5 Timeless Tips to Successful Wealth Creation

Wealth creation, contradictory to the common notion of being a high-risk and time consuming process, is easy - provided you stay committed and make calculated decisions. Many high-value individuals were able to achieve their financial goals by staying focused and constantly exposing themselves to newer and better ways of wealth creation. There are a variety of wealth creation strategies that you can consider such as investing in a startup business. If you are wondering how to execute your wealth creation strategy for maximum profit and success, this post shares five timeless tips you must follow. Take a look.

Trust Your Gut
Once you have a wealth creation strategy on paper and are ready to execute it, the first step you must take is to listen to your gut. Your mind develops a sense of right and wrong over years by gaining experience through hardships. That is when your inner voice tells you something is wrong, and it is a wise decision to go over the part you doubt again.

Maintain Your Reputation
Building a brand name is essential to build relationships with other individuals and maintain a quality network. People will be willing to do business with you based on how ethical and successful your business seems. Your reputation is what helps you have an edge over any other business.

Follow Your Passion
Some of the most successful businesses are where an individual followed their passion, and not some mainstream business idea. The reason behind the success is that when you follow your passion, you make it a point to work wholeheartedly to ensure exponential business growth. When your passion is at work, your wealth is bound to multiply as per your expectations.

Don't Let Losses Discourage You
Wealth creation comes with both profit and loss. When you achieve a set goal of a profit margin, it is a sign that things are doing well. Any loss that you incur while executing your wealth creation strategy should not discourage you from moving forward with your plans, given that you smartly drafted the strategies.

Save More than You Spend
It is important to take a disciplined approach towards wealth creation for a guaranteed success. You need to maintain a balance between your expenditure and savings. You should ideally save more than you spend. In addition to this, you should track all your expenses and stick to the budget.

Conclusion
When it comes to multiplying your private wealth, the timeless tips mentioned in this blog will go a long way. Whether you wish to save for your retirement so that you can continue with the current comfortable lifestyle, or want your future generations to lead the same blessed life that you have, these wealth creation tips will help you. If you are looking for a wealth management firm to help you with your wealth creation strategies, there are reputable firms such as Client Associates, who have been helping high-value individuals for years.

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4 Factors to Consider when Hiring a Wealth Manager

A huge amount of money invested in a planned way ensures capital’s safety, and could generate a passive income. Whether you need to invest your money for later ROI or you need to find ways to multiply your wealth, a wealth manager could help you with both these goals. Before hiring a wealth management firm, there are a few basic yet essential factors that you need to consider to ensure your financial security and growth. This post lists four of those factors that need your consideration when hiring a wealth manager. Read on.

Your Personal and Financial Objectives
The first factor you need to consider are your personal and financial objectives. These objectives act as a basis for your wealth management planning, and let you plan an investment strategy to fulfill these goals. The objectives may include money for expanding your family, buying a house in future, or setting aside college fund for your kids. If you have a clarity about these objectives, it will be easy for you and the wealth manager to meet the expected goals.

Short-Term vs Long-Term Goals
The advice of a wealth manager is helpful, only when you are clear about the timeline of investment. If you wish to achieve short-term gains, a wealth manager can help you find investment opportunities that have high liquidity rate. If your goals are to receive long-term ROI, your wealth manager can find opportunities that hold potential for returns in the future.

Resource Network of the Firm
When it comes to hiring a reliable wealth management firm, you need to make sure that the firm has highly-qualified wealth managers and private bankers with years of experience assessing the market and helping high-value investors multiply their wealth. A rich resource network means that the firm will be able to provide you with diverse investment opportunities in different sectors of the market.

Scope of Services Provided by the Firm
Reliable wealth management firms provide wealth management services, along with other related services. The wealth management services may include family wealth planning, estate planning, and private equity investments. A good wealth management firm must have wealth managers who are efficient at protecting and multiplying your wealth.

Find Reliable Wealth Managers in India
If you are planning to invest your wealth, you will find reputable wealth management firms in India that offer an extensive range of wealth management services to high-value individuals. Though you may have abundance of wealth now, to make sure you enjoy the same lifestyle after the retirement, you need to seek the services of a wealth management firm. The firm will also ensure that your future generations have sufficient capital to get quality education and start their ventures.

