REAL RICHNESS

" Richness is not earning more,spending more or Saving more"
" The real RICHNESS is ; When you need no more"

Every one, out there in the world chasing after money and making all our attempts to gain so much money!! Thinking that one day we will have all richness and enjoy life..That one day is never going to come.

The intention of making money is to enjoy or celebrate life.But we are so much pre-occupied with the money. only the obsession of making money remaining with us and that make us to do, so many works to achieve the richness.We jump from one to another company for better salary...however you jump and how much ever one may get more salary is not enough.As the inflow raises the outflow of money also subsequently raises.Slowly, slowly we become nothing but money making machines and there is no enjoyment in life.

Just remember one thing, there are so many kings came and gone..They had all richness,Still they were unable to conquer life with their richness.Making money and becoming rich is just one part of life..So, don't over do that...Because, you are going to attain nothing but miss the life here&now which is very short and so precious.

The Billgates,Infosys- Narayanmurthy etc they all made all the richness they wanted..in fact beyond their wants...Finally they gave up many of their wealth to charity.It means they want something else than money...!!Just assume that how much effort they made to attain that richness and simply give up that to a charity? Think about it. That is Life.The quality of living is more important than only accumulating wealth.

Richness or Wealth has meaning when you are there to enjoy and celebrate your life.There is a point in everyone's life comes, when you want no more; Then life happens.One will find meaning of richness...' Richness is not just the material wealth but it is more of the 'INNER RICHNESS'.That comes to one when one want no more.

Investment woes

Dear Friends,I am here posting one of my friends cum 'SEED' Yearly client- Captain.Udhay Kumar and his experince with the Mutual funds investments . he invested in MF and his investment depreciated instead of growth.He shared his dis-comfort with me over phone and also send his post link to me.I would like to post the same here for my... friends here...Hoping this will be usefull unto all of you.You can learn something about investments.Mainly where not to invest and expect massive growth.

Its a kind of alert for all investors.

Link>http://earnfrominternetfree.blogspot.com/2011/01/investment-woes.html

'Investment woes '

Wednesday, January 26, 2011at 1:06 AM

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I had a great learning experience recently, in fact less than a week ago. I learnt that I am financially still very uneducated. I can live with that but what is bitter and unpalatable is the fact that the financial world where we invest our savings to reduce the tax burden and hope for a sizable growth in income, would prefer us to stay that way.

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The year was 2008 and it was the beginning of the year and I was on the look out for a lucrative ELSS option where I could park my 1.0 lacs and avoid taxation on that amount.

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The rest was easy. Very prudently I was advised to diversify my investment into more than two investments and what better than Mutual funds and ULIPs, I was told.

I invested 60000 that year .

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1. Fidelity tax advantage fund - 20000

2. Life Stage pension plan withICICI Prudential - 20000

3. Reliance Mutual fund - 20000

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The rosy picture that was painted suggested that I would be richer by 6-10 lakhs in three years time.Since the lock in period was three years, over the three year period from 2008-10 I had invested 1.80 lakh. So far so good. My wife who is less educated than me but is more shrewd in money matters consulted her friend and came to the realization that we should open a de-mat account and invest directly in the equity market shares every month and let it stay there for long term benefits. Her friend had advised her not to pin high hopes on mutual funds, pension plans and ULIPs. I ignored her advice.

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I resigned my job in 2008 and joined another company where I was not able to survive the probation period and from Oct 08 to Jan 10, I was without a job. In Jan 10 I got a job and was paid for six months and ever since I have not been paid my salary. But things are improving and I will start getting my salary from February.

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Fast forwarding to 2010 . It is the month of January again. I have no money to invest in my mutual funds , pension plans. I have no income, so where is the question of 80CC exemption.I decided to visit my financial partners ICICI Prudential , Reliance Mutual Fund and Fidelity to see what is my current investment worth after 3 years.

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The current investment is listed below.

Name ............Inv amt..... Curr. value...... Surrender value after 3 yrs

1.ICCI Prudential.....60000.... 66000.....61000( 92% of current value approx.)

2. Reliance Mutual fund ......60000......56000....53000 (95% of current value)

3. Fidelity ...................60000 .......56000 ...yet to redeem.

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I have made the redemption request for the first two and should have the 1.14 lacs in two weeks time. Fidelity, I have a few change of bank address issues and will be able to submit my redemption request after 2 weeks.

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I am not sure if the value is going to remain at 56 k or fall further. I don't know if I should spend this money and hope for the best. My wife is still hopeful and I have started listening to her advice. I want to meet that friend of hers who suddenly seems so wise.I have decided to open a de-mat account.

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I am closing in on the half century stage . I am hopeful that I will earn for another 20 years and be able to survive and look after my family of four.

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I have one simple question for the cos. mentioned above ' Are you guys so incompetent that you cannot show a growth of 15% per annum for 3 years, What do you do with the money invested by people like me ?

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The script we recommend on monthly basis and expect massive return for your small investment.One can also stay cool.There is no service charges/profit sharing.No headache for redemption.Any time you withdraw your money as you wish..No Liquidate problem.

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CHECK YOUR FINANCIAL HEALTH

Commandents for better financial health

A bunch of simple, ready-to-use tips which will apply possibly to each one of us, not only in 2010, but beyond, are below:-

Pay full credit card bills on due date

Remember, if you do not pay the entire bill amount on the due date, interest is charged from the date of spending, and not the due date for payment. That factor alone can push up credit ra tes to over 40 per cent per annum; and this makes it probably the most expensive form of credit. Kill the credit with a personal loan if required - and follow the discipline of no more rollover of credit henceforth.

Close all unnecessary bank accounts

How many of us open new bank accounts with each new job, and haven't even checked the balance in the dormant ones in the past one year?

Keep one month's expenses in bank a/c


As you may have realised, the bank pays interest on your savings bank account at a rate lower than that of inflation. That's not to say that the rest needs to be invested for the long-term. I am only stating that you can earn a bit more through fixed deposits or short-term mutual funds for funds needed more than 30 days later.


Buy life insurance
You buy life insurance to benefit your loved ones, not yourself. Buy the cover that you need today - remember to get the term plans first so that the sum assured is adequate for your family's needs.

Ensure all nominations are in place
Make sure all your bank accounts, investments, insurance policies, have up-to-date nominations in place. Review this at least once a year.

Start investing early

The power of compounding is phenomenal. A 25-year old investing Rs 10,000 per month for 20 years, and then letting the money stay invested, all at 10% pa accumulates Rs 3.3 crore at the age of 60.

A person starting 10 years later (at age 35) needs to invest 2.5 times the amount (Rs 25,000 per month) for 25 years to reach t he same corpus of Rs 3.3 crore.

Invest regularly
Systematic investment where the long-term trend is upwards (as in India) is the best way to eliminate risks of investing in equity markets.

Those who continued doing so in 2008 and early 2009 when the chips seemed down and out have more than seen value in this investment philosophy.

Make a financial plan

Determine your financial goals. Locate a certified financial planner. Get a plan made to help you reach your financial goals, based on the risks that you can take; not just the risks that you wish to take.

Stick to the financial plan
Financial plans result in arriving at an asset allocation which takes into account risks, returns as well as liquidity. Ensure that the allocation is reviewed periodically and balance it so that you can cut risks when the market is over-heated and enter boldly when all others are dancing barefoot on a hot tin roof!

Review first 9 commandments regularly

Discipline is the key to managing your money better. Go over these commandments and add others. The more the merrier. I wish each one of you a very prosperous New Year.


Source: Lovaii Navlakhi, managing director and chief financial planner,
International Money Matters Pvt Ltd