Get Rich or Die Tryin!

Take Responsibility For Your Finances You Don’t Need To Be A Genius To Get Rich, It’s All About Getting Started

The Six Horses: Why, What, Who, Where, Which and How ??????
Why: Need for Investing.
What: The Principles, Steps.
Who: The Right Advisor.
Where: The Institutions, Websites.
Which: Products (based on Risk profile) .
How: The Process of Investing.

Why?
Beating Inflation.
Retirement Planning
Reach your goals of Life.
Provide for the uncertainties of life.
Earn money from your idle money.
Failing to Plan is Planning to Fail!

What?
Understanding your own risk profile.
Time Value of Money.
Power of Compounding.
Golden rules of Investing:
Invest early
Invest regularly
Invest for long term

What? (Cont’d)
5 phases of Financial Planning
Assessment
Setting Goals
Creating a Plan
Execution
Monitoring & Review

What? (Some thumb rules)
Asset Allocation: (100/120- age) should be in Equities
Not more than 2.5 times the annual income should go for House loan.
Rule of 72.( 72/ROI=No. of years)
Insurance is not Investment.
Understanding your Human Life Value.

Who: The Right Advisor
Questions to ask!
Knowledge
Service
Office setup.
Experience.
Commitment.
Facilitator, not a Salesman.

12 steps of Investing
1. Obtain written documents explaining the investment
2. Read and understand such documents
3. Verify the legitimacy of the investment
4.Find out the costs and benefits associated with the investment
5. Assess the risk-return profile of the investment
6. Know the liquidity and safety aspects of the investment

12 steps of Investing (Cont’d)
7. Ascertain if it is appropriate for your specific goals
8. Compare these details with other investment opportunities available
9. Examine if it fits in with other investments you are considering or you have already made
10. Deal only through an authorised intermediary
11. Seek all clarifications about the intermediary and the investment
12. Explore the options available to you if something were to go wrong, and then, if satisfied, make the investment.

Where?
National Stock Exchange
SEBI
Yahoo! Finance
Finance Blogs
Value Research
Web sites of Companies.

Which: Financial Products
650 Mutual Funds, 150 Insurance products, 2500 Stocks in 15 Sectors!
Manage an Information overload.
Invest in what you understand.
Exclude emotions like “Fear” & “Greed”

Financial Products
Equity
Stocks, Derivatives (Futures & Options), Mutual Funds, ETF, FoF.
Debt
Bonds, Fixed deposits, Debentures
NSC, KVP
Savings: PPF, Insurance,
Others: Credit cards, loans

How?
Bank Accounts
Online Trading Accounts.
Portfolio Management Systems.
Research Reports.

Get Rich Or Die Trying
Getting rich is in your hands, nobody else's. So get started with working hard or smart (depends on you again), adding to your finance knowledge and generally taking responsibility for yourself .
All the Best

Get Rich or Die Tryin!

by RupeeManager on Feb 07, 2007

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