Three Basic Steps to Manage Personal Finances

Three Basic Steps to Manage Personal Finances


Ilya Panteleimonov is the president of the Logic Planning Group, Russia.  It is a branch of the Logic Planning Group Incorporated based in New York. He is also an independent financial advisor and consultant on personal finance, planning, and other business services. Mr. Panteleimonov has a lot of other financial consultants he works in collaboration with to provide financial assistance to Logical Planning Group clientele in Russia.

The Logic Planning Group Incorporated was established in New York in 1999 to meet the rising demand on financial services in the U.S and the E.U as well. The group of consultants came together and partnered to offer different international level financial products to investors in Canada, the U.S, and the European Union countries.

The consultancy has now become a leading financial service provider in Russia as well. The firm provides ease of access to international financial trading instruments.  The group has expanded and has more than 100 consultants and partners on call for its clients in different countries.

The Logic Planning Group is expanding and is laying the groundwork to become the leading financial services provider in the next five years. The group is also designing innovative insurance packages for its clients that can be acquired from either Russian or international companies.

How to Build Wealth and Grow an Investment Portfolio

Ilya has financial advice that anyone can apply to achieve a healthy financial life. He advises that the first rule of a building a healthy economic life is to learn to pay oneself. He stresses that it is essential to create personal wealth. If an investor has already taken the first step to the creation of personal wealth through investing, the financial advisor then says that the investment portfolio should also be diverse. The old saying that advice one not to put all their eggs in one basket is a financial rule that should be followed.

The advisor goes on to advice about conservative investments and cryptocurrencies. According to the renowned financial advisor, there are investments that one should make for the security of their family or for a rainy day. On creation of capital to build wealth, he says that one should save 10 to 15 percent of their income to make a lump sum for investments. These savings can a long way in boosting your retirement fund or your children’s educational fund.

At least 20 percent of your income should be kept aside for long-term investments, while 15 percent of the income can go to short-term investments. On combining reliable or stable investment instruments such as bonds or stocks with high-risk investments such as crypto, he says that at least 5 percent to 10 percent of your income can go to high risks investments such as cryptocurrencies. The final figure an investor is willing to invest in these volatile markets is dependent on what they can afford and how much they are ready to risk.

The Power of Diversification

An investor, however, who has other stable sources of investments, can use at least 20 percent of their income in these high-risk instruments. These investments can help boost your portfolio since, at times; they give faster and higher yields. He, however, cautions that crypto markets can drop their values by up to 80 percent or 90 percent. If a trader has $100,000 invested in the market in such instances, the investor could end up with a loss and only have $10,000 at hand in the end, which can cause a lot of psychological turmoil.

The Need for a Balanced Investor Portfolio

The Logic Planning Group financial advisor, therefore, says that a balanced investment portfolio is critical for success and stability. Conservative investments ensure that an investor always has wealth while high-risk investments can help expand the investment capital. For the security of capital assets, as well as the well-being of the family, it is crucial to have insurance, which means that they will be no losses when investments run losses.

Personal, life, health, estate, or critical illness insurance covers are all useful to ward off unexpected expenses or losses. If for instance, a critical illness, such cancer or heart disease crops up unexpectedly, the medical bill could get to hundreds of thousands of dollars.

When these amounts of money are not at hand, most investors will turn to their investments. This means that they will end up selling off their investments, which could create financial difficulties. With an insurance policy, however, this should not be a problem, and your investment portfolio will stay intact.

Mr. Panteleimonov winds up by advising investors to invest monthly and ensure that the investment portfolios are diverse. Insurance should be relied on to keep all aspects of life balanced.