Investing mistakes by defense persons

The mistakes that I have seen investors make are in other parts of this blog…this one is specifically for people in the army. Includes mistakes by retired army personnel. (please note I use military, defense, etc. interchangeably…

  1. Opening an account in every place where they are posted. It is not uncommon to see defense persons to open an account wherever there is a posting. So it is common to see people with 8 savings bank accounts, 22 fixed deposits, and a mess of TDS certificates. God bless them.
  2. Believing that group life insurance is enough: Rs. 20L of life cover is chicken shit by today’s requirement. Go by simple formulae like ’20 times the annual expenses’ or be smart enough to use insurance calculators and estimate your life insurance needs.
  3. Believing that medical cover that is available (in certain select areas) is enough post retirement: Sorry not true again, you are better off taking a personal medical cover and paying the premium from your pocket. It has a tax deduction too.
  4. Trusting an investment adviser because he is an ex army man. Huge huge mistake.
  5. Trusting an investment because a few army men have invested in them. This is clearly blind leading the blind.
  6. Believing that ‘I’ do not need financial planning – I am too small and do not have enough money.
  7. Believing that ‘equity trading’ in Icici or Hdfc are safe because they are banks.
  8. Believing that a product made by a company and approved by a regulator CANNOT be a bad product.
  9. Provident fund accumulation is sufficient for meeting all life goals including retirement.
  10. Believing that equity trading will give them super high returns in the short run.
  11. Not knowing the difference between equity trading, financial planning and long term investing.
  12. Believing that the civilians outside are dying to help the man in uniform.

ha!

a dozen is a good start. Want to do more…hey army, navy and air-force people out there…please add your views..

 

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One Response to “Investing mistakes by defense persons”

  1. 1, 2- sorted out

    3- next in line

    4- not made this mistake till now, hopefully not in future too

    5- done this & repenting

    6- understood the importance of financial planning

    7- no equity trading but only SIPs in MFs

    8- learnt it the hard way

    9- PF is just a cog in the wheel

    10- understood that equity is for long term

    11- trying to learn

    12- there is no free lunch

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