I have handled this question many times, and have come out with similar answers. However here are some questions which are IRRELEVANT …. 1. How much has the house appreciated by: Many people write in to say ‘I paid Rs. 20L now it is worth Rs. 37 lakhs’…This is completely immaterial. Your house appreciating has [...]
I found a 78 year old man with a very strong balance sheet, but poor P&L account! What does it mean? Well he had a lot of assets – a nice big house which he was not using much, equities, bonds, and of course cash. Life long if you (and me) are brought up saying [...]
When you go to a financial planner you have some expectations, do you not? Let us see what are the legitimate expectations that you can have: – he should be able to articulate your goals more clearly. When you say “I want the best education for my daughter” he should be able to translate that [...]
If we have a debt (or a bill) we normally pay it on time, right? Hey no. Not always do we like to pay our debt or bills. We pay our bills only on the following conditions: 1. We acknowledge it as a debt: I borrow money from friend A and lend to the business [...]
Well there is no real Indian rule of 15, but I have just taken the American Rule of 25 and adapted to Indian conditions… What is the American Rule of 25? Well if you need an income of 100,000 a year and you are not worried too much about the rate of inflation POST RETIREMENT…then [...]
How much is the government of India deficit and how much lower will it go according to PC? Well it depends on how you look at the deficits, and what bank NPA number are you willing to believe. Hmmm When some deals happen you keep wondering ‘How do such deals happen?’ . In a public [...]