Journey of an imaginary investor!

POSTED BY Jagoinvestor ON January 15, 2011 COMMENTS (114)

What’s the worst that can happen? A lot of my friends and readers ask me this question. What if I’m not disciplined? What if I buy a house beyond my means? Or invest money based on what my trusted family & friends tell me (even if I don’t have a clue)? What’s the worst that can happen?

Well, rather than sitting here and crunching numbers and showing you my results with incomprehensible tables and then trying to convince you, let me tell you a story. Remember Arush? Akshay Kumar’s ‘panauti’ character from Housefull? Let’s play God with Arush’s life.

No more strokes of good luck for him, unlike the movie, no good/rich friends or acquaintances. No exotic locations or countries either. Instead, let’s put him into our shoes, – our average, Indian, everyday-joe, shoes. And let his panauti streak run its course.

Let’s see what happens when life becomes brutal and how he pays for his ignorance and bad luck.

Imaginary Investor journey

The year 2011

Arush is a happy-go-lucky 28-year-old. Perfect education, close-knit family and a great job, with a salary that’s better than 95% of other people in our country take home. Newly married to Sandy! Great job! DINKy income! Life’s great! The sky’s the limit!

He has just taken a home loan for a spanking new 3 BHK in a cushy, lifestyle complex! A house is obviously needed! He needs to keep up with his cousin Ajay’s lifestyle too! Ajay has a duplex, dammit! And to think, his old friend and classmate Manish, suggested he rent a smaller house… Damn you, Chauhan! What do you know?

“Renting is so beneath me! And it’s not the done thing either! Such a cheap idea! What would people think? Forget people, what would Sandy think? Forget Sandy, what would her Anna think?! I’d be a laughing-stock, I tell you, laughing-stock! Nothing wrong with a big house. Nothing has gone wrong yet! Nothing can go wrong! Everybody does it!”

Harish mama’s sold him a few money-back policies. OK, a lot!

Arush doesn’t quite want to invest. He doesn’t understand the fundas. But, his pappa made sure Arush bought them & helped his mama out in his bad times. Akhir Apne hi Apno ke Kaam Aate Hain! and come on man, everyone has invested in money back plans.

They are “safe”. They provide the “best returns” (Agent mama’s words obviously). Pappa’s bought it, Pappa’s pappa bought it, Kaka bought it, heck even Nana has it as a part of his portfolio! All of them, obviously cannot be wrong! And Mama obviously won’t charge commissions on it, will he? It’s a gift for Arush, he’s family after all!

Is his Insurance Cover enough?

Arush feels his jaw drop, when Manish tells him, his insurance cover should be worth 1.5 crores because his family expenses are 40k/month. (It can be reduced to 30,000/month if he really tries, but who cares? The salary is going to increase yearly & he is the top performer of the team).

It hurts sometimes, that he hasn’t built a good corpus yet, but that’s fine! Anyways he is going to “invest systematically” next year onwards. It’s his New Year resolution! (This incidentally was last years resolution too).

Listening to Manish for once, Arush goes inquiring about the term life insurance plans. Guess what he finds… He has to pay only Rs. 20,000/year as premium for Rs.1.5 crores!, find your premium here

Wow! & Double Wow! My family will not have a single worry! So much security! But wait! What if, God blesses me with a long life and doesn’t kill me before the tenure ends? What happens to all my hard-earned money, I paid as premiums at the end of tenure? I don’t get the money in the end if I don’t die? Ridiculous!

What’s the use of the product then? Total waste! (read more on this). Better save 100% of my money then! Best ROI”. Suddenly his probability of dying has come down, I am not sure HOW!  Arush doesn’t want to lose 6 lacs in these 30 years. But he doesn’t realize that 6 lacs won’t amount to anything at all by 2040!

What about health insurance?

“Health Insurance? What’s that? My company already provides cover to me and my family! 2 lacs for everyone! Combined! OK, I know its not much, but I am so healthy, I go to gym and I drive safely, almost no chances of accident”

What about other people’s driving skills? Arush will feel smug & smart as long as nothing untoward happens. All it takes, is one minor illness, one small accident… to turn the whole thing upside–down! What if the expenses run to 6 or 8 lacs? (It very easily could!) Every one of Arush’s ‘plans’ for his family & himself will be really messed up.

