Win Guaranteed Free Jagoinvestor Book by activating your Moneysights Account

Posted on February 2, 2012August 21, 2019 by Jagoinvestor

Do you want to a FREE book – ~~Jagoinvestor book~~ (The name of the book is changed now and its now called “16 Personal Finance Principles Every Investor Should Know”) without spending even a penny from your pocket ? Believe me thats possible now. Yes, moneysights.com is making it happen. Moneysights is giving away the JagoInvestor Book worth Rs 499 for FREE, to each one of you who is going to open & activate an Online Mutual Fund Investment account with them. It’s a limited period offer. However, there is NO LIMIT on how many of you can get it! , if 100 people sign up , 100 will get it ! , if 1000 people sign up , all 1000 will get it and if 10,000 people sign up , all 10,000 will get it ! . No limits !

THIS OFFER IS CLOSED NOW

Free Jagoinvestor Book with Moneysights

But what does activation means?

Activation means sending the signed application form with mandatory supporting documents . Thats it. It’s that easy. All you need to do is get to a stage where you are ready for making transactions and you will get the book delivered to your doorstep once your account gets activated within 10 days of activation.

Are there any terms & conditions?

No. Everyone gets the book. However, you need to be careful that the signed application form along with the valid supporting documents should reach moneysight’s Bangalore office within 7 days from the date of form filling. Your application should be complete so as to get your account activated. Thats it. The only condition apart from this is that there is no condition 🙂

2 reasons why should you do it now?

You are getting the book for free
PLUS, its the tax-season. You may be planning & postponing your Tax-saving Mutual Fund investments. Now you don’t need to find another excuse to postpone your tax-saving investments.

There are 3 critical things that all participants should be doing while filling the form

Make sure that the name is full. It has to be complete name. For e.g. – Manish Chauhan’s name can’t be Manish (unless PAN card of individual has the name as Manish only)
Bank account name filed should contain the name as per bank records only
The correspondence & permanent addresses should also be accurate. The best way is to write the address as per the proof.

8 steps for winning assured Jagoinvestor Book for FREE ?

Step 1	Register with moneysights (click here) . If you are already registered, just login by clicking here
Step 2	Fill-up the account opening form online. Enter the promo code ~~JAGOINVESTOR~~ in the promo-code field (The offer is closed now)
Step 3	Submit the form
Step 4	Moneysights verifies the online application instantly & sends you the pre-filled application form
Step 5	Take a print out, fill-in requisite info & sign your application form carefully
Step 6	Enclose your application form & supporting documents in an envelope to send to moneysights office
Step 7	moneysights will verify the physical application form & supporting documents. If everything is in order,your account would be automatically activated
Step 8	You get the book delivered to your doorstep within 10 days

Let your friends know about this Offer

We want to spread this message to each and every person , so please share this news with your friends and anyone you know and they can also get a free book by opening an account with moneysights.com

I had done a review of moneysights.com some months back and now they offer online investments in mutual funds also. So you can open an account with them and start buying & selling mutual funds online with a click of a button. There are no account opening or transaction charges to be paid, so its 100% FREE. There are no limits on how many people can win the book, no random selections or no tricks. Just make sure your application is complete and documents are in order so that the account opening formalities are over. If your documents aren’t in order, then your account won’t be activated & you won’t get the book.

Are you going to open moneysights account and activate it soon ? Put your comments incase you are going to !

LIC Jeevan Ankur Review

Posted on January 27, 2012September 9, 2019 by Jagoinvestor

LIC Jeevan Ankur (Plan 807) is the new traditional Children Plan from LIC. It has come at the right time when most of the people look for investing their money for tax savings and given the right time (markets doing bad), it is expected to get a lot of interest from parents looking for parking their money in something safe.

LIC Jeevan Ankur Policy

Jeevan Ankur is a traditional endowment plan where you pay regular premiums and at the end of the policy term the sum assured is paid along with loyalty additions declared at maturity. The nominee in this plan has to be your child (which makes sense), assuming that the plan is bought purely from the point of securing child’s future. (Learn how LIC Policies work)

If policyholder dies before Maturity

In case the policy holder dies before the maturity of the policy, the basic sum assured is payable immediately and a 10% of sum assured is payable each year till the end of the policy term as the income. This is a good option which makes sure some payment is made each year without fail. The premiums are not to be paid after policyholder’s death. Though there is no specific wording about this waiver of premium, it is very obvious.

