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How to Build Your Wealth Management Port...
Have you ever wondered what would be the best way to build up a solid wealth management portfolio. Then reading further might be your first step towards making it a reality.
When it comes to wealth management, it's hard to overlook the importance of a solid foundation. If you are planning to raise a multistoried structure that you want to outlive a few generations, then you need to ensure that the foundation on which you build your dreams is strong enough to shoulder your empire against all unexpected calamities. Building our wealth management portfolio is no different than this. It should be able to withstand the economic uncertainties influenced by the volatility in domestic & international stock market, global economic slowdown & recession.
Now that we know the importance of a strong foundation for a long-standing wealth portfolio, you have already started to wonder how to achieve it. So, what is the best investment plan? Unfortunately, there is no one stop solution for all your investment needs. But, you can have one customized with a perfect balance of the available investment opportunities.
PYRAMID:
The pyramids of Egypt are known for their unique structure and their longevity. These ancient architectures stand strong for more than 4000 years now. Of course, they did not achieve this easily. A lot of time and effort were involved before they finally reached the pyramid structure – The shape of the pyramid is one of the most vital reasons for its ability to preserve the mummies for such long periods.
You can build a reliable investment portfolio that will transfer your wealth to the next generations if you design it like a pyramid. A structure that we can call - A Financial Pyramid.
How To Build An Emergency Fund...
Though the credit card generation has got accustomed to a borrow spend and pay culture, savings has been Indian way of life in being prepared to face the unexpected for decades or even centuries now. And there’s no better time than this global pandemic to start thinking about developing the habit of saving for an unforeseen event.
What is Emergency Fund
Emergency fund is created to meet out the unforeseen events in our life such as temporary job loss, sudden illness, global economic crisis etc.
Why do you need an Emergency Fund
Having an emergency fund is like having your own personal banker who can fund you to take care of an unexpected situation, stopping the expected monthly inflow of money to you for a certain period. You can build yourself an emergency fund that can keep your soil wet on a dry day.
How much Emergency Fund is required
One must have 12 months Household expenses & EMI’s as corpus.
How to build an Emergency Fund
You can start building up your emergency fund by saving a certain amount of money in a recurring deposit for a period of 48-60 months. An ideal investment can be 10% of your monthly income. Once you have completed the investment term, you can convert them into a fixed deposit.
Benefits of having an Emergency Fund
• An emergency fund can keep you away from the endless loop of debt that you often subject yourself to handle unexpected loss of income or unplanned expenses.
• An emergency fund will also help you to avoid redeeming or taking loan from our existing Investments that you have been investing for certain goals such as kids’ Education, Retirement etc.
• A fair return in the form of annual interest. Yes, long-term Recurring Deposit that you undergo as part your emergency fund building endeavor can help you get a decent return in terms of interest from investment.
• Above everything, having an emergency fund can keep you away from the worry of uncertain future expenses that may interrupt your planned expenses.
Redemption of Emergency Fund
As liquidity is a key for immediate access to funds when you need the same, Recurring & Fixed deposit gives you the edge over any other asset class for easy and immediate liquidity. Now that we know what an Emergency Fund is, it’s a right time to make your first step towards building your own corpus for a future uncertainty.