And guess what? To top these hijinks, he goes out and buys the “Best Mutual funds” How does he know? He did a lot of ‘research!’. Research consisted of looking at bright shiny ads on billboards & on TV & in the paper, googling it, and checking out its performance over 6 months. (56%!) Arush is so happy! He’s already making vacation plans!

But wait? What about actual, boneheaded mistakes?

He recently bought Reliance shares a couple of days back at Rs. 2000… & now it’s at Rs. 1959. “Oh man! I feel so bad! I’m such a loser! Darn, all this tension has made me skip lunch! Think I should sell them tomorrow itself!”.

Arush doesn’t need the money tomorrow. He knows that equity gives good returns in the long run. Yet, he will still sell his shares tomorrow, because he doesn’t want to be a loser. “Ugh! Still feel so bad! How could I have bought something like this? I’ve been a winner all my life!

In studies, job interviews, work… I have always won! I cannot make mistakes. So this is how Arush is! Confused, yet unable to listen to good advice, unable to ask for help, a little too lazy when it comes to his own future, too impulsive, always wanting to be instantly gratified, a little too proud. Let’s leave Arush now, & play catch up with him at some time in the future…

The year 2014

Booya! The markets are zooming… The Sensex has crossed 40000+!!!. “I always knew this ‘Sensex’ company would rock! Just look at it! See its performance! Wow! I’m so good. I’d like to see the look on Manish’s face now! Calling my decisions, ‘unplanned!’, ‘with no understanding!’, ‘random!’ & what not! There! I showed you, Chauhan!

Investments have tripled. Just one more week now, and I will sell everything, and cash out!”. Oops! Something bad has happened! Markets are crashing!

15% down in a day. “It’s just ‘profit booking’”, Arush justifies to himself. “India is bound to shine in the long run!”. 1% up next day! , “See! I told you!” , 10% down again the next day! , “Chinese real estate markets are the reason! Our markets are de-coupled! It’s FII!” (that’s Arush talking through his hat, trying to show off!) . He tries to justify to himself and others around, that things will soon be better! But, his investments are now down 50%! Arush wakes up and scrambles wildly. Arush is in a blue funk!

Denial Mode

“I can’t sell right now, dammit, but I want my money back!” (Your money?) “It was 10 lacs some months back and today its just 5.1 lacs! Manish says even now, my investments are have given more than 25% return on a CAGR basis… But, I won’t take it! I am a ‘winner’! I won’t take less than what it has touched previously!”. Markets tank another 5% after that.

“Oops! I should have taken that 4.9 lac loss earlier, now its 5.1 lacs down the hole! Anyway, what’s the use of selling now? Whatever could have happened, has already happened!

Let it run its course. I know it will come back to it’s earlier level! And anyway, I am a long-term investor! Manish also says I should invest for the long term! (feels so nice somewhere in my heart, when I said that)”

A few months down the road… Arush suddenly needs the money for some reason in the next month or two. He decides to surrender get his endowment/moneyback plan money back now, since the matter’s urgent. Finding the agent is like tracking a lost animal in the forest… in the dark!

He finds Agent Akhiri Pasta after nearly a week of persistent hunting and calling…

Arush : Hi Pasta, remember me, Arush here, where are you man?

Pasta : (Obviously, I remember you, you dolt! You were my 1000th policy buyer which helped me win the bahamas trip)

Of course Saar! How can I forget you saar?

Arush : Hey Pasta, I need a favor yaar, I have a financial crunch right now, so I’m wondering If I can surrender my policy and get my money back .

Pasta : Oh, why not saar? We are always there to help you saar! You can take your money back… Come to my office in a week and lets surrender your policies (the initial years of high commissions have already passed, so I’ve already made my money! Hehe!)

Arush : Wow! You guys rock! Uh, how much will I get back?

Pasta : 60,000 saar!

Arush : No no no, hehehe! I am not taking about the interest part yaar. What is the total amount I get?

Pasta : (Sigh… Yes you idiot!) Its 60,000 only saar, Total amount saar!You are aware of surrender value before maturity, right saar?

Arush : Hey man! But, but, I paid 1.5 lacs in premium in last 5 yrs, what are you talking about ?

