Provision For Old Age

[krish44]

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Do you know Montecarlo has the best slot machines?

When I went there in seventies, I could not go to casinos for enjoying

Howerever , I did play and try my luck on the machines dropping the coins .

I spent a few hours and made some money but missed my bus connection to Italy .

So back to square 1 with losses to compensate for wins.lol

 

[krish44]

One should invest in their 0-10s (parents should investfor the kids), 20s, 30s, 40s & 50s, by the time they are into their 55+,they should wind down most of the investments, book all profits & keep itin FDs.

The reason is beyond 55+, many lose interest to do anything,they have health issues, problems etc.. so when you are in good physical condition,you should get your financials completely in order. People struggle to even selltheir prime properties in old age, for some it is too much stress.

Small portion (5 to 7%) which they can totally afford tolose can be kept in investments, & if it works, they can come out ahead,otherwise, it does not matter. Even whensomeone is very good in the markets, one should NOT risk beyond an amount onecan afford to lose completely.

Everything in life is risk management – whether in lifeor financials.

Do you know my profile?

30 percent in PPF , 30 percent on fixed deposits , 30 percent shares balance 10 percent for splurging and blowing up

returns from FD, dividend from shares and property rentals run my home.

Even shares are a mix of various sectors likeFMCG, Petroleum /oil, IT , Banks or whatever appeals to me. to ensure dividend and capital appreciation

I find this is a decent mix.

I have survived harshad mehta and 2008 crashes without much bruises.in the stock market. More than anything else playing markets is great sport .

The trick is not consider shares as your own money when you play.

Attitude to money making in market , one should be detached and when profit targets set are met , one should sell off. similarly cut losses more than 10

percent. also have only index stocks and distribute over all segments.

 

[Jaykay767]

Krish –

I am all for well thought out market based investments, that’swhy I posted a thread on this subject earlier.

My advice is forthe general public, they are not as experienced like you in the financialmarkets. Both of us know, even if yougive a good stock investment advice, most will come out as losers… because theydon’t have the patience & confidence to stay the course.

Many people are tigers when they are in their Jobs, butonce they quit or retire, I am surprised at their lack of confidence. They loseconfidence in themselves & in some impulse decision invest in some ponzyscheme only to lose.

So all I am saying is one should not risk investing whenthey are not in good physical & mental condition, and unable to analyzethoughtfully their decisions.

Cheers,

 

[sarang]

Stock market is fun if dealing is done as a hobby, expecting small profits, frequent (even daily) monitoring of movement of invested stocks, and deciding target price for buy and sell. I have made a peak 30% per year return when very active, but overall return is of the order of 15% (roughly twice FD). Only last week I sold all stocks and mf and now with a clean slate, has to plan taking risk factor int consideration.

Some of the stocks which fetched good returns are dishtv, ranbaxy, gujarat flurocarbon, biocon, Rolta and a few more. These fluctuate violently with min to peak of the order of 3 to 5; to make a decent profit daily monitoring is necessary.

 

[krish44]

certain shares are held as long term investments like FMCG majors HUL, ITC or Reliance , Infosys, TCS or SBI or Pharma major. Others could be B group shares or penny

stocks just to play around. if one collects 20 to 25 percent average in long term it is good return.risks as such is very little in index stocks -almost as good as fixed

deposits.every day monitoring is only for weak hearted. once a week or ten days and reading a economic daily is good enough to keep abreast of economic buzz.

It is wise to convert once a year about 5 to 10 percent of share holding into fixed deposit to compensate for interest on FDs being used up for domestic consumption.

The over all percentage distribution of savings and investment should remain undisturbed.

similarly , in last week of march at least 1 to 1.5 lakhs of temporary money should be put into PPF account and withdraw the same in first week of april to collect

20 to 30 k tax benefit[ this means 2k to 2.5 k a month extra for personal use.lol

similarly fixed deposits should be for shortest tenure for maximum interest for benefit of compounding which most are not aware . never take 3or 5 yr long term .

always fill form for tax exemption early . Wise tax planning is a must for senior citizen

similarly make only 11 month contract for renting out property. alsp fully furnish it to get 30 percent higher return . Also give it to bachelors . The property is safer

with them. they will vacate and give it to you when you want. great wisdom got from giving property for rent. also protect against inflation by adding 5-10

percent to rent every year. also sell off before 15 years of buying to avoid problems in selling later in old age.

 

[V.Balasubramani]

So all I am saying is one should not risk investing whenthey are not in good physical & mental condition, and unable to analyzethoughtfully their decisions.
Cheers,

You are right Sir,

Only those who have fair knowledge can try this and hence I am against preaching seniors on the advantages of Investment which is an undoubtedly 'risky factor'.

It is an established fact that when age grows energy diminishes as I mentioned in my earlier post.

