‘A warning sign
I missed the good part, then I realised
I started looking and the bubble burst
I started looking for excuses ‘.
– Warning Sign. Coldplay
What may seem like an absolutely unrelated verse from one of my and I lot of other peoples most favorite song prompted me to several questions. Yes when you are a financial advisor, it happens. Anything and everything can be related to money/ insurance/ health insurance and the more I see the more I realize in our day to day lifes how much we miss the little warning signs.
The looming EVIL:
Every year at the end of December or as early as November each one of us receive an email from our company HR with that evil message. ‘ Proofs to be submitted by January first’. And then our third eyes open and very similar to Shivas tandav, a lot of damage is done around, but in this case more damage to ourselves.
We get into manic panic mode and make some decisions that we consider Wise:
– Cut a cheque and give that agent who waits for you in the lounge area of your office with a perky smile a tie and a bunch of forms and promises that you will get your proof in a day
– Insurance! I mean come on we all have insurance right! the one that we took at the beginning of the year! That endowment insurance that ULIP policy which we don’t understand a word of .
– PPF! I mean , it cant get more simple! And dint our parents always vouch for it
– That 5 year FD! Its just 5 years! They will just pass!
Or even wiser decisions! Lets just pay the tax ya! How does it matter! when we spend so much anyways!
At this point I would call for an INTERVENTION!
We often disassociate our financial investments from our regular goals and wishes. And I assure you, you can relate them to one another
That International Holiday -> ELSS Investment
Childrens education/ Retirement/ House Etc -> PPF Investment
Risk to Life -> Life insurance premium
Funds for a wedding/ major purchase -> 5 year FD/ NSC Certificates
It won’t harm to put some thought before we actually start investing! And start investing we should at the beginning of the Financial year and not at the end of the year and make messy decisions.
Watch this space out to simplify your tax saving investments.