Staying in Army colony has its advantages and disadvantages….I get to meet a few of them and here…are my views.

Most of them – let us say Colonel and above – do take up a job/ assignment post retirement, and do earn well POST service. Sure there are some who do not, but the majority of them do. Let me enumerate their mistakes…especially when they advice their colleagues in service.

  1. DSOP IS AWESOME! – the defense people are convinced that the 8.5% interest p.a. that they get is the best, and all contribution should go into that ONLY.
  2. Medical coverage by the Army is great, and they need not seek any medical insurance or critical illness insurance.
  3. LIC policies are the way to go because it is government guaranteed. One officer (retired) argued with me that ULIPs are also capital guaranteed..with a MINIMUM return.
  4. When you have a surplus you should keep the money in a bank. Mutual funds are too risky.
  5. Equity trading is investing.
  6. ‘My¬† friend has invested’ is good enough to put money in a ‘scheme’ on offer.
  7. Group medical insurance, group term insurance, army facilities are enough.
  8. Between trusting a defense person and a civilian, always choose a defense person EVEN FOR INVESTMENT advise.
  9. Chasing rainbow schemes

Most army people are patriotic. That is how it should be. However, to think that DSOP is enough and will create a big corpus for them is wrong. Most of them need to invest in equities that will create wealth in the long run. When a 54 year old Colonel says that it does not matter, I refuse to get drawn into a conversation. However, when they ‘teach’ this to their children who have just joined the IMA or for a short commission, I need to intervene and correct the ‘learning’. Most of them of course do not understand inflation and Real returns.

Most of them think that they will make a killing when they go on an UN assignment. It is true that they do make a killing when they go on such 2/3 year assignments, and it pays well. However, if you do not have the skills to manage it, the money vanishes.

Most of them are ‘thrilled’ that the branch manager spoke to them! the army man really craves for recognition from those in authority. So a branch manager can easily sell them a child ulip, a retirement ulip, and a wealth creation ulip. They are happy to ‘oblige’ the branch manager. Good for the bank. Sbi, Hdfc, Icici, Axis….are all now authorized to open salary account for the defense persons!

Innumeracy and not understanding financial jargon – this is worse for the defense people, because they interact only among themselves!

I found a very very senior retired army man who did not know how to write a cheque! He said he only signed them!

end of part 1…..!!


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  1. being a son of an armyman I agree to almost all of above… except may be point#2 – if the defense medical cover is not the best, I don’t know what else is?

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