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Money Tree-Lights, Camera and Action Steps on Money Management

Ranjan Varma Money Tree by Ranjan Varma MoneyTree is back. To some of you who doubted if the MoneyTree was dead, let me assure you that the “Tree” was growing roots that were not visible above the ground! You must have heard of the tale of two friends who planted seeds at the same time. While one friend was happy that a sapling sprouted up in quick time, the other friend was worried as there were no signs of anything coming up from the seed he planted. However in time, while the first sapling grew up to be a shrub, the other plant that took it’s own sweet time, grew into a giant Tree. Yes,... 

Money Tree- Real Example of Mis-selling and the Cost of Free Advice

Money Tree Ranjan Varma Real Example of Mis-selling and the Cost of Free Advice By Ranjan Varma In the last column of the MoneyTree, we discussed the cost of free advice . The assumption was that the commission based advice sets you back by just 2% in return. And this 2% setback translates into Rs 1 crore over a period of 30 years. Let’s take a live case and see that the cost of free advice can be much more monstrous. Dr. Kumar De (name changed) is a renowned Doctor in Kolkata. Despite being an expert in his field and being a man of intelligence and maturity, he’s at the receiving end of the... 

Money Tree – Cost of Free Advice is more than One Crore!

Ranjan Varma Money Tree Cost of Free Advice is more than One Crore! By Ranjan Varma Why pay for financial advice when you can get it for free? You get it free from friends, colleagues, relatives, bank executives and insurance agents, right? But have you ever wondered that the free advice might cost you a lot of money? For example, if you buy costly insurance plan that you don’t need or a mutual fund that does not suit your investment profile, you will lose much more than the annual fee of a financial planner. True Financial Planners are not Advisors or Product Sellers and they prepare a Financial... 

Money Tree – What are the Financial Instruments You can choose from?

By Ranjan Varma Money Tree What are the Financial Instruments You can choose from? By Ranjan Varma Let us look at the Financial Instruments and the broad overview of the products that the financial market players have. They can be broadly classified into Government securities and Corporate securities. The Government securities are fixed income securities backed by the government and there is no risk of default. The Major Instruments that fall under Corporate Securities are Debentures, Preference Shares and Equity Shares.  In other words, the corporate securities are about the stock market... 

Money Tree – Why Personal Finance Advice May Be Useless!!

Ranjan Varma Money Tree Why Personal Finance Advice May Be Useless!! By Ranjan Varma Today’s article brings another perspective on personal finance advice. It’s about the futility of much of the personal finance advice that we get through our daily papers, TV and the internet. It’s also a paradox that I write about personal finance advice being futile when I have been dishing out money management tips myself! Allow me to wear a contrarian hat. I was talking to my Sister where she tells me that she knew how to handle her money. She has not read any articles, blogs but still manages with her... 

Money Tree – Getting started on Your Financial Plan

Ranjan Varma Money Tree Getting started on Your Financial Plan By Ranjan Varma I always believe that life unfolds itself, and with utter disregard for your plans to achieve this or that. But I guess, Dwight D Eisenhower is more articulate. Read on. Plans are worthless, but planning is everything. There is a very great distinction because when you are planning for an emergency you must start with this one thing: the very definition of ‘emergency’ is that it is unexpected, therefore it is not going to happen the way you are planning. (Eisenhower quotes) What is a Financial Plan Financial... 

Money Tree – Using Tools and Technology for Managing Money

Ranjan Varma Money Tree Using Tools and Technology for Managing Money By Ranjan Varma To get started on financial management, you need to start measuring your financial situation first. Because once you start measuring things, managing them becomes clearer and easier. For most of us, this means balancing our checkbook and listing out our investments in a notebook (In MS Excel these days). Right? Smart people would be setting up a detailed system and software that tracks expenses, optimizes income and tracks savings and investment. They know that there are several downsides for not maintaining... 

Money Tree: The Four Parameters of Analyzing Financial Products

Ranjan Varma Money Tree The Four Parameters of Analyzing Financial Products By Ranjan Varma The first thing most people want to discuss with me, when they come to know about my background in the financial services industry background, is, whether they should buy this financial product or that. I start with the observation that since everyone has different financial goals and risk appetite, this discussion can take a long time. I also pitch my RupeeCamp to them. ☺ Moreover, since we are not talking about buying potatoes and onions, let me articulate on the things to look at before you make the... 

Happy Deepavali to MoneyTree Readers

Ranjan Varma Money Tree Happy Deepavali to MoneyTree Readers By Ranjan Varma Happy Diwali to you, your family and friends.  May this Diwali bring to the MoneyTree readers a new year of luck and wealth. Diwali means a lot of things to different set of people.  While Diwali is popularly known as the “festival of lights” and “triumph of good over evil”, a more appropriate significance for this column’s purpose is “the new year of luck and wealth”.  The Diwali festival celebrates the victory of good over evil, light over darkness, and knowledge over ignorance,... 

Money Tree – How we buy Financial Products

Ranjan Verma Money Tree How we buy Financial Products By Ranjan Varma Buying financial products is often about taking decisions automatically with the mind working subconsciously rather than taking rational decisions of the mind. Let me share some important research on the subject. The first research is about how emotional ads are processed quite differently by the brain than those that appeal to logic. Link Excerpts: Researchers had subjects view different ads, some that used logical persuasion to sell, and others that used what they called “non-rational influence” ads. The latter used mostly... 
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