THE SHATTERED PLANE WINDOW AND YOUR MONEY

Greetings Friends, 

You know how they say heart disease is a silent killer?
Well, it's not exactly silent.
It shouts loud and clear with a terrifying statistic: 37 lakh people in India lost their lives to heart-related issues last year. That's nearly the entire population of Pune gone in just 12 months! But here's the thing: big numbers don't always hit home.

 

Think back to 2018 and that Southwest Airlines flight. Jennifer Riordan, a mom of two just trying to get home, was settling into her window seat. She had a book and was planning to complete the racy thriller.
Then, a deafening boom. An engine had malfunctioned, causing shrapnel to blast through Jennifer's window. The force was unimaginable. Despite heroic efforts by the crew and passengers, Jennifer tragically lost her life.

 

Now, we all know, logically, that flying is incredibly safe. You're statistically more likely to be struck by lightning than die in a plane crash. But Jennifer's story, it shook us. We saw ourselves in her shoes and felt the terror of that moment. But when it comes to heart attacks, general tendency is to say I WILL NOT BE AFFECTED. exactly the way we tend to think about our finances, how often do we think, "It couldn't happen to me"? We assume our job is stable, our investments are sound, and our health is ironclad.

 Many Indians focus on building wealth, often overlooking the crucial aspect of financial security. We diligently invest, and chase high returns, yet shy away from confronting the uncomfortable truth: life is unpredictable. 

Just like a sudden engine failure, unexpected events like job losses, health emergencies, or market crashes can leave our financial lives in shambles.

Instead of living in denial, let's draw inspiration from that shattered plane window and fortify our finances.

 

Here's the truth:
Life doesn't play by our rules. Just like that engine failure, financial disasters can strike without a moment's notice. Job losses, crushing medical debt, a market crash - any of these can leave your finances in ruins.

 

Jennifer's story is a stark reminder that true wealth isn't just about the size of your bank account; it's about building a financial fortress capable of withstanding life's storms. Think of it like this:

 

Emergency Fund = Your Oxygen Mask:
Remember on the plane, they tell you to put your oxygen mask on first, before helping others? The same goes for your money. Have 3-6 months of living expenses stashed away for those "emergency landings." You may never have a true “emergency” in your life. But you will need backup because

1.       Cars do break down.

2.       Teeth may need retainers.

3.       Your parents may need help paying for the nursing home.

4.       Your kid could lose the scholarship.

5.       Your dog needs surgery.

 

 

Don't Put All Your Eggs in One Basket:
Diversification is key. Spread your investments around - stocks, bonds, maybe some real estate, and even gold. Don't bet your financial future on a single horse.
Will you play Holi with one or two colours?

No, you try to add as much as you can to your shopping.

The same goes for your investments - don't just stick to one or two asset classes. Mix it up, add some variety, and diversify your portfolio by investing in different mutual funds based on your profile and horizontal.

 

Insurance is Your Umbrella:  
Yes, insurance premiums feel like a drag, but life insurance and health insurance are your wingmen, there to support you and your loved ones when things get rough.
Term Insurance is not an option. It's a MUST!!!

Especially if you have people who depend on you financially, their living standards would diminish considerably if your income is suddenly out of the picture.

 

Have a Plan, even a Basic One:
Just like having an evacuation plan in case of fire, outline your financial goals and how you'll reach them. A written plan helps you stay focused and makes those goals feel less daunting.
A solid plan is your secret weapon, providing direction and purpose for daily tasks, weekly objectives, and yearly goals. Write down your journey, breaking goals into manageable steps. Remember, luck favors the prepared. Strategic planning and consistent action create opportunities for success. Don’t just dream it—ink it!

 

 

Regular Check-Ups Are Key:
You wouldn't skip your annual health check-up, right? The same principle applies to your finances. Review your budget, investments, and goals regularly to make sure you're on track and adjust if needed. Your health and wealth both need regular checkups. Just like adjusting your diet and exercise routine, your financial plan needs tweaks as your life changes.

