Page 5 - Harsh Roongta

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

Regulation is inadequate protection against greed

There also needs to be a concerted effort to educate the consumer so that she is better informed about the risks and rewards of what she is doing

Run numbers, you may have enough to quit

Truth be told, it is one of our profession's greatest pleasures to see the exhilaration on a client's face when he realises he can break free anytime he wants

Exchanges must provide data on unclaimed shares

The stock exchanges should aggregate data on unclaimed shares and dividends from all listed companies, and provide it on their websites with easy-to-use search functionality

Maximising returns can harm financial health

Investments should carry a statutory warning: "Any attempt to maximise returns can be injurious to financial health"

Make nomination the third route of succession

Even in an august gathering such as the one at Vigyan Bhavan, the percentage of people who had made their Will would be in the low double-digit

Landmark reforms: Costs for some, benefits for all

Once again in the AA framework, IPs will have to bear the costs initially, while the benefits will accrue to the entire economy, not just them

Limit Section 54 benefit to curb money laundering

Section 54 tax exemption should not be available if the taxpayer already owns two or more properties on the date of sale of property

More is less in client communication

Sarika likes to go through all the communication she receives and then take an informed decision. She was hassled because this deluge was hindering her

Win or endure? Choose advisor based on goal

A good investment advisor will begin by learning your goals, develop a plan, and manage behaviour to ensure you don't get excessively affected by highs and lows

Big Data can at times spell trouble for taxpayers

The tax department's initiatives would, in the normal course, have been welcomed by honest taxpayers, but implementation issues and the taxman's misaligned views are causing problems

Avoid financial dependence on children post retirement

Making adequate provision for your spouse and yourself for a prolonged period of retirement must take precedence over distributing your wealth among your children

Overseas investment limit of MFs must be hiked now

Delay in hiking the limit will leave doubts about the concerns that weighed on the RBI, and whether those concerns could arise again in future

Why I don't advise clients on cryptos

The RBI had banned banks from holding or facilitating cryptocurrency transactions, but the Supreme Court set aside that circular