Are we at Financial Peace ?

All of you know that we have five P’s of Pentagraph . One of the P’s is “Peace” . Being into investment and advisory services , we are addressing the “financial peace” here.

Investors should aim at having financial peace , which will come only when they follow the simple investment process , product , plan and ignore the rest .

However , manufacture of financial products , wealth management firms ,investment advisors and not to forget … the most important ….financial media are making the investor’s life more complicated and worse .

The investors are approached by different advisors from different institutions talking about different product , plan , strategy , benefits etc on almost on a daily basis . Due to smartphone & internet , it is even easier to flood the information .

It says that you should either convince or confuse the client to make a deal . Convincing is little difficult and time consuming process and hence confused the investors with jargons , high fundas , complicated calculations.

In this process, it is natural to lose the financial peace and keep searching for the best plan , product and strategy .  Some of them are busy in making quick returns , gaining more information , trying to manage the portfolio actively , getting into fear of loosing opportunity.

All of the above will lead to more stress , more wastage of time and energy resulting into loss of peace at both personal and family end .

We, at Pentagraph , suggest to follow simple steps to lead peaceful financial life .

  • Cover the risk by getting adequate term insurance , health insurance , accidental disability and critical illness insurance , , home insurance etc ….. simple vanilla product . Don’t complicate it with investments .
  • Outsource investment decisions to financial planner , investment advisor .
  • Don’t watch financial channels …. Discovery , National geographic are more informative.
  • Don’t subscribe to too many financial newsletters or magazines or blogs specially stock related .
  • Don’t get addicted to knowing everything . There are too much information flowing around . Focus on your life and its happiness and ignore the rest .
  • Don’t try to beat the best returns … try to beat only inflation . Rest will be automatically taken care of .
  • Plan and follow your financial goals by choosing simple products
  • Do proper budgeting of income and expenses
  • Invest what you can each month ( or year ) as per asset allocation and financial plan and think no further. Let others break their head about investing tactics. Let them get a higher CAGR than you. Everyone is going to die anyway, so might as well adopt simple techniques and enjoy other pursuits.
  • Do the basics right and spend time with people you love and do things that you love.

You just need to be regular & disciplined investor  .

Warren Buffet has nicely put into words .

“We don’t have to be smarter than the rest. We have to be more disciplined than the rest.