Strategies that weshould keep in mind while investing in any financial services

1. Strategies that weshould keep in mind while investing in any financial services The real difference between the rich and the poor is thatthe rich spend a larger share of their income onsavings and education. The paradox in human behavior is that we are perfectlyrational and capable of planning for a major event in our lives, but this isusually forgotten when it comes to investing. In fact, you will find that onlya third of investors have a written plan guiding their investment strategy andretirement plans. Why is a plan needed? Theinvestment world is a vast forest, where the smartest people survived andbecome successful investors. A written plan short circuits our normal responseto something as emotional as money. It prevents us from resorting to our gutfeelings and emotions. Instead of following the herd mentality that may promptyou to make unwise investment decisions, a plan will force you to stick to arational strategy that is underpinned by

2. fundamental investment principles.Some of the difficult emotions that you will have to overcomewhile investing include: · Thefear of failure · Thetendency to continue with a certain approach just because you started it · Personalmatters such as relationship issues at home Itis also important to point out the main reasons why investors fall prey to themarket and lose their precious funds: 1) Omitted facts and figures mislead investors into investing in a structurallyunsound company or financial instrument 2) Overconfidence makes some investors think that they are invincible and thatthey can always beat the market. 3) Everyone wants to be seen as a champion, the successful general capable ofleading an army to victory. Udta Paisa can make you make investmentdecisions that are not based on rational thinking but rather the desire toimpress your friends, co- workers or family members Byhaving an investment plan written down and actually following what it says, youwill have dramatically increased your

3. chances of winning and increasing the sizeof your nest egg or investment portfolio. The following are simple steps increating a plan and avoiding the herd mentality and instinctual impulses thatturn us into fools when investing: 1. Set up specific andrealistic goals If we want enough money to retire easily within our comfort zone, we must setup a specific goal that how you have to save at the end of the retirement. 2. Calculate how much youneed to save each month If you need to save $500,000 by the time you're 65, how much will you need tosave each month? Check in your mind that it is a realistic amount or not. If nothen we have to adjust our goals. 3. Choose your investmentstrategy If we aresaving for long-term goals, we must strategies our investment that we must facehigh risk investment or lower risk investment. If our goals are short term, wemust choose lower- risk, conservative investments. 4. Develop an investmentpolicy statement Development an investment policy stamen that guide you about your goals. If we have gone through financial advisorinvestment policy statement will outline the rules and make follow yourportfolio.