Strategies for Wealth Creation & Management ICFAI National College 02 June 2007 | Coimbatore

The basics first Make a list of the following Liabilities Assets

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 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 Effective Interest Rate

Time Value for Money

Relative Growth

Nominal Interest Rate Vs Effective Interest Rate

What is Risk? Actual Returns Vs Expected returns

Actual Returns

Vs

Expected returns

What is Wealth?

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.

Your monthly expenses,

Your liquid assets and

Your passive income.

The Mantra TIME Start early Use the power of compounding

TIME

Start early

Use the power of compounding

Goal Setting Set a SMART Financial Goal S – Specific M – Measurable A – Achievable R – Realistic T – Time Bound

Set a SMART Financial Goal

S – Specific

M – Measurable

A – Achievable

R – Realistic

T – Time Bound

Asset Allocation Investment Horizon Market Expectations

Investment Horizon

Market Expectations

Manage Wealth Maximize Tax Benefits (Don’t Maximize Tax Slabs) Be a Businessman / Investor Hedge Risks

Maximize Tax Benefits (Don’t Maximize Tax Slabs)

Be a Businessman / Investor

Hedge Risks

If spending money brings you enjoyment, you will never be rich. However if making money brings you enjoyment, then your wealth is guaranteed .

Strategies for Wealth Creation & Management Queries Thank you…… Your Take-away from this session.

Queries

Thank you……

Your Take-away from this session.