Posts Tagged ‘ Financial Plan ’

Inverted Yield Curve and its impact

Sunday, July 28th, 2013

Inverted Yield Curve and its impact

In the last article Understanding the Yield Curve we understood the basics of the yield curve; let’s focus more on the current situation wherein the G-sec yield curve in India has inverted significantly.

Yield Curve is a leading indicator of the economy & a good predictor of future economic activity.

Steep Yield Curve i.e. Positive spread between shorter and longer duration papers is generally followed by period of stronger growth and lower volatility, whereas inverted yield curve, where the yield on shorter duration papers is higher than longer ones, is followed by poor growth and recession.


Understanding the Yield Curve

Thursday, July 25th, 2013

The recent upheavals in the Debt market have left the investors puzzled and frightened about the debt markets. Let us understand some of the basic concept of debt markets.

What is a Yield Curve?

Interest rates typically vary with maturity.

The graph or figure which depicts the yield on bonds of the same credit quality and liquidity against maturity is called a Yield Curve.

Ideally, yield curve should be plotted for bonds that are alike in all respects other than the maturity; but this is extremely difficult in practice. Bonds that have similar risks of default may be different in coupon rates, options etc.


Top Three Financial Regrets of Millionaires

Monday, July 15th, 2013

Nigel Green CEO at The deVere Group recently published the results of a Poll conducted on 659 of their international clients. The Clients were from Europe (including UK), Asia, Africa, the Middle East and the US who have investible assets of more than 1 million Pounds (or equivalent).

The results of the poll reflect how the High net-worth Individuals care for their financial well being and would like to “remain on track” to reach their financial goals.

The Top financial Regret as per the poll is not having put into place a regularly reviewed personal financial plan earlier in their life. 57% of the surveyed had this overriding regret and thus sends us a signal how important the high net-worth individuals value the benefits of long term planning and understand the importance of routinely reviewing the plans to ensure that they are on track to reach the financial goals.

Financial Plan review

The Second Biggest financial Regret was not consistently reviewing and assessing the performance of their investments. 18% of the surveyed felt the need of regularly assessing the performance of their investments.

The Third financial Regret was taking on too much unnecessary debt. 13% regretted that they accumulated unnecessary debt.

12% of them indicated other regrets like not saving enough to fund their children or grandchildren education or not having built enough estate for their heirs.

The above poll depicts the regrets of the millionaires globally, do we have similar regrets or a more bigger financial regret..

Most of the Indians do understand the Importance of a Personal Financial Plan and Investing early in their life, but majority of the Indians don’t take the first step.

Please step up and take your first step. Prepare a Financial Plan and Review it regularly, it will keep you away from Regretting later.