At age 35 people suddenly realise that death, old age, etc. CAN happen to them also….

So suddenly they look for somebody who will ‘help’ them to plan their finances. They get to somebody and find out somebody who comes to their house or their office.

They think (thanks to the TV ads, I am sure) that Retirement / Life Time planning is simple. All they have to do is to sit with the ‘consultant’ for 15-20 minutes and hey presto…it will all be done.

Sadly that is not the case. Alas!

It takes some homework, some understanding, willingness to consult with your partner, understanding of risk, etc. ALSO you are better off using a pencil or a white board instead of paper and pen. IT WILL CHANGE – as your understanding of retirement changes.

I am convinced it is time I wrote another ‘New and Revised’ Retire Rich..Invest Rs. 40 a day – simply because of the new things that one has to consider.

HOWEVER, do not wait till you understand everything. Start doing a SIP in an equity fund IMMEDIATELY…as and when you have your full plan in in place, you can make this a part of the plan.

Does not mean the answer will be different if we are talking about your kid’s wedding or education…START, START, START….understanding will come in 4 weeks, 4 months or 4 years….at least do not lose the power of compounding!

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  1. You reminded me of my late parent, about 3 years into my job at early 90’s tiny salary he’d said start start start! about ppf… and today I am eternally grateful.
    Yes, compounding is beautiful…
    And I’d like to preorder that new version of your book, please.

  2. For the beginners, tax savers like PPF or RD in banks may be better option. This would give couple of years of window to familiarise with MF equity and direct equity. Ability to set a side some amount for investment is the key part here rather than thinking too much on howmuch to save and where to park.

  3. “Retire rich, invest Rs.____ a day – For the people in their forties”
    should be the name of your new book.

    It will help those people who have started late, committed all the mistakes that can be made (you name it, we have done it.)

    Biggest mistake can be put in these two lines –
    “They told me procrastination is cause of all my sorrow,
    I don’t know what the big word means, I will look it up tomorrow.”

  4. Simple solutions are hardly bought, seldom sold and eternally told…may be it got to do with some DNA as one learn it through the hard grind of complexities…after all we still lack panacea for all ills!

  5. if we wait for all the information we need before starting a job, it will be equal to waiting for all the traffic lights to go green before starting a journey.
    as u said start and the necessary knowledge can be learnt on the way.

  6. Subra because you are getting popular I guess there are many financial planners also following your site. I have no clue why they put their names in a hot link – and I have no clue about how much traffic they are getting. However i did visit 2 of the sites – and I could see such shoddy work. I am not sure whether I should name them at all, but I guess readers can guess. Since u do not edit at all I am not mentioning their names..but you should do something about such cheap traffic seekers, please.

  7. Sachin there is a far, far better definition of procrastination.

    Procrastination is like M….. you realise that it is not pleasure..when you realise that you are only F…yourself!!! Not sure if Subra will edit this…

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