Stay engaged, adjust when needed, and enjoy a healthier, wealthier future.

 

Look, none of us can predict the future. But we can learn from tragedies like Jennifer's. Take control of your finances, build that financial fortress, and breathe a little easier knowing that you're as prepared as you can be for whatever life throws your way.

Remember, true wealth is not just about how much you earn, but how well you are prepared for the unexpected.

Regards and ALL THE VERY BEST

SRIKANTH MATRUBAI

QPFP COACH

VOLATILITY COACH

Author: DON’T RETIRE RICH

 AMFI REGISTERED MUTUAL FUND DISTRIBUTOR 


REBALANCE VOLATILITY CERTIFIED COACH

Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH

You are strongly encouraged to consult your financial planner before making any decision regarding this investment. The views expressed here are the author's personal views and should not be interpreted as a recommendation to invest/avoid.

 

Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

Do read the book and give your valuable feedback and request you to post positive comments on Amazon. https://amzn.to/3cHUM6M/ 

You can purchase the book on Amazon and Flipkart 

For the best of ideas on where to invest to create Mountains of Wealth 

join my TELEGRAM channel

WEALTH ARCHITECT
    https://t.me/joinchat/AAAAAELl4KUnaJzi-JJlDg/

SMART MOVES TO MASTER MARKET HIGHS

 

It’s exciting to see our portfolio grow every single day in these current market situations.
With the Sensex touching 76,000 and showing no signs of cooling off, the rise has boosted all kinds of portfolios, both the well-crafted ones and even the less meticulously managed ones! In these exciting times, its natural some investors do book profit and maybe miss out on the BIGGER gains if the markets continue to rise.

But what if the market falls?
While both points do merit attention, its but important to note that the majority of experts are of the opinion that the markets continue to remain bullish albeit with normal dips.

What to do during these times of Daily Market Peaks. Let’s dive in.

 

1. The Temptation to Book Profits

Many investors follow the common advice to "buy low and sell high." You might think it’s the perfect time to cash in on your gains. While this strategy makes sense in certain situations, it may not be the best move if you don’t need the money immediately and your equity-to-debt ratio hasn’t changed significantly.

Selling your stocks now because the market is high is like selling your house just because property prices have gone up!
If you don’t need the cash and still believe in the value of your home (or stocks), it might be better to hold on.
High fixed deposit rates—currently around 7-8 percent—might look appealing, especially since interest rates are expected to drop later in the year. However, compare that with the long-term returns of 10-12 percent in quality stocks and funds, and you might see the benefit of staying invested.

 

2. The Urge to Sit on Cash

Its definitely tempting to sit on cash and wait for the Market correction.
. This approach is risky, especially if you don’t regularly track the market or lack extensive investment knowledge. It’s like trying to time the perfect moment to jump into a skipping rope game—it’s easy to miss your chance and end up worse off.
Remember, many experts predict the market will keep climbing. Don't let the fear of missing out stop you from your regular investments, like Systematic Investment Plans (SIPs). SIPs are like a regular savings plan but for stocks or mutual funds.
SIPs are designed to average out different market levels and create wealth over time.
We have seen how monthly regular sips even in underperforming funds have beaten the Fixed Deposits hands-down.

For example, in one of my blogs (October 2022), I wrote and proved how one of the worst funds (at that point of time) JM Focussed had given only 1.51% CAGR for 14 years but a monthly sip in the same fund had given a Double Digit return!

