10 Reasons: Why a written Financial Plan can make a difference

A Financial Plan helps you analyse your Short, Mid and Long-Term financial goals and acts as a go-to action plan document to help meet those goals. The following are the 10 key benefits of documenting such a plan.


  1. Income: You can manage your Income sources effectively through planning, know what are your Active and Passive income streams and visualize at what stage in the future both these streams stack up against one another.
  2. Cash Flow: Manage your Cash Flow efficiently by monitoring your spending patterns. Effective Tax Planning and budgeting could help ensure your Incomes stay above your expenses resulting in positive cash flow.
  3. Investment: A proper financial plan considers your personal circumstances, objectives and risk tolerance. It acts as a guide to help choose the right types of investments to fit your needs, personality, lifestyle, and goals.
  4. Capital: Money makes money, an increase in cash savings, can lead to an increase in your capital. Allowing you to consider more sophisticated forms of investments to improve your overall financial well-being and/or providing sustainable passive income streams.
  5. Family Security: Providing for your family’s financial security is an important part of the financial planning process. Having the proper insurance coverage and policies in place can provide peace of mind for you and your loved ones.
  6. Financial Understanding: Better financial understanding can be achieved when measurable financial goals are set, the effects of decisions understood, and the results reviewed. Giving you a whole new approach to your budget and improving control over your financial lifestyle.
  7. The standard of Living: The savings done by good planning can prove beneficial in difficult times. For example, you can make sure there is enough asset saved through passive incomes to replace any lost income should a family breadwinner become unable to work.
  8. Assets: A nice ‘cushion’ in the form of assets is desirable. But many assets come with liabilities attached. So, it is important to determine the real value of an asset. The knowledge of settling or cancelling the liabilities comes with the understanding of your finances. The overall process helps build assets that don’t become a burden in the future.
  9. Emergency Fund: A sudden change to the financial situation can still throw you off track. It is good to have some investments with high liquidity. These investments can be utilized in times of emergency. Once a constant cash flow is established and desire to invest into more sophisticated investment plan is achieved, the passive income obtained from these vehicles can provide you with that extra bit of savings and help you scale the summit of financial freedom
  10. Ongoing Advice: Establishing a relationship with a financial advisor you trust is critical to achieving your goals. Your financial advisor will meet with you to assess your current financial circumstances and develop a comprehensive plan customized for you. Like a lawyer or a doctor, your financial advisor should also be a part of your power team whom you can put your faith into.

Interested in knowing more about building a robust financial plan? We would love to have a word with you.

Written & Published by:
Prashanth Prabhu, Founder – 29k Group

Sheren Susairaj, Marketing Associate – 29k Investment Advisers Pvt. Ltd


The Prosperity Architecture & The 3 Stages of Generating Passive Income


Application of the essentials (Capital, Cash Flow, Team and Leverage) into our structured framework will help you analyse where an individual’s investment/asset falls into via the bucketed stages as shown below. The construction of the system involves three stages and each stage could take from months to years to establish, hence, patience is key.

The diagram illustrates different Stages and each Stage signifies different investment vehicles. Every Stage has a different purpose, whether it is to create a sound foundation or strengthen your core or amplify your performance.

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Stage 1: Foundation: The objective at this Stage would be to reach a critical amount of Liquid able assets. Without sufficient liquidity at the base, the whole system risks the possibility of crashing to the ground. At 29k, our preferred vehicle for Stage 1 construction is Mutual Funds; preferably diversified across Geographies and Currencies. As long as the conditions of liquidity are met, there can be a flexibility in choice. Some investors may spend sometimes years at this step hence the vehicles like mutual funds offer them a possible inflation-adjusted positive return over investing in traditional vehicles like Fixed Deposit and Gold. We recommend at least 50% of the investable assets to be placed in this section.

Stage 2: Core: At the core of the pyramid is building assets with an expectation of creating cash flow streams. Real Estate with robust yields or Structured Notes with regular coupons is used to strengthen the core. We avoid applying leverage at this stage as any adverse impact can spread to the foundation of your Prosperity Architecture. One bonus essential that we at 29k apply here is to always purchase below par. In other words, always purchase at a discount. This will help build the margin of safety and improves ROI. We recommend 30% of the investable assets to be placed at the Core.

