What is money? Yes, we know how we make it and spend it but that’s not its only utility. Money is stored energy. It buys us options. You might love going to work today but abruptly things change. Like say your company gets acquired and they now deem you redundant. Suddenly you are out ofContinue reading “Remain Poor Saving Or Get Rich Investing…”
Who Wants To Be A Millionaire?
I know a million dollar is not what it used to be, but it still is a MILLION dollars. So, who wants to be a millionaire? Or what does it take to become a millionaire? Spending less than you earn and investing the difference is the first thing that comes to mind. But a biggerContinue reading “Who Wants To Be A Millionaire?”
Own Rather Than Lend…
You have an idea for a product that you think there is a market for. But you have no money (capital) to turn that idea into a business. So you go looking for that. I mean the capital. You can turn to friends and family who might be able to loan you the money butContinue reading “Own Rather Than Lend…”
Don’t Market Time…
My dad tells me that I was born during the depths of the Great Recession, an economic downturn so severe that it hadn’t been experienced in generations. That of course caused a big stock market decline but had you panicked and sold, you missed out on one of the greatest stock market booms that followedContinue reading “Don’t Market Time…”
Falling Markets…
With most consumer decisions, given a choice between two comparable products, the decision to buy one over the other almost always comes down to price. Most buy the one that’s cheaper. Or when things get cheaper. But this apparently normal behavior somehow escapes the process of purchasing financial assets. And hence, an entire field ofContinue reading “Falling Markets…”
Critical Mass…
Wealth means different to different people. To some, it is living it up – fancy cars, McMansions, exotic vacations – all that defines a consumerist ideal. And then there are the minimalists and there is a spectrum amongst them. The hard core ones are the planet-first kind who do everything they can to conserve andContinue reading “Critical Mass…”
Diversification Still Works…
S&P 500 is the barometer for the U.S. stock market. And why should it not be. One look at its top ten holdings says it all. Or does it? First, because it is market-cap weighted, the biggest companies occupy too much of your portfolio if this is all you own. Nothing wrong with that butContinue reading “Diversification Still Works…”
The Mechanics Of Financial Planning…
Financial planning is a process, not a product so the saying goes. But what goes into the making of a financial plan? Of course there is a lot of uncertainty around the many twists and turns in this journey of life and your plan should adapt to that. But there is also a construct andContinue reading “The Mechanics Of Financial Planning…”
A Portfolio For Every Pot…
William Sharpe in 1966 devised a way to measure a risky investment’s performance compared to what a risk-free investment yields, adjusted for that risky investment’s risk (volatility). A mouthful, yes, but that relationship between risk and return is what came to be known as the Sharpe ratio, a widely used measure to quantify whether youContinue reading “A Portfolio For Every Pot…”