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Festivities are closing in on us. Which means the air will be filled with the fragrance of scented candles, homes lit by diyas and malls filled with families. It’s this time of the year when families go out and shop for festive proceedings. And chances are, you yourself would be busy planning and making a few phone calls for the festive occasion.

But here’s the thing, just take a min out of your busy schedule and ask yourself, are you ready for any mishaps?

It may sound a little morbid, but nonetheless, it is an important question you should be questioning yourself, as nothing is certain.

You could say, uncertainty is like a cloud that’s always flying over your head but strikes when you least expect it to. Which is why it’s crucial that you secure your happiness from any accidents.

Some of you who are sceptical by nature might question as to what could possibly go wrong during festivities. We admit, it’s rare but it can happen with anyone, so here are a few examples.

1. All auspicious functions, religious or social are conducted with the lighting of the diya or jot. Now imagine this, what if a curtain close to your diya gets lit by fire, or what if you miss out one of the items from your shopping list, you drive and come back to see your house on fire?? Shocking right? but wait there’s more.

2. Our country is one of the many nations to buy firecrackers in bulk during Diwali. Imagine this, what if a damaged rocket comes flying down, slips under your brand new car and explodes. Saddening right?

Whether it’s misfortune, sloppiness or somebody else’s fault, the point is a number of things can happen that could leave a big hole in your pocket.

What’s crucial is that you don’t suffer any financial crisis because of a mishap. Which is why it is important that you insure your valuables with Insurance.

A good insurance company offers a wide range of insurance covers to its customers such as-

-Car Insurance

-Travel Insurance

-Bike Insurance

-Home Insurance

-Fire Insurance

-Engineering Insurance

-Liability Insurance

-Burglary Insurance

-All Risk Insurance

Surely going through an insurance company’s range of policies may take you a little while but in the unlikely event of any mishap, you will find that your research up-front to have been a time well spent.

To find the best LIC policy for you and your family’s future, all you need is a great LIC agent to guide you through all the available plans and policies and help you decide which one is best, according to your investment capacity. That takes a lot of time and experience for LIC agents to offer their clients the best possible and most suitable plans. This experience comes with communicating with multiple clients daily to provide the best deals for their money. The main goal of these LIC agents is to persuade the clients to choose and trust them with investing the client’s money.

Ali Asgar is an LIC agent in Delhi. With his prudent and hardworking nature, he has emerged as the top LIC advisor in Delhi and is one of India’s top LIC advisors. He is a gold medalist LIC advisor who serves his clients with the golden opportunity to answer all questions and queries regarding the plans and policies related to the right at your doorstep. This means along with your questions and queries, you can also feel secure about the investment plans.

As the top LIC advisor, Ali Asgar has set up a team of renowned and diligent professionals that look at all the possible plans for you and choose the most accurate one out of them all. All of the client’s financial requirements are looked at and are handled by him and his team with excellence. Each team member works diligently to find the LIC policies best suited for ensuring a better future that is more financially secure and less worrisome.

Ali Asgar has been in this field for a long time and presently caters to more than 200 clients. He has been very efficient in selling policies to these clients and has sold more than a thousand policies in only ten years. These plans have been very effective since people come back to him again and again, making him the most demanded LIC advisor.

He has also received many awards to recognize the brilliance that he’s shown in his work. They include the MDRT Award, Gold Medalist, Shatakveer award, Top 30 Award-the list is never-ending. This has helped Ali Asgar and his professional team to garner the trust of the people of Delhi NCR because he’s earned the title of number one LIC Agent of Delhi.

Ali Asgar and his team provide their services in homes across Delhi, Gurgaon, Noida, Greater Noida, Ghaziabad, and Faridabad.

The services that are provided by him and his team are:

LIC Policy Advice
To get the best policy advice and secure a financially stable future on behalf of you and your family, book an appointment with Ali Asgar and get the best LIC policies delivered to your home.
Agent Training and Support
Ali Asgar offers one-month training to provide incoming agents the skills to become the best agent in their field.
Remote calling and outsourcing
You also get to speak with the professional team remotely, so you don’t have to go to their offices.

This startling figure comes from a recent review of the financial advice offered from the big four banks by the Australian Securities and Investment Commission (ASIC).

