Financial Literacy And Planning

Harsh truth: If you want innovation, pay people enough to speak up. Employees won’t challenge ideas if they’re: - Living pay check to pay check - On a tight budget at home - Saving the pennies Job security beats long term vision every time. But companies still expect people to innovate over survive? Nah. If you want innovation, do this: - Pay them fairly - Teach financial literacy - Remove money stress Employees will push for better ideas when they’re not stressed over making ends meet. To get innovation -> create financial security. Agree?

Emergency Funds: Not If, But When You'll Need Them…. Think of your emergency fund as your financial life jacket. It’s there to keep you afloat when the waters get rough—not just a nice to have, but a total must. This isn’t just any pool of money. It’s your safety net, your peace of mind. Here’s why you need it: 🌊 Life's Surprises: → Job surprises, unexpected bills, or sudden repairs? → This fund keeps those from knocking your life off course. 🌊 How Much?: → Aim to stash away at least 3-6 months of your living costs. → We’re talking rent, groceries, bills—all the essentials to get you through without a paycheck. 🌊 Where to Park It: → Keep it accessible but growing. → Think high-yield savings accounts where you can grab it without a penalty but still earn a bit on the side. 🌊 Starting Out: → Begin small if that’s what works. → Set up a little auto-transfer from each paycheck—trust me, it adds up. 🌊 Keep It Updated: → Life changes, so should your fund. Got a raise? Maybe you moved? → Check in on your fund yearly to make sure it still fits your life. It’s not about if you'll need it—more like when. And when that time comes, you’ll pat yourself on the back for being so prepared. Got questions on starting yours or how much you should save? Drop them below. 👇

I recently received a comment from a financial advisor on one of my posts asking how to encourage investors to spend with confidence during the decumulation phase, when retirees begin withdrawing from their savings. This will take some time, especially if they’ve just entered retirement. They need to shift their mindset from “save and don’t touch it,” to “it’s okay to spend to enjoy my retirement.” That mindset shift is definitely easier in certain markets, but when the market enters bear territory, investors may be especially worried about the sustainability of their retirement funds. There are a few things you can do. First, make sure your clients remain in their long-term, diversified portfolios. Next, present a historical perspective: the markets go up and they go down. Lastly, help customize a withdrawal strategy to match what’s happening in the markets. Adjusting spending by as little as 5% can dramatically increase an investor’s probability of success. While this may lead to a short-term decrease in spending ability, it allows an investor to navigate rough patches and ensures their accumulated assets continue to last throughout retirement–so they can spend with confidence! https://lnkd.in/eWiEtCq3

74% of managers say Gen Z is the hardest generation to work with. I manage Gen Z. I am Gen Z. Here's my perspective 👇 I'm Gen Z. I manage Gen Z. And I see exactly what the reports describe. Gen Z changes jobs more frequently than previous generations. In our company? We have people who've stayed 3–5 years. Why? I don't fight who Gen Z is. I started building a company around who they are. According to data (Deloitte 2025, 23,482 respondents): → 89% of Gen Z want a job with purpose, not just a paycheck → 48% don't feel financially secure (up from 30% the year before) → More than half live paycheck to paycheck This isn't a lazy generation. It's a generation that grew up through crises. Recession, pandemic, war, inflation. Their whole adult lives have been defined by uncertainty. They've also seen their parents work themselves to exhaustion for little reward. Of course they want flexibility and financial safety. 💡 The biggest mistake companies make? They assume Gen Z doesn't want to work hard. Gen Z does want to work hard, but on their own terms. 59% believe AI skills are important for career advancement. But 86% say soft skills like communication, leadership, and empathy are even more critical. Gen Z isn't running away from work. They're running away from places where they can't grow. → What works in my company? Autonomy with accountability. Everyone knows what's expected of them, but has freedom in how to deliver it. We don't count hours. We count results. Financial and decision-making transparency. Everyone has access to all documents. Everyone sees where we stand. That builds trust. Flexibility as the default. Remote, asynchronous, at the hours that work for you. The purpose of work is clear. Everyone knows why we do what we do. ESOP for everyone. Everyone owns shares. You're not an employee, you're a co-owner. → The hardest part about managing Gen Z? They expect honesty. You can't lie to them with slogans like "we're a family" while paying minimum wage. Gen Z has the internet. They'll check your before sending a CV. You can't preach values and not live by them. They'll spot it in a minute and leave. Why do companies "have a problem" with Gen Z? Because Gen Z has a problem with companies that: – Pay less than it costs to live – Demand mentorship but give managers no time to mentor (managers spend only 13% of their time developing people) – Say one thing and do another Reports say "Gen Z is difficult." I see "Gen Z doesn't tolerate nonsense." 💭 My perspective as a Gen Z founder: They're a great generation for any organization that wants to grow. Fast, curious, honest, unafraid to speak their mind. But stop trying to fit them into 1990s systems. They won't stay 40 years in one corporation. They won't pretend work is their life. And that's okay. If your company "has a problem with Gen Z" maybe the problem isn't Gen Z. — Follow me (Wiktoria Wójcik) for more on Gen Z, gaming & product — from someone living it.

