To be an investment winner, start very early.....

(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)  

To be an investment winner, start very early in life....

If there is one thing in investing which can make you a real winner, is the power of compounding. And it works very very silently, but makes a remarkable difference over the longer periods of time. Lets look @ the case of three friends who are aged 50 now and see who won in the race of investing. The friends are Mr. Cautious, Mr. Responsible, Mr. Fun.

Mr. Cautious started investing @ his age 30 by putting Rs 1 lac @ a return of 12% PA. After 20 years, @ the age of 50 his money would have grown to 

Rs. 9,65,000

  

Mr. Responsible started investing @ his age 35 by putting Rs 1 lac @ a return of 15% PA. After 20 years, @ the age of 50 his money would have grown to 

Rs. 8,14,000

Mr. Fun started investing only @ his age 40 by putting Rs 1 lac but @ a return of 18% PA. After 20 years, @ the age of 50 his money would have grown to 

Rs. 5,23,500 

The results are there to be seen. 

# Mr. Cautious who earned 12%, lowest among the three still made good money because he started quite early in life and became a winner @ the end. Time ripened his money.

# Mr. Fun who started very late in his life and could not be a winner despite earning very high 18% returns on his investment. He finished third despite earning very high returns compared to the other two. The reason being he had little time compared to the other.

Key takeaways of this study are: 

# It's important to start investing early in life, even if the returns are comparatively low. That's how Mr. Cautious won the race, despite earning lower returns than the other two.

# Even if you make high returns @ the later stage, you may not make enough money because of the time factor. That's how Mr. Fun lost the race, despite earning 18% returns.

# Power of compounding (POC) is @ work very very silently and effectively.

Sooner you realize the importance of POC, better it is for your financial future...... Because POC makes no noise and it's very silent in multiplying your value of investment.

Experts @ Money Avenues can make you an investment winner by providing right investment solutions.


(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com) 

Bath Tub investment planning....

(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

Bathtub Investment Planning... 

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"Warren Buffett’s Bank of America Deal Sparked in the Bathtub"

"Warren Buffett: I Dreamt Up Bank Of America Deal In The Bathtub" 

"Warren Buffett's BofA Bathtub Decision"

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We do get amused when a billionaire like Warren Buffett says he got the spark to invest $5 billion while bathing in the tub... Don't we?! Definitely I was terribly amused...

And, he made a cool $700 million returns immediately in the process..

But that's the hallmark of the men who always ensure to put their hard earned money to really good work... In simple terms, he makes his money work harder than him. Otherwise how can a man decide in the bath tub, when he has the other options to think like, the dress to wear that day, perfume to spray, watch to put on, suit to wear etc.,

This is a great takeaway for all of us who want to put their hard earned money to work even hard for us...

The next time do not complaint that...

# I have no time to plan my investments.

# I am busy with my office work.

# I am always on the travel.

# @ home busy helping out.

You still have time in the bath right?! Because it's your money and your money is hard earned... 

 

Next time, when you are hard pressed for time, do your investment planning while in the bath... You will never know, the spark can turn into a great investment idea.... 

(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

Skyrocketing health care costs....

 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

  Sky rocketing health care costs.... 

Health care costs in India are rocketing... This is compounded by several factors:

# Innovations in medical science:

Medical science is innovating by the day and such innovations take care of the diseases which were once tough to crack. But such innovations come @ a huge cost.


Innovations in medical technologies: 

Medical technologies have undergone massive transformation in the last several years which has made diagnosis and cure even more accurate. But such technologies come @ a huge cost.




# Drastic changes in life styles:

Our life styles have changed in many ways. Our work, our eating habits, day to day living has made us prone to health risks. And they come @ a huge costs.

What must one do to tackle this?

# Your organization is kind enough to provide health cover to you and to your family. But don't be dependent only on your organization's health cover. During the times of job shifts and transitions, one will be left with no health cover. And during times of extreme distress, the cover may also be insufficient. And @ a later stage if one wants to take one, becomes very cumbersome due to age factors.

# Provide love, affection and liberal health cover for your dependent elders particularly your parents and if they are senior citizens, all the more crucial. There are health policies which take care of the senior citizens.


A glimpse of the future health care costs..........


If one were to spend Rs 3 lac now towards hospitalization,  can you imagine what could the cost after 20 years?

Approx Rs 49 Lacs

It may not cost you more to take a health insurance now... Go ahead and ensure your family's health care.

'Sarve Janah Sukhino Bhavanthu'

 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

Inflation and Poor investing will double punch you...

 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

Inflation and poor investing will double punch you very badly...

 

Let's for a moment imagine you are leaving Rs 1 lac in your bank savings a/c @ 3.5%. Let's also assume inflation to be @ 12% during the time.

After one year, taking inflation into account, what do you think will be the true value of the money?

• It will be exactly @ 1 lac.
• It will be more than 1 lac.
• It will be less than 1 lac.

................

...................................

