FINERVA

Strategies for

Wealth Creation & Management

ICFAI National College 02 June 2007 | Coimbatore

The basics first

Assets Liabilities

Make a list of the following

The Basics again…

• What are Assets / Liabilities for Personal Wealth Creation?

– One that gives a POSITIVE CASH FLOW IS AN ASSET

– Others are Liabilities / Expenses.

What is growth / return?

• Time Value for Money

• Relative Growth

• Nominal Interest Rate Vs

Effective Interest Rate

What is Risk?

Actual Returns

Vs

Expected returns

What is Wealth?

Take 2 minutes. Close your eyes and imagine a wealthy person. Write what you see.

A person's wealth is defined

by how long a period of time

he/she can sustain their

lifestyle if they stop working.

The longer you can go on living your life without

working another day, the richer you actually are.

Your wealth is therefore defined by three things

• Your monthly expenses,

• Your liquid assets and

• Your passive income.

The MantraTIME

Start early

Use the power of compounding

Goal Setting

Set a SMART Financial Goal

S – SpecificM – MeasurableA – AchievableR – RealisticT – Time Bound

Asset Allocation

• Investment Horizon

• Market Expectations

Manage Wealth

• Maximize Tax Benefits

(Don’t Maximize Tax Slabs)

• Be a Businessman /

Investor

• Hedge Risks

If spending money brings you

enjoyment, you will never be rich.

However if making money brings you enjoyment, then your wealth isguaranteed.

Strategies for Wealth Creation & Management

• Queries

• Thank you……

• Your Take-away from this session.