Our investment philosophy is based on an individual’s chronological time line, which consists of three periods: (1) asset accumulation, (2) wealth building, and (3) asset conservation.
The financial journey through life’s time line starts at different levels, depending on whether you were born with a plastic or a silver spoon in your mouth. As you travel through your time line, your investment options change. Knowing where you are and what options are available will help you make the right choices.
A Winning Financial Plan up to Age 35
The first chronological period of your life-mid-twenties to mid-thirties-should be devoted to accumulating assets and acquiring basic necessities. When you’re just starting out, your assets are usually limited and the major portion of your income goes for the basic needs-food, clothing, and shelter.
This is the time to save, save, save! Amass as many investment dollars as possible. Your approach to investing during this period should be through tax-deferred plans at work or Individual Retirement Accounts (IRAs). Your degree of risk should be moderate. Investments included in this category are top rated corporate bonds, blue chip stocks, and growth-oriented no-load mutual funds.
Every effort should be made to purchase a home now. The advantages, from tax savings and equity buildup, historically outweigh the short-term benefits of lower monthly rent payments.
Be careful when sheltering yourself and your family from liability.
Only pay for protection when you’re purchasing life insurance. Purchase whole life insurance if it will yield a higher rate of return than other investments. After reading the chapter on asset protection, you might seriously consider reducing your liability coverage.
Remember, your main financial goal during this time is tax-deferred accumulation of capital. Don’t take risks with your investments. Save as much as you can so that when you enter the next phase of the time line you’ll be ready to move forward.
Investing between the Ages of 35 and 50
After earnings have increased, assets have been accumulated, and basic necessities are under control, it’s time to move on. Ready or not, you must face the challenges during this aggressive investment period of your life, when you are between your mid-thirties and early fifties.
The Best Financial Plan for You
Your best financial plan is to create the maximum wealth during this aggressive investment period of your life. Build financial security yourself: don’t rely on others to do it for you. Many people who relied on major banks and insurance companies for financial security ended up short when these institutions failed. The social security system will not do much better.
You should be careful not to over diversify your assets or adopt a “hold-back” attitude. You must concentrate your assets into one or two aggressive investments rather than spreading them out. Diversification often leads to ineffectiveness.
What if you fail during this period? What is your down side? If you consider your ability to bounce back because of your age, the political clout of your generation, taxes, and inflation, the real risk is minimized. Make your aggressive investments now. As you get older, your ability to rebound declines. If you do not try at this stage in your in-vestment time line, you probably will never do it, and more importantly, you will never know whether you could have done it.
If you are not one of the 25,000 lucky winners of DDA housing scheme 2014, here is one more opportunity to own a home in NCR. Ghaziabad Development Authority has come up with 2 latest housing schemes, one in Indirapuram and other in different parts of the city for EWS and LIG categories. The authority is offering a total of 370 multi-storey flats in the Indirapuram scheme and 1979 flats in the EWS/LIG scheme. But, you might want to consider investing in properties of private builders after looking at the cost, especially of the Indirapuram flats.
Indirapuram Nayaykhand-1 area which is situated along NH-24 is one of the most preferred localities for capital and rental market in Ghaziabad as per the quarterly research initiative PropIndex (Jul-Sep 2014) by Magicbricks. The area has several advantages such as proximity to Noida and East Delhi and easy connectivity through Vaishali metro station. The cost advantage is another factor why people even from Gurgaon are investing here including the end users.
However, when it comes to the actual cost of the flats, GDA schemes may not be enough to impress. The cost of 2BHK flats in GDA Indirapuram scheme starts at Rs. 52.79 Lakh with a super area of 96.20 square meters or 1035 square foot (Approx. 900 Square foot covered area) while the flats by private developers in the same area starts at about 26 Lakh with a covered area of about 850-950 Square foot. However depending upon the location and amenities the 2BHK flats by private developers are available for up to 95 Lakh with covered area range of 750 to 1400 square foot.
One more major factor which can be considered is that GDA flats are still under construction and may take another 3 years to be ready to move in. While, many developers are offering ready to move flats in the same area at lower cost. Many developer projects may offer the possession in the coming 3 to 6 months.
There are a number of options available of luxury and semi-luxury segment as well with a price range of Rs 4,750-6,500 per sq ft. depending upon the exact location within the Indirapuram.
According to several brokers, the flats constructed in the GDA scheme do not give any extra benefit to the buyer and event the construction quality is not very good. If a buyer is willing to invest about Rs 50 lakh, then he should also consider the flats offered by private builders. One more thing is that, the cost of flat mentioned by the GDA is not final, it is estimated and may go down or up depending upon the market rates in future.