Even more startling: 10% of advice was found to leave investors in an even worse financial position.

Through a “vertically integrated business model”, Commonwealth Bank, National Australia Bank, Westpac, ANZ and AMP offer ‘in house’ financial advice, and collectively, control more than half of Australia’s financial planners.

It’s no surprise ASIC’s review found advisers at these banks favoured financial products that connected to their parent company, with 68% of client’s funds invested in ‘in house’ products as oppose to external products that may have been on the firms list.

Why the banks integrated financial advice model is flawed

It’s hard to believe the banks can keep a straight face and say they can abide by the duty for advisers to act absolutely in the best interests of a client.

Under the integrated financial advice model, there are layers of different fees including adviser fees, platform fees and investment management fees adding up to 2.5-3.5%

The typical breakdown of fees is usually as follows: an adviser charge of 0.8% to 1.1%, a platform fee of between 0.4% and 0.8%, and a managed fund fee of between 0.7% and 2.1%. These fees are not only opaque, but are sufficiently high to limit the ability of the client to quickly earn real rates of return.

Layers of fees placed into the business model used by the banks means there is not necessarily an incentive for the financial advice arm to make a profit, because the profits can be made in the upstream parts of the supply chain through the banks promoting their own products.

This business model, however, is flawed, and cannot survive in a world where people are demanding greater accountability for their investments, increased transparency in relation to fees and increased control over their investments.

It is noteworthy that the truly independent financial advisory firms in Australia that offer separately managed accounts have done everything in their power to avoid using managed funds and keep fee’s competitive.

The banks have refused to admit their integrated approach to advice is fatally flawed. When the Australian Financial Review approached the Financial Services Council (FSC), a peak body that represents the ‘for-profit’ wealth managers, for a defence if the layered fee arrangements, a spokesman said no generalisations could be made.

There are fundamental flaws in the advice model, and it will be interesting to see what the upcoming royal commission into banking will do to change some of the contentious issues surround integrated financial advice.

Many financial commentators are calling for a separation of financial advice attached to banks, with obvious bias and failure to meet the best interests of clients becoming more apparent.

Chris Brycki, CEO of Stockspot, says “investors should receive fair and unbiased financial advice from experts who will act in the best interests of their client. What Australians currently get is product pushing from salespeople who are paid by the banks.”

Brycki is calling for structural reform to fix the problems caused by the dominant market power of the banks to ensure that consumers are protected, advisers are better educated and incentives are aligned.

Throughout, history, we have experienced, a variety of economic conditions, and circumstances, including, recession, inflation, and somewhere, in – between! For a few years, we experienced, very – low inflation, largely, caused by a variety of conditions, world – wide, and largely, disrupted – by, the ramifications, and impacts, created and caused, by this horrific pandemic! Currently, we seem to be experiencing, a serious amount of inflation, created, by many factors, including, but, not, limited – to: post – pandemic ramifications; Supply and Demand issues, caused, to a large – degree, by, supply – chain, issues; maintaining, unrealistically – low, prolonged period of near – record – low, interest rates, etc. With, that in mind, this article will attempt to, briefly, examine, consider, review, and discuss, 6 potential dangers, from prolonged periods of inflation, and why, it is important to know, and understand, options and alternatives, to attempt to choose, the best – path – forward!

1. Cost of Living: Some factors, determining, the Cost of Living, include: wages (and wage growth); prices, etc, and how wages, are, or, aren’t able, to keep – up, with the increase in costs, etc! Most realize, we have, in the past – few months, experienced, a huge, jump, in pricing, most – apparent, in the food stores, restaurants, and, nearly, everything, related – to, day – to – day, existence, etc!

2. Federal Reserve: In recent times, the near – historic – low, extended period, of interest rates, has, in addition, to the intended measures (helping businesses, and the economy, in trying – times), has caused a Real Estate, Sellers Market, and, a huge rise, in home prices, in most parts of this country! In addition, it created a surge, in consumer use of credit, because, borrowing, appeared, cheaper! However, most economists forecast, many of these supports, and maintaining, such low rates, will, gradually, be reduced (or minimized), probably, beginning, next year. What impact will that have, and will we see, the historic reaction, which has been, when rates rise, it helps reduce inflation, etc?