If the nominee (child) dies before maturity

In this case, the policy holder can nominate another child and other benefits continue as it is. If there is no other child then, the benefits will continue and the maturity proceeds will go to legal heirs.

Optional Riders like Critical Illness and Accidental death benefit.

Apart from base plan in LIC Jeevan Ankur, you can also add two riders in this plan at extra cost. These riders are Critical Illness rider and Accidental Death rider.

Critical Illness rider: One can add critical illness rider for an amount in range of 50,000 to 5,00,000 and in case of diagnosis of some defined illness, an amount equal so critical illness sum assured will be paid. However this is available only if the policy holder age at maturity is below 60.

Accidental Death Rider: One can also get a rider called Accidental Death rider, which will pay additional sum assured in event of death . The maximum sum assured for accidental rider can be upto 50 lacs and the condition is that the maximum age at the time of maturity has to be 70 yrs.

Other Features of LIC Jeevan Ankur

There is option of regular premium payment and Single Premium (one time)
Minimum and Maximum age of the policy holder at the time of taking the policy has to be between 18-50 yrs and minimum and maximum age of child has to be 0-17 yrs
The maximum age of policy holder at maturity has to be 75 yrs.
The maximum policy term is 25 minus age of the child.
No loan facility will be available under this plan.

Surrender value and Paid up of Jeevan Ankur Policy

To surrender this policy or making it a paid up is very similar to other endowment policies, where it attains the surrender value only after the premium payment for minimum 3 yrs and the surrender value will start from 30% of the premium paid (excluding the first year premium). In case of paid up policy, you will get your premiums at the end of the maturity period.

Returns from LIC Jeevan Ankur Policy

Just like other endowment policies even LIC Jeevan Ankur seems to provide lot of features and bundles things in such a way that it’s too tempting, but from investment point of view, its returns are not something to cheer about. Consider this example- If 30 yr old male wants to take a 10 lacs sum assured policy for a 20 yr tenure , the premium would be Rs 41,350 per year (as per the chart on LIC website). Assuming that the payment is done on yearly basis and the sum assured is above 5 lacs, the rebate’s would be 5% (2% + 3%) so the final premium would be around Rs 40,000 per year. So if a guy pays 40,000 per year for next 20 yrs he would then get 10 lacs as sum assured and loyalty additions extra. Loyalty additions generally range from 10%-20% of Sum assured, assuming its 20%, the final maturity proceeds would be Rs 12,00,000 .

So if you pay Rs 40,000 per year for next 20 yrs and get back only Rs 12,00,000 , the final return (IRR) turns out to be only 3.7% CAGR return over long-term. Note that the actual IRR would depend on the tenure , if you take the case of 10 yr tenure , then the IRR would be different , but overall the returns from this policy is extremelly low.

Best returns only if death is premature

The policy return would really work out well if the policy holder death is premature, the early, the better. Assume that in the same example as above, if the policy holder dies after paying 2 premiums in that case, the total outgo would be Just Rs 80,000, but his family would get Rs 10 lacs and Rs 1 lac per year as income. This looks very attractive but note that this is the situation whose chances are very less and just because of this point, you can’t buy the policy.

Look at Liquidity also

The only thing which most of the people concentrate is returns from the policy, but one of the parameters to look at is liquidity of the policy too. The biggest nightmare can happen if you need your money from the policy after 2 yr or 5 yrs or 10 yrs. In that case the money you get back is horribly low and that’s where most of the people feel the pinch.

Should you buy Jeevan Ankur?

