Very true. In fact nobody like advises. We are grown up. It is also true that we need more time to think and analyze, as nobody understands our life better. But the most important question is, how much time you need further?
Capital loss is greater than Yield loss
Most of us between the age group 25-35 are in the tireless process of finding an investment opportunity which can fetch greater returns. Also we will come across advises such as real estate, share market, mutual funds etc. But the contradiction is, we will not invest anywhere! If we invest also just a meager amount for just 2 years for experimental sake only.
Let us look at 2 scenarios of capital loss.
scenario 1 – zero balance accounts
During last 10 years of our career, an average 30000/- (rupees thirty thousand only) per month is likely to be deposited in our bank account, as salary, by our employer. If we calculate 30000 p.m x 12 months x 10 years = 36,00,000 (rupees thirty six lakhs only) has come and gone through our own account. In actuals its more; because we are not including the salary hikes, bonuses and other incentives. But the eye opener here is, how much percentage of that amount still remains in the bank? For many of us, the accounts stand out as zero balance accounts!
We are ready to forget the time loss, as the most potential 10 years of our life in earning that sum also is lost.
scenario 2 – addiction for loans
For many of us, loans are an inevitable part of our financial life; personal loans,car loan,credit card loans etc. But do you know how much are we paying as interest. It is almost 10% – 16%. The capital loss of this sort, which directly affects our reserve money, we tend to forget.
You can defend me by the list of roaring life expenses, increasing taxes, bad political administration and so. Some of us are even ready with their armour of disbelief, huge return real estate stories and other economical theories. But the reality is, we lost!
Awake, this is the time
An LIC policy investment will get you guaranteed 6%-8% TAX FREE return, which in many scenarios is better than 11% taxable yield.
Defend yourself against the evils of zero bank balance, paying high interest, zero pension and nil protection.