The key to prosperity

Here are some thumb rules to help you start and avoid basic mistakes:

* If you pay anything in excess of Rs 50,000 p.a. for life insurance — most likely you are burning your money or you definitely have the wrong products

* To plan for retirement never ever invest in pension policies

* If you are earning a post tax rate of return equal to less than inflation again you are wasting your money

* Eject on advice to things you don’t understand but do self learning about it as you should not miss out on anything important

* Always keep about 50 per cent of your money into wealth creating investments i.e. in today’s terms investments giving a post tax return of at least say 10-12 per cent

* Finally if you choose to work with someone then ensure that you choose someone who is ready to answer your questions and also has sensible answers to your questions.

—Author is Director, Transcend Consulting