I am really trying now a days to let you decide on such questions. As I have done this short review its enough for you to decide if you want this policy or not. The returns over long-term are guaranteed only to certain level and a lot depends on loyalty additions. If it’s not good every year, then returns can be extremely bad, else it might be okay. I personally don’t see a reason to invest in this policy. A plain term plan and SIP in balanced funds looks better option to me from returns point of view and definitely from liquidity and simplicity point of view. I hope you liked this review of LIC jeevan ankur

8 graphs on gold price movements (86 years data)

Posted on January 25, 2012August 22, 2019 by Jagoinvestor

Today I want to show you some patterns of gold prices from last few decades. There is no interpretation or conclusion but some findings and observations on gold price fluctuations in India. From last 10 yrs gold has been on a bull run and prices have multiplied many folds. In the last couple of weeks, gold prices have been extremely volatile and some analysts also predict that gold price upside movement is in threat. So I found gold prices for last 86 yrs (1925 – 2011) and did some number crunching and some graphs from which we get some interesting findings.

4 yrs Gold Price difference (absolute returns

I found out the price difference for every 4 yrs period i.e. from 1928 to 1925 (yrs) and saw what exactly was the difference in the prices, then 1929 – 1926 and so on… till 2007-2011. Just to give you an idea, gold price in 2008 was 12,500 and in 2011 it was 26,400; so the price difference was 111.20%. I used these data to plot a running 4 yrs price difference so at any point of time you can see how much was the return in those 4 yrs prior to that point. Note that this change in absolute in difference. The major point to note is that majority people think that gold has performed outstanding post 2000 in a time frame of 4 yrs. But from the graph you can see that in 70’s time the 4 yrs period return was much more than what investors saw in recent time.

8 yrs Absolute Price difference runnin

This one is just like above chart, but this time its 8 yrs price difference. We are trying to catch that was the price change in an 8 yrs period. So for example, price in year 1980 was Rs 1330, then after 8 yrs – in 1987, the price was Rs 2570, which is a 93.23%… So like this I calculated the price difference for all the 8 yrs period and graphed it. There are very less 8 yr holding period when the returns from gold was negative, that happened 50’s and 60’s and just 90’s end.

4 yrs CAGR running

The next chart is the CAGR return chart for 4 yrs time frame and the graph is for running periods… that means 1925-1928, 1926-1929… 2008-2011. CAGR return is the main indicator of the performance of any instrument. If you look at the chart below you can see the ups and downs in gold performance and you can see how gold has performed in short run (4 yrs period) for a long time line. You can see that gold returns touched 20%-25% in 70’s and even in recent time it has performed wonderfully… which we all are aware of :).

8 yrs CAGR running

Then you can see the graph below which shows CAGR return on 8 yr running period. The interesting a little obvious fact is that it hardly gave any negative return in any 8 yrs time frame, only during 50’s and late 90’s it has performed badly.

20 yrs CAGR running

The real test of gold comes from a very long term performance and if we see a 20 yrs CAGR return on rolling basis (1925 – 1944, 1926-1945… 1992-2011), then you can see that most of the times the returns has been in the range of 5-10% and only in the 80’s people got best return if they had bought it in 60’s.

CAGR from 1926 (base year)

This chart is interesting; it calculates the CAGR return of GOLD from 1926 to all the years. I mean CAGR return from 1925- 1926, 1925-1927, 1925-1928 and then 1925-2011… So the base year is always 1925. This shows you what was the very long term CAGR return of gold considering it was bought in 1925. In a way this does not give us very strong conclusion, but still shows us some perspective.

CAGR from 1960 (base year)

This graph is same as above just that the base year taken was 1960 so considering gold was bought in 1960, the graph shows the CAGR return for different holding periods. You can see that apart from those who sold the gold in 80’s realised the best CAGR return, but those who held it for long, still have the returns in range of below 10%.

CAGR from 1980 (base year)

The last chart I want to show is with base year of 1980, you can see that over the long term the returns have converged to 10% & only in the last 10 yrs you can see the returns again going up.

What are your conclusions based on these charts ? What do you think about gold price movement from this point onwards ?

Jagoinvestor Book available for Pre-Order on Flipkart

Posted on January 20, 2012August 21, 2019 by Jagoinvestor

Hi Readers . My upcoming Book Jagoinvestor with CNBC Network 18 is now available ~~for PRE-ORDER~~ on flipkart and crossword website. The date of launch as mentioned on Crossword site is 28th Jan. The cost of the book stands at Rs 374 at flipkart and Rs 364 on crossword website. If you pre-order it before launch, you will be among those to get the book first in your hands.

