A B C D OF INVESTMENT

"Be Fearful When Others are Greedy, Be Greedy When       Others Are Fearful"   - Warren Buffet       

A - Anticipate the Risk
B - Be wise
C - Choose the Best Suitable Product
D - Decide your Goal First
E - Estimate The Risk Involved
F - Fix Your Time Horizon
G - Gain Information
H - Have Patience
I  - Increase Your Life Cover
J - Just believe on your Planner
K - Keep a Track on Your Investments
L - Look on Other Opportunities too
M - Move towards better Performers
N - Not Believe on rumors
O - Objective is in mind
P - Prefer Long-Term
Q - Quick Decision not Recommended
R - Risk Free Investment Also Focused
S - Stick With Your Investment
T - Trust On Planner
U - Unique Plan should Be Adapted
V - Value Investing
X - Xtra Effort for Increasing Income
Y - You Should Teach Basics to Your Child Also
Z - Zoom on Retirement Planning

Ravi Prakash Keshari CFP
http://www.facebook.com/ravi.keshari
https://twitter.com/ravi2007
Varanasi

TERM LIFE INSURANCE.......THINK BIGGER PICTURE

This is my experience since i am started my financial advisory in 2006.
Every body remember that Era when so called ULIP's are on boom,the Agents made promise to clients that pay suppose 10,000 per year for 3 years and get your money double in 5 years or so.

One thing interesting in this is that,customers never ask about guarantee of that promise,or whether they surely going to get that amount after 5 years,they also not informed about what charges will be levied on this investment? and happy to take 5-10 times cover of premium without any big effort by agents.
I was too in the same business and had less knowledge at that time,so i too sold that type of product blindly,and people accepted it normally.
But very sadly,clients who is thinking for their money to be doubled after 5 years,ended up with hardly getting there capital back.

And after doing CFP,I had decided not to sell wrong products and my main focus on "Term Insurance" products.
I Presented few cheap and best plans to the same clients,now this time things were changed,those who had taken insurance from me without a single question,now asking a list of questions and after giving satisfactory answers,not ready to take term policy by saying :- "what is mine benefit when money will be received after my death?" I simply ask what is the meaning of the world "life insurance",this is for your loving family to support them in case any miss-happening occurs,even than they are not ready to pay little premium for bigger coverage.

So i just started thinking why this happens,i concluded that its a psychological thinking which makes us to decide what is good or bad,and people often believe what they see in front of them and fake promises which attracts him,no matter whether they are going to fulfilled or not,or what there friends or relative has taken.
But Dear Friends please understand this thing that every individual has different Life-Style,Family Condition,Debt Burdens,Responsibilities etc,so how can similar plans or cover can fruitful for all?
The Simplest and Smartest way to have an insurance is "Pure Term Policy",suitable for all,who is just started there career to an experienced person,cost little and benefits highest.
An average 25 year person can take 50 lac insurance in approx 5-6 thousand per year,which is good because he is not able to pay higher premium and he is covered with an handsome amount.
People often confused to decide how much insurance they need?.

There are several methods like Need Based,H.L.V. Module,Income Multiplier Module etc,but most easy and simple way is to multiply your annual income by 12-15 and get that amount as life insurance cover.Its Basis is that if anything wrong happen your family will be surviving at-least 12-15 years in the same standard of living in which you had done if you are available. 
suppose an individual earning 2,00,000 per year net income,than he may require to take cover of 25-30 lac rupees,for his family.
If any thing happen to him his family would be survive normally with that cover for next 12-15 years.
So it is advisable to everyone to have term plans in there pocket always,and live tension free.
Think different and Think Bigger...........

Thanks a Lot,
Ravi Prakash Keshari CFP
Varanasi.

Goal Setting For Financial Planning Process

The Most important thing in financial planning is Deciding the Dreams/Goals/Targets.

People mostly unable to decide what is their goals.A Financial Planner,interviews them and ask some specific questions based on their financial situations,so that he can decide the goals client wants to fulfill in their future.

It is a psychological concept to understand clients goals,based on his financial circumstances,family size,living standards,marriage conditions,future growth in job or business. 
Some Basic Goals of an individuals are Child Education,Buying House,Retirement Planning,Child Marriage,Foreign Travel etc.

So first target is to decide goals which clients wants to fulfill in future.Second thing to decide is priority of goals.It means which is most important or which is comes first for client perspective.
Once Goal is decided than Planner main works started to make such a suitable plan under his financial budget,so that client can achieve it in a specific time period.he has to take some assumptions like inflation levels,return on capital invested,growth in income etc.
These assumptions are taken on the overall economic conditions,life cycle,equity and debt market risk and returns,bank rates etc,so as to,it can be ethical and right.

So its an advice to all person to think about your finances as early as possible,so that you can achieve financial freedom in life and live your life as per your dreams and conditions.

Ravi Prakash Keshari CFP
Varanasi.