The ingredient called ‘Emotion’ in Money Life is similar to the role played by ‘Salt & Sugar’ in our food.

Both have to be used sparingly & in an appropriate quantity.

If salt or sugar is missing in a dish, it loses its taste. And, if they are added beyond a limit, the respective dish is again beyond consumption.

In addition, a continuous and an excess consumption of both Salt & Sugar might lead one towards High Blood Pressure & Diabetes.

Emotion = Salt & Sugar…A continuous excess use leads one to a depressed Money Life, Money & Life.

Limit Emotion

Limit Salt

Limit Sugar

Have an, “Unlimited Healthy & Wealthy Money Life J “

Measuring of –

Investment Returns = How many ‘times’ has the money grown over period of time.

Insurance Cover = How many ‘times’ is the risk cover on an annual premium.

A Hybrid product of “Investment + Insurance” (delivers) = (square root of the actual investment return + square root of the actual insurance cover).

A Hybrid is a Hybrid – neither an appropriate Return nor an appropriate Risk Cover

Pure Investment options for Actual Returns

Pure Insurance options for Critical Risk Covers.

Mix & Match works for dresses, not in mixing Investments & Insurance.

It is the, ‘Taxing Time’ of the Year J

(Direct Taxes) - 5 Heads of Income Tax Computation in India –

Income from Salaries

Income from House Property

Profits and Gains of Business or Profession

Capital Gains

Income from Other Sources

Well, the income tax department is guiding all investors to have ‘Different Sources of Income’ - 

Diversify, Diversify, Diversify, Diversify & Diversify.

Our Diversification leads them to collect taxes @ 10%, 20% & 30%, based on one’s income. No Way out L

(Indirect Taxes) – Customs Duty, Central Excise Tax, Service Tax, Sales Tax, Value Added Tax, Securities Transaction Tax (STT), Value Added Tax, Entertainment Tax, Luxury Tax etc…and I can’t continue for the sake of a long list.

Can we ever compile an annual figure on either the ‘absolute amount’ or the ‘%’ of Indirect Taxes, we end up paying at an individual / family level? No.

Everything is ‘Inbuilt’ into the consumption & we pay for this consumption, silently. No Questions asked. Why?

Because, it’s the law of the land and we need to follow this law. It might offer certain value, somewhere down the chain. What kind of value? No Idea L

Earn or Spend, we pay; Value addition or not, we pay.

Direct Taxes are levied on Earnings & Indirect Taxes are levied on Expenditures.

For Direct Taxes - Effective & Efficient Tax Planning on Earnings, is the key.

For Indirect Taxes - Reduce unnecessary Expenditures. Wisdom lies in not stopping consumption of needed goods or value added services & experiences in life J, but in stopping unnecessary material accruals & experiences.

Diversify, Earn, Spend, Plan Taxes, Pay, & Stay Clean.

Note: This message is intended to arm oneself against friendly neighborhood ‘Smart Tippers’ (extended family, friends & colleagues) who mostly wear a ‘beautiful mask’ of offering ‘cost effective advice & techniques’ on everything and anything.

Maid (s) – Rs.60,000 – Rs.1,20,000 a year – Asset Maintenance (Property)

Cook (s) – Rs.1,20,000 – Rs. 2,40,000 a year – Asset Maintenance (Physical)

Driver (s) – Rs. 1,80,000 – Rs. 3,60,000 a year – Asset Maintenance (Depreciating)

Gardner (s) – Rs.15,000 – Rs.1,50,000 a year – Asset Maintenance (Environment)

Laundry (ies) – Rs.30,000 – Rs.1,20,000 a year – Asset Maintenance (Depreciating)

Club / Gym (membership) – Rs.60,000 – Rs.2,00,000 a year – Asset Maintenance (Health & Societal Association)

Lawyer / Attorney – Everything is a ‘%’ on the magnitude of problem / capital asset or, per visit, or, per hour

Doctor – Everything is a ‘%’ on the magnitude of health issue or an investment made into a clinic / hospital, or per visit

Chartered Accountant – Rs.2000 for a basic individual tax filing, + + + + + + + based on ongoing services offered

A Personal Financial Consultant - ??? (A well-defined solution architect for - Asset Maintenance, Insurance Maintenance, Portfolio Maintenance, First level Tax Consultant, Inheritance & Succession Planning, Hand Holding in Troubled Times, Educationist, A Trusted Family Confidant, Mistakes Avoidance Mechanist, ‘A Listener to Every Problem & A Solution to Every Problem’ etc…)

As always, wishing the best for you all in your personal finances. Thank you, for supporting ‘Professionals’ in the right spirit.

By the way, the smart tippers will be missing in times of any critical troubles, which come uninvited. There is one person who you can rely on. Do I need to tell, who?

2 latest fads - 'Pokemon Go' & 'Writing an Autobiography'

Millions of downloads on the game &, 'Underage' autobiographies on the other hand.

What can we say, when people start to live in the 'Unreal World' via Pokemon Go; and when people write their biographies at age 29...when their life has not even started to fall on a track.

Having a smart phone does not necessitate us to download the game & having a world # 1 title does not mean that the pinnacle of life is achieved to have a biography.

