Page 4 - Harsh Roongta

Restrictions on foreign spends erode Brand India

Any nation that restrains its citizens from investing or spending money overseas will face difficulty in becoming a superpower

Have realistic expectations from your investments

An investment's six-month performance is akin to data shown on TV during a match - useful to know which way the match is going, not select a batsman

High pension recipients can get short-changed in bailouts

Employees seeking larger pensions are betting on government intervention to address deficit. However, past precedents show governments cap the pension in such situations

Debt fund growth option: A smart choice for retirees

A growth scheme not only leads to lower tax payments than the dividend option but also allows any income that is not withdrawn to compound

Wealth creation is simple but not easy, requires discipline

Clients often fall back into old habits and require motivation to stay on track. Financial planning professionals also provide support during in inevitable setbacks

Focus on coverage provided, not premium collected

Measuring actual coverage provided, rather than premiums received, will ensure that the insurance industry's success is aligned with the goal of 'insurance for all'

Searchable database for unclaimed shares needed

A publicly available transparent database would increase the chances of genuine claimants finding out and making their claims, thus reducing the chances of fraudulent claims

Mad money: Indulgence that keeps you disciplined

Clients with insufficient resources should be allowed a Mad Money Fund, even if it creates the risk they may not be able to meet their goals

Budget aims to fix 'nuts and bolts' of state machinery

The government clearly wants everyone to file income tax returns so that the people with unaccounted wealth do not use the low income individual as a shield for their unaccounted wealth

Beware! Govts do default on pension liabilities

The faith displayed by employees in a future government's ability to pay pension is perplexing when stories abound of state governments having difficulty in paying salaries

Leader in tech, laggard in succession systems

It is difficult to reconcile the ultra-modern technology-driven banking sector with its poor record on customer service, including on the succession front

Never let the fear of failure stymie you

The cost of failure was the wages lost for the period the start-up was running, stacked on the other side were the benefits success would bring

Opt for regular investing over extreme frugality

Extreme frugality carries the risk of a backlash, akin to a person on a near-starvation diet lapsing and going on an eating binge

Overcaution could stymie investment advisory's growth

The safety and logistics costs (they are imported in tin boxes from the US) make them prohibitively expensive, fit only as showpiece items

Learn to draw lessons from mistakes, then share them

Rick talks about clients relating to him better because he had the courage to display his vulnerability and talk about the lessons learnt from his mistakes

When emotions overrule neatly laid financial plans

Several such experiences have taught me to probe more and work closely with clients to find out their real motivations, desires, and fears

Use data on education loan defaults to rank courses

Information on default rates of specific courses and institutions should be made available to the public. Students could use it as one of their selection criteria

Transparency as antidote to conflict of interest

Far from being a hindrance to our practice, transparent disclosure of conflict of interest is a powerful tool that has helped us gain clients' trust

Time-starved investors must stick to index funds

While Amit had stayed invested for a long time, avoided leverage, and shunned investment-cum-insurance policies, unplanned investments and mindless diversification had produced a disappointing outcome

Discuss family finances with your children

Transparency with your children is a difficult thing to achieve, especially in our society where money-related discussions are considered "dirty" or taboo