Be Hands-On In Money Matters


wealthymattersEvery day,these days,scores of businesses are opening shop in the financial advisory space.Their siren call is ‘Listen to us!Give us your  money.Then relax,take it easy or go off and make more money.We will ensure you get rich and have have a great worry free life.Your family will never want for anything in this life.’Each of them have propitiatory tools and processes that they claim are magic wands that will ensure your financial well being.

The problem here is that personal finance is fundamentally personal and varies from person to person.There is a huge value component that these companies gloss over.Most of them will tell you that you need to build a corpus for your children’s education and marriage,your retirement and to take care of providing for health care.Many have readymade numbers for these goals.A few more will throw in planning for a home purchase,car purchase and perhaps a foreign vacation.But is this what you really want?Perhaps you want multiple homes in multiple locations?Maybe you wish to build them yourself,with your own hands.Log cabins anybody?How many of these plans allow enough flexibility for you to be yourself and do what you really want to do?Since it’s plans that are being sold,do planners really want to go beyond the cookie cutter variety and put in more effort?Do they have the competence to dish out advice for unique goals? Read more of this post

How Well Would You Have Done if You Had All Your Savings In Gold?


wealthymatters.comToday financial planners and daily wage earners speak of ” investing” in gold.In fact,given the dream run of gold in the last decade,most people can’t see past gold.Never mind that between last Diwali and this one there was no substantial increase in the price of the metal and that there was a fall in price in between and then it struggled to rise for a while.

There is no denying that in the dark days after the stock crash of 2008 and the poor economy thereafter, gold provided good comfort for all of us who worried about our financial health.And the fact that gold price rose fantastically in uncertain times was the icing on the cake.

Also gold has helped us hedge against inflation.Here is the link to an older post.

Gold also does superbly well when the equity markets and debt markets are giving negative real returns.

So should you just have all your savings and investments in gold?Far from it!Aside from the wealth tax you might be forced to pay every year on an asset that will give no returns till it is sold, at which point it might attract capital gains tax,keeping your money in gold over the last three decades wouldn’t have given you stellar returns.Check out the chart here:Long Term Returns from Gold Vs SENSEX While gold keeps up with inflation,just buying and holding it for long is unlikely to make you rich any time soon.So be certain to enjoy the touch and feel and beauty of your gold.

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