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Wealth creation strategies
 

Wealth creation strategies

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    Wealth creation strategies Wealth creation strategies Presentation Transcript

    • Strategies for Wealth Creation & Management
    • The basics first
      Make a list of the following
    • The Basics again…
      What are Assets / Liabilities for Personal Wealth Creation?
      One that gives a POSITIVE CASH FLOW IS AN ASSET
      Others are Liabilities / Expenses.
    • What is growth / return?
      Time Value for Money
      Relative Growth
      Nominal Interest Rate Vs EffectiveInterest Rate
    • What is Risk?
      Actual Returns
      Vs
      Expected returns
    • What is Wealth?
    • Take 2 minutes. Close your eyes and imagine a wealthy person. Write what you see.
    • A person's wealth is defined by how long a period of time he/she can sustain their lifestyle if they stop working.
    • The longer you can go on living your life without working another day, the richer you actually are.
    • Your wealth is therefore defined by three things
      Your monthly expenses,
      Your liquid assets and
      Your passive income.
    • The Mantra
      TIME
      Start early
      Use the power of compounding
    • Where do I Invest?
      EQUITY
      Current Yield – Low
      Capital Appreciation – High
      Typical Returns - 19.25% as per SENSEX returns since 1979
      Risk – High
      Marketability / Liquidity – High
      Tax Treatment - No long term capital gains tax after 365 days. Dividends received are tax free
      Convenience - High
    • Where do I Invest?
      BANK DEPOSITS
      Current Yield – Moderate
      Capital Appreciation – Nil
      Typical Returns - 8% Average
      Risk – Negligible
      Marketability / Liquidity – High
      Tax Treatment - Section 80C benefits for 5 year deposit. All interests are taxable
      Convenience - Very High
    • Where do I Invest?
      MUTUAL FUND - EQUITY
      Current Yield – Low
      Capital Appreciation – High
      Typical Returns - 39% Average over 3yrs Highest return - 69%
      Risk – High
      Marketability / Liquidity – High
      Tax Treatment - Section 80C benefits for Equity Linked Savings Schemes. No long term capital gains tax after 365 days. No tax on dividends received.
      Convenience - Very High
    • If spending money brings you enjoyment, you will never be rich.However if making money brings you enjoyment, then your wealth isguaranteed.