Cost of Delay

Cost of Delay  in Financial decisions –>

Cost of delay is a delay in Financial Planning due to postponement of Investment Decision making. Today’s life style is such that we remain busy in our day to day activities like business, job, profession etc in our life but we hardly get time to think about our HEALTH AND WEALTH. So Health and Wealth which is most important in our life but we don’t spare adequate time for planning the same and it means the priorities set in life are actually wrong or our planning is going in direction other than what it should be ideally. 

We have seen so many young clients who say we don’t have time to discuss about financial plan or we don’t have time to understand about investment as we are busy in our job, business, profession or other commitments. But I have a question to ask to all such young clients whether they have time to spend money like go to movie, shopping, restaurants, go on a vacation out of such busy working schedule then why can’t you find time some time for your own investment pattern which will ultimately help you to spend money more lavishly in future but with financial goal attached to it. So the issue is not about not having time but issue is still Investment is not in their priority list as they feel I am very young and I have so many years to earn and plan so will plan in 1 or 2 years. 

Warren buffet started his investment in equity at the age of 11 and he said “ I feel I am too late for starting my Investment journey” 

Warren buffet is the expert person of Equity and if he feel he was late in starting investment journey even at the age of 11 then how can young clients of 24 or 25 can feel that they have enough time to plan and they are still not at all late because of the reason they have just started earning or still they want to enjoy life or still their friends have not started investments. These are all foolish reasons for not starting investment but the disciplined person is the one who can think that when I will start earning, from my first salary, I will start investment of minimum 25% of monthly earnings in Investments to reap its benefits in long term. 

Investment is ultimately a discipline created in an individual for saving and planning for own money and that is a good habit everyone should inculcate to remain away from all financial worries which may arise if not planned well. 

I will explain you this concept with the help of a practical example. We generally study and start earning at the age of 24 and we can work upto the age of 60 ideally. There may be some exceptions like bright students can even start earning at 21 or 22 years of age and retire post 65 years but let’s take general scenario of earning life of majority of persons and it is almost 36 years [60 years – 24 years ]. Thus we have only 36 years in our entire life in which we will get running income for our spending but what about spendings that will be needed after these 36 years or at the age of 61??? Very few people think about this well in advance and plan.

There are 2 friends , Niraj and Nilesh. They both are very good friends from childhood but the habits of both are slightly different. Niraj always believe that “ Life ek baar mili hai, maze karr lo, aage aage dekha jayega” and Nilesh believe that “ Life me maze jaruri to hai lekin future ka bhi sochna chahiye”. Based on own thought process, they both adopted different financial strategies in their life. Niraj was earning Rs. 1 lakh per month from age 24 and Nilesh started earning Rs. 80000 per month from age 24. 

Cost of Dealy Calculation 
Earning per month Rs. 1,00,000 Rs. 80,000 
Per month expenses Rs. 25,000 Rs. 25,000 
Other spendings ( Movie, restaurants, online shopping, hobbies , vacations etc.)    Rs. 70,000 Rs. 35,000
Money saved and remain in bank savings account earning 2.5% interestRs. 5,000 per monthNil 
Investments in MFs Nil Rs. 20,000 per month
Interest earned Simple interest Compond interest  
Wealth generated in 36 years Rs. 22,14,000Rs. 10,82,54,456 

Out of these 2 friends, whom do you think is more wise? Niraj – yes because he was earning more and enjoying his life fully as per his own terms without any tensions but don’t you think at the age of 61, he will be in tension? As his monthly income of Rs. 1 lakh will stop and he has only Rs. 22,14,000 wealth in his bank account. 

On the other hand , Niraj is more wise because,he is earning Rs. 20,000 less but he is managing it with a plan and he is also enjoying his life as per needs but what different he was doing is  

  1. Investment in a disciplined manner 
  1. Investment in proper asset class 
  1. Investment as per the advise of Financial advisor 

Above things have made Nilesh financially free at age of 61 with above Rs. 10 crore wealth generated which can meet his lifestyle for even next 36 years or till the date he will live without any monetary tensions or stress. 

Lets change above scenario that at age of 50, they both met and Nilesh suggested Niraj that you should also invest in SIP and Niraj understood the benefit of investment in Mutual fund and SIP and he started doing SIP of Rs. 40,000 from age 51 to 60 for 10 years and he will earn extra 87,08,495 if we consider return @11 %. But as he has delayed in taking decision and later on investing even double amount but for less years can not help him earn amounts in crores as sufficient time in market has not been provided. Total saved amount in this case for him will be Rs. 14,75,385 (bank savings from age 24 to 50 ) + Rs. 87,08,495 ( MF investment started from age 51 ) = Rs. 1,01,83,880 

Still Rs. 1 crore is less than Rs. 10 crores and this is the power of financial plan from young age in proper asset class and under the guidance of Financial advisor. 