(OF COURSE, I HAD ALSO WRITTEN HOW JM FUND HOUSE IS POISED TO BOUNCE BACK AND WAS PROVED RIGHT BY NUMBERS JUSTIFYING THE SAME WITH JM FOCUSSED FUND BECOMING THE NO.1 FUND IN RETURNS IN THE LAST 2 YEARS…SINCE THE TIME OF THE ARTICLE)

3.  The Herd Mentality

While positive economic signs continue to indicate a potential market rise, blindly following the herd can be risky.
Consider your own situation.
If your portfolio is already heavily invested in stocks and you'll need the money soon, it might be wise to take some profits off the table.
Think of your portfolio as a pie chart - ideally, different asset classes like stocks and bonds make up slices of the pie.  If the stock slice gets too big, you might need to adjust to maintain a healthy balance. This balance depends on your age, risk tolerance, and financial goals.
The appropriate level of debt or equity in your portfolio depends on various factors, such as your risk appetite, upcoming financial needs, and age.

Remember, a rising market shouldn't make you lose your cool. Make informed decisions based on your financial plan and avoid these common mistakes!

 

SO WHEN TO SELL THEN?

Selling early might mean missing out on even greater growth in the future. Here are some situations where redeeming your equity mutual fund might be the smart move:

Goal Achieved!
If your initial investment aimed to build a specific corpus (total amount) for a financial goal (like a down payment on a house), and you've hit that target, then congratulations! Redeeming some or all of your funds to make that dream a reality is a great reason to sell.

Funds Underperforming

Is your chosen equity mutual fund consistently lagging similar funds (its peers) and the benchmark index it tracks? This could be a sign of a struggling strategy. Redeeming and exploring better-performing options might be wise.

 

Fund Philosophy Change:
he way your fund invests (its strategy) might have changed significantly. If these changes don't fit your investment goals or risk tolerance anymore, redeeming and finding a more suitable fund might be necessary.

Change of Plans:
Your life goals and financial needs do keep changing over time.

Maybe your investment goals have changed (like needing more income instead of just growth). Re-evaluating your portfolio and potentially redeeming some funds to align with your new goals might be prudent.

Emergency Cash Needed:
Unexpected situations happen. If you have a real financial emergency, you might need to sell some or all of your investments to cover those costs. Redeeming your equity mutual fund might be unavoidable in such situations.

Asset Allocation Adjustment:
Regularly reviewing your asset allocation (the mix of different asset classes in your portfolio) is crucial. Suppose the market surge has caused your equity allocation to become unbalanced compared to your risk tolerance or financial goals. In that case, strategic redemptions can help you rebalance and maintain a healthy portfolio.

 

Remember:
Don't let market excitement cloud your long-term investment strategy. Just because the markets are buzzing with activity, doesn’t mean you too should!
Consider these factors before redeeming your equity mutual funds, and consult a financial advisor if needed, to ensure your decisions are aligned with your overall financial plan.

 

## Disclaimer

 Remember, investing in mutual funds carries risks, and past performance does not indicate future results. Always consult with a financial advisor before making any investment decisions.

 

Regards & wishing you Super Financial Success

Srikanth Matrubai

Author: Don’t Retire Rich

Qualified Personal Finance Professional

AMFI Registered Mutual Fund Distributor

Note: This article is for informational purposes only and does not constitute financial advice. Please consult a qualified financial advisor before making any investment decisions.

 

All the best,
Regards,
Srikanth Matrubai

MUTUAL FUND DISTRIBUTOR

REBALANCE VOLATILITY CERTIFIED COACH

Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH

You are strongly encouraged to consult your financial planner before making any decision regarding this investment. The views expressed here are the author's personal views and should not be interpreted as a recommendation to invest/avoid.

 

Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

Do read the book and give your valuable feedback and request you to post positive comments on Amazon. https://amzn.to/3cHUM6M/ 

You can purchase the book on Amazon and Flipkart 

For the best of ideas on where to invest to create Mountains of Wealth 

join my TELEGRAM channel

WEALTH ARCHITECT
    https://t.me/joinchat/AAAAAELl4KUnaJzi-JJlDg/

REACHING THE CROREPATI CLUB WITH JUST RS.30,000/- SALARY, A REALISTIC GUIDE

Many people dream of joining the coveted CROREPATI CLUB,  but with a salary of Rs 30,000 per month, it can seem like a distant goal. However, with a strategic plan, consistent effort, and smart investing, this dream can be a reality. Let's delve into a practical plan with a step-by-step guide.