Pasta : Saar, didn’t you sign on those documents where we clearly mentioned that surrender charges will be blah blah blah… Have a look at your Documents saar. We are not doing anything against our rules. It is as per our policy saar, which we believe that you have cleared read and then took the policy ! .

Arush : Hmm, let me go look at those documents! (while wondering which part of the world are those documents in now)

Let’s just hope Arush copes with this panauti and catch him 10 years down the road

The year 2024

Arush’s life is going on, as usual, chal Raha hai, lots of expenses now! Children have grown up, a career that was “awesome” around joining and then “great” after a few years have turned “ok ok” right now.

After about 4 yrs into his ‘awesome job’, he finally realized that he was at the wrong place and couldn’t truly excel, but then it was too late. Can’t take any risk now, can’t rock the boat! Who will pay the Home EMI, the Car EMI, the jeans EMI and the EMI for the vacation they took last year?

So… chal Raha hai, chalne do! He drags year after year in the same job, which is now drab and uninteresting.

His home loan interest has gone to its highest level (which he never thought about, while taking the loan) and hence EMI’s have crossed their budget (the one he had originally planned.) While all these issues are haunting him, with all that tension, another serious incident happens!

An auto hits him while coming home. He’s critical! Arush is rushed to the hospital, there’s a month of Rona dhona, 9 lakhs of expenses, (come on guys, we are in 2024 now, not 2011). The company pays 2 lacs (doesn’t seem like a lot now, does it?), and Sandy organizes 7 lacs from his own wealth by breaking a Fixed deposit and selling some mutual funds.

But hey, look at the brighter side too! He saved 1.5 Lacs in Health Insurance premiums all these years… Did he not? (17 most asked questions in Health Insurance)

The year 2034

Life is really cruel to Arush, He never returns to home one day, He dies in another accident, a victim of a mishap. His insurance policies come to rescue. The company settles the claim of 10 lacs very fast. His family is in a deep problem though, Sandy cannot work, 1 Child is in 7th class and the other one is ready to go to college!

There are 20 lacs fixed bank deposits, but wait, the home loan still runs for 10 more years! All the money in Fixed deposit goes towards paying off that debt. There are other investments, worth 30 lacs. Let’s use that money now! The family life-style has sky-rocketed like anything in the last decade, & monthly expenses are around 80k per month. How will they manage?

Bad Financial Life signals

I personally see just one solution. Lets them eat once a day and stop the kid’s education, if they want to survive with that leftover money!.

30 lacs in the Bank generating a monthly income of 25k per month (Only if interest rates offered on FD’s are 8% in year 2034!, which is very rare !), all they just have to lower their standard of living, such an easy thing to do! . But hey, look at the brighter side too!

Arush did a very good thing, He saved so much in his premiums by not taking Term Insurance! Smart Husband, I wish every woman gets a husband like this and every child should get a Father like Arush.

Its called being mean, who will suffer now, Arush? NO!

The year 2044 (an alternative scenario)

Imagine if Arush didn’t die! That panauti didn’t happen and he just grew old like the rest. Its Retirement time, the time to reap benefits of one’s investments throughout life! Arush hasn’t actually accumulated a lot of wealth for his retirement! He didn’t take it seriously all his life.

Overall investments in mutual funds were never left to rest so that they could compound well, major investments in Insurance Policies and Fixed Income instruments never actually gave a better return than inflation. Even though his wealth has grown to close to 1 crore, it’s actually peanuts now, in 2045!

His expenses are Rs. 2 lacs/month! How did he forget about Purchasing Power? Even though this 1 crore looks big enough all those years ago, this will not give him more than 80k per month. Even if he lower’s his standard of living, he can’t live comfortably! He is retired now. Too late worry about these things!

Everybody wants to enjoy their life after their working years!

But for poor Arush, there are few choices! None of them, good! He can be dependent on his children, or he could lower his standard of living or cut off a big part of his desires after retirement or worst case, convince himself that he is interested in some part-time job which he can do comfortably. God forbid if there’s an unforseen medical problem which he didn’t account for, at this stage in life!


With this article, I have tried to show you how things can go wrong at each point in life and what your financial life can look like if you mess up with your money. It’s the time to take care of your finances and plan for it well! . Yes!