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4 Factors that Drive Estate Planning to Benefit your Future Generations

Estate planning is the process where individuals prepare for the transfer of their wealth and assets after his or her death. Assets, life insurance, pensions, real estate, cars, and personal belongings are all part of one's estate, which they may pass on to their future generations. When transferring wealth to successive generations, you need to have an efficient strategy at place. An ill planned succession risks negative financial consequences for the family fortune and could lead to unnecessary stress and conflict among family members. To avoid any mistake and ensure that the process goes down smoothly, you can hire a family office in India that provides specialized family office services. To get you started, here is a list of four factors that you must consider while planning an estate. Read on.

1. Asset Evaluation

In order to ensure everything that can be liquidated is included in your asset planning, you need to do thorough evaluation of your assets, whether they are real estate, life insurance, superannuation funds, investments, vehicles or any other prized possessions. Prepare a comprehensive inventory of all the assets so that it is easy for you decide what you need to pass to your future generations.

2. Will Preparation

Making a will is an important part of the estate planning process, as it provides for the division of your property and also, if applicable, the care of any minor children. In addition, you must also have a living will as a part of your estate plan. This document gives instructions, dealing with the medical care that you wish to have or not have in an event where you are unable to act on your own accord.

3. Reduction of Taxable Assets

Estate and income taxes could take a significant portion of the assets you allot to your beneficiaries. A family office has lawyers and investment bankers to identify profitable investment opportunities that are tax deductible. This would ensure that your future generations are are not left with significant tax payments and are only entitled to the returns.

4. Your Beneficiaries’ Needs

The whole purpose of estate planning is to ensure that your successive generations have enough to lead a comfortable life or have enough capital to start any business venture they want. When designating beneficiaries, consider their future needs and spending habits. For instance, you can earmark trust funds to cover the expenditure of college tuition or special needs expenses.

Family Office in India for Estate Planning

Estate planning is something that an individual must not neglect, and to ensure that all your private wealth is passed on to your generations, you must have a detailed estate plan, especially when the stakes are high. An integrated family office has lawyers, taxation officers, and investment bankers, all in one place to ensure that your estate planning is done so as to provide maximum benefits to future generations.

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5 Master Tips for Long-Term Wealth Creation in India

Wealth building is something that many people desire in India and across the globe, though only a few achieve the feat. The roadblock to wealth creation in India is probably not will, but the lack of right approach to investments. People believe that wealth building is a “get rich overnight” scheme, which is not the case given the fluctuating economy and volatile market conditions. Wealth creation in India is not a destination one can reach, rather it’s a path you need to traverse for years to accumulate the desired retirement fund or wealth. Continuing the discussion, the blog post discusses five strategies to incorporate in your wealth creation plans in India and elsewhere.

1. Focus On Diversifying Your Portfolio
When it comes to investments, avoid putting all your eggs in one basket. Doing so can put your financial future at risk as industrial revolutions come and go and you never know until what time a specific “industry bubble” is going to last. Invest your money in a range of financial products such as shares, mutual funds, bonds and bank FDs in different sectors. This one habit is certainly going to pay off. Once you have a diversified portfolio, you are in a position to get steady returns for years to come.

2. Believe in the Power of Long Term Investments
There is a good reason why it’s called “investment”, as it yields sizable returns in future. If you expect to get the profitable market ROI, you can’t expect your investments to boom and start showing results in three or say, five years. For investments to start yielding, you need to think about the broader picture, something similar as 10-15 years down the line. Wealth creation is a time-intensive process, therefore, you need to stop believing and investing in anything that promises four or five times returns in a limited period of 3-4 years as there is no such “get rich quick” scheme in the market.

3. Make Optimum Use of Tax Rebates
Paying income tax may feel frustrating at once, however, the rebates can help you in building long-term wealth in India. Tap potential sources in which you can invest and get a higher rate of interest. The key here is to invest more to get more returns without increasing the tax amount you need to pay. If, for instance, you are planning to invest in ULIP or endowment plans for tax rebates; switch to a PPF account or ELSS funds. By doing this, you will be able to make optimum use of your income tax exemption limit and still have a sizable portion of money left to invest.