The only Real Rate of Return is the CAGR (Compounded Annual Growth Rate) & the only pinnacle of investment life is to 'achieve what is required / needed for oneself'.

Neither augmented reality nor autobiographies are needed to live happily and share one's life's wisdom.

Keep up the Real Life & Real Returns.

Source: Future of Job Report, World Economic Forum

Top 10 Skills in 2020:

1. Complex Problem Solving
2. Critical Thinking
3.Creativity
4.People Management
5.Coordinating with Others
6.Emotional Intelligence
7.Judgement & Decision Making
8.Service Orientation
9.Negotiation
10.Cognitive Flexibility

Top 10 Skills in 2015:

1.Complex Problem Solving
2.Coordinating with Others
3.People Management
4.Critical Thinking
5.Negotiation
6.Quality Control
7.Service Orientation
8.Judgement & Decision Making
9.Active Listening
10.Creativity

'Top 10 Skill sets' can keep changing over a period of time, but, a top Investor's skill sets remain the same overtime. They do not change with time, year after year or season after season. Money moves & behaves the same way, forever.

By the stroke of this midnight, it is all festivities in may part of the world...Yes, it is "Rajini's latest film' - KABALI --- from Jackie Chan to Japan & Middle East to the West, its all Hysteria.

From a career which started in 1975 (with a negative role) he attained a stature which very few film personalities can ever even dream of - "Rajini's Hysteria / Euphoria / Mania / God etc..."

Reasons -

Style (Which suited him)
Character (Which suited him)
Personality (Which suited him)
Humility (Which suited him)
Dependability (Which suited his Producers)
Patience (Which he needed)
'Time' in the Industry (for which period he worked very very hard - over 4 decades)

And the, 'Success' followed (which was bestowed upon him by the people at large)...or should i say, the stock market to an Investor ?

there were enough failures at the box office, but his successes more than compensated for the failures.

Rajinikanth attained self actualization in his career - a hit or a flop, he ended as a 'Super Star'.

There can be only one 'Rajinikanth'; but, if managed well, one's money life & especially an investment portfolio can be made to be a "Rajini's Portfolio".

Aim for a "Rajini's Portfolio"

By the way - KABALI means Lord Shiva, or someone who is Highly Sensitive, Idealistic & Intuitive in nature.

'Never use a long word where a short one will do' - George Orwell.

He advised writers against using

Cliches
Needless wrong words
Jargon
The passive voice

'Never use a complication option, when a simpler one is available'.

Avoid -

Complex Products
Needless Investment & Insurance Options
Unnecessary Technicalities & Views
Be 'Active' in reviewing Money Life progress

Keep it simple, yet effective.

In Sanskrit, the word 'Guru' means, 'a person who removes, one from the darkness'.

If you prefer to be the Guru of of your Investment Portfolio, i.e. removing darkness from it - some guiding lights to follow...

Understand yourself & your relationship with money.

Have Patience. Good things happen, eventually.

Be Disciplined. 'Drunken investing can be intoxicating, but it also erodes wealth & health'.

Never invest with an impulse.

Have Fear. Yes, a good fear of not reaching your targeted requirements in life.

Ignore Tips & Tippers.

Take corrective actions, as & when needed (everyone makes mistakes).

Happy, 'Full Moon Investing' (on this Guru Pournami, day)

Duvvuri Subba Rao's  (ex Governor, RBI) memoirs in the form of a book, is hitting the stands today. A tell all tale, including the friction with 2 ex-finance ministers of India.

Aptly named - "Who moved my Interest Rate?", it reminds me of an old book - 'Who moved my cheese?'...a fictional story of 3 rats.

Ex-Central Bankers & Finance Ministers have a nice Retirement Planning Solution, i.e. 'Retire, Lecture & Write a Book'.

We don't have that luxury, so - 'Earn, Save, Invest, Manage Money & Retire (with a corpus)'.

'Inter Generational Transfer' - oh, its not Wealth...

The generic order is -

DNA & Blood
Food
Language
Social Interaction
Behavior & Communication
Personality Traits
Character Building
Survival Skill Set
Education
Specific Skill Sets

And then, they are off...?

How about - 'Intergenerational transfer of Money Matters'?
Missed the bus ?

If not taught, it happens by default - by observing parents (90% influence) & people around (10% influence).

They pickup stealthily, our 'Habits' on -

Spending - thrift or spendthrift
Savings
Treatment of Money (Respect)
Investing
Debt & Liability
Financial Planning
Charity & Philanthropy
Contingency Planning

The wisdom of 'Money Matters', if not passed on successfully; the accumulated 'Wealth & Transfer' from our end, is an effort gone waste.

Consciously impart financial education, from an early age.

Anticipation = Expectation / Prediction

In anticipation of the capital markets going down, we don't invest.
In anticipation of the capital markets being volatile, we don't invest.
In anticipation of the capital markets being uncertain, with too many variables impacting their outcome, we don't invest.

By the time a decision is made to invest; the anticipated outcomes change, the reality is up & running. And everything seems to have run up, too much.

So now, in anticipation of the markets going down again, we don't invest.

