MATRUBAI'S MUSINGS

Friday, 4 June 2021

MATRUBAI'S MUSINGS FROM HOSTIPAL BED

Laying on a Hospital Bed, I could write a Tragic Story as to why me?
I don't smoke

I don't drink

I don't eat non veg

I maintain a strict diet

But, fate is like that..It can be very cruel. Thankfully, it has given me another shot at life so hence I thought why not write things which I have learned from the Hospital Bed

We, the Investment Solutions Field, are always tuned to be ready for ANY emergency and keep telling our clients the same.

But, when that Emergency hit ME, it was nothing of a shock.

What started with a small pain in Chest led to a "just to be safe" check-up....one thing led to another and lo! within a couple of days my Heart was injected with STENT!

Life can change in a jiffy!

Laying on the Hospital Bed, I observed many things which gets connected with our Financial Plans and here are some of those musings.

1. GOOGLING!
As I came down after climbing the Tirumala Hills, I didn't have discomfort but the next morning, immediately after breakfast...I started feeling Stomach Heavy and a very light Chest Pain.
I asked the ISKCON people for guidance and they guided me to the REDDY & REDDY colony.

Now, this Reddy & Reddy Colony has about 1200 buildings and every single building (repeat, every single building) consists of

1. An Hospital or

2. A clinic or

3. Diagnostic Centre or

4. Medical Shop or

5. Ayurvedic Centre

et al........every single building had some kind of a connect with Health! Never ever seen or heard of anything like this before.

Finally, went to the Doctor recommended by the ISCKON people. The Doc immediately did an ECG, gave a tablet and said "Mr.Srikanth, you can go back to Bangalore now..but do get a complete check-up done there".

And I was off!

CONNECTING WITH INVESTMENTS :
With so many many doctors, hospitals, I could have easily lost my place and gone any kind of a quack but thankfully I chose the one recommended by ISKCON and thus landed safely in Bangalore.

Likewise, there are so many many funds, you could easily choose A WRONG FUND and lose your capital forever. Its best to stick to a Advisor and his choices

2. NAMAZ AND PRAYER :
As I was waiting for my turn for the check up, the Doctor was examing two friends and said "Tum Muslim Ho? To Roz 5 Baar Namaz Karna Padega...Ise Dil mazboot ho ga" ("You are a MUslim? Then you have to do 5 times Namaz....this will make your Heart Strong)
and turning to his friend said "Tum Jesus Ko sirf Sunday Yaad karne se kuch nahi hoga....Har Roz Pray Karna Padega" (Remembering Jesus only on Sunday isnt enough...pray daily)

Wow!
This is TRUE SECULAR INDIA. A Hindu Doctor....she could have talked about Bhagwad Gita but she did what is good for patient and will ACTUALLY FOLLOW.

Bravo!!!!!

CONNECTION :
When an Advisor gives you advise to invest in Emergency Fund or an Insurance....he is interested in YOUR growth.

Some advisors may not be able to effectively communicate but you as Investors have to get the INTENT behind the advise and follow them.

3. PRAYING FOR SOME MORE TIME:

Right opposite my bed lay a 60+ patient and throughout the night he used to call out to God "Hey Prabhu....Sirf 6 maine Aur de do....Phir mujhe Utha lena" (Give me just 6 more months and later take my life)!!!

While the matter is definitely sad, its also comical that almost every person on a death bed has the similar prayer. Just step back and try to recollect...isnt it??

Now, at least in terms of financial goals, we can be PREPARED for such eventuality.

Expecially, good Advisors ensure that they underpromise and overdeliver.

Meaning...if a goal requires say about 25 lakhs....advisors tend to play safe and provide for 20% back up at 30 lakhs which a Self Advised (Direct Investor) will not.

Even in terms of returns too, more or less same pattern is observed.

So, at least Financially, a Good Advisor will ensure that you are prepared for any Eventuality/Goal much ahead of its actual requirement.

4. 2 Patient, 1 Attender

Each patient was allowed a personal attender (family member/friend).
My wife revealed that she observed that 2 Patients in another ward had only 1 single attendee!
Now, this attendee had a tough time managing to look after both the Patients (husband and brother) all at the same time...be it feeding the patients, bathing...all in that limited time period. She was not able to concentrate on either of the patients fully. Sad.

