its your hard earned money and you need to spend time on it to make it effective. If this is not your priority list, it will not augur well for the financial future. Anything which earns should money not be a waste of time. As your work earns you money, your money earns more money.... 

A financial planning coach can help you rationalize your time and efforts and guide you maximize the returns.

Myth No. 3 - It adds no value to me:

So OUTSOURCE....

Your core is job something else and  not investing and managing it. It's just a part time job for you. Leave it to a financial planning coach whose job is to manage your money and handle your planning. 

We are in the world and era of outsourcing; It's better you outsource your financial planning needs to a professional.

Myth No. 4 - One needs pots of money to make a plan:

Millionaire or not, everyone needs financial planning. It's nothing to do with the size of wealth one owns. After all every one has financial goals and objectives to be met @ a future date.

A financial planning coach will be able to guide you through... 

Myth No. 5 - No idea about the future:

Yes. No body has... But that should not deter you from making a plan. On the contrary, you must plan when you are unsure of the future. With the average shelf life of our jobs/careers coming down, its all the more important to plan well in advance for our financial security.

Seek the guidance of a financial planning coach to understand your priorities and goals and plan accordingly.

Myth No .6 - No idea what I want:

Many times we just don't know what we want. That's true in financial planning as well... Those are the times we just to decide not to decide anything. Indecision becomes a decision. I may have goals and objectives, may not know how to attain them. I may have multiple goals, but no idea to prioritize them and make a plan. But it's critical to have gain some idea about what one wants...

Who else other than a financial planning coach can guide you through on this dilemma...

Myth No. 7 - Not now; I can do @ at a later stage. 

The key mantra to financial success is " Earlier the best". It's better to plan early as there is a huge cost of delay one to has to pay. 

The cost of insuring goes up every year @ every age...

The returns you accumulate over the years depends on how early you start...

The investment options diminish as one grows old... 

Do your financial planning and do it right NOW.... A financial planning coach will guide you through...

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to reachyourviews@gmail.com).

Value of human life...

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to reachyourviews@gmail.com)

Some times a person's life is considered less precious compared to the person's body parts.. Take a look at the exhaustive list of celebrities who have insured specific body parts ranging from crossed eyes to legs to chest hair to nose to smile to moustache to teeth to fingers to the voice to the whole body... And the list goes endless....

http://www.life.com/gallery/34542/image/2696094




Now in this perspective you will understand how precious our life must be...

By the way, have you rightly insured the most precious item in your body?....

                    YOUR LIFE...

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to reachyourviews@gmail.com)

Seven perils of avoiding financial planning

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to reachyourviews@gmail.com)


Peril # 1: Possibility of being under insured on your life:

The most serious risk one would face is the possibility of being under insured on life. Due to various reasons, people tend to remain under insured which can be a serious impediment to the person's family's future in case of a mishap. A financial planner can guide you to get a comprehensive life cover to secure you and your family at various stages. Remember your insurance needs go up as you climb up the income levels.



Peril # 2: No structured planning for achieving goals and objectives:

 


















Plans and objectives are just words if they are not put on actionable agenda. The dynamics of life provides little time to put these things together. A financial planner can do it for you by identifying your goals and objectives; with the wider vision on various products based on various goals and objectives.

Peril # 3: Leave most of your money in the bank account which earns nothing:



 

When you work very hard for the money, why would you want your money to stay idle and not work hard for you?

A financial planner can guide you to maximize the returns of the money you earn the hard way.






Peril # 4: Loose attractive opportunities for your money to earn more:

 














Being pre-occupied with your other priorities on work and home can deny you good opportunities to maximize your returns. A financial planning advisor can effectively do that for you as he/she has a wider vision on products based on goals and objectives.




Peril # 5:  Listening to informal sources & unsolicited advices on investing:

Hearsay investment planning can cause bigger perils, the reason being information is freely and widely available all over the place. More such advices can only lead to more confusion and chaos. Which will directly lead to inaction and indecision on the planning process.

"My club friend suggested me this option"


"My colleague suggested that option"

"My friend suggested the other option"


"I checked in that website for this option"

It's better to consult a financial planning advisor to get more clear ideas.




Peril # 6: Loosing track of your core investment agenda:

You may have goals and objectives for your life. But impulsive and hearsay investment decisions may hijack the agenda. Planning your goals and objectives is one part. But the implementation and review are the most important aspects of the plan. Stick to your core plan and the financial planning advisor will do the re-adjusting job based on the changing needs.




Peril # 7: Time constraints will be major issue when you manage on your own:

We just don't have time for things which are not our regular priorities, other than our work, though financial planning is a key foundation for our financial future and security. It may best be left to an advisor to plan and run it for you effectively...

Do speak to the experts @ Money Avenues to secure your financial future...



(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to reachyourviews@gmail.com)

Seven myths of financial planning

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to reachyourviews@gmail.com)

Myths of financial planning. After all, its your hard earned money...

1. Am very busy; no time to plan personal finances:

 

















Yes. All are busy. Busy @ work, busy @ home, busy on tours. But they are not the excuses to avoid the financial planning. After all, its your hard earned money and precious life to secure.

2. I don't need a plan - anyway I do invest money

 
























"I do invest money as and when I feel like".

"I do invest money as and when I get time".

"I invest when I need to plan for my taxes".


But these are not the ways to approach financial planning. Financial planning is a very simple exercise to follow and definitely not rocket science.


After all, its your hard earned money...

3. I can plan for myself - get info in the internet:

You can certainly plan it for yourself. Information is flooded everywhere.  But unfortunately that's not your priority always. Your work is... Leave it to a financial planner whose job is just that. 

After all, its your hard earned money...

4. I can't decide my future goals and objectives right now; they keep changing:

Yes. Life is dynamic these days; goals and objectives keep changing. Things are not the same; days, weeks and months later. But that should not deter from planning for the future. Its all the more critical to make financial planning to handle the dynamic life. Financial plans are to reviewed and revisited to make them relevant to the current scenario. 

After all, its your hard earned money...

5. My colleague's friend's doctor cousin helps with me with investment ideas:



 
























Soliciting or taking financial advices from people who are not directly linked to the field is a very dangerous trend. Seek the expert's advice on investments. Say no to financial planning based on hearsay.

After all, its your hard earned money...

6. No big deal in financial planning exercise:

It's a big deal to make financial planning for securing our financial future.

•  Do you have adequate life cover?
•  Do you have enough health cover?
•  Am saving I saving regularly?
•  Am I investing the right way?

Just a sample check list for you........ 

After all it's your hard earned money.....





7. Am too young or (too old) to plan:


 
























One is not too young or too old to plan. Circumstances in life might have prevented doing financial planning at various stages. Better late than never... Planning @ the younger age is the ideal thing.  

After all its your hard earned money...




(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to reachyourviews@gmail.com)