When Life Delays Your Retirement Plans "How’s your retirement planning progress?” I asked her during our meeting. She hesitated, then said with a sigh, “I have to say, it’s not encouraging at all. “ “I just had my son last year , at the age of 42 . I wanted to retire at 55, but looking at my current situation, I think I’ll need to extend it to 60.” Her words carried both hope and concern. Like many, her priorities had shifted as life threw unexpected changes her way. Having a child later in life brought great  joy, but it also came with financial challenges, such as  raising a child, saving for his education, and planning for her own retirement. As we continued our conversation, we identified a few key concerns: 📌 Shortened Savings Window:- With only 13 years left until her original target retirement age of 55, she felt she hadn’t saved enough to meet her retirement goals. 📌 Increased Financial Commitments:- Raising a child, especially at her stage in life, meant reallocating funds that could have gone toward retirement. 📌 Extended Dependency Period:- With her son only being 13 when she turned 55, she realized she’d need to provide for him well into her retirement years. Retirement planning isn’t about sticking rigidly to one path. It's about adapting to life’s changes. Together, we discussed a few actionable steps: 1️⃣ Adjusting the Timeline While retiring at 55 was ideal, extending it to 60 would allow her to build a stronger financial foundation. An additional five years of income and savings could make a significant difference. 2️⃣ Reassessing Expenses We reviewed her current spending and identified areas to cut back, freeing up more funds for retirement savings and her son’s education. 3️⃣ Maximizing Retirement Contributions She decided to contribute more aggressively to her retirement accounts, including voluntary EPF contributions and other investment vehicles, to accelerate her savings. 4️⃣ Building an Education Fund To ease the financial burden later, we set up a dedicated fund for her son’s education, ensuring she wouldn’t have to dip into her retirement savings. Life doesn’t always go as planned, and that’s okay. What matters is recognizing where you are and taking steps to move forward. Retirement planning is not a one size fits all journey. It evolves with your priorities and life circumstances. How’s your retirement planning going? If you feel like you’re falling behind, it’s never too late to take that first step. Let’s talk and make a plan that works for you.