Takeaway :

2 takeaways actually.

1. Have seen many investors have 2 or 3 advisors "just to be safe". this is ridicilous!! Stick with 1 Good Advisor and it should be fine otherwise you will only be confusing not only your yourself but even your advisors.

2. Have seen many investors invest in funds suggested by a Good Advisor with small amount and then going DIRECT and invest BIG to save expenses. Another bullshit idea!
Its a Plain PAISA WISE RUPEE FOOLISH strategy. The Calculations, et al could go for a toss and you could well land up in a mess.

Stick to 1 Good Advisor and he will guide you to your Goals.

5. HELP FROM ALL

Thankfully, almost the entire hierarchy of the Hospital were known to me. (Some of them were my investors, some friends, and most importantly, some close relatives).

This ensured that I was looked after well and extreme care was taken to ensure that I recovered as quickly as possible.

When it comes to investments, it makes sense to have all kinds of asset classes and all kinds of funds in your portfolio.

Your portfolio should be truly diversifed!!!

Depending on the risk profile and time horizon, you need to have an

Equity Fund (inevitable)

Debt Fund

Balanced Fund

Liquid Fund

Gold Fund

Small Cap, Mid Cap, Large Cap

this ensures that when the time comes, each and every single fund will ensure that you are SAFE truly.

6. Insurance

My Health Insurance ensured that the LEAST of worry for my family was the HOSPITAL BILL.
I had myself sufficiently covered from my health Insurance from APOLLO MUNICH.
the claim was settled cashless and my family did not even have to call any Apollo person.

What this means is.....any expenses spent on Insurance is NOT A WASTE OF MONEY.

Finally, if you have observed, in the beginning of the article I have mentioned about a CHECK UP....

Due to this Checkup...the problem was deducted and my life was saved.

Similarly, do not wait for a Financial Emergency to hit you and then go running to a Good financial Architect.....do it right now!

The earlier the better for your portfolio to get corrected and help you achieve your goals.

All those GET WELL wishes, you people have sent, will surely make GOD think twice of sending me to an hospital purely for the large number of wishes.
God will surely envy my well-wishers.

Thank you friends.

All the best,
Regards,
Srikanth Matrubai

MUTUAL FUND DISTRIBUTOR

REBALANCE VOLATILITY CERTIFIED COACH

Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH

Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

Do read the book and give your valuable feedback and request you to post positive comments on Amazon. https://amzn.to/3cHUM6M/

You can purchase the book on Amazon and Flipkart

For the best of ideas on where to invest to create Mountains of Wealth

join my TELEGRAM channel

WEALTH ARCHITECT
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The secret to SUCCESSFUL MOST SATISFYING Life is following the B.U.G. , the BIG ULTIMATE GOAL

When was the last time you struggled with self-motivation?

It is a common challenge.

Clients do not reply on time...Motivation goes down

Family does not understand you...Motivation goes down

Sensex went down yesterday….Motivation goes down

How to overcome this?
How to keep yourself motivated?
Read so many books on motivation but still the spark is missing

Saw so many videos on YouTube, but the interest is only for a few moments….

True?

Today I will share you the SECRET of how to keep yourself motivated throughout your life in the easiest way.

the BEST way to motivate yourself is...

WRITE DOWN YOUR GOALS once in a while…. Preferably every Monday

NO! I am not telling you to write your TO-DO list

You should write your GOALS .... and I want you to write the not the normal goals that almost everyone has and you too will obviously have, write the BIG ULTIMATE GOALS

We call it the BUG

it’s not about having a BIG HOUSE or having 5 CRORE in bank

It’s the

BIG ULTIMATE GOALS

Like for example what I write

1. Setting up a FREE SCHOOL for the underprivileged

2. donating 1 crore every year for feeding the hungry

3. Donating all my shares in my Demat account to Lord Venkateshwara's TTD Demat Account ! (Yes...that's my goal)

even a seemingly smaller goal for others could be a BIG ULTIMATE GOAL for me

for example, my goal no.3 is a pretty simple small one but one which gives me good satisfaction…

Being a GREAT HUSBAND and finding new ways to keep my wife and happy and surprised every day

What I told just now.... are MY GOALS

How about you?