## 1. Start with a Manageable Investment

Set a Realistic Savings Target

Rather than aiming for an arbitrary amount, calculate how much you can comfortably save each month. Allocate 15-20% of your monthly salary for investment. For a Rs 30,000 salary, this translates to Rs 4,500 to Rs 6,000 per month. Remember, consistency matters more than the initial amount.

 

## 2. Harness the Power of SIPs (Systematic Investment Plans)

 

Systematic Investment Plans (SIPs) are a powerful tool for both saving and creating wealth. By investing a fixed amount regularly in a mutual fund, you benefit from rupee-cost averaging, which allows you to acquire more units when the market is low and fewer units when the market is high. This strategy helps to smooth out market fluctuations over time. 📈💰

Consider investing in equity mutual funds for the potential of higher long-term returns, which typically exceed those of fixed-income instruments. Think of SIPs as your financial garden 🌱, where small, regular investments can yield significant returns over time. If you invest in an equity mutual fund with an expected annual return of 12%, here’s how your money can grow: 💰

 

Invest Rs 4,500 per month

  - At a 12% annual return, it will take about 27 years (324 months) to save Rs 1 crore.

Invest Rs 6,000 per month

  - You’ll reach Rs 1 crore in around 24 years (302 months).

Invest Rs 7,500 per month

  - Achieve the goal in about 22 years (283 months).

Invest Rs 9,000 per month

  - Accumulate Rs 1 crore in approximately 20 years (260 months).

 

## 3. Speed Up Your Savings with a Step-Up SIP/Top-Up Sip 

To achieve your goal faster, consider a Step-Up SIP. This involves gradually increasing your SIP amount annually, ideally in line with your expected salary increments. Step-Up SIP helps you reach your financial goals faster and without hassle. 🚀
Let's explore how it works:

Start with Rs 4,500 per month

  - Increase your SIP amount by 5% every year.

  - After the first year, invest Rs 4,725 per month; the following year, Rs 4,961, and so on.

  - With this method, you can save Rs 1 crore in about 24 years (290 months).

- **Increase by 10% each year

  - Begin with Rs 4,500 per month and raise it by 10% annually.

  - You’ll reach Rs 1 crore in less than 22 years (265 months).

 

## 4. Detailed Step-Up SIP Scenarios

 

Let’s see how different starting amounts and step-up rates can help you save Rs 1 crore:

 

Starting with Rs 6,000/month

  - **5% increase/year:** Save Rs 1 crore in about 23 years (276 months).

  - **10% increase/year:** Reach Rs 1 crore in around 20 years (252 months).

 

Starting with Rs 7,500/month

  - **5% increase/year:** Achieve Rs 1 crore in about 21 years (252 months).

  - **10% increase/year:** Save Rs 1 crore in less than 19 years (230 months).

 

Starting with Rs 9,000/month

  - **5% increase/year:** Accumulate Rs 1 crore in approximately 20 years (240 months).

  - **10% increase/year:** Reach Rs 1 crore in about 18 years (216 months).

 

## Discipline: The Key to Success

The Discipline Reminder

Remember, discipline is your secret weapon. Avoid dipping into your investment for impulsive expenses. Stay committed, even when the stock market fluctuates. Consistency pays off in the long run.

Here are some tips to stay disciplined:

 

1. **Automate Your Investments:** Set up automatic transfers to your SIP account every month so that you don’t have to remember to invest manually.

2. **Avoid Unnecessary Withdrawals:** Resist the temptation to dip into your investment for non-essential expenses. Treat this money as untouchable.

3. **Review Annually:** Check your investment progress annually and adjust your SIP amount according to your salary increase and financial goals.

4. **Stay Consistent:** Even when markets are down, continue your SIPs. The principle of rupee cost averaging will benefit you in the long run.

 

## Key Takeaways

 

1. **Start Small and Steady:** Begin with an amount you can manage without financial strain.