Since Covid, there are two revolutions underway that are being driven by India’s youth. The first is a rapid rise in stock market participation, both directly and through mutual funds, and the second is a surge in credit-driven consumption. These intertwined trends are redefining both the investing and spending habits of a generation. Prior to the pandemic, investors under 30 comprised just 23% of the NSE’s registered investor base; but by end 2024, that share soared to an estimated 40%. This increased share needs to be seen in the context that the registered base of investors on NSE has grown more than 3x since Covid. According to an estimate, the under 30 investor accounts for more than half of new mutual fund investors since 2020, with many from smaller towns. The proportion of retail F&O traders under 30 is estimated at almost 45%. All the above data is not based on value, it must be said, but is still very significant. A huge trend in India, not seen before, is that in spite of consistent and considerable selling by FIIs, markets have held up because of strong domestic flows, in part driven by this trend. While earlier generations thought “save now, consume later”, this generation is more about “consume now, invest for later”. The under 30 segment dominates the personal loan business and the Buy-Now-Pay-Later (BNPL) sector. Whether it’s essentials or one time indulgences, everything is available on EMI; it is estimated that over half of BNPL volume emanates from Gen Z and millennials. The personal loan market too is driven by the same segment who are said to account for a significant part of the demand. Whether the personal loan is funding consumption or investments is an important question. What is driving these twin revolutions? One, possibly greater optimism about the future which then fuels risk appetite, leading to taking leveraged bets in equities or funding lifestyle choices with credit. Second, the growth of Digital Platforms which have made access easy and seamless for a new generation which is digitally native. Third, Social Media influence, with “finfluencers” advocating equity investing while lifestyle influencers promote aspirational consumption. Fourth, a solid performance in Indian equities since the pandemic which has possibly led this group to believe that this kind of return is expected. The worst performing month (Oct 24) since Covid saw a 6% fall in the Nifty. Compare that to the larger corrections seen say in 2001, 2008 or 2011. What are the risks? Household leverage is rising and coupled with higher equity exposure, Indian households are becoming more sensitive to market and interest rate cycles and more vulnerable to downturns. Savings – the lifeblood of our economy for long - is falling. Regulations and financial literacy need to help strike a balance between deepening and widening markets, while curbing reckless speculation and over-leverage.

Gen Z may be digital-first, but when it comes to their finances, they’re seeking something more personal. In my op-ed for Kiplinger, I explored what the younger generation’s preferences reveal about the future of financial advice. Despite their tech fluency, 91% of U.S. graduates say they trust human advisers more than AI, algorithms, or influencers. That trust is rooted in ethics, empathy, and real-world judgment.  And while AI will play a growing role in our profession, the advisers who succeed will be those who integrate technology without losing the human connection, leveraging data while deepening relationships. I firmly believe that the investment professional of the future will successfully combine innovation with the qualities clients have always valued most: integrity, clarity, and rigor. Read the full piece for additional insight: https://lnkd.in/etrdm6pS #FinancialAdvice #GenZInvesting #FutureOfFinance #AIinFinance 

It was great to talk with Janet Alvarez, host of f SiriusXM's "The Business Briefing," this morning about "unplanned retirement." 58% of retirees surveyed in the 2024 Spending in Retirement Survey from EBRI said they retired earlier than expected due to reasons beyond their control. The top two reasons were a health care problem or disability (38%) or changes at their company, such as downsizing, closure, or reorganization. How can you prepare? Plan even for the unplanned. Having a flexible and personalized financial plan does two things: (1) increases confidence and (2) helps to best account for, and they use, all resources. On confidence... Finances, retirement, and in particular early retirement are emotional. We are human, not robots, and life events - especially unanticipated ones - are stressful. Behavioral finance research teaches us to acknowledge and accept this. We will have feelings when faced with stress. With this awareness it's possible to move forward rationally. On planning... What are important considerations? The first is to have a plan, that's modern, updated, and personalized. Many people don't have one, worry what they plan might tell them, or tell us they don't feel they can afford or deserve one. This is no longer true. Planning and access to CFP(R) trained professionally and modern, dynamic plans are becoming is possible now for everyone. What will a plan include... Your resources, such as Social Security, a pension if you have one, plans for potential healthcare expenses and insurance, a plan for when and how to use resources including 401(Ks), IRAs, brokerage accounts and how each is invested, or a home. And your potential expenses, including essential living expenses, discretionary expenses to maintain your lifestyle such as entertainment and travel. A modern plan is... Dynamic, a conversation, a series of stress tests and choices, on how to combine the two. For more, the interview will air on SiriusXM "Business Briefing," channel 132, later today. #retirementplanning #financialplanning #wealthmanagement