3. National economy/ conditions: Largely, because of a world – wide, supply – chain, set of obstacles/ challenged, many industries, have experienced, challenges, in terms of, getting sufficient amounts of needed materials, etc! Go into, nearly, any store, and you will see, more – sparse, shelves, than we have seen, in recent memory! In addition, building supplies, products, food, toys, cars and car parts, etc, are under – stress, because of this!

4. Worldwide economies/ economic conditions: Nearly, every nation, is experiencing, economic issues and challenges! The United Kingdom, because of worldwide, as well as specific national trends/ causes/ conditions, has been largely, impacted! Since, we live, largely, in a global economy, when there is any disruption, in the supply – chain, it affects, everyone!

5. Stock and Bond Markets: Because of several reasons/ factors, the United States Stock Market, has benefited, significantly, and experienced, significant increases, in the price of stocks. In addition to the obvious ones, because, interest rates, have been, so low, many investors, believed, stocks, were, nearly, the only game – in – town! When, if, interest rates, rise, bond rates, will rise, and existing, bond prices, will adjust, and drop!

6. Immediate, intermediate, longer – term ramifications/ impacts: The immediate impact of inflation, is, usually, rising prices, and, wages, which, usually, rise, at a far – lower rate! In the intermediate – period, we begin to see, weakening economic trends, and in the longer – term, depending on how long, it ensues, there are often, several, undesirable ramifications, and impacts!

Don’t take inflation, and its risks, for – granted! The more you know, and understand, the better prepared, you will be!

Although, we hear, a lot of opinions, about, interest rates, and their trends, and impacts, very few people seem to understand, the significance, and importance/ relevance, of these rates, in several areas of our lives! After, many decades of involvement, in political campaigns, leadership, leadership training/ planning, real estate, financial sales and consulting, etc, I strongly believed, one benefits, by understanding, more about these, and how they affect, many things, in our lives! Whether, related to personal, organizational, and/ or, public finance/ spending, home ownership and related costs, credit – related issues, business matters, stock and bond pricing, etc, interest rates, truly, significantly, matter! With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 of these areas, and how the cost – of – money, makes a significant difference.

1. Bond prices and interest rates: The price of a bond, generally, is inversely – related to interest rates! When these rates go down, prices, rise, and when they go up, the inverse occurs! Bonds have, what is known, as, a par – value, which is the price, paid, at the end of the term. Markets usually set these at 100, which represents $1,000 per bond, at maturity. However, during the period, the pricing can rise or fall, which impacts, liquidity – related issues!

2. Mortgage rates: For the last few years, we have been witnessing and experiencing, record – low, mortgage interest rates, which have helped the overall, real estate/ housing market, especially, in terms of, pricing increases! In most areas of this country, we are seeing, home prices, at their highest levels, ever, by a significant, dramatic amount! When this rate, is low, a home buyer is able to buy, more – house – for – his – bucks, because, his monthly payments, are so low! Consider, however, what might be the potential ramifications, and impacts, when these rates, will, inevitably, rise?

3. Consumer credit: Low costs of borrowing, help the automobile industry, in terms of consumer financing, etc! Although, not as much as other vehicles, rates on credit card debt, are lower, and there are often, shorter – term, promotions, offering deals! However, since, most of these are variable, and based, on some index, etc, what happens, when there is an increase, in this?

4. Business borrowing: Another area affected, is business cost of borrowing! Presently, they have had access, to relatively, cheap – money, which helps in reducing the costs of borrowing, overall operations, purchasing inventory, etc. But, what happens, when this, ticks – up?

5. Impacts on stock market prices: For some time, because bonds have paid so little, in terms of dividends, etc, many have considered, the stock market, the only game, in – town! In addition, many corporations, have seemed, better – off, than they probably are, and we have witnessed, a higher, ratio of prices to profits, than in the past! How long will this last? How high can it go?

Many factors impact these issues, especially: actual and/ or, perceived inflation; consumer confidence; politics/ government actions/ the Federal Reserve, etc. The more you know, and understand, hopefully, the better – prepared, you will be!