Retirement Saving With Index Fund

When we consider on retirement saving, one question always occurred that is it always performing that long period of time. My answer is YES. If you went throw Equity Index Fund. Active Fund Managers may go wrong in 25 to 30 years time frame but index not. Because index fund were performing always with respective index.

As a nature index funds were cost effective than active funds. Index funds expense ratio is more cheaper than active funds. Most interesting thing about index fund is that, consumer were doesn't requiring restructuring time to time. Simply start a SIP in index fund, still continue to your goal date.

If we talk about performance of index fund, than, since date from 1979 to 2010, sensex return was near to 18% CAGR and similar return of index fund also. Worst to worst performing index funds were giving return with his respective index.

Always a passive investor............
     

Updated Ideas for Fixed Income Positions - American Century Investments - September 1, 2011

Updated Ideas for Fixed Income Positions - American Century Investments - September 1, 2011

This Artical Collected From www.advisorperspectives.com

Panic Is Not a Strategy

Panic Is Not a Strategy—Nor Is Greed - Charles Schwab - August 15, 2011

Para Planning

Para Planning

   What Does Paraplanning Mean?

Para planning is a relatively new position within the financial planning industry that involves the performance of the administrative duties of a financial planner.

This function was created to allow financial planners to focus on the sell-side by working more closely with customers to identify their investing needs.

In countries where Financial Planning is well established, working as a Paraplanner is being utilized by young graduates to get a foot in the financial planning industry's door, where they can gain experience and move up to a financial planner themselves later.

The Para planner position does not require any sales contacts.

The tasks assigned to the Para planner are standard in their concept but require some independent thinking in their application.

Attention to detail is extremely important. Good math skills are required, along with an ability to develop big-picture thinking.

A Para planner then is essentially a person who is variously described as:

• An administrator

• An Adviser’s secretary/PA

• A highly technical and qualified individual who can offer skills in addition to those of the adviser to provide the client with a positive professional experience.

What does a Para planner do?

This is a very difficult question to answer as all Financial Planners and Advisers require slightly different things from their Para planners, however there are some core financial planning skills that all Para planners perform to a lesser or greater extent and would form the basis of any Para planning role.

These are:

                 • Excellent report writing skills,

                 • Ability to interpret and analyze statistics accurately,

                 • Structure oral presentations of reports,

                 • Good understanding of resources management,

                 • In-depth knowledge of Cost and Tax implications on products, 

                 • Ability to conduct research for appropriate providers and investments,

                 • Good understanding of compliance issues,

                 • Good time management skills,

                 • Excellent interpersonal and IT skills, etc

        Just like there is a certification and training system for the planners, there is a similar system for Para planners too.

In India the level of awareness about the advantages of Financial planning and the benefits of seeking Financial advice from a Certified Financial Planning is growing so will be the need of engaging a Para planner.

Currently there are some 1300 qualified CFPs and 20000 aspiring CFPs. The potential of Financial Planning is immense for a market as vibrant and as diverse as ours.

The regulatory and general outlook is evolving very fast. The foundation of this is laid by Mr. Chandrashekhar Bhaskar Bhave and there are a lot of expectations from Mr. Upendra Kumar Sinha (Ex-Chief of UTI AMC) who is a veteran and has vast experience with him.

Some Investment Tip By Prabir

         
There no pacific mathematics formula for pick a equity mutual fund. There is a formula or strategy for pick a fund. Long past experience, between 15 to 20 yrs Experience.

      Before Pick a Equity Or Debt Mutual Fund, Must Be Define your Asset Allocation.
There is One & Only Formula to Generate Return Or High Return from investments.

     When Your Investments in a Equity Mutual Funds Diversification is a Good Idea. But Over Diversification
is also a risk.
 
   You Are unable to do Hold Your Asset Allocation & Restructuring.

   So beware of over Diversification...................................


When You Are Reading This Artical some of reader have a question in his mind.

Why We Go For Equity Mutual Funds? Where Banks Gives Us 10.5% to 11% P.A
Why We Do Such Planning Like Asset Allocation , Diversification & Financial Planning.

Where is Real estate Gives best return in a Short & long also.
 


      Answer is Here........................


From last since 2008 our country normal inflation is close to 9 to 10%.
Where bank is gives you 10% plus inflation is eaten 9 to 10% also.
Than whats your future plan & your requirement for life.

 These all Conclusion Apart From Taxation.

If you are in a highest tax bracket (30%). That also eaten your investments.

Next answer is Real Estate.

How To Justify Real Estate As a Asset Class. Real Estate as a asset class is one of the big problem is liquidate Asset. When You buy a Piece of plot Or Residential flat there is a big problem is that, there will
be some liability also come to you. Which is by State & Central Govt Of India.  

   Its Mean you will Spend Time For  This. In your absence some body had occupied. Now what the value of  Real Estate Asset.

There is last and big problem with Real Estate as a Asset Class. There no regulatory board appoint by
 Govt to control this.
 
       Where Bhubaneswar Price is 10 to 12 times higher than Bangalore Price. Basically there in no ethically
price of a any Real  Estate.



                Next Time Not Forget To Read "Asset Allocation Strategy".

Index Fund

 "INDEX FUND" as his name as it is his nature.


       One-day you see in a business news channel, A analyst had told that regarding Stock Market. Now times for add some MID CAP & SMALL CAP exposure in your portfolio. Someday ago that analyst had also told that now time for metal stock will underperformed and banking stock outperform.

       Than whats up now ?


                                           Totally Confused........................................



  Conclusion


        In a long period of time may be large cap perform or mid cap or may be small cap.Metal under perform, Bank over perform.


But everybody agree with me that INDEX will perform wisely.So why not go for a INDEX FUND.

By analysis Index fund is low expense ratio than diversify equity fund, Passive fund management.


           If some body told that I beat the market. I agree its possible. Its for only  one or two year.But coming twenty to thirty year  period, INDEX will beat you.


   So for a wise investor his fifty present of his portfolio must be allocation in INDEX FUND.  

Index fund will help-full to your asset allocation.

 

Asset Allocaction

     Asset Allocation is a powerful strategy to achieve your financial goal. Asset Allocation not a short term
Strategy. Its a life long Strategy. Its Define your asset in different asset class Like Equity,Debt & Gold.
 If someone told, Don't need any asset allocation. So He is in a wrong Bus.
 
      Before You Start your asset allocation remember your age,risk tolerance & time frame.


  So next time before investing always go for asset allocation.