19 Feb 2016

Passive Income: How to prepare a plan?

How to prepare Passive income - Plan?
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✔Make your life time Networth goal.Eg: 100 or 50 crores.Meditate well and  think deeply about different sources to achieve your networth goal.Your mind will give few sparks.Make this a process.

✔Then prepare a 15 year wealth target which must be half of your life time goal amount.Eg 50 or 25 crore.

✔10 year target amount should be half of 15 year amount.eg: 25 or 12.5 crore.

✔5 year target amount must be half of 10 yr goal.Eg:12.5 or 6.25 crore.

In this way,Networth goal can be created in step by step manner.
Next is your Income goal.🎯

✔Write 1 year income goal.It should be minimum 5 times of your previous year income.Then find out 5 to 10 ways to achieve it.It will be a brainstorming efgort if you apply well.

Then,Reduce Income goal amount to 2 times of last year income.Cut excess sources from the list.Plan with favourite expected sources of income.

If you are not comfortable with 2 times of last year income,Rework again to achieve double income.

✔After Annual plan is ready,make 6 month income goal.
It should be 55% of your Final passive income goal for the year.

Then,prepare a 26 week action plan to achieve it.

1 Feb 2016

Stock Picking: 10 Key Ideas


Before picking stocks,You must check below things and take calculated risk within a diversified portfolio.

1.How the company and sector performs in real market? Is their product or services deliver superior quality and having satisfied clients?

2.Check stock valuation.Compare it with competitors and  sector average.Over valued stocks may face huge correction any time.
3.Is your stock's interest coverage ratios denote less or zero debt ? Company should be able to manage interest payments and other expenses.
4.Profitability ratios of the stock must be strong enough to create extra returns to all stake holders and overcome entire debt level.
5.Major trend of the stock is important.If major trend is positive,you can buy at dips.but,if major trend is uncertain and volatile, share price will be same.
6.Buying a stock in major negative trend is like jumping into a sea in the bad climate.
7.Prediction of trend reversal    should be based on breakout shown in any technical indicator- whether it is EMA,Trendline or support/ resistance.
8.Invest in sectors with positive bias and allocate weightage  for different sectors in your portfolio.
9.keep a stop loss to cut your loss and prevent further downfall. If stock break Low, continuous support and ranges ,it will lose market demand.
10.Market is a mass psychology. If any share lose demand in real market and stock market,it will become a disaster irrespective of size and brand.

Disclaimer: Equities are high risky instruments with volatility.Any wrong  investment decision may lead to uncertainty and loss.

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