M. Pattabiraman's Blog, page 65

The dangerous lure of guaranteed returns

Phrases like “guaranteed income” or “guaranteed returns” are used to sell thousands of insurance policies or products because they strike an emotional chord within us. Sadly, even in 2024, many investors are unaware of the risk they pose to our lifestyle and our aspirations. So many investors want to buy guaranteed income plans, arguing that...

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We need to accept that the “best investment plan” does not exist!

So many investors search for the best investment strategy and products offering the highest returns (and lowest risk and tax!). When we tell them these do not exist, they get irritated and move to someone who hopefully can offer them these. Investors want constant confirmation that they have chosen the right products and are on...

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Can I retire by age 55? Retirement Planning Case Study

In this article, we discover what a 35-year-old reader who wishes anonymity should do to retire by age 55. He is married to a homemaker aged 30. We shall plan for retirement income from when he reaches 50 to when his wife (or, generally, the younger spouse) reaches 90. Therefore, he has 15 years to...

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My Stock Portfolio Analysis: Jan 2024

This article compares my stock portfolio with an equivalent investment in a Nifty index fund and the Nifty 100 Low Volatility 30 TR index. We post this comparison each month. Before we begin, new readers need to appreciate the context of these investments. I started direct equity investing only after achieving a comfortable level of...

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Beating Analysis Paralysis: A Guide for Confident Investment Decisions

Paralysis by analysis is a common issue in personal finance, affecting individuals in varying ways. It is, however, somewhat healthy, often indicating a concern for money and its future. Taking time to make a decision, be it a week or a month, is acceptable, provided a decision is eventually made. If not, it signals a...

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Can I make a downpayment of 40% or only the minimum required for a home loan?

A Let’s Get Rich with Pattu podcast listener writes, “If I have invested ~40-50% of the house price, is it a good idea to take out that amount and pay as a downpayment, or take the max loan amount possible, keeping the investment intact, paying more EMI and hence lesser investments thereafter till the loan is...

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Debt and hybrid mutual fund screener (Jan 2024) for selection, tracking, learning

This is a debt mutual fund screener for portfolio selection, tracking, and learning. It also includes hybrid funds that invest in bonds. It will satisfy investors who wish to invest in money market funds, banking PSU funds, etc. The credit quality of the bonds in the portfolio and the bond maturity profile can be tracked....

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Why are you recommending index funds when your portfolio has beat the market?

Last Updated on January 21, 2024 at 9:19 am In response to Portfolio Audit 2023: The annual review of my goal-based investments, a reader asks, “Why are you recommending index funds when your portfolio has beat the market?” If you take a casual look at the growth of my retirement portfolio*, it may seem like...

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Don’t stop your SIPs because the market is at an all-time high!

In social media forums, many investors ask if they could stop their SIPs because the markets have hit an all-time high. We show that this is a needless and pointless thing to do, The market hitting an all-time high is a fairly common event. This is not some “signal” for the market to “correct”. The...

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Which equity portfolio should I choose after retirement?

A Let’s Get Rich with Pattu podcast listener says, ” I learned about your podcast today and watched an Episode on Stocks vs. MF Investing on YouTube. It was interesting and packed a lot of common sense in a simple and interesting way. I have a question which I request you to answer”. “I shall...

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