financial planning Archives – Page 2 of 3

Do you have a written investment strategy?

January 26, 2016 by Vipin Khandelwal

It is not news that most ‘investors’ do not have a thought through investment strategy. Asking for a written one is a far cry.

In good time, you would agree that your investments continue to be random acts driven by popularity, hearsay and need to just get the best returns.

The same randomness is equally visible in the not so good times. Stop systematic investments, sell current investment due to panic or take a vow to altogether avoid any market linked investments are some examples of these random acts.

If you were to ask me the difference between having a strategy and not having one, it would be that an investment strategy helps you stay the course. You know why you are doing what you are doing.

An investment strategy holds your investments together and hopefully, you too. It keeps you sane. It is difficult to waver a mind that understands the ‘purpose’.

Call it a set of road rules in your journey of financial independence.

What is an investment strategy like?

The investment strategy is a set of guidelines that direct your savings towards investments in a way that help you meet your financial goals.

I am sharing with you the investment strategy for one of my client’s – let’s call him Bruce Lee.

Life Insurance Term Plan: 5 practical buying tips

January 4, 2016 by Vipin Khandelwal

Over the last couple of weeks, I have had several queries on life insurance. Thankfully, the readers were aware that term plan is the right insurance product to buy.

Yet, when it comes to actually buying the term plan product and decide which policy to go for, some questions do remain. This post is going to deal with those questions and attempt to give perspectives, which you can use to find your own answers.

The questions around buying life insurance term plan

The most common questions are

Should one buy term plan online or offline?
Should one buy it from the insurer with the best claim settlement ratio?
Should one break the required insurance cover into multiple policies or buy just one policy?
Should one select regular premium or lower premium payment period option?
Should one buy it from LIC or a private insurer?

I will try and use the learnings from the interactions with my clients, readers as well as my own experience, to offer various perspectives. I would be happy to read your thoughts and feedback in the comments too.

Let’s go.

Retirement Planning for Me – What does it take?

February 22, 2017November 18, 2015 by Vipin Khandelwal

As a part of my client engagement for financial planning and investment advisory, one of the key goals that is discussed and planned for is retirement.

Typically, retirement has been the most undervalued goal. It never seems like a priority.

Recently, in my latest engagement, I was working on calculating the retirement needs of my client – let’s name him Deepak.

Deepak is in his early 40s, in a well-paying job, expected to do well in the future too. He wants to ensure that he can provide enough for his daughter’s education and his own retirement.

“When do you want to retire”, I ask.

“At 55 age”, was the immediate reply.

“OK, let’s work this out.”

As I worked out the numbers, I saw something terrible. With the current situation, Deepak cannot retire by 55. In fact, he might have to well carry on working till over 65 years of age.

I am working with Deepak to find out the best solution to help him reach his goals. With some adjustments to his portfolio and investment habits, it would be achievable.

So, that was Deepak.

But wait, don’t I need a retirement plan for me?

Who should be your investment advisor?

May 10, 2016August 2, 2015 by Vipin Khandelwal

So, who should be your investment advisor? The mutual fund distributor, the insurance agent, the bank RM or your uncle? Let me try and get around this question by looking at the other side. But first, a story from my personal experience. The story of the Bank Relationship Manager A few years ago, I was … Read more

Yes, you shouldn’t do financial planning

July 14, 2015 by Vipin Khandelwal

My client sent me an email a couple of days ago. He replied to my suggestion to get his financial planning done. What he was trying to say in his reply is why he shouldn’t be doing financial planning. You can read the email here. I have now written my response to his email. Here it is. Read … Read more

No, I don’t want to do my financial planning

July 22, 2015July 13, 2015 by Vipin Khandelwal

I recently received this email from my client. I thought it will resonate with you and so I am sharing it here. Read on. Subject: Financial planning Dear VK About 5 years ago, when I invested in a mutual fund for the first time, I was apprehensive. Till then, all that I had ever come close to … Read more