So Rs. 9 crore is the cost of delay for Mr. Niraj which he could have avoided if decided in advance and planned his finances from the date he started earning. So avoid such cost of delay in your life and if you are also procastinating financial decisions in your life, then be ready to bear huge cost of delay just like Mr. Niraj in your life too. 

Happy Investing !!

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Retirement planning for Financial Freedom

Retirement Planning: A wonderful Journey towards Freedom

The market has made a significant rebound since the dip in March. However, we should still proceed with caution and be wary that all of the economic effects of COVID-19 have not been felt fully.

To have a comfortable, secure and fun-retirement, you need to build the financial cushion that will fund it all.

Planning for retirement starts with thinking about your retirement goals and how long you have to meet them. Then you need to look at the types of retirement accounts that can help you raise the money to fund your future. As you save that money, you have to invest it to enable it to grow. The surprise last part is taxes: If you’ve received tax deductions over the years for the money you’ve contributed to your retirement accounts, a significant tax bill awaits when you start withdrawing those savings. There are ways to minimize the retirement tax hit while you save for the future—and to continue the process when that day arrives and you actually do retire.

We’ll get into all of these issues here. But first, start by learning the five steps everyone should take, no matter what their age, to build a solid retirement plan.

5 lessons for investors from Dhoni’s successful career for Retirement:

1. Patience is virtue:

If you look at Mahendra Singh Dhoni’s 16-year-long cricket career, you will notice how he remained calm during the most crucial moment in a match. He is not touted as India’s best finisher for nothing.

Being patient during times of uncertainty in the markets is the key. Your investment in small-saving schemes or bank FDs or stock depends on several factors. Whether it’s a job loss or sudden market crash, you have to remain composed while handling your investments. If one stock of yours does not perform well, don’t panic. You will always have the option to switch it considering your financial goals.

2. Ups and downs, part of (investors’) life

Like everyone else, Mahendra Singh Dhoni had ups and downs in his career. The 39-year-old cricket star debuted in the ODIs in 2004-05 with a duck. But he did not let one bad performance affect his career. “Ups and downs are part of a player’s career. What is important is how you come back into form after a lean patch,” the Ranchi born cricketer once said.

Similarly, a bad day should not affect your investments. If you consider all the factors before an investment, be confident about achieving your goals.

3. Have faith in yourself:

If you are an avid cricket fan, you must remember the time when MSD handed the ball to Joginder Sharma during T20 World Cup final in 2007. Remember how Dhoni sent Rohit Sharma to open before the 2013 Champions Trophy in England? MSD has always believed in himself on the field.

While making investments, if you are convinced about an asset, fund or scheme, go ahead with your belief. It is important to do research before any investment, but you should also have faith in your investment decisions. You can also take help of an advisor and monitor your fund’s performance.

4. Know your strengths

Mahendra Singh Dhoni knows his strengths and always sticks to them on the field. “He is a great competitor and keeps his composure better than anyone, especially under pressure. He is a very smart player, who is calculating,” Australian cricketer Michael Hussey once said.

Knowing your strength can also help you in the financial markets. One should keep a tab on own their budget, goals and investments than blindly following expert views or market trends.

5. The right guidance:

Football was Mahendra Singh Dhoni’s first preference during his school days. He used to play football for his school team. Keshav Ranjan Banerjee, the cricket coach at the DAV Jawahar Vidya Mandir school in Ranchi introduced ‘footballer’ Dhoni to cricket. Over the years, several coaches have trained Mahendra Singh Dhoni and helped him to achieve all the success.

In personal finance too, a financial advisor can help you find the right investments to reach your goals. Financial advisors offer unbiased advice while investing. So a little guide can help you to go a long way.



1. Retirement planning should include determining time horizons, estimating expenses, calculating required after-tax returns, assessing risk tolerance, and doing estate planning.

2. Start planning for retirement as soon as you can to take advantage of the power of compounding. Start investment at an early age and only with the advise of Financial advisor.

3. Younger investors can take more risk with their investments, while investors closer to retirement should be more conservative.

4. Retirement plans evolve through the years, which means portfolios should be rebalanced and estate plans to be updated as needed.


Don’t make Retirement planning a boring part rather make it an exciting process and become free from worries about future financial issues and enjoy life with freedom !! Like (0)