I am writing this article mainly for the benefits of the young generation. At the same time, I’ll request the parents of them to pay special attention on it.
The easiest way of success is to follow the pioneers on the
field. All the legends in the investment field gave most importance to time
frame. But now a days young people not very much keen for long term commitment.
Therefore, they try to avoid it. I’ll try to solve the issue with – SHORT TERM
COMMITMENT BUT LONG-TERM RESULT.
It is true that now a days young generation faces too much
hurdles in the working field. Majority of them are not sure about what is going to happen
next. Therefore, they should use their “PRESENT” in the right way to frame
their future.
If I present a monthly SIP plan @ 20K for next twenty years
to the juniors, probably majority of them will not be very much interested. Now
if I change the investment time frame to only 5 years, many of them will be
interested. If they invest for 5 years and wait for another 15 years, whole
life they can enjoy monthly payout of Rs 57K *. In addition to that nominee
will enjoy the benefits of Rs 89 lakhs(approx.).
If they invest for monthly 5K, they will receive the whole
life payout of Rs 14K and nominee will get approx 22 lakhs.
The main challenge in today’s life is – LIFE STYLE EXPENSES.
In case of juniors, it is much higher than the seniors. In addition to that there
is no concept of PENSION (except a barring few). Young generation now following
the western life style and there’s nothing wrong in it. But we should keep in
mind that the social security is at decimal here compared to the west. So, they must
build their future when the situation is under their control.
*investment period return is assumed @12% and distribution period return is assumed @8%
