Less is More!!
In the series of “Less is More” Today we will discuss “More
Assets”
If you are in your 50s or 70s, you are more likely to have a
millennial in your family. A Millennial, as widely defined, are people born
between 1981- 1996. Millennial are also known Generation - Y. People born after
that are called as Generation- Z. So if you are below 50s than you are going to
have Generation Z in your family.
You might wonder why Bhavesh is discussing Generation Y and
Z in the topic of “Less is More”!!
Our Assets are largely not for us but for our beloved next
generation! Hence it’s important to think about them. Its most important how
will our Kids think, do and behave?
Generation Y and Z are quite different in their approach
than ours!!
They believe in convenience, less cluttered, simple, easy
and quick to manage products and services. Same is true when it comes to
Investing also. Ask Gen Y and Z about their approach to products, services and
Investments. You will be shocked with their responses.😊
New generation may
not look at the cost, return or taxes alone, they look for care to their
investments and convenience. They like being taken care of, beyond anything
else. They look for someone who owns responsibility for maintaining Assets and
Investments. Between returns and taxes v/s goals, they are going to be more
leaning towards goals.
Imagine you have large portfolio of multiple assets like
residential or commercial properties, Many Shares in multiple A/cs, too many MF
schemes, Many Post office A/cs, too many FDs etc. It’s likely that the next
generation will have no patience and intention to manage them or resolve them
all and/or get them transmitted/transferred to the next legal heir. I know of
Investors who are not working for the claim of their deceased family members as
it involves hassle, paperwork and labour (at times bribe too). Amount involved
here are quite small for them and they feel it doesn’t merit the efforts😢. Ultimately those cases
remain unresolved.
In times to come, we also will join the idea with next generation that
“Spread till it’s manageable and handy.”
Personally, I own 1 house, 1 Bank A/c, 1 Demat plus trading
A/c and MF schemes, that’s it. I do not
own Insurance policies, PPF, Post
office, PMS, structured products, Arts, P2P lending, or any other Investments!!
I have done this so that after me, my family should have ease of managing them
or liquidating them. None of these Investments have lock-in. This helps me also
to wind up in my own lifetime.
Financial assets are
also easy and convenient for transferring of wealth equally among the heirs.
Concentrated investments if done with enough research and advise, pays off well. If you diversify more, it means you have low confidence on your decision. Investors should think over this and consider narrowing asset holding (refer
my last two blogs on Many schemes and over diversification). Also keep in mind the
next generation’s mentality and thought process. Thinking should be on lines of
“what if I am not there tomorrow”.
The new generation seeks everything to be at
click of button, easy to understand and convenient to manage.
Our philosophy over 10 years has been the same!! We believe
in investing in fewer options, more transparent and easy to manage products. Feel
free to contact me if you think we can be helpful to you in investing? I am
available at 9833778887 or wealthcarein@gmail.com
If you find our blogs helpful, pls do like, share and
comment.
Author –
Bhavesh D
Damania
Founder -
Wealthcare Investments
EduPrenuer,
TV show panellist and Blogger
"Risk comes until you know what, where and why you are
Investing"
Disclaimer: We respect all individual approaches. Sole objective of
this series is to burst a few myth in Investing. There could be genuine
reason/experiences and “less is more” may not be appropriate. Investor must
consult own advisor to figure out right approach before adopting any of these
suggestions.
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