Sanjay Matai, The Wealth Architects

The Most Authentic Guide on Personal Finance and Investments


(Funny) Words of Wisdom : "Someone stole all my credit cards, but I won't be reporting it. The thief spends less than my wife did." ~ Henny Youngman

Do I Put My Money In Capital Protection Schemes?

We hate losing money. We want 'guaranteed & assured' returns. We don't like to take risk.

And since equity does not offer 'guaranteed and assured' returns (in fact, forget about returns, there are chances of losing the capital itself), that we find only a tiny minority of the investing population putting their money in shares.

Well, nothing wrong with it. If someone doesn't want to take risk, its' perfectly fine!

Children's Day Special: You Have To Do NOTHING Special

Yes, you read the blog title right. You DON'T have to do anything different for your child.

As I have repeatedly advocated, when it comes to your personal finance and investments...
... what is good for you, is good for your child too
... the word 'child' in any financial product is just a marketing gimmick.

In other words...
... do your financial planning as per your financial profile
... avoid the so-called 'child-oriented' insurance policies, investments, mutual funds, etc.

Right Insurance For Your Child Going Overseas For Education

Lakhs of students nowadays go abroad for higher education. And, once you have chosen the 'right university' and the 'right course' for your child, don't forget to buy the 'right insurance' too.

In fact, given the high costs and risks involved, this should be done simultaneously.

Listed below are certain salient aspects of a typical Student Travel-cum-Medical insurance policy.

Buy Only Term Plans... And Buy Them The Smart Way

Why you should buy only the Term Insurance has been discussed — by many others and me — many times in the past. (Must Read : My name is Insurance and I am not an Investment).

I now discuss how to do it the smart way.

I have divided the important points into two categories — Basic Tips and Smart Tips.

Beware Of The Gambler’s Fallacy

Suppose, you toss a coin 9 times and for all the nine tosses you get a ‘heads’.

Then, for the 10th toss it appears so natural that most people will predict a ‘tails’.

This is known as Gambler’s Fallacy.

Just because it was 'heads' on nine consecutive previous occasions, it is wrong to assume that the 10th toss would "most probably" be a 'tails'.

Insurance is a BAD investment, but GOOD loan collateral

You are well aware that loans, where you don't offer any security to the bank, cost a lot in terms of the interest rate charged. For example, your personal loans or the credit card outstanding balances.

As such, you can save a lot on the interest cost, if you can provide a fall-back option i.e. a collateral to the lender. I had, sometime back, discussed the 11 Salient Features of Loan Against Securities and why Loan against Gold is a smart idea indeed.

In this regards, insurance policy is another excellent product which you can offer as a security.

Your Emergency Fund Is Utterly Useless If...

There is no denying the importance of an emergency fund. These are highly uncertain times. Job loss, accident, natural disaster, medical emergency, car breakdown, etc. can happen to anyone, anytime, anywhere. And such unfortunate incidents may require large sums of money that can upset our financial balance.

Having money handy to meet such unforeseen, irregular and unexpected expenses
- spares us the mental agony of arranging money at a very short notice
- protects our long-term investments from such shocks and
- gives us time to realign the long-term finances in line with the new financial realities, if need be.

You Learn A Lot By READING... And Even More By SHARING.

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Ignorance is like a SIGNED BLANK CHEQUE... anyone can MISUSE it.

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... TRIPLE BENEFIT ...

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