Dhruv works for a company that has performed really well in the last few years. He was in charge of a project that was a major factor in the company’s success. He got a special bonus lately and asked us where to put his money.

Dhruv is a prudent investor who is in his late 30s and has two young kids. We have planned his investment objectives carefully and distributed his funds according to his risk tolerance. His regular savings are being invested following this plan. If he keeps investing consistently for the next 10-12 years and the returns are as projected, he will most likely reach all his goals with a lot of extra money. This will allow him to retire at 50, which is his main goal. The bonus amount he got was an extra reward.

Dhruv wanted to invest faster for his goals to lessen his need for new investments later. I advised him to use some of his bonus for a “Leisure” goal rather than investing everything to avoid some future investments.

In essence, “Leisure” goals are the things that clients want to do but never get around to doing due to lack of time or money. Clients are often hesitant to discuss these goals, even if they have the time and money to pursue them. They feel guilty about enjoying themselves until they have made the necessary provisions for their children, retirement, siblings, and other responsibilities. However, after a bit of structured prodding, clients often reveal their “Leisure” goals with excitement and animation on their faces.

The client usually thinks that a financial planner’s job is to tell them to save as much as they can now and invest to protect their future. But when I say that they should use some of their money to have fun, most are shocked. Life is full of surprises, so why not enjoy your cash while you have it? Of course, you can only have these adventures if you have crunched the numbers and are sure that your goals are within reach. It’s not just about getting to the end, it’s also about loving the ride. To me, giving this assurance and making the ride fun is the true role of a financial planner and investment adviser. We help you pause and “taste the honey” while you do your work and make sure that everything you have planned for is likely to happen.

    The new year is a time to reflect on our past achievements and plan for our future goals. But should we also change our investment strategy in 2024? We say that there is no one-size-fits-all answer to this question, as different investors have different risk profiles, time horizons, and financial objectives. However, some evergreen principles can help us make better investment decisions in the new year.

First, we should review our portfolio performance and asset allocation in 2023 and see if they are aligned with our current needs and expectations. If there are any gaps or deviations, we should rebalance our portfolio to restore the optimal mix of equity, debt, gold, and other assets. We should also diversify our portfolio across sectors, geographies, and market capitalizations to reduce the impact of volatility and uncertainty.

Second, we should stick to our long-term investment plan and avoid chasing short-term trends or fads. We should not let our emotions or biases influence our investment decisions, as they can lead to overconfidence, panic, or greed. Instead, we should follow a disciplined and systematic approach to investing, based on sound research and analysis. We should also avoid frequent trading or switching of funds, as they can erode our returns and increase our costs.

Third, we should be flexible and adaptable to the changing market conditions and opportunities. We should not be rigid or dogmatic about our investment choices, as they may become obsolete or irrelevant over time. We should be open to learning new things and exploring new avenues of investing, such as digital assets, alternative investments, or global markets. We should also monitor the macroeconomic and geopolitical factors that may affect our investments and adjust our strategy accordingly.