Situations are exaggerated in this article. It was just to show you the worst that could happen. Beware! Be Prepared! Be Wise!

Share your comments on what do you think about the story?

114 replies on this article “Journey of an imaginary investor!”

  1. Abhijit says:

    Nobody will like to become Arush in real life…Thanks for the eye opening article.

    1. Thanks for appreciation Abhijit

  2. Rajendran says:

    Nice article. I liked the way you wrote this article.

  3. Durga says:

    Excellent article sirji!! I like the comment “govt should make term insurance policy compulsory”. You are simply rocking 🙂

  4. Aparna Nema says:

    Really Really Good One.

    Manish, U r really good in explaining the things.. It seems u know very well that this method of explanation by story-telling works best not only for children but for Grown Ups too.. 🙂

    Nice One.. Thanks..

    1. Thanks Aparna , I know stories really work well in explaining things 🙂

  5. radha narayanan says:

    Hi Manish!!
    thank you for such beautiful eye opening articles.i wonder why no one teaches(in India) financial planning to us as kids itself,we are taught mantras,behaviours,cooking,etc…but not money management ….as if it is some sort of plague.

    1. Radha

      True .. school is the first place where it should start .. atleast at basic level if not advanced !


  6. jinal & vikas says:

    hey really welll written… Gr8 work… keep it up…!!!

    1. Jinal

      Thanks 🙂 . Keep reading . Are you able to relate it to your life ?


  7. lokesh says:

    Hi Manish,

    i have been working very hard on financial planning but failed to take action yet. i have sent you an email containing an attachment. could you please review the same and advise.


    1. ok , but i have not got any mail from you .


      1. lokesh says:

        i have resent email at

  8. bharat shah says:

    i don’t know, but i feel, i have read somewhere on net the same or similar article. is this one your repeat one? anyway, thank you for the article.

    1. Yes , it was written earliar , but I re-wrote it again 🙂 . Its a re-post


  9. Ravi Shankar says:

    Awesome post as always from Manish !
    Keep up the good work and enlighten more people…. Tremendous work, hats off to you mate …
    – Ravi

    1. Ravi Shankar

      Thanks a lot for appreciation . Please spread the word


  10. RaviShankarKota says:

    Thanks Manish for a great article.

  11. Hi Manish,
    Fantastic article.Though it scared me very much , it was a eye opener.So many times when I read your blog , I want to learn Financial management skills;you know but in reality I am unable to do so due to work and lack of enough time.
    Once again thanks.

    with Regards,

    1. Ravi

      What all you need to learn ? Take some dedicated time on weekend . If you go for movies or outings ,it means you have time


  12. Dear Manish,
    congratulations for writing such a wonderful and thought provoking article. Keep it up

    1. Steven

      Thanks , Nice to get a comment these days from CFP’s . It really adds value to the community .


  13. Parikshit Gohil says:

    Hi Manish ,
    It was really an eye opener … Your blogs are always very informative and sometimes scary too (like this one) 🙂 I have learned a lot from reading your as well as subramoney’s blog. and I am still in learning phase .
    The only thing I know is that I need to save and invest to grow my money . Your blogs have made my learning faster, Thanks for that.


    1. Parikshit

      Great to hear that . Learn and spread the learning 🙂


  14. Amy baghla says:

    Hey MANISH, u r simply great.i m regular reader of ur articles frm last 6-7 months.u hv really changed my financial thinking.keep rocking man.u r doing great work man.

    1. Amy

      Thats great to hear 🙂 . Keep reading and spread the knowledge 🙂


  15. Ryan Fernandes says:

    Hi manish,
    Gr8 article! I am a big fan of ur blog. keep doing this good work.
    All the best…


    1. Ryan

      Good to hear that .. Keep reading 🙂


  16. Amit says:

    Wonderful Article Manish.

    What’s your take on the newly introduced IDFC bonds. These bonds will help in saving tax. As far as i know it is giving 8% returns. Can i invest in these or wait for some time, just to see if somebody comes with better returns….

    I already have invested 1 lakh for tax purpose….

    1. Amit

      You should read . Note that the interest is taxable in these bonds and they cmoe with 5 yr lock in


  17. Nathan Shetty says:

    Rich Dad… Poor Dad.. time to learn to make money work for you..

