OLD under JOLT

The saying "OLD IS GOLD" doesn't seem to be holding true for senior citizens .

At one end the buying capacity is reducing due price rise and at the other end senior citizens have no source of extra income. Govt may claim the inflation is under control by publishing statics but reality seems different . I remember couple of year back groundnut oil which was available for less than Rs 45/ litre. Today its costing Rs 90plus . Imagine what must be happening to the retired people who have fixed income .

My study reveal that on an average the saving of the retired people is approximately between 15-20 lacs (max.) plus a BIG house in prime location . They are living on interest income generated from this saving which are mostly in Postal MIS , PPF , PF and Bank deposit /fixed maturity plans . This income has dropped significantly due to drop in interest in bank deposit from 14% to less than 9 % today ( longer tenure ). Same is with other saving instruments like PF , PPF , Postal scheme MIS etc

Few additions to the problems of senior citizens are :
- Families are becoming nuclear or settled abroad. FMC(Fast Moving Couples ) have no time for parents .No emotional support available to seniors .
- Representatives from Broking/ Investment firms misguiding the seniors .
-Insurance Companies are insuring those who are healthy ... and so on

Objective is not to scare you but to reinforce the concept of "Retirement Planning " while you are young . Must start the retirement planning today and make your retired life safe . Few actioanbles are :
1) Invest in term plan for maximum tenure
2) Go for critical illness plan upto 20lakhs with maximum tenure as this will protect you against any major expenses
3) Take a mediclaim policy for yourself and wife
4) Ensure that you have auto renewal instruction for all insurance cover .
5) Invest in direct equity and Mutual funds . Hire the services of a good experienced wealth manager. Pls ! Pls !! Pls !!! donot judge them on external appearance /gadgets they carry . Beware of advisors ( not all ) of the private banks . Remember its your hard earned MONEY . JUST GO FOR CONTENT . Even a ordinary looking old fastioned LIC agent can can give EXTRA ORDINARY inputs .
6) Invest in real estate ( 2nd home ) at the locations you are able to visit at least once in month comfortably or you have someone to take care of the property. No point investing in chennai when plan to settle down in Mumbai.
7) Avoid shifting jobs after 35 age . If you plan to settle down at Pune than take-up an assignment in the same city . You may lose on monetary front as immediate impact but in long term you will definetly benefit . As will you have lots of local contacts by the time you retire which money cannot buy.
8) Be member of local clubs or association .You can even actively participate in local event like GaneshMahothsav. This again will help you develop contact .
9) Identify local NGO’s and keep participating/helping them . Once you retire you will realise that you have a place spend your free time which is also valued
10) Regularly reading paper /books etc is a good habit to develop . This is very cost effective solution to spend quality retired life independently.

MICROFINANCE : "A STEP TOWARDS MASSES....."

Switch on your TV and watch any business channel Or even turn the pages of any business magazine /newspaper. It makes you feel Wow !! Economy is doing great !!
- Stock markets booming to 19k level
- Inflation under control.
- Huge FDI inflow
- Foreign reserves at comfort levels
- Indian Companies doing overseas acquisitions
- Number of CEO taking more than crore of salary have doubled
- Number of billionaire from India are growing at rapid pace... So on.

Take a drive 30 km away from city you live in and you will see REAL INDIA. People still struggling to for basic need : ROTI, KAPDA aur MAKAN. 98% of India's population does not participate in the equity markets

The India shining appears to be poverty elimination program for higher middle class and rich class. Nothing concrete seems to be coming in for masses.

India doesn’t need mass production. We need production by MASS. Our population a strenght and not a weakness. All we need is generation of employment. Entrepreneurs will play a key role. Smart brains from IIT/IIM should look possible career option in driving various government initiatives. We need people like Nachiket Mor (ICICI) who dare to take up the jobs which have less glamour . Education Minister should spend less time on “ quota system”. We should make it mandatory for all the management / engineering graduate to do a one year assignment in rural India as a part of curriculum ( Similar to the medical ) .

We need to act quickly to spread the benefits of India shining to mass. The disparity in income levels will generate problems of plenty

Am I sounding like a politician??? No Blame Game . These are thoughts .

I want to be a part of of solutions and hence I have made a small beginning to support those who are fighting a losing battle.

I have set aside small kitty of Rs. 5000 ( pls don’t laugh ) this Diwali for initiating much talked about “ MICRO FINANCE “. This is to support my car cleaner, maid servant , Milk Man. I don’t expect them to payback but my KYC say they will. I plan to give this good news to them along with Oct end salary . This thought itself is giving me a great feeling .

Do join me or atleast share any such thought that I can implement to better the life of masses