Why not have a BIG ULTIMATE GOAL of getting helping 1000 orphan children complete their education?

Why not?

Is it difficult?

No..not at all

Well, truth be told, goals that are not written are not as powerful as goals that ARE written.

Once we have the Big Ultimate Goal in our vision, the doors will automatically open for us to achieve them and all the other goals like having 1 crore in bank

Own house,

Foreign vacation

All these will happen by default, and you will not even have to break a sweat

FOR EXAMPLE.
Suppose you are going from Bangalore to Tirupati and the aim is to reach Tirupati by 2pm

When you reach Tirupati, you will never realise when you crossed KR Puram, Malur, Kolar, etc. because your focus was on the bigger picture of reaching Tirupati.

Exactly, the same way when you have this Big Ultimate Goal staring you week after week…. all your monetary financial goals will look small and you will achieve them by default and you will not even realise when you achieved them and moved ahead!

Once you have the B.U.G in you,

You will develop

1. An Open Mind

2. A Positive Attitude

3. A broader vision

4. Deeper analytical skills

5. Fresh insights into solving day to day problems

6. You will become Pro-active

7. You will learn to DELEGATE the smaller works and focus on the Big ones

8. Develop Empathy

9. Gradually leave and avoid Bad Habits and Wrong People

10. And most importantly, you will start focusing on your

11. MENTAL AND PHYSICAL HEALTH because now your DNA is completely besotted with DNA and wants to reach that B.U.G.

Once you have this Big Ultimate Goal, your entire life will get transformed. You will become a changed person (for the better)
Understanding this Big Ultimate Goal will force you to take massive positive action and you will end with hugely superior result in life.

You ask anyone….anyone….

your friend, your staff, your boss, your life partner…..

anyone about their life goals
they will invariably say….

Own House, then ?

Big Car, then ?

crores in bank, then ?

foreign travel, then ?

you keep asking them….
then ?
then?
then?
after all these….ultimately, they will come to one goal. That is GIVING BACK TO SOCIETY

Yes!

That’s the point. The satisfaction, the contentment that one gets by GIVING BACK TO SOCIETY is incomparable and that’s why the B.U.G. should ideally be GIVING BACK TO SOCIETY

Let us face it: you & I are busy people.

When we write down our goals every week (Preferably every Monday), it forces us to focus on the future, rather than the past resentments.

As millionaires & billionaires, we do not focus on our past, we live in the present and focus on the future.

I encourage you to start writing down your goals every day from now.

In fact, take a pen & paper and write down your top 5 goals.

That is how you get & STAY motivated every day.

Follow the BIG ULTIMATE GOAL and the incredible life you will have.

That does not mean you should not have small charitable goals.
You must definitely have them.

Continue doing volunteer seva at the temple, orphanage, old age home,

Continue donating to that NGO

Continue donating to the PM Cares

Continue doing Narayana Seva

Continue what you are doing but dont miss the BIG picture.
You must have a big huge massive GOAL in mind.
Talk to your life partner...
ask them what their BIG ULTIMATE GOAL is...
Both of you together work towards achieving them

and them the intense contentment, satisfaction that you will have in life.

Let me know your BIG ULTIMATE GOAL in the comment section below.

Once you do achieve the BIG ULTIMATE GOAL in life…then when the death comes calling, you will have a smile and satisfaction of having done something worthwhile during your stay on this planet!

Don’t forget your BUG and don’t forget to thank me when you achieve super success in life!

All the best

All the best,
Regards,
Srikanth Matrubai

MUTUAL FUND DISTRIBUTOR

REBALANCE VOLATILITY CERTIFIED COACH

Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH

Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

Do read the book and give your valuable feedback and request you to post positive comments on Amazon. https://amzn.to/3cHUM6M/

You can purchase the book on Amazon and Flipkart

For the best of ideas on where to invest to create Mountains of Wealth

join my TELEGRAM channel

WEALTH ARCHITECT
https://t.me/joinchat/AAAAAELl4KUnaJzi-JJlDg/

Sunday, 21 March 2021

PLANNING FOR YOUR CHILDREN’S EDUCATION EXPENSES ? HERE’S HELP

Greetings Friends,

The Birth of a Child brings a lot of joy to parents.

After the initial euphoria settles down, the future expenses start staring at your face. Even if you don’t think about this, the innumerable ads on TV, in newspaper, Bill Boards will not let you forget them.