Share & Win a signed Book Contest (10 random winners)

We are running a contest where you stand to win a signed copy of Jagoinvestor Book by Author (thats me) by sharing it on twitter, facebook or on email to your friends. We will choose 5 random winners from the first 100 people and another 5 random winners out of rest of those who share about it. once you share about the Book , all you need to do is register yourself. those who help in sharing the message about Jagoinvestor Book and we will send the copy of book to him very soon. All you need to do is share about the book by click on the link below and share the message on twitter or facebook. You can also share about the book manually on your twitter and facebook

This Contest is Over now

Can you help in Book Promotion

Jagoinvestor Book I am looking for readers who can help me market the book through various means. Incase you can help us in promotion of the book in any ways by mass mailing to your friends, colleagues, sharing it on your forum, writing about the book on your blog, Please contact me . I would be happy to talk to you on that

Download a Comprehensive Term Insurance EBook – FREE

Posted on January 16, 2012September 9, 2019 by Jagoinvestor

Today we are publishing our first ebook give away. We listed down all the possible things a person want to know about a term plan and made ebook out of it. You can see the cover page of the Term insurance ebook here . Its a 19 page ebook with different term plan related points structured in a easy to understand language. Any one who wants to know about term insurance plan in detail can download this free ebook and read it.

Free term insurance ebook jagoinvestor

You can also give this free term plan e-book to your Spouse who is not on this blog or to those friends and office colleagues who are not ready to go online to read about term plans . This ebook focuses only on term plans and has been written using very simple language. Let me quickly summarize what this e-book contains

Contents of Free Term Insurance Ebook

1. What is Term Plan
2. Tax benefit in Term Plan
3. What is an ideal cover for you?
4. For how long should one take a term plan?
5. What are riders and what do they mean?
6. But term plan does not return the money?
7. Return of Premium Term Plan, is it worth?
8. Free look up period
9. What do premiums depend on?
10. Online or Offline Term Plan
11. Why Premiums for Online term plan are so cheap?
12. What is the best frequency of premium — Yearly, monthly or One-time?
13. Important points while filling up the forms
14. Exclusions in Term plan
15. Servicing and Delay in getting the policy
16. NRI’s guide to Term Plan
17. Agents Commission and why you should not ask a pass-back
18. Will more than one company pay the claim?
19. What to look into a Company – Claim Settlement
20. Complaining about some issue in term plan
21. Give clear directions and process to your family about claim.

Share to Download this Ebook

If you want this ebook. All you need to click on the button below to share it on your twitter or Facebook
All you need to do is click on the button below and share it on your twitter OR Facebook. This will help us reach more people and your friends will also get to know about it. For some users this was not working earliar , but now the issue is fixed and it will work. Incase you are not able to download the ebook, mail me with proof of sharing and I will email you the ebook

THIS EBOOK IS NOT AVAILABLE NOW

Why we created this Free Ebook

We are planning to give away a lot of Free Ebooks like these in this year and we are working on those ebooks . A lot of people do not come online to read about financial matters , but those should not miss out on these useful information, With your help we can reach out to those people and you can be a helping hand in spreading these useful ebook to those. So now its time you pass on these useful ebooks for others. Its your bit of spreading financial literacy.

11 qualities that a Right Financial Adviser should have

Posted on January 12, 2012May 1, 2018 by Jagoinvestor

I start my day as a student of wealth and engage my time and energy to find out ways of expressing myself as a million dollar financial adviser. Half way through my day, I spend time on calls talking to people, connecting with them and helping them along.

I feel blessed being into advisory business and I think that every adviser has in him the potential to show up as a million dollar adviser in his client’s financial life. A million dollar adviser is the one who creates his/her special place in the hearts of his clients. It certainly goes beyond advice and fees.

