The tide will turn -2

Affirmative action, Great People, History, travel

In some of my writing you may find a lot of content about positivity, about being hopeful, about living in the moment etc. In one of my earlier posts, I had written a short post on the “tide will turn”. This is the second one. I will share other inspiring stories of how people used adversity to grow in life.

This is not the first time that the world has faced challenges. At different times there have been epidemics, recessions, wars and resulting recessions. But the human race has always been able to come out of these situations stronger

A lot of you, especially the people in America would have heard of John D. Rockefeller. At one time he was the richest man in the United States and founder of the largest oil company -Standard Oil – at that time. Today’s Exxon – Mobil owe their beginnings to this company.

But I am not here to talk about Exxon Mobil

What most people don’t know is that John D. Rockefeller was a book keeper before he got into business. And did you know when did he start his career…..in the year 1855 he took his first job at the age of 16.

1857 was an eventful year in 2 countries. In India, the uprising for freedom from the British empire took place at multiple locations across the country and was the beginning of the end of the British rule in India 90 years later in 1947. Similarly in the US, the financial panic of 1857 started out from Ohio and spread to Cleveland etc. What followed was a depression for quite a few years.

Rockefeller however, instead of getting scared, kept his cool and looked for opportunity to learn. He saved his money and kept observing how the market behaved. Eventually he used the vagaries of the market to build his wealth.

If you have read Snowball the biography of Warren Buffet you will see a lot of similarities. Both have gone to become the richest people of their time.

Both have gone on to donate so much of their wealth for good causes.

While there are questions about the way Rockefeller conducted his business, what is remembered most is the fact that he was the richest man of his times and that he donated so much of his wealth to noble causes.

I have been personally impressed by the industriousness and individual sacrifices that great American leaders – in business and politics – like Rockefeller, Andrew Carnegie, George Washington Abraham Lincoln made to take where America stands today. I would recommend any young person to read the biographies of the great American business men and political leaders.

While I still believe that there is nothing to beat the advances and knowledge Indians had so many thousands of years back, you also need to give it to initial Americans who founded this great country and wrote the constitution of democracy 250 years back.

That’s the reason, after showing my family the historical landmarks of India, when I took my family to the US, I ensured that we went to the Capitol Hill and took a tour inside where they explain the whole formation of the Senate and Congress etc.

In NewYork city I ensured that inspite of the Christmas crowd, we went to the Rockefeller building and saw the lighted Christmas tree.

Great nations and great people come out stronger after every crisis.

Take this time to become stronger, observe the bends in the road so that you can meaningfully navigate when this time passes – as it always does.

Till next time.

Carpe Diem

Investment strategies for young working women – Part 2

Affirmative action, Financial Independence, Insurance

In my post of 15th March on this topic I had written about the rule of 72 and how this simple number can give you the rate of interest that you are getting for an investment or the amount of time it will take to double your money if the rate of interest is known.

Today I will talk about an essential item for a young girl who’s just entered the workforce and that is insurance. Even before you think of making any investments, first go and insure yourself. Even if you are single today. Someday you will have dependents. You are not living on island. So you will end up creating dependents who will suffer if you have to die early or if you fall sick with a long medical condition.

A simple rule – whether you are taking life insurance or medical insurance – is start at the earliest. The earlier you start the lower is the cost.

Life Insurance – As far as feasible, whenever you are considering life insurance, look only for the “term” plans and not “endowment” or “money-back” plans. The reason for taking life insurance is to cover risk. It’s not to do saving. Also understand that in a lot of countries taking life insurance allows you to gets you income tax benefits also. So a lot of life insurance agents will sell you the idea of taking life insurance to save tax. This is a perfect example of a “tail wagging the dog”.

When you take life insurance there has to be only one objective – how much risk can I cover at the lowest possible cost.

Why am I pushing you to go and take life insurance as the first thing when you get your first paycheck. The life insurance companies keep increasing their premiums based on age. They also have other criteria but the biggest factor is age. So when you take life insurance at a young age, they believe that you have a long runway and the probability that they will have to pay for your death during the coverage period is low.

As you grow older the chances that you will die during the coverage period keep going up.

So by taking it at an early age you keep your premiums to the lowest and get the highest possible coverage which is practical.

Initially the premium for a coverage of a 30 year plan may seem high by your earning capability today. However please understand that after 10 years, as a percentage of your income this amount may be only a few percentage points but the risk cover would still be the same amount.

