Investments:

[prasad1]

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Most investors want to make investments in such a way that they get sky-high returns as fast as possible without the risk of losing the principal money they have invested.

And this is the reason why many investors are always on the lookout for top investment plans where they can double their money in few months or years with little or no risk.

However, it is a fact that investment products that give high returns with low risk do not exist. In reality, risk and returns are inversely related, i.e., higher the returns, higher is the risk, and vice versa.

So, while selecting an investment avenue, you have to match your own risk profile with the risks associated with the product before investing. There are some investments that carry high risk but have the potential to generate high inflation-adjusted returns than other asset class in the long term while some investments come with low-risk and therefore lower returns.

There are two buckets that investment products fall into - financial and non-financial assets. Financial assets can be divided into market-linked products (like stocks and mutual funds) and fixed income products (like Public Provident Fund, bank fixed deposits). Non-financial assets - most Indians invest via this mode - are the likes of gold and real estate.

Read more at:
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[Jaykay767]

Akshaya Tritiya day - Great day to revisit and reiterate some age old advise on money and investments !!

Few rules one should look to follow early in life - (not at all recommended in retirement)

1. Do not lose money (credit : warren buffet quote). It is painful to recover lost money and is hugely demotivating. Have seen a few losing big and unable to recover., now struggling in retirement.

2. Always ensure a "safe", "capital secured", "assured", "regular" and "passive" income. Both when you are working and in retirement. Do not depend on FD interest alone in retirement.

3. Don't forget rule 1 & 2

Big question is what should be this safe secured assured ....income ? Again look to our ancestors for the age old advise that always works and has worked.

( more india specific..may not work in USA or abroad in general)

1. The only assured way is to be the "bank or the landlord". Being the bank is rich man's game, so let's skip this.

2. Buy a plot of land in or near outskirts railway station, bus station of any major city, say chennai, and build multiple storey 1bhk or 2bhk flats and rent them out.
***Ensure 100 times the land papers are legal and correct, and you have all written approvals. If you are not experienced in this, hire 2 lawyers and get them to investigate the land history and issue.

3. People will always need a roof to stay,, hence you will get constant rental even during recession. This ensures safety against inflation, banks going bust due to NPAs, currency devaluations risks, and "capital is always assured as land will appreciate" even if slowly specially in large cities.

4. Multiple flats will prove regular rental even if one of them defaults or delays payment. You can safely calculate rentals for over 75 yrs or even 100 yrs, the life of the building. Landlords have done this all the time - look to Mumbai where 100 yr buildings are still giving rentals for the owners.

5. Let's say, it takes 10 cr. today to buy land and complete building. Over the lifetime of the building, with rentals increasing over time, you will earn anywhere between 28 cr to 65 cr and upwards !! Just take 8 flats and an average rental of 40k to 90k per month ( very low conservative estimate) over 50 to 75 yrs. Remember, the rental in 1960s and now, you will get an idea of the jump in rentals.

6. Buy substantial physical hold as "hedge" against currency collapse. Remember deputy RBI governor warning of india going the Venezuela way.....you never know when this hits you and you have to grab your gold and run out of the country !! LOL.

7. Open a trust and move these assets, and you can hand over to next generation and secure their future as we'll.

Rest of all investments have either or both "capital and income risk" - FDs due to lower interest and currency risks, equity and bond funds, direct stock market investments, structured products like derivatives, etc..

In short, the age old advise of land and gold is the only sure way of becoming and staying rich !! Not easy to do, involves hell of a lot of work, but worth the weight in gold !!

 

[krish44]

Descendants of yesteryear film stars are exactly doing what you advise . Godrej properties is building

multistory flats on studio land.

Descendants of owners of Modern studio in salem are doing the same with the studio land.

Many in chennai with single house on land have tied up with builders to build flats and collected a couple of

flats for themselves.They live in one and live on rentals from the other.

 

[tbs]

Descendants of yesteryear film stars are exactly doing what you advise . Godrej properties is building

multistory flats on studio land.

Descendants of owners of Modern studio in salem are doing the same with the studio land.

Many in chennai with single house on land have tied up with builders to build flats and collected a couple of

flats for themselves.They live in one and live on rentals from the other.

hi

i did the same in chennai...