I want to develop myself and would love to see more and more advisers to show up as million dollar advisers because I know that good and authentic advice has a lot of power in it. You will find three types of advisory services in India:

Sales driven – where the primary goal is to sell as many, high margin investment products as possible
Goal driven – where the primary goal is to help people create a logical, rational investment plan that helps in meeting goals (and they charge a fixed fee for)
Change driven – where the primary goal is to create as much positive change as possible for their clients (which could also involve helping them work with emotional issues / relationship to money issues / etc)

Here are 11 things to look into your Financial Advisor

1. Your Adviser has to be RICH

If he is not rich how will he make you rich? His financial life has to be inspiring and should demonstrate how to live an extra-ordinary financial life. He is rich not just in terms of money but with the overall richness. He is rich with in his thoughts, with ideas, and with speaking and listening. You should feel empowered in every interaction you have with your adviser.

2. Who is ready to give a sweet kick on your ass

True advice may not be always sweet to hear and easy to digest. Million dollar advisors are fearless; they will step forward whenever they see casualness or reasons in their clients. They will fill your financial life with the right rigor. If the adviser really cares for his client than he won’t care how it will look to his client!

You may not like your adviser when he will do this but this will really move things in your financial life. He should be able to tell you the truth. Working with a million dollar adviser is never easy you need high level of commitment and should be willing to pay high fees to receive such high value.

3. Has a clear intention

Nothing happens outside of an intention, by ‘nothing’ I really mean nothing! It is very important to identify the intention of the person you are choosing. Intention is what will convert into actions when you will move forward with your adviser. All the make-up will wear off after a few meetings and the real intention (face) becomes visible.

Watch this video to know the types of financial advisers in India and their roll:

4. Work speaks more than experience or certification

When I started my practice I was really inspired by L Dolan who was a very famous Time Management Consultant. He used to advice mostly companies and groups. He had no visiting card, no brochure, no website, no videos or audio to show his work to his prospects. Yet he had 100% conversion.

All those who contacted him always became his clients. If someone wants to hire him he would send a box full of 500 hand-written heartfelt letters (Transformative Testimonials). This is what he used to do with all prospects and his conversion was 100%. His work would always get him more work.

It does not matter how many plans your advisor has created; what matters is how many financial lives they have changed. Even a new advisor can achieve this, he may have just one client’s work behind him but this one client’s transformation can lead him to become a million dollar advisor.

5. Advice Comes with Money Back Guarantee

A million dollar advisor has full confidence in his work and his ability to advice. If he feels you are not ready to work with him he will say a clear NO to you. He is not needy as needy is creepy. He has the guts to turn your offer down.

It is not the fees that will determine his choice it is your overall attitude that matters to him. Giving a money back guarantee is not to lure an investor or as a marketing gimmick but this is the confidence he has in his own work and his abilities.

6. One who helps you to un-learn

The real change and transformation comes from unlearning and you advisor has to help you attain this skill. This brings a change in ‘who you are’ as an investor as your myths and non-supportive beliefs about wealth creation gets stripped off.

7. Experts connect you with other experts

A real expert always connects you with other experts as he is always surrounded by good experts. If your advisor is a million dollar adviser he will connect you with the best of the experts or companies available in the market with different solutions for you. He will connect you with the best of the best so that things move faster in your financial life.

8. Does not believe in customers are always right

This is one of the best ways to measure your adviser. Do something stupid or commit a mistake and see what your adviser does with it- he is accepting your mistake, or appreciates you or gives you a negative feedback that “YOU ARE WRONG”.

All those advisory who believe in customers are always right are NOT million dollar advisers. They are moving in the market only to get business and to please people and not to serve people.

9. Helps you transform your financial habits

This is one area where most planners and investors do not focus. We are creatures of our habits some are supportive and some are not. Till you do not identify your unsupportive financial habits the world’s best advice won’t help you grow.

10. When shit happens he helps you to convert it into fertilizer

Our financial life is always a mix of good and bad experiences. It is not possible to find a person who always had only good experiences in his financial life. The million dollar adviser helps you grow from your mistakes. He talks about possibilities and helps you win with the cards you have.

Your million dollar adviser will make you okay with all these good and bad experiences and helps you grow.

11. One who Walks the Talk

Financial planners are not movie stars who are free not to use products/service that they endorse. True advice is not given, it is simply shared. Most planners don’t have their own financial plan because investors never ask for it. Your Planner has to have his own finances in place.

