Most of us cannot understand using time as an important agent in creating wealth. It takes a mathematician to appreciate that. Assuming you had bought good equities or invested in growth plans of good funds for the past say 20 years you would have got fantastic returns. It does not seem the help people EVEN if you give them examples of a Rs. 2000 per month SIP turning to Rs. 1 crore over a 18 year period.
Why does this happen? because we underestimate the power of TIME.
What we remember from the past is what our mind allows us to remember. So all the painful experiences are nicely edited and presented to us. We learn to beautifully blame others, and we remember events EXACTLY the way we want our brains/mind to remember the event.
Despite our own past experience and knowing that we cannot see the future, we claim to think that we can. So we end up choosing stocks, fund houses, portfolio managers on some hunch rather than a mathematical / logical base.
We keep reading “the past is not an indicator of the future” and repeatedly ignore that. We think only a black swan event can derail our retirement plan. Actually one mistake of expecting to die at 79 – if it becomes 97 it can completely, completely de rail our retirement plan. We think our brain will work perfectly till the last day we live. How optimistic!!
We have to use time as an ally, not as a foe. We need to understand that we do not understand the future.
Is mortality the reason we treat time as an enemy? Remember your body dies, your soul and your investment live on.
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