Stage 3: Performance: This is the step that makes good for all the time and effort that was spent working hard navigating your way through Stages 1 and 2. With the assurance that 80% of your assets are safely stored at the Core and the Foundation levels, Stage 3 can be attempted with confidence. Here we introduce Leverage: With the remainder of the 20%, an application of 1:10 leverage means that your wealth under your control amplifies. Again, one has to bear in mind that the wrong application of this added boost in the amount of money under your control could affect the Core and a disastrous application can shake the foundation.

Interested in knowing more about building a robust financial plan? We would love to have a word with you.


Written by Prashanth Prabhu

Founder – 29k Group

4 Key Essentials to Create a Portfolio of Passive Income Producing Investments


Often times investors approach us, seeking  to grow their wealth.  While building on a Vision together, we take our time to share the key essential tools that could help us create a self-sustaining portfolio of passive income producing investments. While the list of what contributes to financial success through investing is endless, our experience points to 4 key essentials that can help an investor maximise their investment growth potential.

shutterstock_168447536The Essentials: In our experience there are 4 core essentials, without which the sustainability of a passive income portfolio remains questionable.

  • Capital
  • Focus on Cash Flow
  • A Power Team
  • Application of Leverage

Capital: Save as much as possible. Savings act as our working capital and while saving up it is important to bear in mind that your savings are liquid-able. Liquid-able assets are those where funds can made available in a short notice while keeping all your costs under check. Investment vehicles such as fixed deposits and open-ended mutual funds can be qualified under this category; insurance and real estate will not make the cut.

Focus on Cash Flow: The focus should be on realising passive income in the shortest time feasible so that we can measure the progress in order to make timely changes, and should there be variation from the anticipated long-term income expectations of the investor. Investment strategies in which the benefits and timelines for income generation are not established or are often deferred until the need arises would not qualify the condition. This scenario can be explained with the following example: You are saving up for a car that you are not able to test drive until the day you own it. This could lead to disappointment as the final product may or may not be gratifying and or may not be suitable for your onward journey.

A Power Team: An investor’s top focus should remain on building and retaining their Power Team of professional advisers. No successful investor has made it all alone, there is a constant need for quality information and advice. While there are many consultants and firms ready to offer advice, from an investor’s perspective to assemble his team of professionals with matching Vision and Mission could take a while. It could take sometimes years and a lot of trial and error to find and stick to the right team. Once you have a strong Power Team, it is important you stick with them as a good adviser also commands a good client. Remember, the growth and success is going to be mutual.

Application of Leverage: Consider your wealth as working capital and investing is your business. The possibilities of amplifying this wealth is possible by applying Leverage. If you are good at what you do, an infusion of funds can help magnify the success. Entering this territory without specialist knowledge and a strong back up could prove hazardous to your wealth, however, successful application of leverage could amplify the results with tremendous speed. It is similar to modifying the engine of a car to provide it the additional boost of power. But, overdoing it could also lead to disastrous results. Again this is where your specialised power team with sufficient experience with risk management techniques can come in handy.

Interested in knowing more about building a robust financial plan? We would love to have a word with you.


Written by Prashanth Prabhu

Founder – 29k Group


Robo Advisors with a human touch – a better mix?


Big data, artificial intelligence, blockchain, machine learning and robo advice were terms unheard a few years ago. Today, they are buzzwords. Prediction is that this wave of disruptive forces from firms with technologies can dethrone the old players in the business.

In today’s dynamic and fast-changing world, a computer can definitely do a sophisticated job rather than an expensive adviser picking out the stocks and bonds. But the question is, can asset allocation and investing be left entirely to the robots?

I agree that with access to an array of index funds and exchange traded funds, even a computer can devise an investment strategy for most people, but does this really drive away the need of a human adviser? Sophisticated advice from a personal adviser whom an investor can talk to, share goals with and understand and realise his/her expectations on this path of financial advisory cannot be ignored in a world with investor’s complex needs and demands.

What role will brick and mortar financial advisers play in the age of robo and app based investing?