    1. Nathan

      Thanks for your comment 🙂


  18. S S says:

    “panauti” ?..whats that?

    1. Shweta

      Panauti means a person with unfortunate luck , everything which happens in his life is bad , worst case !

  19. Sanjay Sutar says:

    Hi Manish,

    This article is gr8. I am really glad to find that my portfolio is in good shape and I have’t watsted money in worthless financial products.

    Still some room for correction in portfolio. Will do that soon.

    Thanks for the article !!!!!!

    1. Sanjay

      Great to hear that .. more than doing right things ,one has to avoid doing wrong things .. which you have done it seems !


    2. chetan chatrath says:

      Hi Sanjay
      Its really nice dat ur portfolio is in good shape. I also hoping and going through these kinda articles and trying to make my portfolio go better as well…
      Thanks for your post….

  20. Vinay Sarda says:

    Good Article writing…..

    What will Arush do in the retirement is Reverse – Mortgage its property which might had gone up in all this years. ( From 50 Lacs to 5 Crores) And till that time his Son had start earning (so his son will take new Home Loan and All that, so no need to be really worry for Arush… I think so.

    If India is growing than everything is right whether you put up in Equities Directly or through MF, ULIPS or in Real estate etc.

    The Real problem will occur when India start under performing coz of all this bull-shit Corrupted Politcians and Bureaucats, which Indian People had to pay price for.

    Only Arush might face some serious problems when he dies pre-maturely w/o taking any Term Insurance. Rest all is fine.

    So Take TERM INSURANCE accordingly after calculating all Assets and Liablities . It’s a must for all. – THIS WAS THE MORAL OF THE WHOLE STORY.

    1. Vinay

      The character Arush was wrong from all the angles in the story , it demonstrates the worst case hence what you said is correct


      1. Vinay sarda says:


        Actually GOVERNMENT OF INDIA in this Budget should make Term Insurance compulsorily that too 10 times of Income Shown in Tax Returns.

        Like Motor Car insurance it should make compulsorily coz Life is more important than Motor Car .

        Even Premuim rates will come down by around 50 % if it have been implemented.

        1. Vinay

          I would love to see that 🙂 . But then LIC will win the contract !


          1. Vinay sarda says:


            How LIC will win ????

            In coming 5 years all these Public Sector Enterprises will underform coz heavy load of Workers / Empolyees working there which will make them less competetive in future best case example is MTNL where 55,000 empolyees work and give service in only Mumbai & Delhi, whereas Airtel provide all over INDIA with only 15,000 empolyees.

            Same is the case with state owned LIC…. it will never compete with PVT Sector Insurance Companies.


            1. Basavaraj says:


              You are comparing the employees strength in telephone sector that is good, but in insurance industry main force are not employees it is advisors and agents. In that case LIC have huge penetration all over India. So it may overtake the private insurers. But all these are hypothical assumptions which we are discussing about. Goverment may bring regulation about mandatory Term Insurance or not is our own imagination. Let us hope it to happen. What is your saying Manish??

            2. Vinay

              Why do you say that in coming years public sector companies will underperform pvt companies ?


  21. neeraj saini says:

    very good and an eye opener article, lage raho manish bhai…………

    1. Neeraj

      thanks 🙂 . Keep reading


  22. suhag says:

    what a wonder manish

    Superb the story which u have written is real and anyone can go as per this as u never know how life could change any moment. no 1 is least bothered in investing and if investment comes i see many people coming and sellinf that bloody insurance plans and ulips. no one is least bothered in learning money management.

    Also IRDA is the real culprit as we can still misselling is going on but all they do is just say 1 sentence u should have read the policy documents before buying the policy and thats it.

    plz gimme your mobile number manish wanna talk with you

    1. Suhag

      Thanks for your comment 🙂


  23. Meena Shivram says:

    Great article Manish!!! Never read anything so entertaining as well as insightful….

    1. Meena

      Thanks of appreciation 🙂


  24. Jig says:

    Excellent Job Manish by knowing wats in the heart and mind of comon indian man…

    This is really true as when i asked my father that i need to go with Term Plan, He is surprised and really disturbed when came to know that i am gonna just spending 15k per year without getting anything at the end.