4. Start Investing Early
Many people make the mistake of not investing until they feel the amount of investment is good enough to fetch desirable returns. Wealth creation in India or anywhere for that matter is a long term process. In other words, you need to start taking baby steps today to reach there tomorrow. Warren Buffett started this way and credits the investment success to his early start. In a nutshell, it goes without saying that to climb the wealth ladder, you need to start right now for achieving your financial goals. If you get stuck in two minds, consult a reliable financial planning firm and they will help you take more informed investment decisions.

5. Track Your Investments and Reassess Your Decisions
Though you should always look out for opportunities to diversify your investments, you also need to ensure that investment doesn’t end up as an expenditure. For that to happen, you need to pause at regular intervals and analyze your highest and lowest performing investments. Once you start the practice, you will get a better picture of promising investments to keep and drop the rest. Market conditions are volatile, therefore, always seek professional assistance from financial planning firms before deciding the future of investments.

The Bottom Line
Wealth creation in India or any other place for that matter requires more than wishful thinking. Whether you have a prior knowledge of investments or not, building wealth at once may appear a herculean task to you. Instead of taking amateur decisions, hiring a financial planner always pays off in the end. Once you have an expert working with you, there will be no guesswork and all your investment decisions will be aligned in the right direction through research and data.

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A Sneak Peek into 5 Smart Tax Saving Instruments

Choosing a tax saving instrument that’s optimal for you can be a little perplexing. The reason is you need to analyze everything from the returns, flexibility, liquidity to the cost of the investment. Simultaneously, you need to ensure that the investment meets your financial goals. To help, we decided to list five smart ways you can save more tax. If you are don’t have the time for tax planning or find it confusing, you can seek the assistance of a professional firm offering taxation Services India.

1. (Equity Linked Savings Scheme) ELSS Funds

ELSS funds are one of the most transparent and highly liquid tax saving instruments with a 17.8 percent average return record in the past three years. Although these equity schemes present a market risk equal to other diversified funds, they offer better returns than 3- to 5-year PPF investments.

2. (Unit Linked Insurance Plan) ULIP

Unit Linked Insurance Plan or ULIPs come in the form of stocks, bonds, and mutual funds. The tax instrument offers certain risk cover to the policyholder and greater flexibility over direct mutual funds. Another advantage is that you can use these investments before three years, and either as equity or debt, and vice-e-versa. ULIP investments cost less than direct mutual funds and are suitable for people across all life stages and all types of investors.

3. National Pension System (NPS)

The NPS or National Pension System now offers an additional of Rs 50,000 of tax deductions, which makes it an attractive tax saving investment for many people. NPS entails two types of accounts: Tier I and Tier II. Tier is like a pension product, whereas Tier II operates like a savings account, which means you can withdraw money from it when you want. Once you choose a pension plan, however, you cannot switch to another before a year.

4. Senior Citizens’ Saving Scheme (SCSS)

The Senior Citizens’ Scheme is an ideal tax saving instrument for senior citizens. Although it has an overall investment limit of Rs. 15 lakh, it offers one of the best interest rates, at 9.3 percent, in the list of post office schemes. The maturity period is 5 years, which you can extend by 3 years.

5. BANK FDS AND NSCs

If you are a senior citizen who has already used the 15-lakh investment limit in the Senior Citizens’ Saving Scheme, you can further use the option of FDs (Fixed Deposits) or National Savings Certificate. NSCs offer a rate of interest in the range of 8.5% - 8.8%. The interest rates of fixed deposits depend on the lock-in-period. If you don’t have the time for assessing other tax investment schemes, and the deadline is near, invest in FDs and NSCs.

There’s More!

There are various other investments such as PPF, VPF, and pension plans, which you can use to gain good returns and save a significant amount of tax. Speaking to a professional taxation service provider in India can help learn more about your options. In addition, such providers often offer other services such as wealth management, which you can use to multiply your wealth and protect your investments. 

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Avoid These 4 Pitfalls When Managing Wealth

Wealth management should top your list of to-do-things, whether you have millions stacked in your bank account or modest savings and resources. Following a private wealth management strategy, apart from helping you manage your finances, is also one of the effective ways to ensure a hassle-free retirement life. Wealth management industry in India offers a range of solutions for entrepreneurs, salaried individuals, and those with family wealth, to help them plan their finances and secure a secure future. You can, therefore, avail the services of a wealth management professional to chart an investment strategy. While designing the plan, make sure to avoid the pitfalls discussed below to get the most out of your investments. 

