20 most important thumb rules to help you in financial decisions in new financial year 2015-2016 and in your future

As we welcome and step in new financial year 2015-2016

few thumb rules which shall help us in financial decision this year and also always in our future to ensure wealth and prosperity-

1- 100 minus our age should be our minimum equity allocation.

2- Minimum 20 times or more of our yearly income should be our retirement fund.

3- We should save & invest minimum 30% of our income every month.

4- We should not have monthly house hold expenses more than 35% of our income.

5- We should invest at least 5% of your annual income on skills / self development and on our health betterment & wellness.

6- E.M.I and Loan payouts should not be more than 30-35% of our gross monthly income (Zero is the best- Invest this percentage also if it is zero). Always keep checking in market for cheaper loan available and shift your loan to minimise your EMI. Avoid high interest loans like Credit card and Personal loan etc.

7- Cost of our house should not be more than 8-10 times of our total family income.

8- Rate of returns on investment ideally should always beat inflation.

9- Try & follow Rule of 72 & 115 -

     How many years double or triple our money

     72/Returns = Double in years

     115/Returns = Triple in years

10- Rule of 70 = Future buying power of your money (time in which your money purchase power depreciates and cost of product doubles) = 70/Inflation = Number of years in which your money depreciates to half and the product cost doubles).

11- Always keep 6 months expenses as an emergency fund in liquid assets.

12- Life cover should be minimum 10-15 times of your yearly income.

13- We should have minimum medi-claim / health insurance of Rs 5 Lakhs for a family of Husband Wife and 2 kids.

14- Minimum Rs 5 Lakhs separate medi-claim / health insurance buy for senior citizens parents.

15 - Cover adequately all the risk of all your assets i.e - home, car and other valuables through respective insurances.

16- Save small sums in equity every month, start early, invest regular, invest in disciplined way, invest for long term of periods, invest for higher returns (Equities) and invest for higher frequency of compounding returns.

17- Focus on your basic needs and avoid unnecessary more frequent outings, luxury expenses and impulse shopping.

18- Appoint a Qualified Financial Advisor to get your financial plan ready for all your financial goals of future and pay annual fees to Financial Advsior  for construction of financial plan, asset allocation for execution of your financial plan, review of plan at regular intervals and re-balancing of asset allocation at decided frequencies to enhance returns and minimise risk in portfolio which shall help you create wealth and prosperity of yourself and your future generation.

19- Through your financial planner / advisor help do a proper tax planning & estate planning.

20 - Don't go over board on a particular asset class or follow trends of masses to buy too much of a particular asset class. Always maintain a well diversified asset allocation for good healthy return on overall portfolio of yours.

Thanks and Regards 

Manish K Pandey

www.fernwealth.com

Navi Mumbai

#+91-9830040603

# 022-65550210

Email - manishkpandey@fernwealth.com

Magic of wealth creation by Monthly Systematic Investing - Easy and Definate

Magic of Monthly systematic investing is the best way to create wealth in either short term or medium term or long term. See the chart below to understand more about how saving monthly with higher amount for higher period of time with higher returns creates huge wealth.

