In this episode, Monika explores the three distinct stages of life: learning, earning, and harvesting. She explains how we spend our early years preparing for financial independence, followed by decades focused on building wealth, and ultimately, a phase where we utilize those earnings to support our later years. She highlights key financial milestones across different life decades and the importance of balancing savings with lifestyle needs. Whether planning for early retirement or maximizing earnings during peak career years, understanding these life stages is essential for long-term financial security.

Next, she breaks down the differences between active and passive investing. Active investors aim to outperform the market by strategically buying and selling securities, whereas passive investors seek to match market returns by investing in index-based funds. She discusses the cost implications of both approaches, explaining why active management tends to have higher fees and how investors can determine which strategy aligns best with their financial goals.

In the listener Q&A, Commander Jaskaran Singh, a soon-to-retire naval officer, seeks guidance on investing his provident fund and corpus while ensuring financial security for his family. Deepika wants to understand the best health insurance options for her senior citizen parents and herself as she prepares for the future. Rahul, a business owner, questions whether mutual funds are suitable for ultra-high-net-worth individuals or if they are primarily meant for salaried professionals.

Chapters:

(00:33 - 06:49) The Three Stages of Living and Decadal Milestones

(06:50 - 08:10) Active vs. Passive Investing: What You Need to Know

(08:11 - 12:17) Financial Planning for Retirement and Lump Sum Investments

(12:18 - 15:18) Medical Insurance Decisions for Parents and Yourself

(15:19 - 16:33) Should Business Owners and Ultra HNIs Invest in Mutual Funds?

http://www.aria.org.in

If you have financial questions that you’d like answers for, please email us at ⁠[email protected]⁠

Monika’s book on basic money management

⁠⁠⁠https://www.monikahalan.com/lets-talk-money-english/⁠⁠⁠

Monika’s book on mutual funds

⁠⁠https://www.monikahalan.com/lets-talk-mutual-funds/⁠⁠

Monika’s workbook on recording your financial life

⁠⁠⁠https://www.monikahalan.com/lets-talk-legacy/⁠⁠⁠

Calculators

⁠⁠⁠https://investor.sebi.gov.in/calculators/index.html⁠⁠⁠

You can find Monika on her social media @monikahalan. 

Twitter ⁠⁠⁠@MonikaHalan⁠⁠⁠

Instagram ⁠⁠⁠@MonikaHalan⁠⁠⁠

Facebook ⁠⁠⁠@MonikaHalan⁠⁠⁠

LinkedIn ⁠⁠@MonikaHalan⁠⁠

Production House: ⁠⁠www.inoutcreatives.com⁠⁠

Production Assistant:⁠⁠ Anshika Gogoi⁠