Our last suggestion to readers is to seek guidance from a professional financial planner. Some may ask why should they pay Rs 10,000-25,000 a year for financial advice. After all, there is a lot of free advice coming their way from various sources. But that free advice can be very costly. As Apple CEO Tim Cook said, “If a service is free, you are not the consumer. You are the product.” Insurance companies, banks and mutual funds who give free advice are likely to push unsuitable products that earn them high commissions. Don’t let a low-yield insurance policy or a closed-ended mutual fund become a millstone around your neck. Get objective financial advice by paying for it in 2017.
Though most experts are bearish in the short-term, it still makes sense to have a part of your total portfolio in gold. But financial planners say this should not be more than 5-10% of your total investment portfolio. “Gold is no more a safe haven, so limit the exposure to 5% of your portfolio,” says Gurgaon-based financial planner Taresh Bhatia.
It is therefore essential that investors assume a higher inflation rate when they start saving for long-term goals. “Most people assume 0% inflation. They simply don’t factor in any rise in price when they plan for their goals,” says Taresh Bhatia, Partner in Advantage Financial Planners Bhatia prefers to err on the side of caution so that his clients are safe rather than sorry. “We assume education inflation at 10% and healthcare inflation at 12-15% when we formulate a financial plan,” he says.
Budget 2017: Surprises for the Common Man 05.02.2017
A well-focused budget! All the relevant changes have been made. All such good steps will be good for industry, markets and the masses.
Economic Times ET Wealth-2Jan2017
Economic Times ET Wealth-15 Dec16
Economic Times ET Wealth-15Aug16
Dainik Jagran-Gujarati Edition
Financial Planning Journal (November-December 2016)
Financial Planning Journal (January-February 2016)
Dainik Bhaskar Online Hindi Edition October 2017: TB Article in Money Bhaskar