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