Keeping financial records

Advisor: Sir Please make this investment, it will get you great returns.

Client: How much will it give?

Advisor: Sir it will give at least 15% return over the next 5 years

Client: That is not exciting. May I have something better…

This is such a normal conversation, that I cannot even believe what is being missed. For me this is not a normal conversation.

Instead I get to see the situation like this.

One Sunday morning sitting with a client and his wife, she comes out with “I found this document, see if it is of some use…” and I find that it is a IDBI Bond matured in 2006, not claimed till 2009.

Bounced cheques – deposited in the wrong account – and now stale.

2 Life Insurance policies taken paid for 2 years…and then FORGOTTEN to pay the premium. Amount lost Rs. 23,000 in 1997 (paid for ’96 and ’97)

Shares bought, NOT transferred kept in a box in a cupboard. Cupboard cleaned up after Dad’s death – shares were bought in 1992. Shares of Century and Wipro. Benefits missed out worth lakhs in Wipro alone!

To me these are clearly not ‘investment’ mistakes, but INVESTMENT disasters waiting to happen.

Why does this happen?

1. Buying products without knowing what has been bought

2. Paying too high a premium (so policy lapses because you cannot afford it) or paying too little as premium (so you do not care about the lapsation).

3. Not keeping track of investments

4. Not buying products according to a financial goal / plan – so not missing the asset!

I Just opened my old cupboard…and found another….Oh my God! Not once again I said….

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One Response to “Keeping financial records”

  1. This has happend with so many of my cousins, i felt the scenes were replaying in ur article

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