Hence the elders slowly start getting age related ailments like that of poor eye sight, partial hearing and start using walking stick, etc. One should consider all these factors.

I have a friend and whenever I used to meet him in functions and celebrations he never failed to give a lengthy lecture on Stock Market and proudly rise up his collar and list out the companies in which he had invested recently, and used the share other related maters etc, etc. I used to give a patient hearing though it is not my cup of tea. This friend who is a bank official availed golden handshake and retired with good terminal benefits. He was also of the opinion that playing Share Market was a great sport then!

But nowadays whenever we meet, he never discusses anything about stock market and the usual proud feeling and enthu is missing in him and on enquiry I learnt that this friend has miserably lost lot of money and got his fingers burnt.

Similarly, I have another relative whose father had several grounds at the heart of T.Nagar. But this relative lost all his prime property and savings by betting on horses which was also described as a great sport! I am told that his children are now living hand to month. Will his children praise him for his choice of selecting the entertainment : the great sport 'Race Course'?

These are only few cases which I know. There may be certainly lot like this.

 

[krish44]

VBji

Racing is a great sport.

But odds are badly stacked against the punters.

I got introduced to it by a race enthusiast in my bachelor days.

one can learn a lot about horses , the pedigree , the weight they are carrying, jockeys , owners, the tips , racing books and finally the jackpot and how to hit it

in india mahaluxmi , madras and ooty are the prime centres.

For the saturday or sunday , it can be a good time pass. Sometimes you could even win

there is more to life than upanyasams , katha kalakshepam

even the deaf and those using walking stick for support can visit races if they have good eyesight with glasses if need be.

enjoying anything requires a mind set , thats all .

 

[Raji Ram]

Perhaps Casino Maama can take on a younger spouse. That will surely increase the expenses and improve entertainment in old age.

No way, Biswa Sir! Now, Casino mAmA is almost bankrupt and depends on his sons for financial support! :sad:

 

[V.Balasubramani]

VBji

Racing is a great sport.

But odds are badly stacked against the punters.

I got introduced to it by a race enthusiast in my bachelor days.

one can learn a lot about horses , the pedigree , the weight they are carrying, jockeys , owners, the tips , racing books and finally the jackpot and how to hit it

in india mahaluxmi , madras and ooty are the prime centres.

For the saturday or sunday , it can be a good time pass. Sometimes you could even win

there is more to life than upanyasams , katha kalakshepam

even the deaf and those using walking stick for support can visit races if they have good eyesight with glasses if need be.

enjoying anything requires a mind set , thats all .

Krish Ji,

The fact remains that most lose their hard earned money most of the time and very rarely win!

It is a good sport and one can very well spend money on betting, provided he is lucky enough to have sufficient wealth earned by his ancestors and left at his disposal! People who preach others about its advantages don't get addicted to it, bcos they know it is dangerous.

I have seen people attending this great sport with all enthusiasm at the opening and one should see their piteous faces when they leave. If you want you can very well come over to Chennai and look at these piteous faces every week especially when you are too bored with looking at your own face at the mirror.lol

Persons with 'wicked mindset' may term this also as an enjoyment.

It is customary that most of whom who are habituated to this gambling, do purchase 'return ticket' without fail before entering into the club bcos they know that nothing will remain in their pocket after the game is over. Only empty pocket!!

Such a living makes no sense. No neighbour will pay respect to persons addicted to such a gambling.

Some have a mindset that knowing pretty well that such an enjoyment is temporary and shall ruin one's personal life, they still long for it like a விட்டில் பூச்சி and fall prey and suffer ultimately. It is bcos of the incorrigible mindset such persons lead 'debts ridden' and 'poverty stricken' living. Highly pathetic life!!

There are lot of other good avenues for enjoyment, all that requires is the 'right... repeat right mindset' thats all !

 

[rishikesan]

You Veterans have analysed the need for saving, but the need to enjoy life after retirement is also most important. By & large present day Sr citizens have saved enough for major Expenses like sickness & going on tours to pilgrim centres etc. What I would suggest is this. Please calculate roughly the likely expenses for the remaining period of your life & start having a happy time with your wife & other chosen relatives/ friends so that you plan the outings & everything & visit places, without strain to body & be liberal in having comfortable vehicles, even on hire & Hotels Etc.
I am sure with your balance amount would also be quite hand some, because your general attitude would have been different , may be stingy, but these days apart from your own money, the children would not mind supporting you liberally It is my experience .

Rishikesan

 

[Raji Ram]

Rishi Sir! You are a blessed soul!

Make hay when the sun shines! :thumb:

 

[sarang]

Bharat is the land of evershine sun.

Rishi Sir! You are a blessed soul!

Make hay when the sun shines! :thumb: