Tuesday, November 15, 2016


http://www.livemint.com/Money/13xZyCNBoTLLm0NEZBnK6H/We-found-peace-of-mind-with-respect-to-our-money.html

One of my clients got featured in Mint news paper.
Proud to share the story of Mr. Manikantan and Ms. Lakshmi, who has been my financial planning client for several years now. The changes in their life occurred because they were not only open to listen to me as a Planner but also implemented all the recommendations with utmost meticulousness! 


I am happy to have them as my clients...and look forward to a stronger client planner relationship going forward!

--------------------------------------------------------------------------------------------------------------

We found peace of mind with respect to our money

Gurgaon-based Manikantan and Lakshmi share their story on how they found a practical approach towards money with the help of their financial planner

Priyanka Parashar/Mint
Priyanka Parashar/Mint
Name: Manikantan Raman
Age: 40
Profession: Project leader with a multinational company
Name: Lakshmi Devi
Age: 39
Profession: Homemaker
City: Gurgaon
Financial planner: Shilpi Johri, certified financial planner and founder, Arthashastra Consulting
Manikantan Raman and Lakshmi Devi found a practical approach towards money with the help of their financial planner.
The block
When Manikantan and Lakshmi tied the knot in 2001, they decided to account for every paisa they earned or spent. Manikantan started investing wherever his peers were investing but didn’t find the growth satisfactory. He then started investing in mutual funds through online finance advisories but that lacked a personal touch. After 5-6 years, the couple finally decided to seek a financial adviser’s help.
The goals
“Our main problem was that we didn’t have fixed goals. I was inspired by the wealth of people like Warren Buffett, but didn’t know how to create wealth of my own,” said Manikantan. “The first thing Shilpi (Johri; the couple’s financial planner) did was to segregate our short- , medium- and long-term goals. Also, despite my being the sole earning member, she made sure both I and Lakshmi were part of all discussions. This is the personal touch that was lacking all those years,” he added.
Lakshmi agrees that being part of the discussions has helped her understand the family’s finances better.
The couple wrote down all their goals, right from owning a car and buying a house, to having enough insurance, planning for the education of their son Roshan (13), and retirement.
Course correction
Manikantan said Shilpi made him more practical about his investments. “It was just before the market meltdown of 2008. I had a lot of mutual fund investments. I was waiting for this to grow further but she advised me to redeem. I did that and made a handsome profit, which I used to make the down payment of our house in Chennai. This made me realise that she was seriously working towards making my wealth grow,” he recalled.
The couple now consults Shilpi even for small financial decisions. “She didn’t just make us curb our expenses; she also helped us fulfil dreams. I wanted to buy a Honda City but thought I couldn’t afford it and was about to buy a Hyundai Santro. But she made sure I could buy my dream car,” said Manikantan.
Key advice
Manikantan was asked to buy a good sum of insurance via term plans, and health insurance with appropriate top-ups.
The couple now regularly reviews investments. For example, Roshan wants to study medicine and they had already built a major portion of this corpus. Since this goal is just 5 years away, they were advised to move the investments to less volatile instruments.
“The best thing to come out of this association is that I am at peace with money matters and know that if something happens to me, my family would be able to maintain the same life style as they have now,” said Manikantan.

Wednesday, November 9, 2016

Should you take market predictions seriously?


In last 12 hours two big nations of the world had seen surprise turn of events!

Within couple of hours of the announcement by our dear PM Modi, 85% Indian currency lost its value and was declared illegal. And the various reactions over social media tells that No one, absolutely No one, including banks, government offices, politicians and media houses had any clue about it. The experts who are generally believed to be able to forecast any big changes in the economic, political and social environment of the country, are keeping silent. Suddenly market predictions have swung from one direction to other.

For example, real estate prices were predicted to rise in later part of the year 2016 and starting 2017 by a major daily newspaper. As per them the prediction was based on data and opinions by experienced experts. Now after the ban on high value currency notes which were supposedly main constituent of black money, the prediction is just the opposite!

It is an open secret that in in India, real estate market is majorly funded by unaccounted for cash. After the money hoarded cash has become useless for any transaction including real estate. Now the prediction is that real estate prices will crash because there will be lesser demand. Of course same experts will predict differently now.

Similarly, In United States of America, till the morning mostly media houses were predicting 80% chance of Ms. Hillary Clinton to be the next president of their country. But we all know what happened. With in next couple of hours wave turned and in a surprising turn of events, Mr. Donald Trump became 45th president of USA. Over 50 newspaper were endorsing Ms. Clinton till last week. Looking at the face of experts throughout the poll analysis today, we can clearly say that no one saw this coming.

There have been many such events in the past where predictions have gone wrong…and it keeps on happening. It happens because despite whatever data crunching we do, there can be surprise events to shake the very basis of the prediction. Like who knew rs. 500 and rs. 1000 note which we were using till yesterday will be a mere piece of paper from today.

Hence let us ask ourselves…If we should take the market predictions seriously?

Instead of asking ‘should I buy gold because gold prices will go down’? or ‘Should I sell my property because real estate market will crash’? Ask ‘Should I buy gold because I want it as part of my asset allocation’ or say ‘I want to sell my property because I need money’.


Now that Mr. Trump is going to be the president, there is a lot of apprehension about forthcoming immigration policies and H1B visas. Amid all this confusion, experts will again start their predictions. But no one knows for sure as to what the future has in store. So instead of listening to random advice from various sources, focus should be on strengthening your position at your work place. Focus on what your visa paper says. Uncertainty, anyways is part of the jobs in the private sector and looking for alternatives should be done regularly.

First and foremost define your needs, set the timelines and then react.

React when you are ready!
x