He should have his goals in place; and should be having his finances in place, he has his own strategies in place and sees that his financial goals are inspiring, full of life and energy. He has to be a disciplined investor himself. He himself is relaxed in the area of money.

The bottom line is your million dollar advisor is a stand for your financial success. He Helps you win with the cards you have, He will make money when you make money; He will suggest you products that he is ready to buy. Do share your views on the above 11 ways and which one is most appealing to you as an investor.

This week

Decide if you need professional help in your financial life or not?
What kind of advisor you would love to work with sales driven, Goal driven or Change driven? Are you ready to make a financial commitment?
Which of the above qualities you would like to see in your advisor?

This article is written by Nandish Desai and he likes to put his thoughts on Financial Coaching Conversations here on this blog

Saving Account number Portability – Is it Needed ?

Posted on January 12, 2012August 21, 2019 by Jagoinvestor

Saving account numbers will soon be portable in India. Finance ministry is working on this from some time and soon you will be able to change your banks without changing your Bank account number. Saving account number portability will be almost similar to porting your mobile number to different network carrier.

Why people don’t change banks?

A lot of people do not change their banks because there is a lot of headache involved in the procedures. If you change your Bank from ICICI to HDFC, it means you have to change the account numbers at different places (for ex SIP ECS). Also you will have to close the ICICI account
and open a new account in HDFC which means repeating the procedure all over again. These tasks stop people from taking action of moving from one bank to another. However with saving account number portability, you will be able to change your Bank account from bank A to bank B with less paper-work. The procedure is expected to be small as the KYC norms will also be taken care and no there will be no change in the Account Number.

Recently, with the Savings bank rates deregulation and NRE/NRO deposits deregulation has resulted in many banks increasing their saving bank interest rate to 6-7% (example YES BANK and KOTAK bank) and a lot of banks increased their NRE/NRO deposits rates from 3-3.5% to 8-9%, however a lot of people have not considered to change their banks just because of the WORK involved in the opening of new bank account. If saving account number becomes portable then a lot of people might have considered doing this.

Implementation of Saving account portability is a big task!

However this idea looks great to a lot of people, the whole idea of portability is not that easy and there are several challenges in this process. Those are

Renumbering the 500 million bank accounts – There is approx 500 million saving bank accounts in India and these account numbers are 12, 13 or 14 digits account numbers in most of the cases where the first few numbers are for branch code . Now the first task before portability is achieved is that all these account numbers will have to be renumbered and there has to be same format for these. So that your account number after changing the bank is still same. Now how will this be achieved? How much realistic this is and how investors will be able to accommodate this part in their banking life.

Different banks having their own KYC rules – At the time of opening a saving bank account with a bank, it has its own procedure and documentation and they feel that they do the best job in that. When portability comes into picture, there has to be same kind of KYC norms with all the banks and they should feel confident about it, as they would not like to rely upon others KYC. This part would be rather challenging.

Do you feel you need this saving account number portability or is it a stupid idea ?

Jagoinvestor Book with CNBC – Network 18

Posted on January 4, 2012August 21, 2019 by Jagoinvestor

I am happy to break the news today about my first upcoming book on personal finance called ~~“Jago Investor”~~ (The name of the book is changed now and its now called “16 Personal Finance Principles Every Investor Should Know“) with CNBC Network 18. It has been a long time I was waiting for this to be out in the market, but finally I got a go ahead to break the news to my blog readers. No, the book is not in talks – It’s going to hit the market (soon) this month itself. So you just have to wait for couple of more days to grab your copy.

OLD NAME & COVER PAGE

Jagoinvestor book

NEW UPDATED BOOK WITH CHANGED NAME

Some time in early 2010

I got a mail from CNBC sometime in 2010 about authoring a book on personal finance and I happily agreed. Since then I worked on the book, I was in Bangalore that time working with YAHOO (yea guys – I was an IT guy) and then I moved to Pune to start on my own. I worked on the book in last 1.5 yrs and now it’s complete.

