A financial adviser has to have the guts to ask the end customer (read YOU) some questions like the following mentioned here:

1. Your qualification is good, and your salary is great, but can you really make a 15 year commitment of EMI for the housing loan that you are taking – at your age of 35?

2. Is your standard of living sustainable – please do remember for whatever reasons your income stops, your house will go, school of children will change, your holidays will become more Indian, your cars will go, …in short are you ready for a catastrophe?

3. You have done well in one asset class (land, equity, gold) frankly was it luck or skill which really helped you? Arre…like Subra 

4. If 80% of your net worth is by way of shares (in your bank ESOPS ) and you do not make any change in that ..you are out of your f…..g mind! God must have felt that they have given you too much – and they may be having plans to take it back, be careful.

5. I agree you have a Rs. 5 crore retirement corpus, and I would consider that sufficient, HOWEVER, you are still young () and you have ambitious foreign travel plans.  The 2 foreign trips a year – that too first class – and the other expenses along with that have not been provided for. Also you need to buy a house after 10 years…again that has been not provided for. The absolute numbers are normally useless, it has to be a ratio to YOUR needs, not just some figure picked from nowhere and plugged.

6. When I told you that your current salary does not allow you to buy a new house, you said I should consider your income AND your wife’s income. I said NO, if she gets pregnant and the doc says ‘please take bed rest’  she will have to leave her job. You said SHE will not get pregnant for 3 more years.In exactly 60 days you are telling me she is pregnant…..

Sorry, I am a financial planner, and should not be advising you on your personal choices, but who will NOW pay the EMI and pay for the household expenses….???

 

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  1. Sir, not sure if you have already written a blog on value traps! If not, it will help readers if you can write one on value traps and how to avoid them! Thanks!

  2. loved #6…
    forget advisers, even your financially wise parents & friends don’t ask the basic question – can you afford a baby???

  3. @param – what do you mean “can you afford a baby?”
    The right question is can you afford a marriage. Dont marry, stay in your parents house and enjoy all your money..

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