THE ART OF TAKING RISK

Many of us usually don't know the meaning of risk.

Risk in simple terms means not knowing what your are doing. But things you know and you have a proper plan to execute it, it becomes a Goal.

All must understand that Life without risk would become boring and unadventurous. Life would be a struggle, a drag without any confidence and success.

Similar is the case with money. We are not willing to take any risk. Just to prevent the loss we will make our money retired right from the day we start earning. Retired here I mean is that, investing into those instruments which given guaranteed returns. Here we tend to forget that if your investments are not beating inflation, the inflation will eat your capital. This will result in our financial unfitness. Many of  understand this after 10-20-30 years have passed, by that time it will be too late.

NOT TAKING RISK IS THE BIGGEST RISK.

We have to take some risk in life for growth. We have to condition our minds for taking that extra risk but with proper plan and expectation of returns, so that we can become rich, and financially independent. 

You cannot work every where but your money can work in many different places. With that little extra risk, your money can make you fortune. Remember MONEY ATTRACTS MONEY. 

No one becomes rich by keeping money in savings account.

Have right attitude and make a Goal for your money and start investing TODAY !

What is Insurance ?

A Life Policy is just a time yellowed piece of paper with columns of figures and legal phrases until it is baptised with a widow's tears. Then it is the modern miracle, and Aladin's lamp. It is food, clothing, shelter, education, and peace of mind, comfort, undying love and affection. It is the sincerest love letter ever written. It quietens the hungry crying of a baby at night. It eases the aching heart of the bereaved widow.

It is comforting whisper in the dark, slient hours of the night. It is new hope, fresh courage and strength for the mother to pick up broken threads of life and carry on. It is a college education of the son and daughter, the chance for a career instead of need for a job.

It is comforting presence, a helping hand, a softly breathed word of comfort and cheer when needed most. It is the undying, unfailing love and affection. It is fruition of a father's hope and plans for his family's future. Through Life Insurance he lives on, there is no death, Life Insurance is a plan that Exalts Life and Defeats Death. It is the premium that we pay for the privilege of living after death.

In 1929, Jack J. Leterman - a long-time life insurance agent in Norfolk, Va. enclosed the note above when he delivered a life insurance policy to a client.

Insurance

Risk is defined as volatility of outcome and thus includes both worse-than-expected as well as better-than-expected outcomes. Financial Risk may be taken as downside risk, the difference between the actual return and the expected return (when the actual return is less), or the uncertainty of that return. Greater the uncertainty greater is the risk.


How to manage risk ? The strategies to manage risk include transferring the risk to another party, avoiding the risk, reducing the negative effect or probability of the risk, or even accepting some or all of the consequences of a particular risk.

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What is Insurance ?

Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Risk is important for insurance as it decides whether or not you need insurance. Risk is what insurance companies measure when determining whether or not to offer you insurance and how much will it cost.

Insurance is defined as the equitable transfer of the risk of a economic loss, from one entity to another, in exchange for payment. An insurer is a company taking risk; an insured, or policyholder, is the person or entity buying the insurance policy by giving premiums against transferring risk.

Financial Planning

Financial Planning is the process of taking holistic view of the financial needs of the individual and helping them with the appropriate solution to achieve their goals.

Financial plan is the roadmap, which is followed and reviewed at regular intervals to see it attain at its fulfilment.

Individual’s financial goals includes retirement planning, funding children’s education, buying a property/house, buying a car, foreign trips etc. It also includes analyzing one’s insurance needs at various stages of life, thereby going for appropriate amount of insurance. Generally I have noticed that, individual have taken insurance as investment tool, but do they really serve you has a best investment tool. This kind of double purpose vehicle, neither provides adequate insurance nor works as an investment tool.

I want you to think, insurance as a tool to transfer your risk at minimal cost to respective insurance company. This kind of thinking will help you to give greater importance to insurance and be sincere about insurance planning.

In this world of ever changing economic conditions, have you given a thought, that which financial products suits you, what are risk and return ratios, and does it comply with inflations, tax implications etc.

In India, equity and debt markets have become more volatile due to global and domestic factors, thus calling for constant monitoring of the markets. Investment options are also increasing. Financial planner has to carefully access all the products available and match the puzzle with suitable proportions to meet client’s requirement. After the investment is made, monitoring the plan and rebalancing the portfolio over different market cycles, is the most important part, is followed throughout the life of the plan.

Well, from above obvious reasons, anyone who has financial goals, needs to take a path of financial planning.

At Renuka Investments, we take utmost care to understand, prepare and monitor your financial goals. I am sure it will be a pleasure and joyful experience for you. Looking forward to meet you personally. Wishing you and your friends all the best.