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Showing posts from December, 2014

Aim for financial freedom

You no longer have to depend on active income to meet your lifestyle expenses . Retiring early may seem ideal but it has its issues. You need to make substantial savings during your working life to provide for retirement. You also have to find productive activities in order to keep yourself engaged.Therefore, early retirement may not be as good as it appears to be. So, why not aim at achieving financial freedom instead ? Financial freedom is the state where your passive income is enough to take care of your lifestyle. By passive income, we mean interest on fixed deposits, rental income on your real estate investments, dividends and realised capital appreciation on equity investments .You could achieve financial freedom at age 50. But achieving financial freedom does not necessarily mean you should stop working.Working after you achieve your financial freedom has its benefits.   For one, you do not have to withdraw money from your retirement savings to meet your living expense

3 classic mutual fund investing mistakes to avoid

With markets in a steady rally for over 12 months everyone seems to be happy. AMCs and distributors are seeing good inflows. Investors seem to be in jolly mood too owing to the general market sentiment and they are being told with a sense of urgency that "now" is the time to invest. But in the upbeat scenario there a few mistakes that every investor must avoid at any cost. Of the common mistakes made by investors in mutual funds, these few are repeated over and over again. The good thing is, they can be easily identified and avoided, to ensure investors don't turn out to be their own enemies! Classic mistake #1: No goals linked to investments The fundamental mistake anyone can make while investing in mutual funds is to buy a fund for any other reason than the fact that it suits their requirement. This automatically leads to the need to first identify one’s financial goals. Depending on our life stage and financial background we would have short, medium and long term goals