So Sushil Kumar has just won himself Rs. 5 crores – and obviously the first question topmost in his mind should be:

How should I invest this huge amount?

Well let us assume that he gets Rs. 3.5 crores after all taxes are deducted. The following steps are very important:

1. Invest the whole amount in a LIQUID FUND in a good mutual fund – the full amount: He might take some time to overcome the great feeling and he should start deciding on what to do with the money only after the euphoria has died down. Till then the money NEED not remain idle.

2. He will obviously want to build a house for himself and his family. Assuming he will want to build a big house for 2 of his brothers, parents and himself – he should set aside Rs. 30 lakhs for a 3000 sq ft house * 1000 Rs. psf cost of construction. Allow for cost over runs, money paid to goons, furnishing, etc – another Rs. 25 lakhs. Total Rs. 55 lakhs.

3. He should use say Rs. 100,000 to pay off all his family debt (assuming he and his family has debt, it cannot be more than Rs. 100,000.

4. Assuming that there are 6 children in the family, he should put aside Rs. 25,00,000 in a balanced fund like Hdfc Prudence – assuming that each kid will require it ONLY least after 8-10 years.

5. I hate saying this, but because he may not have access to good advise, he should buy a SINGLE premium pension plan for himself – and put aside Rs. 50,00,000. No doubt that he may trust only LIC (the assumption that it is government guaranteed helps) – and this amount of money will be beyond anybody’s reach.

6. He should open a public provident fund for all the 14-15 members and put away Rs.70,000 in each account. I would never suggest this for a person who has access to an adviser on a regular basis.

7. He should put away Rs. 1 crore in a bank fixed deposit – maybe in 4 banks (Rs. 25 Lakhs each) as a 10 year deposit and all paying quarterly interest. This interest will take care of the house hold expenses for the next 20-25 years EVEN AFTER inflation is taken into account.

8. He should go and blow Rs. 10,00,000 on his family, friends and others in his village.

9. He should put Rs. 50 lakhs in a MIP with about 20% in equities and 80% in debt.

10. The balance should be left in the Liquid account – Rs. 50,00,000 from which he should withdraw from time to time.

What he should not do:

1. Give away lumpsum to his brothers to do ‘business’. It is not easy Mr. Sushil Kumar! AND THEY WILL NOT EVEN FEEL GUILTY – they will look at it as ‘easy money’ – so it is all right to lose!

2. Listen to too many advisers. He looks very simple at heart – and will be quickly cheated of his money. Money is money – it is for God to decide whether Sushil Kumar deserves it or not!!

3. Give ‘loans’, ‘gifts’, etc to friends hoping it will come back. People who do not return the money will JUSTIFY saying ‘he got it through luck…it is ok if I do not pay him’ Awful logic, but it works. Sad, but true.

4. Not be in a hurry to invest – let the money lie in a FD or as a Liquid fund balance…

5. Make attempts to meet a politician. Remember even if Nitish Kumar is the CM, the state is still Bihar 🙁

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  1. the goonda threat is overrated.c’mon bihar is not a warzone.
    it is better to advise on what he should not do.he may value his brother more than a big house.who knows.

  2. Since he appears to be simple, he will lose the money earned to the following:

    1. his greedy family ( they will become greedy now).
    2. his relatives.
    3. his friends.

  3. Respected Chartered Accountant – Mr. Sushil Kumar,

    The one who deserves gets it!

    Money cannot buy happiness.

    If he is able to make his father and brother SMILE by setting up their businesses, then it can be said the 3.5 crore value has been achieved.

    You may be a big consultant but you should really look at his face for the happiness and achievement. He seems more attached to his happy family and his achievements and not financial prudence.

    Whether any one dupes him of his big fortune is not the real matter of concern.

    As far as money is concerned, Mr. Bill Gates, Mr Ambani and many big billionaires were all school dropouts.

    Earnestly request you not to measure happiness in terms of Money. Please respect the gentleman.

  4. i suggest that being happy together with his family and he wil do so happiness is great there is no worth of money in front of happiness with family

  5. mr. sushil kumar pls save your self from family member,relatives,politician and gudaas.for save your money moove from your native place to mega city in india like mumbai,bangalore,and change your life and life – style,low chances to fraud in mega city.invest your money with great fund manager for secure your life and futur of your family.

  6. sir, this will be really helpful if sushil kumar reads it as he does a lot of surfing… i hope before getting trapped in the desert of ignorance in financing i.e. people surrounding him… he should come in contact or be contacted by financial experts or oasis i.e. people like you….

  7. Excellent.
    The liq funds will also give him the time to think about what would be the best course of action.

    But I too think this is not what he will do.

    If I were not a kanjoos, risk averse gujju I would bet on it.

  8. Why to blame his family members. May be the business he sets up for his bro (if he) will reward them more then these mentioned here

  9. sir,
    all your points of this article is the finest financial management consultancy.
    BUT, all these concepts are totally a fiction to this 3.5 cr winner.
    In my opinion, he may do watever he feel likes.. he will sulery make his life better.. by doing anything on his priorities.. that gives him a compleate sense of satisfaction. 🙂

  10. Sushil should first give 1 crore to Lord Venkat. He got this because of Lord grace only. He was destined to get this money. Similarly lord will decide how much he will have in next 10 years.

  11. Never expected such a “PS” from Respected “PVS”. I agree with Praving on overrated goonda threat. Bihar is trying to improve a lot. Even though the world see that, you choose to ignore it and made such statement.

    I was a regular reader and after this, do not see any point coming back to your blog. Thanks!

  12. Nothing wrong in whatever Subra mentioned in ‘What he should not do’.
    The point is ‘Don’t make attempts to meet a politician’, which is a fair point!

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