When S came to meet me in 2009 she had money in the early 2 digit crores…surely more than enough for a 48 year old retiree. I spoke to her, but the glamour of a suave ‘beta’ kind of a Foreign bank was greater…and there she went.

That guy told her the following things:

– Your son does not have a proper job, so he cannot invest in mutual funds.

– The best investments for you are ULIP and structured deals in RE.

– For liquidity you should leave substantial amounts in the savings bank (about 10 years expenses were lying in the SB account)

-Obviously they were a ‘Premium’ account holder.

– the real estate deals are of course a lemon. A dried one at that, you cannot even make a lemonade.

– the RM left the bank and joined a more shady Indian “Wealth damagement” organisation and did a couple of deals with them.

– he has now joined the bank again (came back to the bank) and has sold them another big ULIP which the client can ill afford.

-Oh far more importantly neither the lady nor the son are employed.

Moral of the story?

– If God gave you money it does not mean he gave you money management skills.

– If you do not understand what your bank RM is telling you, say NO.

– If you do not understand what your bank RM is telling you , at least understand that you do not understand.

– You have no excuse to live in a city like Delhi / any other Metro and pretend that you ‘trusted’ the RM

– trusting the RM in most cases a case of being lazy.

– The first transaction could have been bad, but allowing him to cheat you continually for 3 years is STUPIDITY.

– Why the hell would you buy property in locations that you have no hope of visiting or understanding

– Why would you pay interests to a builder at a dramatically high rate when you had money sitting in your SB account?

– whoever you are dealing with you have to check the documents that are coming to you. Simple.

 

Solution? Search me!!

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  1. “When S came to meet me in 2009 she had money in the early 2 digit crores”

    I wonder what is her net worth now. Hopefully she would have at least maintained a similar amount to 2009 level, or has the RM made her suffer major losses?

  2. a fool and her money are soon parted

    1st rule of gambling:
    when an experienced man with no cash plays against a novice with experience; the former leaves with cash and the latter with experience

  3. Sir, Dont leave with pointing finger only, give possible solution too!.
    What she could have been done..
    1.
    2.
    3.
    4.

    Atleast it will be useful for many people.

  4. Sir, Dont leave with pointing finger only, give possible solution too!.
    What she could have been done..

    1.Understand money attracts relatives,scamsters,govt,banks like flies to feces
    2. Manage finances on your own
    3.Repeat 1
    4. Repeat 2

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