Resource id #4Resource id #4 Advisor Interview
16 June, 2024 18:53 IST

`Don`t mix insurance and investing`

Source: IRIS Exclusive (20 December 2011)

`Don`t mix insurance and investing`
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In an interview with Pooja Chopra Goel of, Vivek T Mallick, CEO, Finesse Capital Financial Planners, says, ``The common mistake most individuals tend to make is confusing insurance with investment.``

Can you tell us about `Finesse Capital Financial Planners` and its mission & services? What services do you offer?

Finesse Capital Financial Planners was founded in the year 2010 to help people to be in charge of their personal finance to capitalize their wealth with time and realize their goal and dreams. We provide two services: comprehensive financial planning service & portfolio review service.

How and why did you decide to become so involved with personal financial planning?

I felt that there is a lot of dearth of time and knowledge among people about their personal finance. They were sold any product by their financial intermediary. My goal was simply to address what I perceived as a great need for more balanced and honest financial advice.

The competition in wealth management has been intense, with a number of small players having plucked in recent years. How do you place yourselves in that league?

I do not place myself in any league. I believe that if I am able to provide some education and confidence in a customer about his personal finance my job is done to my satisfaction.

What is the one financial mistake nearly everyone makes?

The common mistake most individuals tend to make is confusing insurance with investment. Mixing these two makes no sense and investor should keep it separate. Don`t mix insurance and investing.

What are your thoughts on the current financial crisis?

Frankly speaking, I don`t see any crisis. It is just a phase which may last for a year or so. If this is a crisis then what would you say of the great depression of 1929 in the US?

From your perspective, what are the most pressing risks facing retirees in the current environment?

Do we really see retirees now in this environment? I have not met any. Even the persons who have stopped working or retired are earning a living by becoming a consultant. The answer to the question is with the interest rates at its peak the retirees will have more to rejoice as they will get more for their balance in a bank savings account apart from investing in fixed deposits or fixed maturity plans. Also, the tax bracket for citizens above the age of 80 years has changed from this financial year.

Are there any retirement savings guidance programs or books you would recommend to help an individual identify just how much they should save each month?

There is no saving guidance programme or any book which will help anyone in deciding how much should one save. A person should look at his expenses before starting to save. He should cut down on plastic money spending and also his liabilities. Lesser the liabilities more the savings.

What is the most unbelievable excuse you`ve heard about why an individual cannot save for retirement?

That it is too early to think about retirement or an individual did not start saving because he / she didn`t have the time.

Any additional thoughts, comments you would like to address?

Personal finance is one of the most important aspect of a person`s life. An individual should take it very seriously. His / her future depends on his current savings.

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