Goals / Wealth Creation	Amount Invested (Per Month)	No. Of Years	No of Months	Total Amount Invested	Returns Expected	Future Value	Approx. Maturity Value
Short Term Goals	10000	5	60	600000	8%	739,667	7.4 Lakhs
Medium Term Goals	10000	10	120	1200000	10%	2,065,520	20 Lakhs
Long Term Goals	10000	15	180	1800000	12%	5,045,760	50 Lakhs
Long Term Goals	10000	20	240	2400000	14%	13,163,463	1.31 Crore
Benefit of Starting Early & Creating Big Wealth	10000	25	300	3000000	15%	32,840,737	3.28 Crore
Benefit of Starting Early & Creating Big Wealth	10000	30	360	3600000	16%	88,704,758	8.87 Crore
Benefit of Starting Early & Creating Big Wealth	10000	35	420	4200000	18%	350,974,877	35 Crore
Benefit of Starting Early & Creating Big Wealth	10000	40	480	4800000	20%	1,701,746,275	170 Crore
Goals / Wealth Creation	Amount Invested (Per Month)	No. Of Years	No of Months	Total Amount Invested	Returns Expected	Future Value	Approx. Maturity Value
Short Term Goals	25000	5	60	1500000	8%	1,849,168	18 Lakhs
Medium Term Goals	25000	10	120	3000000	10%	5,163,801	51 Lakhs
Long Term Goals	25000	15	180	4500000	12%	12,614,400	1.26 Crore
Long Term Goals	25000	20	240	6000000	14%	32,908,657	3.29 Crore
Benefit of Starting Early & Creating Big Wealth	25000	25	300	7500000	15%	82,101,843	8.21 Crore
Benefit of Starting Early & Creating Big Wealth	25000	30	360	9000000	16%	221,761,895	22.17 Crore
Benefit of Starting Early & Creating Big Wealth	25000	35	420	10500000	18%	877,437,192	81.74 Crore
Benefit of Starting Early & Creating Big Wealth	25000	40	480	12000000	20%	4,254,365,689	425 Crore
Goals / Wealth Creation	Amount Invested (Per Month)	No. Of Years	No of Months	Total Amount Invested	Returns Expected	Future Value	Approx. Maturity Value
Short Term Goals	50000	5	60	3000000	8%	3,698,335	37 Lakhs
Medium Term Goals	50000	10	120	6000000	10%	10,327,601	1.03 Crore
Long Term Goals	50000	15	180	9000000	12%	25,228,800	2.52Crore
Long Term Goals	50000	20	240	12000000	14%	65,817,314	6.58 Crore
Benefit of Starting Early & Creating Big Wealth	50000	25	300	15000000	15%	164,203,687	16.42 Crore
Benefit of Starting Early & Creating Big Wealth	50000	30	360	18000000	16%	443,523,791	44.35 Crore
Benefit of Starting Early & Creating Big Wealth	50000	35	420	21000000	18%	1,754,874,384	175.48 Crore
Benefit of Starting Early & Creating Big Wealth	50000	40	480	24000000	20%	8,508,731,377	850.87 Crore
Goals / Wealth Creation	Amount Invested (Per Month)	No. Of Years	No of Months	Total Amount Invested	Returns Expected	Future Value	Approx. Maturity Value
Short Term Goals	100000	5	60	6000000	8%	7,396,670	74 Lakhs
Medium Term Goals	100000	10	120	12000000	10%	20,655,202	2.06 Crore
Long Term Goals	100000	15	180	18000000	12%	50,457,600	5.04 Crore
Long Term Goals	100000	20	240	24000000	14%	131,634,628	13.16 Crore
Benefit of Starting Early & Creating Big Wealth	100000	25	300	30000000	15%	328,407,374	32.84 Crore
Benefit of Starting Early & Creating Big Wealth	100000	30	360	36000000	16%	887,047,582	88.70 Crore
Benefit of Starting Early & Creating Big Wealth	100000	35	420	42000000	18%	3,509,748,767	351  Crore
Benefit of Starting Early & Creating Big Wealth	100000	40	480	48000000	20%	17,017,462,755	1701 Crore

The above table gives following learning for all investors:

1- Start Investing early in life.

2- Start Investing higher amounts as per best of your capacities.

3- Start Investing Monthly or with higher frequency i.e fortnightly, weekly or daily without breaking your investments in full decided term.

4- Keep Investing for long period of times i.e -5/10/15/20/25/30/35/40 years.

5- Keep Investing for higher returns and higher frequency of compounding returns during the entire term of investments

6- Expect Higher returns as you invest for more and more number of years / months. 

7- In long term investments your chances of maximising returns goes up and minimises the chances of losses or less returns

8- Big Wealth follows as you follow above 7 rules as an investor

9- "Compounding is 8th wonder of world" remember this always.

10- Creating wealth becomes very easy with discipline and rules of Systematic Investments.

Thanks and Regards

Manish Kumar Pandey

Fern Wealth Advisors Private Limited

www.fernwealth.com

Navi Mumbai

#fernwealthadvisors@gmail.com

# +91-9830040603