...................................................

If your answer is the third option, then you can pat yourself for that....

Am sure you would be curious to know what would be the true value of 1 lac after a year......And it's nothing to cheer about......

Rs 1 lac = Rs 91,000

Now you would agree inflation and poor investing will be a deadly double punch........

 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

US debt crisis... In a nutshell

http://www.youtube.com/watch?feature=player_embedded&v=Jjv-MtGpj2U#at=13

Cost of indecision can be huge...

 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

Cost of indecision can be huge..for your financial future.

When it comes to personal investment decisions, indecision takes over the process many a time... And the indecision is compounded by several factors like..


#1: Being extremely busy @ work:

 

Being busy @ work is a great thing, but that should not hamper the other priorities.

# 2: Not being able to spend time on personal priorities.

Remember, your decision or indecision can impact your family's financial future. So have a focus on personal priorities.



# 3: Act of procrastination:

You gain nothing but loose a lot on procrastinating; more so in your personal investing. So never procrastinate...

   
# 4: Lack of expert guidance:

It is indeed a very genuine reason for indecision @ times. The question of who to rely on, for sorting out your personal investment strategy.

 # 5: "I can do it myself" syndrome.  

It's practically a difficult task to perform, with our careers getting extremely demanding; internet as a source of information is good @ times and very bad most times. The amount of information download makes it very difficult to arrive @ conclusive decisions.

And many more factors contributing to indecisions...

The above listed factors lead to indecision @ most times, and the cost and impact of indecision can be felt in very many ways, but crucially it can be felt in...

• In securing, your and your family's financial future.
• In your over all returns. 

Inflation can play havoc if you remain indecisive:

Cost of premiums for health and life insurance, cost of children education, cost of retirement will be directly affected by rising inflation. If planned well, inflation can be tackled very effectively.


Power of compounding will help you, if you turn decisive:

Money is time, as demonstrated by Power of Compounding. If you allow money to grow over the time, the power of compounding rewards you with fabulous returns.

For eg., If one leaves Rs 1 lac in bank account for 20 years, he just gets Rs 2 lac in all, which is @ 3.5%. Alternatively, if he invests 1 lac @ 15% product, he gets close to Rs 17 lacs. In the first case, the investor is punished for his indecision by leaving it in a bank a/c. In the second case, the investor is rewarded by power of compounding for his intelligent investing.

Now, it's your choice to turn decisive or not....... 

Rely on the experts from Money Avenues to be more decisive on your personal investing.
 
 

 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

Take Control... NOW

 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

Take control... NOW...

.... of your Personal financial planning...


Its good to be very busy @ your work, in your career, in your job... It's a sign of growth. But ignoring your personal finances for that sake is a certain peril. In an one day match if a team is chasing down a target, it has to keep the following things in mind before formulating the strategy: the wickets in hand, the run rate, the overs remaining. If any one is compromised, the game plan goes awry. Multi tasking is the key...

Same is the case with our personal lives. We must take control of our personal financial plan even if we are busy in our work. And thinking about it only during the tax saving season is the most unwise thing to do.

First things first....

 

# 1: Check your insurance cover, as a first priority: 


It's important to check your level of insurance cover. Is it sufficient or is there an urgent need to upgrade it.. Remember, you must atleast have 5 times of your annual income as your insurance cover. In lay man terms, the insurance is the cover for the family on one's absence.


5 times * Your annual income = Ideal insurance cover

And, in case, if you have fulfilled your insurance needs only to fulfill your tax obligations, then it demands your urgent attention NOW....

And why an urgent review?...... Because, uncertainty can knock @ your door any moment.... Risks are definitely on the rise.

 

# 2: Make your money work, very hard:


Because you are working really hard for your money..

aren't you? 

So, why would you be lenient when it comes to your money?

Money, if left in a bank savings a/c can only do this...

Imagine, if you leave Rs 1 lac in bank savings a/c for 20 years; Can you guess how much could it have grown after 20 years?

Rs 1.99 lacs

Imagine, you had put the same Rs 1 lac in an avenue which would have earned 15%, can you guess how much could it have grown after 20 years?

Rs 16.36 Lacs

That's the difference, and won't you know it's a huge difference to ignore... Just by smartly investing if you are able to make big returns, then why make your money sleep? 

And that's because of the power of compounding.......

ACT NOW..... Take control.... NOW



Speak to experts @ Money Avenues to act now and to take control of your personal financial planning...



 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

"Uncertainty" is certain.. For sure...

 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

"Uncertainty" is certain:

After a couple of years, the global economies and markets are back to square one.. sort of a rewind 2008. Thanks to the credit downgrade initiated by S&P on the US economy.

But be assured, such headlines may become a very common sight in the future for the simple reason that today's world is inter connected like never before. Inter connected in every other way; business, markets, trade, travel etc., And India will certainly catch cold if the US sneezes and for that matter the whole world will.. 