    Well 30 Lac SA for 30 Year term plan with ROP option with 13k PREMIUM is ok?

    Once i will get non medical basis term plan with ROP option, Later can i take another higher SA with medical /non medical ground?

    1. Jig says:

      My comment is awaiting moderation.. I hope i didnt put anything wrong there.

    2. Jig

      I can understand your situation . 13k premium for 30 lac SA means you will get 4 lacs at the end . Just see how much will you save per year when you dont take ROP term and if you invest that difference in some other product like PPF or balanced funds for 30 yrs , can you make more than 4 lacs, I guess you can


  25. venkatesh says:

    Fantabulous Article..

    1. Venkatesh

      Thanks 🙂 . I am sure that this article has exaggerations in it and no one will face all the bad times mentioned in this article . So how much of it you will relate to a common man . 30% , 60% or 80% ?



  26. Dr Firoz says:

    As usual, an excellent article Manish…

    I really liked the part when Harish mama sells him plana ‘without commissions’ – apna famiy!!!! I feel this is what is going on..yesterday i took a term plan from LIC and i have never faced an agent like this one who was so reluctant.

    Anyway, i hope this article will open the eyse fo all so called ‘young successful people’ and they will realize what life can become after 10/20/30 years.

    With your permission i would like to share a link “”

    1. Dr. Firoz

      Thanks for your appreciation . The fact that you are able to appreciate and understand what this article is trying to convey is in itself a great thing .


  27. Sumant says:

    Awesome post. You rock!

    1. Sumant

      Thanks :). Do you see people around you whom you can relate this post with ?


  28. Abhi says:

    Hi Manish,

    Kindly have a look at following two more links.

    I feel taking a top up is better idea instead of taking one more health
    insurance on own which is in addition to health insurance provided by employer.

    Awating your response/comments.


    1. Abhi

      As per Health insurance rules, we can not claim 100% money from both the insurers like we can do in Life insurance .

      So one should take 2 policies just incase one wants to split it. so if you want to take a cover of 5 lacs max , dont take 5 lacs cover from both , take 2.5 lacs . Yes it can become little cumbersome to claim from both companies .


  29. Abhi says:

    Hi Manish,

    I found that, If anybody is having two health insurance policies from two different vendors then
    claim settlement is not that easy.
    Have a look at following link and let me know your feedback


  30. subramanyam says:

    Saale Manish kisi ne suicide kiya to police mere ghar ayega…meri vaat kyon laga raha hai?

    1. Subra

      hehe .. ye to “Diversification of Risk” hai sir 🙂


      1. @ Manish & Subra

        It sounds like “Die-verification”

        1. Jason says:

          ‘Like!’ Hemant’s comment 🙂

  31. Amol S says:

    Dear manish,

    what a article…! wah…from last so many days everyday I am spending some time reading your articles…off course, I do want to implement them so gathering the info to refine my thoughts, understanding the *power of compounding*!

    Thanks manish!


    1. Amol S

      Thanks , I hope you have got the understanding by now !! . didnt you ?


  32. Himanshu says:

    Hey Manish,

    Can you please write something on Jeevan Saral (LIC’s policy). I need to make up mind for this….


    1. Himanshu

      i will do detailed analysis but it will take time . for now i would say dont take it .


  33. tarun says:

    Gr8 article manish ! I am a big fan of ur blog. keep doing this good work.

  34. manish says:


    Thanks man 🙂


  35. Mitesh says:

    Hi Manish, A awesome article , liked it too much.

  36. Manish Chauhan says:


    thanks .. I will take care of those agents .. let them send 🙂


  37. Arun says:

    Hi Manish,

    Long time again. That was a toungue in cheek article. The LIC Agents are baying for your blood. Watch out!! They are sending autorickshaws looking for you 🙂

    You are so right about the indian mentality. I hope people change for the good after reading this.

    Take Care

  38. Manish Chauhan says:


    Anytime 🙂


  39. Anonymous says:

    Thanks a lot Manish for the reply and the XL sheet. Its very good


  40. Manish Chauhan says:


    Thanks 🙂 . I am sure you will make others read this 🙂 .


  41. Charu Gupta's Blog says:

    Hey an amazing post and such an eye opener! I know that mentality is there with soo many Indians….

