Should you opt for Term plan while Financial Planning?

Financial planning refers to the process of meeting financial goals with the help of appropriate management of your finances. This includes elements of wealth creation, protection, retirement planning, planning for specific milestones, and most importantly planning for emergencies and contingencies. But where does the term plan fit in?

Cryptocurrency – Why do Governments fear them?

Cryptocurrency should be declared word of the decade – I mean even non-saving groups are all praises about this form of “currency” (or not? Let’s call it crypto rather than currency for now)

Now, why do almighty Governments of various countries fear crypto?

That lack of central authority is the primary reason governments are afraid of cryptocurrency. To understand this fear, it is important to know a little bit about governments and their conventional currencies.

Beware of using the ‘100 minus age’ thumb rule for equity allocation

Have you ever heard about the “100 minus age” thumb rule?

NO?

The rule says that you subtract your age from 100 to arrive at the ideal asset allocation for your investments. So, if you are 30, then 100-30 would give 70, which is the percentage of equity you can have in your portfolio. That is, you have Equity: Debt in 70:30 ratio. For someone who is 35, the rule will suggest 65 percent (= 100 - age 35) as the equity allocation. This rule is majorly used to calculate retirement corpus.

One major problem with this rule is that it simply assumes that age alone decides a person’s asset allocation. This not true. Factors such as investor’s risk appetite, goal timelines,tax, and return requirements are the major factors that decide asset allocation as well.

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