There is one benefit for sure of investing in GDA flats is that the buyers don’t need to worry about the legal part of the project or any unauthorized construction. However, if a buyer wants, he/she can confirm the legality of the builder project by approaching the local authorities before investing.
The financial goals, investing skills and risk-tolerances are different among people. That is why everyone needs a personalized investment portfolio that address their needs, skills and resources. Based on the diversification and investment instruments, a portfolio can be grouped in to one of the five major portfolio types.
1. Defensive Portfolio: The diversification includes investing a majority of the money in low-risk investments. The investors look for long-term price accumulations rather than for quick returns. The common instruments include stock of blue-chip and growing companies, treasury deposits and bonds, commodities, precious metals, etc. Instruments with high-volatility and low-liquidity are generally avoided. The strategy requires good initial research, but less real-time management. Although the returns can be lower, the investors can avoid huge losses.
2. Aggressive Portfolio: This includes investing a major part of money in high-return, but high-risk investment products. Generally investors look for short-term profiting opportunities. The major investing options include stocks of all kinds, Forex currencies, funds and bonds, commodities, futures, indexes, real-estate, etc. The strategy requires an active real-time portfolio management, good money management and risk management skills. Also, the investors require good technical and fundamental analysis skills, software support and related trading infrastructure. Aggressive portfolio management can offer better returns, but there is also high risk of losses.
3. Income Portfolio: As the name suggest, the portfolio management involves investing in products that offer constant returns. Most of these returns can be fixed too. These returns usually involve interest on money investments, returns from bonds and funds, dividend from stocks and shares, or price appreciation on precious metals or commodities. The strategy requires good initial screening and involves lowest downside risk of all portfolio types mentioned here. The returns can also be lowest, but constant.
4. Speculative Portfolio: This is the portfolio type which requires most active management and involves investing in high-volatile high-risk and high-return financial products. This also includes investing with burrowed money and going against existing trends. The common investing instruments include stocks of new and small companies, IPOs, options, futures, currency pairs and on emerging markets. Investors should be extremely dedicated with good investment skills and resources. The returns can be very high, but there is no guarantee.
5. Hybrid Portfolio: These are portfolios with very good diversification to include more than one type of financial instrument. Based on the diversification the portfolio can be slightly more aggressive or defensive. Investors can also choose to include different return investments and to close existing investments according to their returns, changing economy and investment skills.
Are you willing to invest in a more long-term and reliable organic traffic source for your website? Then let’s look at a search engine that can assist you in increasing your traffic.
Interview an Influencer or Get Interviewed by a High-traffic Website
Have you heard of Tim Ferriss, the author of the Four-Hour Work Week?
His podcast is nowadays a staple content type that he provides to his viewers. Tim’s show has world-class performers who share their insights on a variety of topics, and he is well-liked on social media. Do Tim’s fans enjoy the show? So far, the show has received over 50 million downloads. On most days, it’s the most popular business podcast on iTunes.
Interviews, whether on video or audio, are inherently conversational, lively, and engaging. The great aspect is that it’s a win-win situation for both sides. The interviewer is exposed to a new audience, while the interviewee is able to provide his website visitors with new fascinating and authoritative information. You can ask an industry influencer to share your interview with their followers on social media if you interview them. Consider the organic traffic you’ll get from their social media followers, which number in the hundreds of thousands. Consider the level of interest generated by a prior Derek Sivers interview on the Tim Ferriss Show. Derek shared the show’s URL with his 283K followers on Twitter. It won’t hurt if you establish a relationship with the influencer as a result of the interview.
Similarly, being interviewed by a high-ranking website can result in a significant increase in search engine traffic. Harsh Agrawal’s blog, Shoutmeloud, received 35,000+ views in a single day after he was profiled by YourStory. That was the blog’s most popular search engine traffic source (with 600,000+ monthly visitors). Because interviews provide consolidated value, they can be used as a long-term lead generating source for your company. Consider how many bloggers you’ve learned about through interviews on YouTube and other high-authority websites.
You may also conduct a Reddit AMA if you have a very compelling storey to tell. Mateen’s AMA got about generating $85,000 in profit by selling TeeSpring shirts/hoodies received 2000 page views. He also boosted the number of visitors to his website on a daily basis.
By registering as a source with HARO, you can also answer queries from journalists. On HARO, Christopher from Snappa came across this question from Inc Magazine about the future of content marketing. He swiftly responded with a thorough response. He was mentioned in Inc a few weeks later as a result of this. HARO is an excellent strategy to have your brand mentioned on authoritative news sites such as Entrepreneur and Inc. Those backlinks will enhance your search engine traffic and increase your marketing strategy by improving your reputation in Google’s eyes. Contact an SEO agency to find out how you can do this and how they can manage it for you while you work on the bottom line of your business.