They start emotionally attacking you

“Are you a Responsible Parent”?
“Have you planned for your Child’s Higher Education”?
“Have you planned for your Child’s Marriage”?

So, then, you are forced to start thinking of your Childs Future.

And, what do you see?

Of course, the umpteenth Child Plans splashed across. Whether you like it or not, you will be bombarded with the "specialties" of these plans and the Companies leave no stone unturned to make you feel that they are next only to God when it comes to protecting your dear child's future.

They promise you that they will pay for your Child’s Higher Education, her Marriage, etc.

And, yes, these Ads spare no effort to instill fear in you

“What will happen to your Child in case of your untimely death?”

This one line is enough for every parent to run to Insurance Agents to get a Child Plan.

Before diving into the sea of these Child Insurance Plans, you will do well to do some basic homework like

1. 1. When will your child need the money?

2. 2. How much will you need for the particular goal (Marriage, Education)?

3. How much you will be able to save?

4. 4. How much Insurance Cover I need?

Besides the above, you will also have to consider various factors like whether you have any loan, you have your own house, are there any other breadwinners in the family, etc

UNDERSTANDING CHILD INSURANCE PLANS :

There are basically 3 types of Child Insurance Plans namely

1. Money Back :
This is by far the most POPULAR plans. Under this plan, your child will get Survival Benefits at regular intervals.

For ex :

AT your Child's 18 years of age, she would get about 20% of Sum Assured, and a further 20% at age of 20 and so on.

This Plan is useful for those who feel the need for Lumpsum requirement at regular intervals and helps you in Life Stage Planning.

Another good benefit, is these plans offer Premium Waiver Benefit which ensures that in case of death of a Parent, then the Premiums are waived off and The policy continues with benefits. (Please make sure, that this benefit is there in the policy before taking one).

The BIGGEST disadvantage with these plans is the dismal returns often failing to match even Inflation returns.

Especially, if you are planning to buy Money Back Plans for your Child's Education, then this is definitely NOT advised. Education Inflation is at around 12% and this Money Back should be giving you less than 7%........leaving you grossly underprepared at the time of Goal.

Also, the Premiums are steep and are best avoided.

MOST IMPORTANT

These Plans actually cover the Child and not the Parent! (How stupid). So, in case of the untimely death of your Child, you will get the Sum Assured. I wonder which Parent would like to take this?? It is your Child who needs Financial Security and not you!

If the Child survives

The term, then you will get the entire Sum Assured along with Accrued Bonus, et al.

2. ULIPS :

ULIPs are Unit Linked Plans which are non-traditional plans wherein Returns are Market Dependent.

Under ULIPs, the Life Insured is the Parent. If the Parent dies (or in some policies gets diagnosed with Critical Illness), then the Child would receive the Sum Assured in Lumpsum. Not only this, but the Future Premiums are also waived off (the Company pays the same) and on Maturity, the Child would get the Fund Value too!’

ULIPs plans offer a variety of funds ranging from Conservative to Balance to aggressive.

Under ULIPs, you can change from Debt to Equity and vice versa without the worry of Taxation, thus enabling you to benefit from both Timings the Market and Rebalancing your Portfolio.

Sadly, the charges are too high in ULIPs. These ULIPs levy a variety of charges on your Child Plan by way of Premium Allocation Charges, Policy Administration Charges, Mortality Charges, Fund Management Charges, etc.

This would affect the returns generated by investment in Market Related Instruments and ultimately the Corpus that your child receives.

Another negative against ULIPs is in case of emergency and you want to surrender or do partial withdrawal, the charges are high and also attract Tax.

While a long Term ULIP (above 15 years) could cost less than a Mutual Fund, flexibility is a huge issue. You just cannot move from one ULIP to another ULIP as in case of Mutual Funds.

Putting money in Child ULIP plans is akin to putting all your eggs in One Basket!

If the ULIP underperforms on a consistent basis, you are stuck!

I always say ULIPs are expensive products with high initial charges. I am not in favor of any child plan. If one has enough term cover that will do. Child plans are long-term gambles like ULIPs. How well an insurance company manages your investment part is a gamble. These are all ways to get more money from you. At maturity, you will realize that the returns are not great. Better to keep INSURANCE & INVESTMENT separate.