Get financial IDEAS from TikTok, but not financial ADVICE. Lately there's been a trend of crying/angry/going insane people talking about losing all of their money from crypto rug pulls, including Hawk Tuah's coin, LIBRA, and, yes, some of the 510,000 people that lost money from our new president's meme coin. Securities fraud? Probably. Consequences? If you think so, you haven't been paying attention! This led me to dive deeply into finance TikTok. And...yikes. I'm not a CPA, but I do know my way around an investment portfolio. And most of the information I found fell into three camps: obvious, self-serving, or flat-out wrong. I actually love the 'obvious' ones. Just because something is obvious doesn't mean the story shouldn't be told. For example, there was one video that showed how investing $100 per month starting at 20 years old led to more money than $500 starting at 40 years old. Awesome! The self-serving side starts to get a little scary. This is huge in the crypto TikTok world, where self-described crypto millionaires take pictures in front of private jets and tell fans to buy into Unicorn Fart Dust coin (this is real). And I have a feeling these creators are influential and smart enough to get their fans to buy, pump the coin, then the creator sells and leaves them holding the bag. Remember: crypto isn't magic money. If someone made $1 billion, that means others had to lose $1 billion. The 'flat out wrong' tier seems to be the most prevalent. These are people that are guessing at financial advice, usually based on their political beliefs. Right now there's a lot of 'the whole market is going to crash' or 'we're about to hit economic utopia' based on how you voted. Or, even worse, it's the 'do your own research' conspiracy theorists who sooth-say around policies that will show dramatic shifts in the market that's GUARANTEED to 10x your investment in one year. Unfortunately, it's all vibes. Then again, sometimes I feel like the stock market is all vibes. But I digress. As journalism dies and more and more people learn from social media, we need to scream from the rooftops: "Don't believe what you hear on social media." It's often the uninformed preaching to the uninformed. But if you hear something interesting on social media, validate through either an industry expert, or do you own REAL research (as in read studies, not 4chan). https://lnkd.in/gQ9M_QCs

Why traditional FIRE math might be flawed in 2025 For years, FIRE enthusiasts swore by the 4% rule and the 25× expenses formula. But in the current market conditions, does this still hold? We're already seeing stories of people who achieved FIRE but are now hitting the panic button as their portfolios have shrunk by 20-30% due to the stock market downturn. In this market, it is very important for you to understand about sequence of returns risk (SORR)—a silent FIRE killer that most ignore. The Problem: If you start withdrawing during a market downturn, your portfolio takes a double hit: 1) Lower asset values reduce your total wealth. 2) Withdrawals lock in losses, leaving less capital to recover when the market rebounds. Lets take an example: Imagine this hypothetical scenario: X retired in January 2022 with ₹3 crore and planned to withdraw ₹12 lakh/year (~4%). By December 2022, Nifty 50 dropped 10%, and Nasdaq tanked 30%! His portfolio shrank to ₹2.7 crore, but he still needed ₹12 lakh for expenses. Now, he’s withdrawing from a smaller pot, meaning he might run out of money faster than planned. It is about time you revisit your FIRE Strategies for 2025: ✅ Dynamic Withdrawal Rates – Instead of a fixed 4%, adjust withdrawals based on market conditions. 👉 Example: If the market is down, withdraw ₹9 lakh instead of ₹12 lakh and cut discretionary spending. When markets recover, withdraw more. ✅ Cash Buffer for 3+ Years – Keep 3 years’ worth of expenses in safer assets to avoid selling equities at a loss. 👉 Example: If X had ₹36 lakh in debt funds, he could withdraw from that instead of selling stocks at lower prices. ✅ Barbell Strategy – Balance high-risk (stocks) and low-risk (gold, bonds) investments instead of relying only on index funds. 👉 Example: If 80% of your money is in stocks, and the market drops, your entire portfolio suffers. Instead, keep 60% in stocks and 40% in safer assets like gold, bonds, or REITs to cushion the fall. ✅ Geo-Arbitrage FIRE – Move to a lower-cost city to stretch your wealth further. 👉 Example: Instead of spending ₹1 lakh/month in Mumbai, living in Goa for ₹50K/month extends your savings for 20+ years instead of 10. We are entering into a decade where things can be very volatile. I reiterate it again - focus on the Financial Independence part of FIRE, build alternate sources of income. Do not be in a hurry to hang your boots. How are you adjusting your FIRE strategy for 2025? I write about #artificialintelligence | #technology | #startups | #mentoring | #leadership | #financialindependence   PS: All views are personal Vignesh Kumar