Saturday, June 30, 2018

Don't gamble with Yellow sign of fuel Gauge

Investoshashtra !!!📜📜📜

Today morning while on my way back from jogging, I saw a person riding on his bike and pushing other vehicle which ran out of petrol.

Whether it is laziness or illogical thinking that people keep testing their vehicles fuel efficiency and most of the time end up running out of gas and in accordance with Murphy's law "at a location where there's no gas station".😔😔

Similar is the situation of most of the millennials. Inspite of having a good take home salary they end their month dragging their vehicle to the next fuel station, with the help of friend as the last rescue (who is more of a enemy in mask of friend named as credit card or consumer loan.)

Burdened with big EMI's, partying with friends, going to pub, restaurants, vacations, latest gazette, big billion sale, impulsive buying is the way of life for them.

Friends and relatives can push their vehicle to fuel station just once or  twice.Then a stage comes when they are hardly left with any fuel and end up in dragging their vehicle of life to reach fuel station(Salary day). What if the vehicle breaks down (you lose your job or some medical emergency comes).

So instead of living life on the edge start live it smartly, start a #Good EMI. ( )

Good habits are hard to form but very easy to live with.

This weekend have fueltank full of happiness.

Raj Talati

Saturday, June 23, 2018

Which songs always remain in our playlist


Have you ever thought which are the songs which will always remain in our playlist. Is it the most hit songs(Honey Singh types- दिल चोरी साड़ा हो गया...), trending nos. (रंग दे तो मोहे गेरुआ) or most viewed one ( दिल पे पत्थर रख के मुँह पे मेक अप कर लिया - 21 crore views). Mostly none of them.

Our playlists have songs which are close to our heart, they may be enjoyed listening with friends on a Manali trip (Why Manali-as I have some😉) or with family on a road trip, may be from a movie you can connect with or may be the one with extraordinary music, lyrics and singer combo.

So it has nothing to do what others like or want, it has to do more with your own inner happiness and delight.

It's sort of personalisation. Isn't it!!

Then why we try to copy others when it comes to investment. Why we invest in Gold in 2012, real estate in 2013, Equities in 2007 and mid and small cap funds in 2017-18.

Just go with the songs (investments) which you enjoy, I like combination of Kishore,Asha,Gulzar and R.D.Burman, but many of you might have a different choices. So my asset allocation or investment in equity or real estate or gold can't be like yours.

Even siblings can't have similar asset allocation the way they don't have similar playlists.

This weekend decide on your favourite investments (playlist) which suits your goals, risk profile, income, expenses, assets, liabilities, responsibilities, health condition etc etc..and enjoy musical journey of life.

Have a musical rainy tip tip barsa Paani weekend!!

Raj Talati

Saturday, June 16, 2018

"Life is simple, we complicate it"

Investoshashtra !!! 📜📜📜
ईनवेस्टोशाष्त्र !!! 📜📜📜

I was watching a TED talk by Jon Jandai a farmer from Thailand, he has beautifully explained how simple life is.

Mostly, we are not able to differentiate between our needs and wants. Needs are basic necessities the way Jon explains but there is no end to wants.

At times society we are living in decides what we should buy. We know a small car will suffice need to commute small distance we need to travel daily to office or shop or showroom, but still settle down on buying a luxurious car on loan.

I heard lot of people saying "Money can't buy happiness but I would prefer to cry in Mercedes then in bus".But what if Mercedes is the real reason behind sadness.

To achieve Nirvana in this world you can follow path of Jon Jandai. But if you find it difficult then financial planning can be the only option.

It helps to understand and decide your needs and wants,to overcome peer pressure of the society, quality time with family & friends and be secured about  future.

I think that is what we wish in life.

This weekend decide how to make life more simpler, so that it can be happier (even in a Alto), healthier and satisfying.

Raj Talati

Saturday, June 9, 2018

Investment is not buying Vehicle

Investoshashtra !!! 📜📜📜
ईनवेस्टोशाष्त्र !!! 📜📜📜

This week we decided to buy new vehicle for my wife.

Since then only thing we can see around is different vehicle options, color and look.Even while riding on road or standing on signal instead of looking at  the beautiful girl standing besides me, I was lookng at her vehicle😉😉.

I was surprised by my behaviour, untill last week inspite of everything being same it was non existent for me, and after 2-3 months of buying the vehicle everything again will be non existent for me. Rather I would be list concerned with even color, model or brand WE BOUGHT.

It reminds me of investors who invests on their own and falls prey to such behaviour.

Whenever they have surplus money just invest looking at what everyone else is investing in or most fancied product or asset class in the market. They forget purpose of investment and in many a cases even purpose is undecided.

But investment is not like buying a vehicle, TV, refrigerator or Home theatre. It is like growing a plant, it needs regular care, watering, nurturing and  even trimming as and when required.

So it's always better to have a good financial gardener who will help and nurture to blossom garden of your Life.

Have a blooming weekend.

Raj Talati

Saturday, June 2, 2018

This investment makes us Stupid

Investoshashtra !!! 📜📜📜
ईनवेस्टोशाष्त्र !!! 📜📜📜

Recently while reviewing portfolio of a new investor, I recommended him to surrender high premium traditional insurance plans.

But the problem is inspite of paying premium for 3 years he is not getting even 40% as surrender value. So instead of surrendering he wishes to continue with it for the full term.

In behavioral finance we call it "Sunk cost fallacy".

For example :
-‌I wish to take a gym membership but can't. Reason, I bought a treadmill 6 months back which I hardly use.
-‌Keep watching a pathetic movie till end which costed your pocket 500 bucks or overeating at a restaurant as you ordered more just to get money worth.

We always live with a misconception that we make rational decisions based on the future value of objects, investments and experiences.

But the fact is our decisions are tainted by the emotional investments we accumulate.More you invest in something the harder it becomes to abandon.

Sunk cost fallacy makes us stupid.

Try and get rid of sunk cost fallacy in your investments for a better financial future.

Raj Talati