Sunday 30 October 2016

What if I screw up?

Life is unpredictable

And one often screws up.

Getting screwed up is bad. But losing money in the ordeal is worse.

So what could those scenarios be:



a) Divorce: Most men in bad marriages stay married to their wives as they don't wish to lose money. As simple as that.



b) Stock market: As the bull market will come to close and the dreaded bear will raise its spectre, there will be stories abound about people losing huge sums by having invested in dodgy penny stocks.



c) Pledging house for a loan: You are a businessman. Last few years have been good. You wish to scale up with the help of a bank loan. You pledge your residence as collateral. A black swan event causes your biggest orders to get cancelled. You turn homeless



d) Health hazard: Your treatment was taken care by health insurance. But what about subsistence? You are the only working member of your family.

An emergency fund is a good idea.
But what about wealth creation?
Will it get stalled because of this?

How about an SIP which will keep going irrespective of any eventuality that can befall you.
According to the calculator, a SIP of Rs 2000 achieving 15% CAGR can be worth Rs 1.4 crores after 30 years.
This is worth Rs 18 lakhs as of today.

It may just give you a second chance in life.

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