Let us do a small exercise:
Go and get your Manila folder which has all your investments. Now answer the questions truthfully:
1. Why did you make that particular investment?
2. Psst……is it insurance or investment?
3. What returns were promised when you invested?
4. If you were promised 24% p.a. and you have actually got 6%p.a. WHY did YOU not find out?
5. Why are you doing this exercise? Ever wondered?
6. What is the overall weighted average return on your portfolio?
7. If the overall weighted returns on your portfolio is LESS than 9%, why not put all your money in bonds?
8. Have you ever RETURNED any product to the shop saying ‘this is not for me?’
9. Have you ever CONSIDERED RETURNING A FINANCIAL PRODUCT? Did you know it is NOT POSSIBLE at all?
10. Have some products outlived their utility?
11. Did you buy a life insurance product just to protect somebody’s job or meeting Quarterly targets?
12. I had once bought the shares of a company just because my broker had become a director there. He did not like it and QUIT the board. Out of sheet laziness I did not sell off that share – now it is languishing….INVESTING LAZINESS – not following your OWN WRITTEN PLAN. Have you committed such mistakes?
13. Did you buy a financial product under duress? threat? as a favor? for getting a locker? Throw away such products.
14. Are you WAITING to reach ‘investment value’ before you give it up? I know MANY MANY people who will pay the premium of a ULIP till it reaches the ‘paid amount’ – which could mean say 8 years. This is called THROWING GOOD MONEY AFTER BAD. Do not do that. Just throw it away, it it makes sense.
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