Let us see…getting rich is easy is it not?

Get a good degree ——> It will lead to a great job—-> You will earn a lot of money —-> You have got rich.

This is one route. Well there are some issues – every body cannot get a good degree..so the scheme is torpedoed at the very beginning itself.

Set your goals, invest in a mutual fund, do a SIP in a good fund, review your portfolio every 3 months (monthly is bad you see), shift portfolios, churn managers, subscribe to the bank’s monthly magazine. We will tell you how to invest every month…and then sit back and relax. Well have you heard this before? I bet you have. It does not work, at least for most people this does not work.

If you ask me the most important step in getting rich is in getting a good financial planner. A guy or gal who is on your side. Fully on your side. This means a fee charging planner who does not sell the product – directly or indirectly. Such a person is difficult to find.

Once you find him ask him how much TIME he is willing to spend with you. And what fee does he charge. Too low is scary (how long will be here?), too high is not worth it (catch 22!).

Stick to simple things – low cost large funds in equity, a term plan, one credit card, that is all…after all like Leonardo Da Vinci said “Simplicity is the ultimate Sophistication”. KISS works here too….so if your Fin Planner suggests, Nifty linked debenture, PMS, F&O, commodities, …you know what to do, do you not?

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  1. Subra,
    I have a couple of questions
    1)Does a financial planner guide on which specific stock to invest in? And possibly timing too?. ( Its not that we should blindly go by that. But there are so many stocks out there and we don’t get time to study them. If a FP recommends some stocks, then we can do some homework on these stocks (like balance sheet, earning etc) and then decide.
    2)I would like avail the services of a FP. By any chance do you do that?. I am not sure if you are based out of Bangalore. Can this be done thru online or do u think in person interaction works better?

  2. Going by this theory Financial planners should be the richest people on the planet !! But then again the good degree requirement may become a problem for them as well !!!

    I fail to understand why financial planners (I am yet to meet one of these species) are being sold so much my this otherwise good blog in almost every other post ?

  3. Aniruddha,

    My apologies if i have oversold / missold. However somewhere in my blog i have said a ‘good financial planner’ is like Santa Claus – a fictional character.

    Normally it is a chemist with a white coat – if u think of him as a doc, that iS YOUR PROBLEM.

    by the way..maybe there is an angle. Is it possible that they make me a GRANDFATHER….ha ha ha. I cannot (ok will not) afford the annual charges for being a grandfather. I will let my daughter make me a grandfather.

  4. Dear Sir,
    Recently I have started visting ur website regularly. If I would like to invest 1 Lakh, which stock do u recoment as a safe bet. I will continue to invest thru the year. Please.

  5. someone truly said .. “excellence rarely found, more rarely valued.” so the struggle is to how to find such a FP? My finance is in shape but moving forward I’m willing to invest in stocks. No hurry.. no greed 🙂 I am seeking somebody who can give me tips/recommendations on stocks (of course, as paid service). No able to find till now, except diving in books you mentioned long ago in your blog on stocks.


  6. I was surprised to see that you have suggested to churn the MF portfolio once in 3 months!
    Is it not way too short….!?
    Somewhere else, you have rightly said that Equity is for long term – atleast 8-10 years.
    Now, churning every 3 months is exactly opposite of this.

    Also, based on what do you churn the portfolio?
    Is it based on returns?
    If the person believes in value investing, then he will not do this way.
    First of all, he would have studied the business before investing.
    And when the price falls, that means it is a better opportunity to invest and he will invest more.
    If it falls further, he will invest some more.
    If the person expects the price to only raise and not fall in next 3 months, then I think he will keep on making losses – he will lose more money in the way of brokerages!!

  7. Subra,

    How to become a Financial Planner.Any good guide for the same i.e paid one.


    K B Raut

  8. Hi Subra,

    I need a good financial planner can you help! Also tell what fee will very less & what will be high (ur catch 22 situation). I have seen one taking 5k wil other 25k per annum. plz suggest

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