2. **Increase Annually:** As your salary grows, gradually increase your investment to accelerate your savings.

3. **Stay Disciplined:** Maintain a consistent investment habit and avoid withdrawing your funds unnecessarily.

 

Like all things, step-up sip too has some challenges.

Income Growth Assumptions: Step-Up SIPs assume a steady increase in income year-on-year. However, there may be years when your income doesn’t increase as expected or expenses rise significantly, leaving less money for investing.

Changing Life Circumstances: Life events such as the birth of a child, job loss, or other unforeseen circumstances can impact your ability to maintain increasing investments. It’s essential to adjust your investment plan according to your financial situation.

 

 

## Conclusion

 

Remember, even small beginnings can lead to significant results when compounded over time. Achieving Rs 1 crore on a Rs 30,000 monthly salary is realistic with a disciplined and structured approach. Start small, increase your investments over time, and remain patient. Just like nurturing a plant into a tree 🌱, your financial growth requires time and care. Begin today, stay committed, and watch your wealth flourish. 🌟

ALSO CHECK OUT THIS VIDEO

 

Start taking the first step today and witness your wealth grow as you work towards achieving the status of a crorepati 

 

 

 

## Disclaimer

 Remember, investing in mutual funds carries risks, and past performance is not indicative of future results. Always consult with a financial advisor before making any investment decisions.

 

Regards & wishing you Super Financial Success

Srikanth Matrubai

Author: Don’t Retire Rich

Qualified Personal Finance Professional

AMFI Registered Mutual Fund Distributor

Note: This article is for informational purposes only and does not constitute financial advice. Please consult a qualified financial advisor before making any investment decisions.

 

All the best,
Regards,
Srikanth Matrubai

MUTUAL FUND DISTRIBUTOR

REBALANCE VOLATILITY CERTIFIED COACH

Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH

You are strongly encouraged to consult your financial planner before making any decision regarding this investment. The views expressed here are the author's personal views and should not be interpreted as a recommendation to invest/avoid.

 

Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

Do read the book and give your valuable feedback and request you to post positive comments on Amazon. https://amzn.to/3cHUM6M/ 

You can purchase the book on Amazon and Flipkart 

For the best of ideas on where to invest to create Mountains of Wealth 

join my TELEGRAM channel

WEALTH ARCHITECT
    https://t.me/joinchat/AAAAAELl4KUnaJzi-JJlDg/

AVOID THESE MISTAKES FOR MASSIVE WEALTH CREATION

Mutual funds can be a powerful tool for building wealth, but navigating the investment landscape requires avoiding some common pitfalls that tend to derail your Wealth Creation Journey. Let’s explore and identify these mistakes so that we can avoid them and create Massive Wealth for ourselves.

 

1. INVESTING WITHOUT A GOAL:
Investing without a Goal is like Driving on the road without a destination in mind.
This only leads to aimless Wandering. Isn’t it?
In the same way, every investment of yours should have a specific target. Divide your financial goals into specific short-term terms like Visiting Char Dham, medium-term goals like buying a Car, and long-term goals like Child Marriage or Buying a Dream House.

 Be it saving for a Dream Home, Annual School Fees, ensuring a comfortable retirement, etc.
When you know the goals, will help you stay focussed and avoid getting distracted by volatile news or flashy investments that keep popping up.

 

2. CHASING FANCY RETURNS :

Many investors get allured by GET RICH schemes and fancy returns risking their principal itself leading to unnecessary risk-taking and investing in assets that do not align with one's needs, Give Priority to your financial goals  rather than instant profits. Do not get sucked into Greed.  Never take decision in excitement.

Slow and steady growth is a sure shot way to Financial Success, not chasing flashy, fleeting get-rich-quick schemes.

 

3. TIMING THE MARKET:
Imagine trying to predict when the weather will change—it's pretty tough, right? Well, predicting the ups and downs of the stock market is exactly similar but even riskier!
Stock Markets keep finding excuses to keep falling every now and then.

