The forgotten virtue called patience
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I met one Madan Rao in a training session. He sought my consultation on a friendly basis post the session. I remember him quite well because of the unique nature and style of his investment. He was 52 and had his financial goals crystal clear in his mind. He said that his priority was the wedding of his two daughters and he had estimated a cost of Rs 20 lakh (as on today) for each of them. So he said he would need about Rs 50 lakh in about 8-12 years' time (accounting for inflation). He said that the daughters' wedding in his community was an expensive affair and naturally like every parent, he wished that they be wed in good, well-to-do households and that the bridegroom was well educated, financially stable and independent on his own accord etc. And he also wanted to know if he had enough to secure a completely non-compromising retirement.
Rao is a commerce graduate and belongs to themid-cadre of management. He had worked for about 25 years in the same company, started from the shop floor, had promotions as per the company policy and will now retire in about 8 years.
I requested him to bring along his income/ expense details and his asset/ liability details. This is what I found. He saved about 30 per cent of his income, had no debts or liabilities, for assets he had a small house in which he would continue to live post retirement, an accumulation of about R8 lakh in his PF and superannuation fund, PPF of about R5 lakh, FDs of about R4 lakh, postal savings of about R3 lakh and maintained a bank balance of about R50,000. He was a simple ordinary employee of a large public limited company employing thousands of people. I figured his life's savings were about R20 lakh and his goals were far out of his reach. I was generally concerned and in my mind I was preparing how I would approach his situation and tell him that with what he had, his wishes would remain wishes.