The Vision of Jagoinvestor Book

It was a tough task to select what the book should be all about – but I was sure that it should not be a typical book . It should not be a book which does not leave an impact on someone who reads it. I wanted to make sure that a person who reads the book really introspects about his financial life. I wanted the book to make a person shake a bit after reading it. So the book had to awake a person reading it and make him feel “Now, I should do something for my financial life”. With that vision I have written the book. It’s about the principles of personal finance and how a person should think in different areas of financial life. I will it becomes one of the best personal finance book in India.

The book is not about financial products and how they work – NO! You can get it anywhere. I have talked about very important things which really matter. It works on your thinking level and makes you think in a more quality way rather than just increasing your knowledge. I have tried my best to keep the language simple along with numerous examples and images/tables to convey the concept. I have written this book considering myself as the reader. There is another version of this book which comes with a CD which contains 13 financial calculators and 2-3 templates.

Buy the Book (Click Here)

Book Chapters

Now let me introduce you to the book contents in crisp and short points.

Chapter 1	This chapter talks about early investing and how you lose a lot of wealth just because you don’t start your wealth creation on time. I have shown numerous examples/graphs which will give a clear idea on how powerful early investing can be.
Chapter 2	The second chapter talks about the protection of your family (Life Insurance). It also shows you right way of finding the required cover and how much your current cover will be able to sustain your loved ones. While this might look like “products talk” It’s actually not!.
Chapter 3	The 3rd chapter is all about Goals setting and how your should look at it . How goal based/linked investing can do better for you and improve your financial life style.
Chapter 4	This chapter clears the myth people have about equity and debt in general. It shows you reasoning/proof about how equity is not risky in long-term and how debt is extremely risky in long-term.
Chapter 5	This chapter talks mostly on the psychological aspects of your financial thinking and how your decisions are shaped up because of the way you think about money. This chapter has been contributed mostly by Nandish and he has really done amazing work.
Chapter 6	This chapter talks about how you can make your financial life more simple and robust using some simple rearrangements. This is mostly overlooked by indian investors who focus a lot on returns only.
Chapter 7	This chapter ends the book and it talks about 10 commandants you should incorporate in your financial life to make sure you become a better investor.

Thanks to you

If I had to thank only one person who made this book a success, it would be you. From past 4 yrs you have bombarded me with your doubts/questions and this has only made me learn and learn. This book does not belong to me alone its creation of this whole community and each one of you who is part of this blog from several years now. It did not take shape just in a day – it happened over years – slowly and gradually. I would like to say Thanks to you all for believing in jagoinvestor and really making it happen. We have a lot of things coming up in 2012 and our commitment is to give you guys more and more with each passing day.

Health Insurance is Wealth Insurance

Posted on November 21, 2011August 22, 2019 by Jagoinvestor

Does Health insurance or Mediclaim Insurance really protect your health ? Ask yourself this question and deep down in your heart you will hear someone shouting , No Idiot ! , There is no policy which can protect your health ! . Health can only be protected by right diet , right exercise and right lifestyle (download this ebook). Unless you are doing any of these your health can’t be insured. So what is Health/Mediclaim Insurance, when it does not protect your health ?

In reality, what we all fail to realise is that Health Insurance is actually “Wealth Insurance” . When you buy a health insurance policy, all you are doing is protecting your wealth from those scenarios which would ask for a lot of money from your wealth. So you have to understand the importance of buying a health insurance policy. (You can buy it from Coverfox website)

I was talking to some one few days back in Goa (Yes, I go on vacations too) who rejected to take a mediclaim policy because of higher premium due to his diabetes. I told him that I hear something out of his decision of not buying a health insurance plan. He was surprised to hear this because he didn’t say anything else other than “I will not take health insurance” . So I told him what I heard.

I told him that I hear from him that he is ready to lose a big part of his wealth in few years if he is detected with any further illness . I told him that I hear that he didn’t want insurance company to pay for his medical bills , but was ready to bear the cost on his own. If he has to spend 5 lacs , he will pay it . If its 15 lacs , he will pay it ! and even if its 30 lacs (after 12-15 yrs) , he will still pay it .

Protecting Wealth is much easier than Protecting Health

I told him that by choosing not to buy a health insurance plan, he is accepting that he is ready to bear a big cost in future incase the situation demands . A lot of people do not think about health insurance like this. While this is the internal truth that the job of health insurance is to protect your wealth and not your health, a lot of people just fail to look at it this way .