The rise of robo advisers has been a major development in the past few years. This is a category that includes a hybrid of digital advice and human advisers. The idea is to not go into fully automated investment services but pair these computerized services with some hand-holding from human advisers (How human financial pros can up their game to compete with robo advisers, 2017).

With financial lives becoming more complex, most investors want a small dose of human contact from their robo adviser.  Investing is a lot  about individual attention. So an increasing number of automated offerings now include a real person. In the growing world of hybrid services, we need to find our perfect combination of digital advice with human advisers that is most suitable for the portfolio. As said by the CEO of Morgan Stanley, James Gorman “Someone who can sit with you and work through a series of complex decisions — that is not going to go away.”

In the years, the robo advisors have majorly flourished. A number of Robo-advisory startups such as Betterment and Wealthfront in the US and Nutmeg in the UK offer investors ease and simplicity at a very low price and are growing rapidly. But, one of these leading independent players in the market, Betterment even after amassing $7.3 billion in assets across 226,000 customers, they recently added two additional tiers of service, each of which offer financial planning experts, in the form of humans, to consult on broader financial issues. These humans can tweak Betterment’s recommended investment allocation— a mix of stocks and bonds—which, were originally created by algorithms based on answers to an online survey (Why Robo Advisors Might Need Human Help After All, 2017).

The answer to the present scenario is that our emotions are still too complex for artificial intelligence and the life savings are layered with emotions. When a client’s assets grow with age, robo-advisers are ill-equipped to help clients with complicated affairs (How Robo-Advisors Fall Short of Human Advisors, 2017).

How might advisers add value?

The real value added by human advisers is behavioural finance. Hence, I believe this massive opportunity should be seen as an approach to broaden the advice for a much broader world. Financial advisers’ presence and need cannot be questioned or diminished because of the digitisation, instead can add value in expanding the scale of businesses and the financial services industry.



Celebrating Financial Freedom


Financial freedom is the path towards the wealth you desire, without any fear or doubt that you’ll reach your goals. It is an understanding of who you really are and what you really want in life. It may have different meanings for different individuals, in line with each one’s goals and aspirations.

As you proceed with your goals, you might have to run into some challenges. This is part of the learning process in achieving your dream and hence, the beginning of your journey to financial freedom.

Financial planning and wealth management does not merely give us money, but a sense of freedom, a sense of wealth and a feeling of abundance to achieve the level of richness you desire.

Investment God Warren Buffet says, “If you don’t find a way to make money while you sleep, you will work until you die.”

The key to investment is passive income. the passive income that you generate from your investment is a reward you can reap for years to come. Therefore, the only reason to invest is to have an income for life without working. In addition, it empowers and motivates you into believing that you can work towards and fulfil all your desires.

Last but not the least, a transparent and trustworthy relationship with you financial adviser is extremely important to gain this Financial Independence.  A sound financial advice and a healthy adviser-client relationship helps an individual not only financially, but also contributes to his/her emotional well-being. Hence, a good financial adviser can help bridge the gap between an individual’s health and wealth.

What Matters most is that you master money and it doesn’t master you. Then you are free to live life on your own terms.” – Tony Robbins 


To know more about financial planning and wealth management, please visit: http://www.29kadvisers.com/

Monitoring your goals and Looking ahead – Step 5

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Plans evolve and change just like life. Hence, financial plans need to be tweaked from time to time. As it is said, “Nothing remains constant except change! The term financial planning is used instead of a financial plan, is because there is a need to make such plans time to time because of monetary changes as well as changes in your goals and aspirations. Therefore, re-evaluation of  your plans on a periodic basis, is necessary for each active investor.

Monitoring your plan includes reviewing your goals and market situation on a periodic basis. Investments are selected on the basis of the past performance with an assumption that they will perform in a similar manner in the future. But there are probabilities when future performance can diverge from past performance, due to market fluctuations, financial changes or changes in client needs and desires. Hence, the final step is to keep monitoring your capital investment. Constant Revision of your goals and market situation will assist you in whether to stay invested or to look alternate investment opportunities.  Therefore, these changes can be made in the light of personal, business or family circumstances.

Hence, we can say that Financial Plans are “living documents” and are continually edited and updated.