Medical Insurance- Similarly even if your company provides for medical insurance, you should opt for a personal medical insurance. The younger you are, the lower is the premium. In addition because of your age, chances are you will not fall sick and therefore next year you could get a bonus coverage for the same price. Every company has their own group medical policy. By having your own personal policy over and above the group insurance provided by the company you are ensured of a minimum level of insurance throughout your life as long as you continue paying premiums. In addition to that in most countries, medical insurance also gets you tax benefits.

These days you have enough policies available from direct insurance sites, which you can compare on your own. You also have aggregators who can suggest you options once you give them your criteria. However my advice would be to compare both the aggregators and direct company sites always. A lot of times at a minor price differential the direct company may offer a much higher level of benefits.

Take your first step. Go visit an insurance site. Start evaluating plans. Get your coverage for a Rainy Day

Carpe Diem!!!

Take your first step…you can fulfil your dreams

Affirmative action, compounding, Financial Independence, travel

I was just reading a post by Ramit Sethi from I Will Teach you to be Rich. One phrase struck me , almost at the end of the post and I quote ‘when I tell them what to do, no one does it’. ……you can read the whole post by Ramit Sethi here.

I have spoken to you about my ever expanding bucket list in my earlier blog post. One of the items on the list was to go to NYC with my family

I was watching the news on television today and they were showing how the streets of NewYork City were completely deserted due to the Covid-19. This was in complete contrast to seeing the same streets in December after Christmas, when my family and I visited NYC.

We were staying at the Newark airport Hotel complex and took a cab to come to NYC. I had brought my family for the first time to NYC and wanted to show them Times Square, the Licnoln Tunnel, Central Park, Statue of Liberty etc. There was so much traffic that it took us more than an hour and half to reach Port Authority from where we decided to walk down to Times Square because the traffic was just not moving. There was absolutely no place to even walk at Times Square. We still made our way, inspite of all the rush, to the Christmas tree at the Rockefeller Center. Inspite of all the rush we still went to Macys and ate the hot-dogs from the street food vendors. You don’t get better hotdogs than the ones on the streets in NYC.

This week I was supposed to be in the US again for an IBM event which got canceled because of the Covid-19 pandemic.

I firmly believe, there is a time for everything. I could have delayed my family trip to NYC to coincide with this trip but then we would not have been able to see NYC. It would have just remained a dream and part of my bucket list. But when the opportunity came late last year we were ready to grasp it with both hands.

God has been kind on us that he gave me the inspiration to start my investment building in 2013. Eventhough I started much later than a lot of people, I still took my first steps and started. Which brings me to why the blog post from Ramit Sethi resonated with me. People know a lot of things, they wish someday it will happen but they don’t take their first step to start making things happen. I have been urging you in various posts been to take your first steps…..I am nothing special, you can also aim to achieve your dreams and achieve them one by one. But take your first step.

Once you take the first step, then the second and so on, momentum starts building. If you recollect your grade 7 science lecture, a water melon can have the same impact as a canon ball if its given the right momentum.

Let the magic of compounding help you get to your dreams.

Go on seize the day!!!

The tide always turns

Affirmative action

This post will be short.

These are crazy times. When you hear thousands of people dying everyday, in the news, it’s natural to feel dreadful about your personal future. You can be fearful or you can be hopeful its a choice that you make everyday.

However history has had various events and the human race has adapted and come back stronger always. Whether these have been related to hurricanes or the plague the human spirit has always ensured that we survive. Till we find a cure, there’s only one way to handle this. Let’s ensure that we maintain social distancing and bring down the compounded daily growth rate of the virus.

The tide will turn – Always

So during this time you could see all the problems, you could binge on watching movies and serials on TV and feel even more depressed.

Or you could think of what else you can do to brighten your future. This is not about just positive attitude. Its about affirmative action. The surfer takes advantage of the tide to get his momentum, the airplane takes advantage of the air resistance to fly.

Get prepared while you are locked down so that you can be stronger to face the future. Get trained – there are so many universities offering free courses. Or get trained on products – so many consultants, OEMs are offering free training.

I have myself have taken a few technical and non-technical trainings during the last 4 weeks and also got some accreditions.

We have a bright future ahead, let this “reset” time that nature has given us, not go waste.

Carpe Diem !!!