Preserving wealth and growing wealth is one of our life’s greatest pursuits. A lot of our time and effort goes into this pursuit, which begins right from the time we begin earning and continues for as long as we live. The recent events and consequences of the pandemic also brought to focus the vulnerability and uncertainty we now face. The concerns are not just limited to our existing wealth but also to our source of income, either through business, profession or employment. In this article, we dig deeper into some of the biggest wealth concerns that we face in the real world, either knowingly or unknowingly.
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When To Buy and When To Sell?
Before taking exposure to equity, one has to clearly see oneself as a ‘long-term’ investor. This is very different from being a trader or a short-term investor, by whatever name is called. As a long term investor, one would likely have the objective /goal of wealth creation for investing in equity. Obviously, this too shall be backed by the right risk appetite. Such an investor would be constantly looking for wealth creation.
Advisor Zaroori Hai is not just a campaign, it s reality check.
The asset allocation principle is simple; it attempts to allocate your capital between multiple asset classes, broadly equity and debt, as per the portfolio value. Your asset allocation strategy will ask you to rebalance your portfolio either at a set frequency and/or when the market sees a sharp correction. This makes it very easy for us, as we no longer need to look at market valuations to make buy/sell decisions in any asset class. Whatever the market wants to tell you, it gets reflected in your portfolio value. An asset allocation approach to portfolio management also ensures that you have adequate capital in debt/cash to deploy during opportunities presented by the markets, as opposed to a 100% allocation at all times.
Wealth transfer to the next generation, either during the lifetime or after death, is a big concern not just for the rich and famous but even for most of us having any wealth created or property acquired during the lifetime. Wealth transfer becomes even more complicated when there are dependents to be cared for, multiple claimants/eligible persons for property or worse conflicts. Writing of wills, estate planning, formation of trusts, etc are the ways to tackle this problem. In absence of any solution, the law would take its own course and that can be something which may not be to our liking.
Looking forward to your Comments. If you find anyone is in need of me and my teams help in building wealth, do ask them to get in touch with us. We will be happy to help in whichever way we can.
Long Live The Spirit of Wealth Creation.