When many women ask their husbands -‘ how are our monies invested?’ men say ‘Oh do not worry about it, I am handling it well’.
Either this could be true or false. More false than true I recently found out…so these are the questions that a wife should ask her husband:
1. Why are you making / did you make this investment: Every investment should have a logic – and you know that right?
2. What is our asset allocation for the whole portfolio: this means how much of our money is in equities, debt and real estate. Till you retire remember that the debt component can be less than 40% – how ever by the time you retire it should be like 50%.
3. Can you tell me the IRR of every investment that you have made? Chances are your husband too never bothered about calculating this figure. Please make him calculate.
4. An IRR of about 8-9% in case of debt assets, about 10-13% in case of equities as an asset class, and about 12-14% – all p.a. are nice numbers to benchmark as of now. Remember if one asset class is having / has had a fantastic run, THAT MIGHT BE THE ASSET TO SELL!
5. ‘You said you bought this ULIP because the illustration showed 10% p.a. return….now that you have got 2.8%p.a. when will you DECIDE to dump it?
6. Why do you have so many mutual funds, direct equities, ulips, ….sorry, but is there is a purpose to OUR portfolio or is it just like a dhobi’s list?
by the end of this conversation you still have your husband on your side ….Congrats.
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