    Loved the humor…it really made me laugh…good job…I'll make everyone read this article!!!

    Warm regards,

  42. Manish Chauhan says:


    2 things

    1. If you are not happy with your job and feel like you are dragging , seriously think about some other career and gradually move . It will be tough and will take time , but its worth . Trust me .

    2. How much money do you need to retire , its very simple , How much money do you need which can provide you same life style which you are enjoying now . The calculation can be done easily .

    Download a calculator I made from


  43. Tejass says:

    Hi Manish,
    Another awesome post from you. Thanks. Btw I have a doubt on the same lines. I am 33,have a small baby girl (dont intend to have another one). I have good savings with exposures to FD,PPF,MF,Direct shares. Of late i have not been enjoying what i am doing and hence planning get out of my job. The money is good. But if u don't enjoy, then its not worth it. Ofcourse it might have to drag for a few more yrs. My question to you is what do u think is a decent money to retire with? (I know this depends on several things. But roughly what do u think ? Is 2 crore good enough? Say u put 1 crore in fixed risk free schemes like FD and have the remaining in liquid or invest in MF stocks etc

  44. Manish Chauhan says:

    @Khalid and Anu

    thanks guys .


  45. Anu says:

    Hey Manish, Just got time to read your latest post. As always i loved this post, it was indeed an eye opener. shall forward it to all my friends, along with the link.

    Wondering if you are going post some sample portfolio.

  46. khalid says:

    Hi Manish

    Nice post, money management is very much nrcessary in ones life, either he or she will bound to face a lot of trouble in rainy seasion and when the rainy seasion starts nobody knows, so your explanation is superb and eye opener too.

  47. Manish Chauhan says:


    I have written several posts for education how a "common person" should invest . Take some pain to read them all . It will take time ..

    This post is just to make a point and that it .


    thanks 🙂 . a comment after a long time from you


  48. Swathi says:

    Good article Manish.I am also planning for CFP but i haven't began my preparation.

  49. Anonymous says:

    it doesnt make any sense… so what are you saying finally ? where should "the perfect person invest ?

  50. Manish Chauhan says:


    Thanks , you are correct . Money management is something we should always learn first . Check my ebook on stockmarkets . Check "Download" section at the top.


    No , It was not because of my clients portfolios 🙂 . but overall its true for an average indian .

    Great , also put my link there and ask them to subscribe to the emails notification 🙂 .

    @Srinivas Bhat
    I am sure 2nd thing is rare , first you can get at lot of places .


    Nice .. How many Modules have you cleared ? I hope you are reading Financial Planning journal .


    You are correct . Agents are to blame , but some times ever they dont understand if the product is good or not . Many LIC agent still believe themselves that Endowment polices are great and term is junk .

    Make sure you drag your friends to this blog and make them read . They will be grateful to you .


    I gave a "Contact Me" link there .. Please contact me offline .. Mail to


    1. Basavaraj says:

      Hi Manish,

      I want to share one good news about me. I joined CFP with Mandar and taking training under Padmalochi Madam. I cleared two modules (Insurance and Retirement). Preparing for the third one. All the credit goes to you as I heard about CFP first time when I attended your presentation which you gave in Sharekhan office of Trilok. I am a great follower of your blog also. Thanks once again

      1. Ok nice .. good to hear that .

        So you are already an AFP 🙂 . I am not even a AFP at the moment 🙂


        1. Basavaraj says:

          Yes, but want to work under CFPs to gain my experience. But dont how and to whom I have to approach.

          1. What kind of work are you looking for from the CPF’s , what kind of experience , what expectations do you have ?


  51. Anonymous says:

    Hi Manish

    really a great article By the way you talked about paid clients Can you please the details & cost part of It I am in Bangalore right now , definately not type of your perfect person ,But can improve from Current scenario

  52. Jagbir says:

    Good Article and this is absolutely true. When I was in search for good term insurence policy, most of local LIC agents which I contacted, declared that LIC doesnt' have such 'policy'. One guy accepted that he is not willing to sell such 'low' paying policies to anybody. Many a times friends asks me suggestion about insurence and when I told them to go for 'term' insurence, they amazed to see that there'll be no money back on maturity. They dont want to look at the real picture and benefit. after a while, most of them inform me that one of their 'relative' has given them 'best' money back policy.