1. Cash flow mismanagement 
The most significant aspect of managing your cash flow is maintaining a correct mix of inflows and outflows. It is also advisable that you invest a certain percentage of your income every month to ensure you have significant funds stacked as savings by the time you retire. Invest in tax saving instruments such as ELSS mutual funds, PPF, NSC, and National Pension Scheme. Additionally, consult your wealth manager to devise ways to carry forward and offset losses that you may have incurred during the financial year.

2. Mismanaging debt 
Too much debt reflecting in your balance sheet is a disaster waiting to happen and can topple your financial planning strategy. To address this issue, you need to manage short-term debt such as credit card outstandings, student and personal loans, keeping it at a level lower than liquid assets you own. If you have too many short term loans pending, consider raising a debt consolidation loan with a low interest rate to pay off all the outstandings. 

3. Failing to manage windfall gains
Windfall gain refers to any unexpected income due to unplanned property inheritance, unexpected gains from the sale of property or shares, or a lottery win. They say make hay while the sun shines, similarly, using additional funds prudently can pave a path to financial freedom. To make optimal use of the funds available to you, first and foremost clear all outstanding debts. Next, consider investing in tax saving instruments and acquire additional assets. Set aside some funds for your emergency corpus and revisit your estate management strategy to change it according to your financial condition.

4. Not having an estate management plan
Many individuals consider estate management a futile exercise and an activity for the elite. The belief is as far from fact as imaginable. A dedicated estate management strategy is for everyone who owns any property (including a vehicle, a house or stock option). Many others who follow a dedicated strategy commit blunders such as forgetting to fund the trusts or changing beneficiary designations in their life insurance plan and failing to draft a power of attorney for health care and property. Avoiding these pitfalls is imperative to planning a successful succession strategy.

Conclusion
A carefully planned and executed private wealth management strategy is your doorway to financial freedom. Make sure you hire the services of an experienced wealth manager that can help you take steps according to fluctuating marketing conditions and business cycles. When you’re successful in finding one, communicate your financial goals and objectives to help them design a strategy unique to your needs.

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10 Quick Tips on Wealth Management

Everyone dreams of owning a big house, luxurious car, and enjoying a great retirement. An average person spends more than half of their life trying to earn and save more. The realization often comes too late that all the energy spent yielded less than half of what they expected. It's never too late to craft a promising future for yourself and family if you rope-in wealth management services. 

What is Wealth Management?

Wealth management, as the name suggests, is about managing your money with a view to improve your financial situation. The set financial goals are achieved by intelligently optimizing your financial assets using different methods and strategies, while taking potential risks and other factors into consideration.

Aren't Wealth Management and Private Banking one and the Same?

In India, people often confuse private banking with wealth management. Private banking is a personalized banking service given to account holders that have high net worth. Private banking slightly overlaps wealth management. Along with special banking services, it offers personalized financial and investment advice to privileged account holders. Together with financial and investment advice, the wealth management advisor utilizes the client's assets to procure as much profit as possible.

Professional help is advisable in case of a large financial portfolio, whereas, if your assets are minimal, you can easily manage your money and reach your financial goals with the following handy tips:

1. Always research and gather knowledge as much as possible

2. Invest where the probability is high and risk low

3. Before making any investment, know all the potential risks it entails

4. Invest less than you earn

5. In the beginning, invest small amounts

6. Invest in different places (don't put all your eggs in one basket)

7. Try different investment strategies to see what works best

8. If investing in shares, religiously follow stock market

9. Invest when you are comfortable and confident

10. Patience is the key to big returns

Conclusion

Don't confuse wealth management with private banking. Wealth management helps you to achieve the predetermined long or short term financial goals by optimizing existing financial assets. Private banking offers special banking services and financial or investment advice. Unlike wealth management, it does not go deep into planning and optimizing financial assets. You can easily manage small assets on you own, however, big financial portfolios require a reputed and reliable wealth management service provider or personal wealth management advisor. Some of their functions include finding the best investment trends and options in the market, managing different accounts, investing only after your approval, and keeping a tab on the progress. However big or small your financial assets are, these ten tips will always help you to craft an assured and secure future.

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