postaday | wealthymatters

Confusing Real Wealth And Paper Wealth

May 29, 2012 9 Comments

Often people see the SENSEX/NIFTY values,property prices etc. and the GDP as one and the same or as proxies for each other.After all if the economy is good, the GDP and stock indices , property prices etc. are expected to rise.By doing so people are confusing real wealth and paper wealth.This confusion especially happens to people who own stocks.And today an increasing number of people own stocks,if not directly than through mutual funds.Incidentally, even debt mutual funds might have an equity component.In the insurance front, not just ULIPS but also the bonuses in traditional products are dependent on stock market returns.Blended funds in child plans and pensions also have an equity component.So today, many people with no intention of dabbling in stocks still have an equity exposure and are prone to confusing the rise in paper wealth due to valuation gains with a rise in real wealth. Read more of this post

Filed under Theory Tagged with asset price inflation, claims, paper wealth, postaday, real wealth

Talking To Children About Money

May 28, 2012 2 Comments

“Parents need to make talking about money a rite of passage with their children.The most successful families talk about finances early and often, making children feel involved, empowered, and better prepared for the future.”

—-Michael Farrell, Managing Director for SEI Private Wealth Managemen Read more of this post

Filed under Theory Tagged with postaday, talking to children about wealth

Doomsday Investing

May 28, 2012 1 Comment

The world economy is far from the pink of health,but I don’t think that the end of the world ,as we know it, is upon us.However I do believe in having a wealth pyramid in place.If your are coming in late,you can read more about it in an older post here: https://wealthymatters.com/2011/09/30/wealth-pyramid/#more-1948.And the time for building an ark is long before the deluge…..

The wealthiest in the world have the most to lose in a crisis.They also often care the most about not losing it all.Moreover they have the money and the contacts to put in place the most elaborate fall back plans.The following are some actions that wealthy people in different parts of the world seem to be taking to limit the damage to their fortunes.( http://www.reuters.com/article/2011/10/04/us-wealth-summit-investment-idUSTRE7933LS20111004) Why not be influenced a little bit by them?Especially with a little part of the funds lying at the bottom of the pyramid?The worst that could happen is that nothing happens and we feel foolish.On the other hand if we wait till there is blood on the streets,it might be too late to do anything much. Read more of this post

Filed under Tidbits, Tool Kit Tagged with banking unstability, cash, catastrophe portfolio, commercial real estate, Doomsday Investing, financial collapse, London Real Estate, Paris Real Estate, postaday, residential real estate, Swiss Bankers, Swiss Banks, underweight overweight, wealth pyramid, Wegelin

Billionaire’s 10 Keys To Success

May 27, 2012 16 Comments

1. Figure out what you’re so passionate about that you’d be happy doing it for 10 years, even if you never made any money from it. That’s what you should be doing.

2. Always be true to yourself.Figure out what your values are and live by them, in business and in life.

3.Think about what your definition of success really is. Is it externally driven or internally driven?

4. Rather than focus on work-life separation, focus on work-life integration. Read more of this post

Filed under Theory, Tool Kit Tagged with billionaire, Billionaires Keys To Success, Happiness, Money, motivation, passion, postaday, rejection, relationships, status, success, work life integration

What Americans Consider Rich

May 27, 2012 1 Comment

wealthymatters.com Many Indians who haven’t been abroad,tend to multiply foreign salaries by the exchange rate, compare them with Indian ones and get suckered into various job offers.However,what is rich and what is wealthy is really relative.It depends on where in the world a person comes from and exactly how well off or not so well off the person might be in his/her own society.

Here are some figures of what Americans in general consider Rich and Wealthy in America.They are sourced from the results of the Gallup Poll reported here: http://www.gallup.com/poll/151427/Americans-Set-Rich-Threshold-150-000-Annual-Income.aspx

The table below shows what percentage of Americans consider how much a year as being rich : Read more of this post