    1. Basavaraj says:


      I am with LIC and I think so many agents dont know that they will get the same commission what they will get in traditional policies (hefty 35% for first year). Instead of selling those Unit Linked if they sell the Term Insurance then they will earn more (But to investor it will cost more, as the premium is high compare to other insurers). So the basic reason with lot of LIC agents is ignorance about their own products and not guiding the investor with suitable products.

      1. Basavaraj

        How will they earn more by selling term plans ? If they sell 20 endowment in a year , they earn a lot as the premiums are high , but if they sell term plans , even if the percentage is same , the premium amount is lower , so they will earn lot losss. right ?


        1. Basavaraj says:

          Nowadays selling of Term Insurance is more profitable than selling of ULIPs. In this context I told that it is actually profitable.

          1. Basavaraj

            I am still not understanding why are you saying that , give an example !


            1. Smart Singh says:

              Is your observation true for LIC only or are you generalizing it for all term plans?
              I could believe it to be true for LIC, since they are charging more than double the premium for the same term plan, when compared to online term plans 😀
              No offence, but LIC’s term plan doesn’t make sense to me. And I don’t want to get into the claim settlement ratio debate.

            2. Smart

              I think its mainly for LIC , because the agents commission in ULIPs are very less like 7.5% in LIC unline 30-40% in Pvt Insurance companies .

              @Smart Singh , why dont you want to get into claim settlement ratio debate ? I think thats the core of the matter and public is sensitive about it,. What do you have to say about LIC claim settlement ? Is it deceptive as per your thoughts ?


            3. Basavaraj says:


              As Manish told, the reply to your post is related with LIC only not with other players. You may go with the cheapest term plan, but again in that case also I agree with Manish that we have to consider the claim settlement ratios also.

            4. Smart Singh says:

              Finance is more art and less science. This is so because we all try to make sense of the limited information that is available publicly. What we call analysis, is actually personal belief.

              I, personally, buy the argument that private companies are too young to achieve a healthy claim settlement ratio. Quarter after quarter, this ratio is rising for all pvt players. And since CS Ratio is making more headlines, pvt companies are actively trying to pull this ratio up.

              That said, I always advice people to buy at least two term plans. If the probability of getting screwed by one insurer is 5%, the probability of getting screwed by two is 0.25%.
              Instead of buying an LIC term plan with a cover of Rs. 1 crores, I would buy i-Protect from ICICI Pru and Kotak Preferred with a cover of Rs. 1 crore each. I will still end up paying less premium than LIC.

              LIC needs to make its pricing more competitive.

            5. Basavaraj says:


              I agree that LIC have more premium compare to other players in the industry while considering the Term Insurance. What you told is also correct, combination of both LIC and with private insurers.

            6. SmartSingh

              Agree with all your points . Just wanted to know your opinion 🙂


  53. Astha says:

    gr8 article Manish! Last month, I enrolled for CFP course and I am a regular reader of your articles. My financial investments are a big time mess. Thanks for the insightful information!

  54. Srinivas Bhat says:

    Hilarious!!! I really like your blog.
    One for the insight you provide about the financial products and investment options available in the market
    Two for the Simple and plain jargon free content.

    Keep writing buddy..

  55. Siraj says:

    Manish be careful.. Too many English gurus nowadays.. We all need your valuable advice man..
    excellent article.. Ill email it to all my friends

  56. - Financial Planning Demystified says:

    Hi Manish,

    Simply AWESOME…. Excellent post, and written in a very entertaining way!! I smiled so many times while reading!

    I am sure this was written in utter frustration, seeing some of your clients' "portfolios" 🙂

    Way to go…

  57. ELANGOVAN M says:

    Dear Manish,

    I heartiest congrtulations for being eye opener for all of us. I am a scientist, working in Hyd. After reading your article, i have started saving, investing in mutual fund, retirement fund, health insurance and watching stock market. Though, we learn so many skills in colleges, we never learn money management, which is the most important lesson in ny body's life. Keep Rocking man, you have fantastic writing skills. Keep it up Manish!!!!!!!!!!1

    1. RaviShankarKota says:

      I join ELANGOVAN in thanking you.Its really eye opener!Your are really having great writing skills.

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