So if you love your Wealth , buy health insurance.

For health , you can take other routes like eating right food, physical exercise daily , having a positive and a good life style (see this post from subra) .. But the sad thing is protecting your wealth is much easier than protecting your health 🙂

What are your views on this ? What have you done to protect your health and wealth ?

Does Sushil Kumar (KBC winner) require a Financial Plan ?

Posted on November 17, 2011January 4, 2015 by Jagoinvestor

We all know that Sushil kumar has won 5 crores from KBC few days back (actually 3.5 crores after tax) and now he is already being approached by wealth managers, relationships managers to advise him on how to “invest his money”. So I want to just discuss my thoughts with you all on how Sushil kumar should put his money at work ? Does he really need a Financial Plan ? Does he really need an advisor ?

Sushil Kumar 5 crore KBC winner
Let us see what he can do with his money and how I think he should utilize his 3.5 crores. Given his background and education level and assuming that he listens to me, here is what I would suggest Sushil Kumar. Divide your money in 4 buckets A (1 crore) , B (1 crore) , C (1 crore) and D (50 lacs)

Bucket A (Security of future)

The first thing which I would tell Sushil Kumar is that he should just keep things simple and simply keep that 1 crore in a Fixed Deposit and let it accumulate there without any complication. This part of his wealth should be there incase THINGS GO HORRIBLY WRONG ever , he can just leave this part as it is for growth, even if its going to increase at a slower pace compared to equity or anything else.

Bucket B (Regular Income and Security of Capital)

I would suggest him to use the next bucket to generate a regular income along with his capital being secure, again there can be many ways of doing this , but considering his background and assuming that he might not be too sure about financial matters , again I would recommend him to put his next 1 crore into a fixed deposit with a monthly or a quarterly payout of interest . This will make sure that his initial capital of 1 crore is secure and he will start getting an income of Rs 65,000 – 70,000 per month (before tax) .

This income of 65,000 – 70,000 will be more than enough for him to live his regular life, thanks to him not very much addicted to junk foods , extravagance and other useless spendings which our generations have. He will surely be left with a lot of money each month or quarter and thats where he can put some money in equity on regular basis . No stocks , no mutual funds , just plain index funds, so that he does not have to bother about funds not performing every year and does not require a short-term review.

Bucket C (Assets creation , Education , Business)

Once his worst case is covered (bucket A) , his regular income is taken care , now he can use the next 1 crore for building a new house for himself and his family , he can also use some part of his money to fund his education and some part he can use to start a new business which can again open a new stream of income for him) . This purpose of this 1 crore is to take care of all the things which he wanted to do in his life. This part is not to save , but to utilize for his aspirations and his dreams.

Bucket D (Enjoying his Life)

I think he should use the last 50 lacs to just blow off and enjoy his life on regular basis which a lot of people just dream of . He should take a vacation abroad first using 10-12 lacs and then rest of the money he can use to go for a regular vacation each 6 month , with 35 lacs he can get a 2.8 lacs a year as interest income which would be enough for him to take 2 vacations a year with whole family 🙂 . The focus of this 50 lacs can be purely for enjoyment purpose because his other area’s in financial life are complete.

Other Suggestions

Life Insurance is not required for Sushil Kumar because there is no requirement of Life Insurance, There is enough wealth with him and his family incase he is not around.

Health Insurance would be something nice to have as it would come at a small cost compared to what he has in life, this would make sure that someday if something goes wrong , his wealth is protected against the unexpected expenses.

He should stay away from any relationship manager , Agents or even Financial Planners as there is more for “Allocation” and less to “Plan” . He has already passed the Accumulation phase and only if he takes care of his existing wealth now, he should do good.

Because of his less knowledge (assumption) about overall personal finance, he should keep things simple and be with simple products like Fixed Deposits which he understands properly.

Sushil kumar real enemy might not be inflation or ignorance about money, but his own relatives and Bihar goons ! . So what do you think about these suggestions to Sushil Kumar ,? Do you agree with it ? How would you allocate his 3.5 crores if you had to do it ?