Before anything else let me present two tables here:
Table - 1
3/15
Table - 2
4/15
What did you see?
Every name on the list is either that of a business person or an investor. Not a single salaried person exists in this list.
This tells it all.
You will never become rich with your salary.
5/15
So how to create wealth?
🌟Start your own business.
Here you will need skills, dynamism, perseverance and diligence of an entrepreneur. But once you are successful the potential rewards are huge. So basically it is HIGHLY RISKY but MOST REWARDING.
6/15
Now, everyone does not possess those entrepreneurial skill set to start a business & make it a success. So what can a common person do? Does he not have the desire to become wealthy?
Here comes the other way.
7/15
🌟Become the part owner of an already established business.
Sounds exciting!
But how?
You just have to buy the shares of these already established companies & get the part ownership up to the proportion of your shareholding.
8/15
Your investment in the company grows with the growth of the business. All the start-up risks are gone & no worries of managing the business. The business owners are already into this task & taking the company forward.
9/15
But, this involves selecting the best companies among the vast names of public entities which has the potential to grow over the long run & give decent returns on your investment. This will involve a lot of research on the fundamentals of the business.
10/15
Here is again a solution to this.
Instead of doing lots of research & then picking on a name or two, why not invest in a readymade basket of the best companies of any country. You just have to put your money in that basket & let it grow.
11/15
This will take out the risk of any wrong selection on your part. Also the concentration risk is eliminated & your investment is fully diversified.
So it is best to invest your money in these Indices. They are offered as ETFs or Index Funds. Just do a monthly SIP in these Nifty50 ETFs or Index Funds regularly for longer period.
Over the duration it shall build a huge wealth & make you rich!😇
13/15
There is no magic formula to create wealth.
There is no product which can make you rich overnight.
Consistent investment in the equity markets through ETFs/Index Funds over a longer period (>10 years) will build your wealth & make u rich.
14/15
I have mentioned ETFs/Index funds as best product for equity investing. This is basically passive investing.
But if you have the acumen to read the markets & do active investing u will tend to create wealth sooner.
15/15
That's all for this thread!
Happy reading & investing.
Retweet for wider audience.
Stay tuned for more such threads coming henceforward.
FF is a stage in your financial journey of life where your Passive Income exceeds your living expenses. In other words, you don’t need to pursue active job to afford your expenses.
3/ “Financial Freedom is the ability to quit your job so that u never have to work again”.
-Van K Tharp
Generally when people plan for their retirement their main focus is to find out how much corpus is sufficient for a decent retirement life. The spending part is usually ignored.
The 4% rule is one such plan which talks of the spending phase.
2/
The 4% rule tells us about how much a retiree should withdraw from his retirement a/c each year which shall continue to provide him a steady source of income without depleting his retirement corpus.
3/
This is the 3rd post in the series of ETF education. Here I'll explain some negative aspects & disadvantages of ETFs. Much on basics & workings has been covered in previous threads. U may check the same with hashtag #etfseriesbytradersushma
2/
Let us start with disadvantages of ETFs.
🛑 FLASH CRASH
A flash crash is rapid fall in prices of stock or any other securities, due to a sudden withdrawal of orders, with quickly recovery, usually within the same trading day.
3/