1.What is Asset allocation?
- Asset Allocation refers to allocating investments in various classes of assets such as stocks, bonds, mutual fund, gold, real estate etc.
- Diversification reduces the risk as compared to concentration in one class.
- While allocating, the time frame of the investors’ goals must be taken care.
- Asset allocation is a major step in Financial Planning.
2.Why do I need a Financial Advisor?
- To have the expertise and time of the advisor.
- To synchronize the investments with the financial goals with time factor using asset allocation.
- The rule of the game in Personal Finance is risk management & not avoidance. One needs guidance on this.
- Stock Market moves with expected earnings, inflation & interest rates as well as with whims of human emotions. To operate this one needs guidance.
3.Why should I have Financial goals?
- The biggest advantage in Financial Planning, it makes you realize the importance of goals.
- With the help of the advisor, you are able to plan for your car, house, marriage, retirement etc.,
- You will automatically become more efficient with his money because of financial goals.
4.I don’t like discipline and you are talking about Financial Discipline. Can you convince me on this?
- We will not convince you; you have to convince yourself in the ‘Path to Prosperity’.
- Experts opine pain of discipline is better than pain of regret.
- It is our considered that you are paying a small price though your discipline to enjoy a much bigger price in the future. The wonderful ‘Power of Compounding’ is going to be your friend when you take the path we suggest.
- In fact, many people have thanked us on seeing their progress even within a short period of three years.
P.S. Feel free to add more questions and we will answer those in this page.