ENDOWMENT POLICIES:

Endowment Policies are one where lumpsum amount is paid at the time of the Maturity along with bonuses.

This type of Policy is very useful to plan for your Child’s BIG expenses like Wedding, Higher Education, etc

And, unlike ULIPs, there is a minimum guaranteed amount of payment. Besides, you may get Bonuses too. Endowment Policies too invest in Market backed securities, but unlike ULIPs, they invest only in Debt products and the returns too are not exactly spectacular.

There are two major drawbacks with Endowments Plans

1. The Returns are pathetic, with less than double digits, and come nowhere even near Inflation, forget about the Education Inflation which is in High Double Digits.

2. The Insurance Cover too is almost always very little. (If you require higher cover, you will obviously pay a steeper premium).

If you do want to take up an Endowment Policy, treat it as a Debt Portion of your overall Asset Allocation.

Almost all Child Insurance Plans cover the Parent and thus, if in an event of an unfortunate untimely death of the Parent, the Child’s needs would still be taken care of by way of Lumpsum payment on death and also on Maturity.

Child Plans are just Attractive Packages with nothing inside.

Yes, on the untimely death of Parent, some policies offer Waiver of Premium and the Policy continues but this benefit comes at a high cost as the Premium increases due to this Rider. And, Mortality Rate Charges for a Child Plan are quite high too.

Insurance should be taken only for covering your Life and should never be taken as a part of Investment. Never.

So, if the Child Insurance Plans are not matching your needs, what is the Alternative??

The Alternative, my friend, is the COMBINATION OF TERM PLAN AND MUTUAL FUNDS:

Term Insurance Plans are the BEST way to cover your life as they are very affordable.

And Mutual Funds ensure that you get Market Returns without the painful payment of High Charges which you may have to bear in case of ULIPs.

So, in nutshell, my dear investor, please remember that just investing in CHILD EDUCATION PLAN does not guarantee you get the money you require for your Child’s education.

You need to invest in the Right Asset Class after taking Protection through Life Insurance Cover.

If you are still a fan of Insurance combo than, you are suggested to take a ULIP, especially if the goal is at least 15 years away. But, do remember, that ULIPs may leave in the false hope of adequate coverage as the Premiums will be steep as the Cover goes up. They leave you Under-Insured.

Endowment and Money Back are a strict NO-NO. Investing in an Insurance Plan which gives less than 7% when the Inflation is growing at 7% is definitely not a wise thing to do.

he financial future of a child matters and mere emotions will not ensure a luminous career and life for the child. It has to be backed by a pragmatic and concrete financial plan so that dreams get translated into reality.

My Final Take is that there is nothing to beat the Combination of Term Insurance Plan with Diversified Mutual Funds.

And, yes, along with this also invest in other products like Sukanya Samruddhi, PPF, etc

So, dear friends, selecting the right plan for your child is NO CHILD’S PLAY

Please take the advice of a Competent Financial Advisor.

Best of luck,

Srikanth Matrubai

CEO,

Srikavi Wealth

Certified Volatility Coach,

Author – Don’t Retire Rich

You are strongly encouraged to consult your financial planner before taking any decision regarding this investment.

The views expressed here is the authors personal views and should not be intrepresented as a recommendation to invest/avoid.<div><br /> 

<div dir="ltr" style="text-align: left;" trbidi="on">Srikanth Matrubai

Author of the Amazon Best Seller <b><u>DON'T RETIRE RICH</u></b></div><div dir="ltr" style="text-align: left;" trbidi="on"><b><u><br /></u></b>

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Do read the book and give your valuable feedback and request you to post positive comments on the Amazon.

<a href="https://amzn.to/3cHUM6M" target="_blank">https://amzn.to/3cHUM6M/</a> </div><div dir="ltr" style="text-align: left;" trbidi="on"><br /></div><div dir="ltr" style="text-align: left;" trbidi="on">You can purchase the book on amazon and flipkart </div><div dir="ltr" style="text-align: left;" trbidi="on"><br /></div><div dir="ltr" style="text-align: left;" trbidi="on"><br /></div><div dir="ltr" style="text-align: left;" trbidi="on"> Please subscribe to my TELEGRAM channel

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