Development and Implementation of your Financial Plan – Step 4

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Planning your finances requires devising the appropriate plan for your financial journey. With numerous investment vehicles and types, it is essential to understand the ones that will cater to the achievement of these goals. Hence, your plan needs to be developed and evolved with respect to your financial position and goals and within the client’s risk tolerance and capabilities.

Development of the plan involves selecting a set of investment options as per your requirement and analyze these investment options based on past historical data. As part of this, once analyzed, we can fit the suitable options in your financial framework.

This stage is the implementation stage, hence, we develop and put the plan in action. This step can be both interesting and tedious at the same time. It is a combination of discipline, desire and action.

As quoted by Warren Buffet, “Price is what you pay. Value is what you get.”

A well-crafted financial pan will offer safety threats as well remedies. Therefore, having a companion in your financial journey in the form of a financial planner or an investment adviser can lead to a healthy long-term relationship. They can help a client with the right investment options suiting their goals and aspirations.

Creating a financial plan isn’t the end, but just a beginning of your journey on the path of financial freedom. 

To know more about financial planning and wealth management, please visit: http://www.29kadvisers.com/

Mapping Financial situation to S.M.A.R.T. goals – Step 3

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Post the goal-setting process, we know where we stand and where we want to reach. We need to ascertain our savings and expenses in a realistic manner. On the basis of this information, we can set strategies and plan the maximum possible savings in order to meet our goals.

A pragmatic approach is advisable towards achieving the goals. Hence, a financial planner will play a pivotal role in this stage. Comparing the goals with your current financial situation will help us set a pathway for the present situation in order to achieve and plan future goals.

The risk profile of an investor is an important aspect when it comes to financial planning. The risk appetite of a client helps determine the investment portfolio and align them with the investor’s future needs.

Savings and investment of an individual highly depend on their risk appetite. Therefore, understanding the investor’s risk appetite is essential to understand before making investments. Hence, a risk-return equation will optimise the desired outcomes. 

Mapping our present financial situation with our short-term and long-term goals will help chalk out a path for our future. 

To know more about financial planning and wealth management, please visit: http://www.29kadvisers.com/

Setting Goals That Empower Your Financial Future – Step 2

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Setting SMART Financial Goals will not only benefit an investor today but will also reap long-term results.

As quoted by Ralph Seger, “An investor without investment objectives is like a traveler without a destination.”

As an investor, one of the most crucial stages is goal-setting. Setting S.M.A.R.T goals is very essential to achieve our financial well-being. Individuals generally underestimate the importance of goals. An investment adviser can inculcate the importance of financial goals in the clients by taking them through this process.

Goal-setting is a self-awareness process, a realization of your future aspirations, with respect to your needs and desires in the present. It is an empowerment process which encourages an investor and the adviser to be motivated towards achieving these goals. The whole process of setting goals involves patience, motivation and a movement towards a solution-oriented conclusion.

We believe that the financial journey is mainly about planning your future, hence, setting of SMART (specific, measurable, actionable, realistic, and time-bound) goals is the first action-based stage on the path of financial planning.

Take Action now! Set your goals! Achieve your goals!

Planning your Financial Future – Step 1

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In this dynamic world, being an active as well as a smart investor is very cumbersome. Hence, financial literacy is the most important aspect in making valuable financial decisions.

As quoted by Benjamin Franklin, ” An investment in knowledge pays the best interest.”

Having a poor understanding of your financial matters can have an adverse impact on an individual’s life. We believe that investors,  by gaining a deeper understanding of financial products and markets, will be in a better place to evaluate the wide array of choices available and make better-informed decisions, therefore magnifying their financial potential.

Hence, today we talk about the first step in the journey of Financial Fitness:

STEP 1: Determining your current financial position

In order to understand our needs and desires for tomorrow, we need to analyze and determine our present financial situation. This includes determining your net worth and cash flows.

A Net Worth analysis is a basic snapshot of your present financial worth. A Cashflow Statement will help you determine your day-to-day expenses and keep a record of your monthly income.

Today, in regard to celebrating this initiative by IOSCO, let’s all begin with this first step and understand our financial status.

Looking into our comprehensive financial picture today will mark the beginning of this journey.