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FINERVA
Strategies for
Wealth Creation & Management
ICFAI National College 02 June 2007 | Coimbatore
The basics first
Assets Liabilities
Make a list of the following
The Basics again…
• What are Assets / Liabilities for Personal Wealth Creation?
– One that gives a POSITIVE CASH FLOW IS AN ASSET
– Others are Liabilities / Expenses.
What is growth / return?
• Time Value for Money
• Relative Growth
• Nominal Interest Rate Vs
Effective Interest Rate
What is Risk?
Actual Returns
Vs
Expected returns
What is Wealth?
Take 2 minutes. Close your eyes and imagine a wealthy person. Write what you see.
A person's wealth is defined
by how long a period of time
he/she can sustain their
lifestyle if they stop working.
The longer you can go on living your life without
working another day, the richer you actually are.
Your wealth is therefore defined by three things
• Your monthly expenses,
• Your liquid assets and
• Your passive income.
The MantraTIME
Start early
Use the power of compounding
Goal Setting
Set a SMART Financial Goal
S – SpecificM – MeasurableA – AchievableR – RealisticT – Time Bound
Asset Allocation
• Investment Horizon
• Market Expectations
Manage Wealth
• Maximize Tax Benefits
(Don’t Maximize Tax Slabs)
• Be a Businessman /
Investor
• Hedge Risks
If spending money brings you
enjoyment, you will never be rich.
However if making money brings you enjoyment, then your wealth isguaranteed.
Strategies for Wealth Creation & Management
• Queries
• Thank you……
• Your Take-away from this session.