The latest in this saga has been the downgrade of the US economy from AAA to AA+ by a rating agency, S&P which has put the US economy in a tight spot. The after effects are that, the world has developed cold after the US sneeze. Stock markets have crashed, gold has touched the peak, Oil prices have fallen. In essence, negative sentiments have taken over the investors world over. 


The impact can be felt across the globe, across the sectors and industries, jobs, outsourcing, foreign trade etc.,
But, what does it really make out for an investor like you and me?..

This is no crisis @ all for you and me, provided you have the basics in place. 

Life is like a batsman playing in a cricket match; All the six deliveries in an over may not be the same and they can attack the batsman in very many ways. One can come on to the head, another one to this chest, so on and so forth. But a cautious batsman ensures his basics are in place before he gets on to his innings. 

 

 # 1: Adequate life insurance cover:

Global uncertainties are not restricted to economic issues alone; security risks are rising with the spate of terrorism across the globe. So called west like Britain is burning. Our jobs and careers have made us extremely mobile that we need enough precautions to handle such security uncertainties. Have adequate life insurance cover to secure your family's financial security.

# 2: Have enough health cover:

Health care is going to be an area of major concern in the future. This is compounded by our sedentary work styles and rapid changes in our life styles. Remember, even the mobile phone which has become an integral part of our lives can cause health scares, if the recent reports are to be believed. An added incentive in our country is that, the health covers give us tax exemptions, more so for people who only care about saving taxes.


# 3: Save wisely: 

Rainy days are sometimes unavoidable in our lives. But if planned and saved wisely, one can spot a rainbow in a rainy day. So save wisely, not only for good days, but also for tougher and uncertain days. That's when you can spot a rainbow in a rainy day.




# 4: Invest Intelligently:

Beware of inflation; its going to impact us in every way in our lives. So just saving is not enough; investing also is not enough; Invest intelligently. The power of compounding will take you past the monster called "Inflation". And remember inflation and power of compounding work very very silently.




# 5: Have a financial plan:

When we make a travel, we plan. We plan the departure, stay and return minute wise. If we can do that for travel, why not for our lives too.. We should have a basic financial plan which can ensure enough life insurance cover, better saving and intelligent investing. When we micro plan smaller things in life, we should not loose on the bigger picture in life. Have a financial plan for better financial future. And the rest will fall in place.

 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

Financial Planning - Play the WALL's way...

 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

Financial Planning -Play the WALL's way....

Financial Planning is like playing a test match, and more precisely like the "Wall" Rahul Dravid's way... It's all about 3 Ps... Patience, Perseverance and Planning. When the basics of the life game like life cover, health cover, wise saving and intelligent investing  are in place, the plan is all about smart execution. 

And remember, even the "Wall" needs a coach to fine tune his game and his game plans. So rely on a Financial Planning Coach to fine tune your financial future...

Speak to experts @ Money Avenues to play the WALL's way...

 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

Ladder for your financial success...

 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

Ladder for your financial success:

Climbing up the career ladder will alone not make you financially successful. You need to climb up the financial ladder to be financially successful.

Step 1: Don't just save; save wisely 

Money never sleeps.. We put the money to sleep. Remember, when we sleep we can still make money. But that's not the case with money. When money sleeps, it really sleeps. Don't just save. Save wisely... Don't forget, your money is hard earned and not earned through lottery.

Step 2: Don't just invest; invest intelligently

There are few things good and bad, which are quite silently @ work.... Bad is Inflation, and the good is power of compounding.... Inflation can decimate your savings; power of compounding can multiply your money over the longer term.. The choice is ours..Don't just invest; invest intelligently...


Step 3: Make the beginning in a small way:

Warren buffett made his fortune starting with few dollars in his wallet. Always look to build through small steps and you will reach your financial goals.

Step 4: Long term wealth creation is the key

Key is to create long term wealth. Remember, astute investors have created wealth over the decades by carefully nurturing. But the key is we need to take initiative to create wealth. Left alone, the wealth does not grow on its own..

Step 5: Have adequate life insurance cover

Key to financial security is to have enough and ample life insurance cover. After all, with the uncertainties looming large in the world threatened by global terrorism and security risks, its important that one needs to give his family a full financial security. Life insurance is the best tool to give that security.

Step 6: Know your goals

It's important that one needs to understand the goals. Because the goals are tied to your financial costs. Children future, retirement etc are few examples of goals. And they come with a definite cost. Have clear goals.

Step 7: Understand your financial priorities:

Priorities are as important as goals. Knowing one's priorities determine your debt:saving ratio. Remember, there are two types of EMIs.. Equated Monthly Instalments for your debts; Easy Monthly Investing for your saving.

Step 8: Make a plan. 

Make a financial plan. It's difficult to predict our future outcomes. But by making a robust financial plan, one can navigate the uncertainties in the future. It's important that the financial plan must be updated to the present times. A plan made five years ago, may not be relevant for today. So keep a track and make changes whenever required.

 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)