Anticipation # Action

Action things out, don't keep Anticipating, Predicting & Forecasting.

A will to succeed is as important as, a 'Will' to succession.

Or - A 'Will' to succession is as important as a will to succeed.

Either way, a 'will' is essential.

Have a plan in place.

Accumulation or Inheritance, Conservation or Growth, & Distribution - the 3 phases in one's Money Life.

One might overlap the other phase, but the critical issues to consider during the stages are -

Accumulation / Inheritance - Systematic Investment Planning (SIP) ...Wealth Creation.

Conservation / Growth - Systematic Maintenance Planning (SMP) ... Wealth Preservation & Growth.

Distribution - Systematic Inheritance Planning (SIhP)... Wealth Distribution.

SIP ----->  SMP ----->  SIhP 

Time & again, history repeats.

“What is perceived to be ‘Safe’ is never safe, & what is perceived to be ‘Unsafe’, is reasonably safe.”

Be it a city, a country, a person, an animal or an investment instrument.

‘Safety for capital’ beyond necessity, leads one to a ‘Stealth Erosion of Capital’ (Purchasing Power); in the form of Inflation & Taxes.

By the way, some of the safest countries to live in are -  Switzerland, Japan, Singapore, Austria, Denmark & Iceland.

Today's school children carry almost 15 - 20% of their body weight, in their school bags 😳

Maybe a book for every 15 minutes? 

Is there really, so much to Read, Write & Learn? 

Is this essential for the future?

The current system imparts an education, which we do not even know, if it will be valid in the near future...so much of complex study systems; only leading to a higher unemployment rate & lack of basic life surviving skill sets.

Education or Money Life - the ability to keep things simple, & one's own ability to ‘Learn, Unlearn & Relearn' will be the deciders.

Simple Options are probably the best picks - they are

(E)xtraordinarily Efficient

(E)ffortless to Understand

(E)xtremely flexible &

(E)asy on the pocket

4 (E) s - keep it Easy, keep it Effective.

In both Astronomy & Astrology, deductions are derived based on; 'Where we Stand' relative to the respective planetary / stars' positions, & not vice versa.

Money Life is also based on, 'Where we stand' & not as per, 'Where the markets stand'.

Our Money Life is relative to Our Life, & not relative to 'what the market life' is.

'Money & Life', should 'Rotate & Revolve' around you. And not around others' planetary positions 🌝🌛⭐💫

David Cameron (prime minister), Boris Johnson (Ex-Mayor, London), Nigel Farage (the guy who pushed Brexit) -

All the 3 leaders have abandoned the ship, after it hit the iceberg.

Leaving their responsibilities. Leaving people directionless.

An association with a Doctor, Lawyer, Chartered Accountant or a Financial Advisor has to be like a 'Fevicol ka jodi' ...what's the point in associating, if a professional abandons the relationship, in times of one’s ‘Greatest Need of Hour'.

Have a strong bond with a good professional.

The point is, how do identify a good professional? 

Asphalt – known as Bitumen, is a complex organic material & a petroleum product used for laying roads.

Cement Concrete – a mixture of sand, pebbles or crushed rock & water; also used for laying roads.

‘Ditched Hyderabad’ – the spine chilling experience of driving on Hyderabad roads is scary. Well, the traffic is only one part, but, the ‘ditch filled roads’ are the scariest part.

‘The volatility in the Capital Markets’ is far easier to handle vs. ‘the volatility of spine breaking bodily movement’, while driving here.

Reason, roads made of Asphalt (low cost) coupled with low quality maintenance & no review.

Asphalt Laid Portfolio or Cement Concrete Laid Portfolio? An Investor’s choice.

One is low cost, low maintenance, low quality & low durability. The first drops of rain & it is washed away. Imagine Money?

The other is an Initial high cost, absolutely no maintenance, great quality, excellent durability. The greatest of the Tsunamis can be possibly be withstood.

Asphalt or Cement Concrete – isn’t the choice clear?

So, which is the best Asset to invest in?

Equity?  Fixed Income?  Real Estate?  Gold?  Art?

No. It is one’s own ‘Health’ J

A good health is of paramount importance for one’s cash flows, income flows, Earnings & also to profit from managing one’s Money Life.

A deteriorated health leads to a deteriorated Wealth. The old adage, ‘Healthy, Wealthy & Wise’, is an evergreen truth.

A Health State (Physical, Mental & Spiritual) is a Healthy Portfolio.

Stay Healthy

Stay Wealthy

The amount of capital erosion in the UK over the last 3 days is equivalent to the amount of total funding which they contributed as their share into the EU (European Union), over the last 15 years J

So much for saving their capital & services from the EU people.

The ‘Hot Seat’ (Prime Minister) is red hot & waiting for an Able Human; while all the politicians have now developed a ‘Cold Feet’, to occupy it.

A Portfolio’s hot seat is the one, which an investor creates (invests) without understanding the consequences of the investment.

Understand where & how, your hard earned money is going. There is no point in developing cold feet, later.

On the contrary, the best time to occupy a hot seat is when, nobody else wants it.

Result – Become a Legend or a Lunatic