A helping hand from numbers leads to objective opinions and confident decisions!!!

Whether value of your primary home or the car you drive be counted in your asset inventory  ? Or in Indian context, the value of jewellery you possess? For a long time, I was on the other side of the fence – any consumption stuff should not be considered in asset inventory working. Now, my views have changed – the stuff which give you and your family “status” and let the world know that you have “arrived” are definitely worthy of being counted in your net worth. Ok, don’t roger me for being so subjective despite of running a blog obsessed with numbers. But even in numbers context, anything which can be liquidated for money maybe be considered in “Asset Inventory”, or more simply wealth status. I say “can” and not “should” because for consumption stuff, which serves only a particular need, it is upto an individual of what he / she plans to do with the money realised after liquidating the stuff. For example, when I scrapped my 15 plus year old motorcycle and got nearly 10% of pur...

Should an 80 year old   or near about person who has come about in possession of large chunk of money through some source, let’s say property sale consider deploying a large chunk of money in listed equity investments? General opinion: No, absolutely no. Too risky at this advanced age!!! Even if one is really inclined to invest in equities, should be in lowly amounts. Somewhere I read – equity allocation should follow 100 minus current age rule. If you are 80, equity allocation basis overall assets should be 20%. Never mind doing up asset inventory and asset allocation check on overall capital basis is rarely focused on. Well, I don’t subscribe to this “general opinion”. In personal finance, “personal” comes before “finance” and any generic statement does not take into account investor specific financial situation. What if an 80 year old: -           Has assured income which is at least 1.25 times his / her regular expenses? To...