STEP 1 THE MONEY
START
the amount, in lakhs
one amount, not monthly
years until the money
is needed back
How many years?
under 3
10
3 to 4
25
5 to 6
40
7 to 9
55
10 to 11
60
12 or more
65
capacity base = that number
Months of spending
ready for emergencies?
under six
months
none
six months
or more
0
set aside for emergencies
in lakhs, zero allowed
set aside = 0
not asked
amount to invest =
amount typed minus set aside
Anything left
to invest?
yes
no
How much was
set aside?
months were
six or more
0
months were
under six
−5
months
were none
−10
none
part
Reaches six
months now?
yes
0
not yet
−5
STEP 2 YOUR SITUATION
age: answered now, scored below
Where does the money for
monthly spending come from?
salary or
steady pay
0
work, the
amount varies
−5
pension, rent
or interest
0
mostly from
savings
PATH A regular money coming in
PATH B living on savings
Left each month after
spending and loans?
nothing
most months
−10
a thin
margin
−5
comfortable
margin
0
a large
margin
+5
Loan payments as a
share of income?
none
0
under
a fifth
0
a fifth to
two fifths
−5
more than
two fifths
−10
People who depend
on this money?
none
0
one or two
0
three
or more
−5
Age, from above,
scored on this path only
under 45
0
45 to 59
−5
60 and
above
−10
Part of the money
you live on?
most of it
−15
part of it
−10
no, other
money
0
Years of spending the
other money covers?
under two
−10
two to five
−5
more
than five
0
People who depend
on you?
none
0
one or two
0
three
or more
−5
age: no points on this path
CAPACITY = base + every box passed
held between 0 and 70
STEP 3 YOUR TEMPERAMENT, THEN THE CAP
March 2020: the market fell 40%.
Your money shows 60 of 100.
What would you honestly do?
sell
everything
15
sell some
30
hold and
wait
50
buy more
65
tolerance base = that number
Real money invested
through a big fall?
no
yes
the guess
stands
−5
What did you
actually do?
sold
everything
15
sold
some
30
held on
50 +10
bought
more
65 +10
replaces the base; a sale is not charged twice
Could be worth less than
you put in. Accept that?
yes, if the odds
are on my side
+5
only a very
small chance
−10
no, it must
be protected
TOLERANCE = base + every box passed
held between 10 and 70
the cap = the smaller of
capacity and tolerance
Cap below 5, the
calmest holding's fall?
yes
no
STEP 4 THE GOAL
Which sentence
can you agree with?
grow faster
than the market
grow
steadily
add something
new
OUTPUT 1
HORIZON
OUTPUT 2
AMOUNT
TO INVEST
OUTPUT 3
CAP
OUTPUT 4
GOAL
OUTPUT 5
MARKET STRATEGY
yes unless an
arrow says no
END