Storms are inevitable

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

Summer is next door, when it comes brings sand/dust storm with it. Sandstorms usually arrives suddenly in the form of advancing wall of dust and debris may be kms long and several feet high.

They strike with little warning, but best thing is they don't last long. If not handled properly It may damage our eyes, lungs or even result in big accidents.

Similar is the case with investing. Here are also Storms of uncertainty and volatility keeps striking irrespective of summer or monsoon in India, It will strike even if temperature rises in U.S.,North Korea, Europe,China or middle east.

Whenever, such storm of news flows, instead of being reactive we should look at our needs, goals and ask big question "does it  have any implication on my financial future."

If planned properly, you can sail through storm easily and reach financial destination without  being hurt avoiding  accidents.

So, don't make news to be *basis* of your investment decision.

Have a great weekend.

Regards,
Raj Talati

What is the guarantee of Guarantor

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

Recently, I come across an advertisement wherein a company has put big signboards around the city guaranting income for 9 years @9%, *by purchasing a pre leased commercial property through them.*

On website it's mentioned that they lease property to IT companies. Also occupancy or non occupancy doesn't impact Investors return of 9%.

As a financial planner when I digged into the offer found following points to ponder for investors, before falling prey to it :

1) Price of property is decided by them: Even in this bearish phase they dictate their price and inflate it, making it costlier for investor.

2) Rate of return@9% is not adjusted for inflation. Assuming even 6% inflation your return would be meagre 3% from very next year and will keep going down with every passing year. After 6 years effective real return would be negative.

3) Income tax on rental income : Obviously person buying such a costly property must be falling in top tax bracket.So if accounted for tax their is hardly any income.

4) Maintenance and wear and tear.

5) Property tax - Being a commercial property taxes are going to be high.

6) They are giving post dated cheques as a guarantee for rent.PDC's really😖😖

*_The big question is what is the guarantee of Guarantor._*

*With a little common sense, a little patience, and a little sense of humour you can live well on this planet - W.Somerset Maugham*

When we all know rental yields are in the range of 3-4% then why we fall for offers which is *too good to be true.*

It always helps to have a professional by you side, who can guide,analyse pros and cons and help you take a informed decision.

*So next time whenever see such lucrative offers think twice before investing or contact a financial advisor to help you with.*

Have a rocking weekend.

Regards,
Raj Talati
www.rajtalati-abminvestment.blogspot.com

Featured on Wealthforum

Important message for all advisors

Raj Talati, ABM Investments, Vadodara

24th February 2016

In a nutshell

Raj recently conducted an IFA workshop for VIFAA - Vadodara's IFA Association, in which he played a 4 minute audio clip at the beginning of his session.

In RJ Naved style, Raj highlights the responsibility that every IFA shoulders, of making their clients' dreams and aspirations turn into a happy reality rather than a bad nightmare.

Raj's message at the end of this 4 minute clip is a timely reminder to all advisors to act responsibly and judiciously - he urges you to internalize that your clients have entrusted their dreams and aspirations to you, in good faith.

http://wealthforumezine.net/Advisorspeak240216.html#.VtZy2KDhXqB