Panic Selling only ensures wealth shifts from Weak Hands to Strong Hands

Stick to your Asset Allocation

Stick to your Long-Term Goals, then  WEALTH WILL STICK TO YOU!!

The way you respond to events in markets can either nurture your wealth or destroy it. It's important to stay calm,  let your investments ride through the volatile ups and downs and avoid making any snap decisions or making too many changes. Patience and a steady approach are the keys to super success.

 

It takes character to sit there and do nothing.  I didn’t get to where I am by going after mediocre opportunities.

      ─ Charlie Munger

 

4. NO DIVERSIFICATION:   
Don't put all your eggs in one basket!
Follow the principle of Asset Allocation and invest across assets like Equity, Gold, Debt, Real Estate, etc.  Diversification across asset classes like equity, gold, debt, and real estate helps mitigate risk and maximize returns. A balanced approach cushions against market swings and ensures smoother wealth accumulation over time.

A Good Asset Allocation will help you beat Inflation consistently.

ASSET ALLOCATION IS THE MOST SIGNIFICANT FACTOR THAT CONTRIBUTES TO YOUR OVERALL RETURNS.

 

5. NO FILL IT-SHUT IT-FORGET IT:
Review your financial plan regularly to make sure it meets your changing needs.

A Review is a good way to know whether we are on the right track. Even the best of plans can go awry due to unforeseen and unavoidable changes in life and circumstances.

A review and a route change are a must in such a case. Portfolio Reviews are absolutely necessary, but changes are not!!

Say a change of job, childbirth, a death in the family, tax law change, or even a change of place of work could lead significant impact on the financial priorities. A review will help in accessing your progress and identify areas where improvements are needed.

 

6. NOT TOPPING UP INVESTMENTS:

Regularly topping up your investments reinforces your commitment to your financial goals and capitalizes on compounding returns.
Yes...Expenses have risen and will continue to rise. But what about your investments? Don't let them fall behind.

Every year income goes up. Every year expenses go up. So why not the Investments and Savings?

SIP top-up automatically increases your monthly contribution as your income grows, accelerating your wealth creation. It's an autopilot for your future success. Every extra rupee you invest now makes a HUGE difference thanks to compounding. Don't miss out on this powerful tool to reach your financial dreams faste & quicker! #DontRetireRich

 

PLEASE NOTE:
Do not start your investment journey without having a Adequate Life Insurance Coverage, Health Insurance coverage and at least 3 months of Emergency Fund back up.

Steering clear of these common mistakes can supercharge your mutual fund journey. Picture it like plotting a road trip: set goals, focus on the long haul, and stick to your plan. Stay disciplined, spread your bets, and keep expectations grounded. Don't forget to give your portfolio a check-up now and then. Remember, investing's a journey, not a sprint—so buckle up, stay savvy, and enjoy the ride to financial success!

Regards & wishing you Super Financial Success

Srikanth Matrubai

Author: Don’t Retire Rich
Qualified Personal Finance Professional

AMFI Registered Mutual Fund Distributor

Note: This article is for informational purposes only and does not constitute financial advice. Please consult a qualified financial advisor before making any investment decisions.

 

 

All the best,
Regards,
Srikanth Matrubai

MUTUAL FUND DISTRIBUTOR

REBALANCE VOLATILITY CERTIFIED COACH

Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH

You are strongly encouraged to consult your financial planner before making any decision regarding this investment. The views expressed here are the author's personal views and should not be interpreted as a recommendation to invest/avoid.

 

Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

Do read the book and give your valuable feedback and request you to post positive comments on Amazon. https://amzn.to/3cHUM6M/ 

You can purchase the book on Amazon and Flipkart 

For the best of ideas on where to invest to create Mountains of Wealth 

join my TELEGRAM channel

WEALTH ARCHITECT
    https://t.me/joinchat/AAAAAELl4KUnaJzi-JJlDg/