Wise Rules of Investing |
| Investment is a compulsory deduction from your earnings that will provide you with a lump sum in the future - Wrong. There is a lot more involved with investments, it is a product of financial planning. It needs to be researched and understood. The following rules will help you plan your finances. |
| Do your Homework |
| The majority of sales executives are interested only in their monthly targets or the amount of commission they will earn. This is why you will only hear the "best case scenarios" from them. So, do your homework, have some idea of what they are talking about before you see them. You really do not want them to take advantage of you, purely because of your lack of knowledge. |
| You need to understand your own finances, only you know your income, how much you want to risk and what your future plans are. Your investments should reflect this. Listen to advice from several sources in order to get a balance. Only by knowing the benefits of various products will you be able to make the decision to make that call and invest. |
| Keep your Eyes Open |
| Don't just rely on your agent’s advice regarding your investments. Keep your eyes open for any opportunity like changes within market conditions, new product announcements and economic changes. Just because you didn't know about them is no excuse for losing out. |
| Involve Yourself |
| If you are buying any financial product, make sure that you are involved, fill out the forms, and know what is going on. Many insurance claims in the past have been rejected, purely because the insurance agents filled in the proposal forms incorrectly. Make sure that you fill these forms in yourself. This way you can ensure that no "false claims" on the forms are made. |
| Inform your Nearest and Dearest |
| When buying life insurance or any other policy that matures, make sure that you discuss and inform all parties that have been nominated as beneficiaries. This has two fold reasons, in the first place they should know that they will be taken care of, and secondly, should anything happen to you they will know what to do when following up with the insurance companies. |
| Keep a Logbook |
| It is not enough to keep all your policy documents in a drawer, it is helpful to keep a logbook. Keep it up to date with all your investments. It is also helpful to include policy details, such as reference numbers and telephone numbers. If you deal with a specific person add their name too. Add such things as maturity dates and values. |
| Alongside all of the above, your logbook should also hold details of your liabilities, things like personal loans, home loans, EMI's and business liabilities. You should include details of the loans or liabilities, when they were taken out, how much you pay and importantly the amount outstanding. |
| Sharing this information with your spouse, parents and children is important to prevent any future 'fictitious' claims upon your estate. Make a copy, if your information is held on your computer, ensure that you have a hard copy. When updating any of the information, make sure your hard copy is also updated. |
| Mantras for Smart Investing - Buy and Sell Stocks | Intraday Trading |
