Is your life an EMI repayment schedule?
There is pressure to keep upgrading that car, house and lifestyle; pressure that will lead you to continue increasing your EMI rather than the assumption of reducing it. Pressure that will keep you tied to a job whether you like it or not.
Making more money is also a goal
Can one desire to simply make more money? Nothing wrong with this goal, because making more money means creating wealth. Creating wealth can help you sustain a lifestyle that you want through the ups, downs and the beyond the end of your regular earning years.
This is how compounding works
Compounding returns, especially in growth assets like equity can help you create wealth provided you give it enough time and hence, start early.
Does a repo rate cut matter to your investments?
In the latest monetary policy review, the Reserve Bank of India cut its benchmark repo rate by 35 basis points of 0.35% to 5.40%. You are right in thinking that your housing loan EMI could look lower if banks follow suit and lower their lending rates too. But what happens to your committed equity and debt fund investments?
Should you never change your asset allocation?
Asset allocation however, is not set in stone. Neither should you keep changing it too often. What is the right balance? That depends on your financial objectives.
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The true cost of an overseas education
International travel is only one of the extras you need to account for while budgeting for your child’s overseas education goal.
Child’s education or retirement?
Both goals are important for you and one shouldn’t come at the cost of the other. However, if you haven’t been proactive in providing for your child’s higher education systematically then you may find yourself sacrificing out of your retirement kitty to cater to this important goal.
Planning to redeem in this correction? Think again.
Should you now stop investing and wait for the bottom? You could, but for that you would need a crystal ball to tell you exactly where the bottom is.