Like it or not, most of us let our emotion of greed dictate many of our decisions. These could be about investing in a financial scheme or equities, buying life or health insurance, or others. We even let fraudsters get the better of us sometimes because of this emotion.
Let's sample some examples. If there's a discount to be availed of by spending a bit (sometimes a lot) extra, we go for it, not realising that the decision could upset our budget or cash flow. If a mutual fund or stock has given good returns in the recent past, we flock to it to share the profit pie, without checking its future prospects. If someone tells us a scheme can double our money quickly, we buy into it quickly, not bothering to look at the terms and conditions.
Similarly, if someone tells us a whole-life policy is a sure-shot way of creating inheritance, we never look back to see if we really need it or can afford it in our senior years. If someone tells us that there's no need to share your medical history when buying a health insurance, we readily agree, so that the premiums can come down, without realising that it can create problems in the claim process later.
Distributors may often gift wrap a suggestion, but it always makes sense to peel off the attractive cover to look what's inside, and whether it's suitable for you. Fraudsters may try to lure or coerce you, but sticking to the basic due diligence of asking questions can save you from becoming a victim. That will ensure you don't fall for any traps and lose money or suffer later because of a decision taken in haste or without much afterthought.
1. 'This scheme can double your money'
Denne historien er fra September 2024-utgaven av Outlook Money.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra September 2024-utgaven av Outlook Money.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Here's How To Claim Tax Refund If You Missed The ITR Deadline
The Income-tax Act, 1961, allows the refund of any excess income tax deducted on your income beyond your actual tax liability.
26 Spiels You Should Not Fall For
We have a list of 26 traps that you should avoid in your journey to creating wealth
Unified Pension Scheme
The Union Cabinet approved the Unified Pension Scheme (UPS) on August 24, 2024, guaranteeing 50 per cent of the salary as assured pension for central government employees.
Unlocking Financial Freedom with Freedom SIP: A Beginner's Guide
Freedom SIP is the smartest way to finance your retirement because it allows you to ride the compounding rocket to build wealth, even by investing a small monthly sum.
Asset Allocation Strategy to Safeguard Against Market Fluctuations
Invest in different asset classes, such as equities, debt, gold, etc., so that if a particular segment doesn't perform in a given situation, others will come to the rescue.
The Role of Asset Allocation in Investing
A proper mix of asset allocation that aligns with investor's goals is key to the portfolio's long-term performance and reaching milestones.
Why Retirement Planning is Crucial in Life
Retirement planning is the key if you want a financially secure life in your sunset years.
IS SENIOR HOUSING FOR YOU?
Many seniors have taken refuge in senior living facilities in their twilight years as their children have moved abroad. While that may help them ward off boredom, they often come at a huge cost
WITH OR WITHOUT INDEXATION: WHEN DO HOMEOWNERS PAY LESS?
Calculating taxes under both methods-considering inflation and property appreciation-can yield a more precise result
Flexing Its Way Across Market Cycles
Very few funds meet investors' expectations of delivering superior returns across market cycles, and HDFC Flexi Cap Fund is one of them.