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| Capitalstars Investment Advisor |
1. What if I lose all my money in the stock market, especially during volatility?
If you are a newcomer investor with no expertise or have suffered losses and are afraid to get back in the game, the best option is to invest not directly via stocks but via mutual funds. If you do want to trade in shares, turn a deaf ear to the tips from friends and family. Self educates by reading up and doing research or take a financial planner's help. Invest for the long term and don't be influenced by short-term market churning and fluctuations.
2. What if I don't have enough money in retirement and have to depend on my kids?
If you too experience this, start by cutting down on non-essential expenses and save more. Also check if you are investing in the right avenues so that your corpus grows at the right pace. Push back your retirement by looking for additional income.
3. What if I lose my job?
Be honest with yourself and check if the reason for fear is your own poor performance. If yes, talk to your boss and discuss how you can improve or upskill. If the reasons include cost-cutting measures or poor industry performance, you will either have to make yourself indispensable by learning niche, newer skills or start to look for a new job before the bad news comes. Regardless, maintaining an emergency corpus helps.
4. What if I am unable to pay my dues and get into debt?
Ensure that all your loans don’t comprise more than 40-50% of your income. If you have already taken a large debt, do not take more loans and make a plan to repay the existing ones, starting with the most expensive debt like a credit card bill or personal loan and then clearing car and education loans. If you are uncomfortable with the idea of a long loan tenure as in the case of a home loan, try to repay it at the earliest. If, however, you want to avail of the tax benefit, retain it but never miss an EMI.
5. What if I am not able to handle a health emergency?
It's obvious, insure yourself. Buy a small basic health plan of, say Rs 5 lakh and get a bigger top-up plan of, say Rs 15 lakh with a deductible of Rs 5 lakh. This turns out cheaper than a single, large cover of say Rs 20 lakh. Another option is creating a financial buffer to supplement your basic health plan. It is equally important to buy critical illness and accident disability insurance plans to boost your financial ability in dealing with medical emergencies.
6. What if I don't get my documents and paperwork in order?
Dealing with this fear is as simple as preparing and following a schedule diligently. Maintain a diary, list all important documents as well as the deadlines for filing, renewing or paying premiums. Set alarms and automate payments to avoid missing deadlines. To avoid errors in filing tax return or making a will, it is best to take the help of professionals.