It sounds obvious. But many of us don’t make time to do this. Is it important? Yes? Why?

Last week, it was time for PTM (Parent teacher meeting) for my daughter. PTM is when we visit school, meet teachers, and understand the progress of the child. We also get to know how naughty or otherwise our children have been when away from our eyes.

A PTM is like an Annual Performance Review. This is something we see in all good organizations as well. It is very helpful and a must. For it helps you track progress and decide on what changes need to be done in the investment and goal strategy, based on the changes that may have taken place in terms of income, promotion, etc. From schools to companies, everyone does a PTM. And so should you for your investments and goals.

What gets measured gets improved’. – Robin Sharma.

In our practice we insist on meeting families once in a year to review investments. Reviews give us occasion to understand developments around client families and jobs, which directly can impact the way they invest. These developments could be promotion, salary revision, job change, EMI closure, new purchases, and the like.

Normally, we see, as the income increases, investment doesn’t do so proportionately. More expensive habits get formed. You don’t realize it because you have more money to spend. And you are spending it unthinkingly. In the process, you forget the investment part of the additional income.

Don’t forget the 30-40 rule of investment
Experts counsel that 30-40% of the earned income has to be invested for future needs. Yes, this differs from family to family, depending on existing investments and goals. A PTM gives pause to understand whether your proportion of investments, expenses, EMIs and savings is on track.

Experience has taught us that only when you have your desires and dreams planned in money terms, will you achieve them comfortably. The PTM is to ensure you revisit the goals planned and take stock of how you are going about getting to them.

Look back to look ahead
You need to look at all your investments once in a year, be it PPF, FDs, Mutual Funds, Stocks, or anything else. Yes, even real estate. You need to look out for rule changes, falls in interest rates, market news, policy redrafts, and how all this affects you. Making all these vital adjustments and evaluations is possible only when you do an annual PTM with your investments and goals. In fact, doing so will energize you and motivate you to do better in life.

In life, we are always on the move. To pause and review is difficult. But it is possible and needed. So make it an integral part of your life plan. True, some of us will find this tedious and boring. But if you love your family and you want this love to keep growing securely and your family to live happily ever after, you need a well-thought out, dynamic and smart investment and goal plan. Welcome.

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