Dhan ki baat #2 – Banker at the gates

BANKER AT THE GATES

Welcome to the second edition of Dhan Ki Baat. In the previous edition, I had written about ‘making money even when you are sleeping’.

It is a very tantalising idea and in times to come, we will explore it further.

In this second edition, I want to cover the other side and that is – ‘losing money even when you are sleeping‘.

Sounds scary. It actually is. Protecting your money from undue influence is equally important.

There are several entities out there to rob you of your money in a very sophisticated, legal way.

You deal with them on a day to day basis and in some cases trust them blindly.

The one at the forefront of this robbing act is your bank. Once you enter in bank’s official records, it is hard to come out and it is even harder to resist their advances.

It reminds of the famous Eagles song – Hotel California.

The famous line from the song –  “You can check-in any time of the year, but you can never leave.”

The song is one of my favourites but for different reasons.

Now, let me recount a brief story to you.  

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Investment decisions – How to get them right?

Investment Decisions

Investment Decisions Case 1 – Insurance Premium

A few weeks ago Rahul, a friend of mine, called up an insurance company to buy a term plan.  He wanted a cover of Rs. 3 crores for 40 years.

The agent heard him and said that for a cover of this amount Rahul would have to pay Rs. 36,068 every year as premium.

The agent then told him that he wanted to make another suggestion.

“Yes, tell me.” Rahul was keen to know.

“Sir, I will give you an option where you pay premium for only 10 years but you will get a cover for full 40 years.”

Rahul was excited. This seemed like a bargain.

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Who should be your investment advisor?

investment advisor

So, who should be your investment advisor? The mutual fund distributor, the insurance agent, the bank RM or your uncle? Let me try and get around this question by looking at the other side. But first, a story from my personal experience. The story of the Bank Relationship Manager A few years ago, I was … Read more