Too much is made out of entry load, exit load, ulip, cost of fund management etc. Most of the loss (leakage) in personal finance can be attributed to the inefficiency of execution. Even good advice is lost to poor execution!
Let me enumerate (Ripley’s should not use it in their Believe it or Not, please)
1. Money invested for 80C benefit, but not mentioned in the Return of Income.
2. Money kept in a company fixed deposit, interest stopped coming (FD matured) not claimed FOR 3 YEARS. Of course company made no attempt for 2 and a half years, then sent one letter…so effectively after 32 months!!
3. Rs. 3 lakhs lying in the current account, Rs. 1500 credit card bill not paid for 2 years. Same bank. Obviously bank did not inform (accounts are connected, but current account is operated jointly and credit card is in the husband’s name )
4. Salary not credited to bank account for 3 months. DID NOT REALISE THAT SALARY WAS NOT CREDITED.
5. Bought life insurance paid 2 years premium, did not pay 3rd premium EVEN THOUGH SHE HAD ENOUGH MONEY in the bank, because she heard ULIPs are bad. Premium already paid Rs. 150,000.
6. Did business with brothers, invested with them, bought insurance with brother as nominee. Died at age 36. Wife and daughter penniless, being supported by HER father. Some chance that brothers will pay her something, but NOTHING BY RIGHT….maybe a pittance as a FAVOR….
can go on and on…
I have been stunned. If they get a financial planner who charged them Rs. 55,000/- p.a. but SAVED Rs. 300,000 in some simple mistakes being AVOIDED…should the client crib about 55K paid or be thrilled that he saved Rs. 245,000? L O L
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