Can a coin have one side? - fisdom

Can a coin have one side?

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There are times when you have no answer to some questions. This is the time when you call your best friends for words of wisdom. It was my wife’s birthday and I had no clue what to gift her. And I called my dad asking for his help. The answer was, “Son, always remember, Ye Dil mange more. It’s fun to watch Sehwag open with Sachin, Shah Rukh act with Kajol, Modi Ji strategizing with Shah Sahab”. Do you see what he was trying to convey? Gift her the best combo.

Being a wealth advisor, the best combo for me was something very different but super lucrative. Wait for it, it was a SIP plan with a term insurance plan. Boom! That’s what I got in return gift.

Jokes apart fellas, take a minute and think about it. Why do you invest money? To spend it on things you like, which you dreamt of in your childhood. Pretty sure, not on things which you don’t like. So is there a solution which can take care of helping you invest your money in things which you like at the same time protecting you against unwanted circumstances at a bare minimum cost, I repeat, at a bare minimum cost. What better idea than a combo of SIP and term insurance plan!

Allow me to play with numbers. I purchase a term plan which provides me a coverage of 1 Crore charging a premium of Rs.12000 per year for a time span of 15 years. Indeed a bare minimum cost if the thought of the premium you are paying strikes your mind.

Time to look at your Insurance Cover. Isn’t it an eye-opening fact of the day for you?

As long as we are playing with numbers, if you would have invested Rs.15,000 in Systematic Investment plan for a duration of 15 years, expecting a return of 15%, it would have been your golden ticket to 1 Cr club. No wonder, why I love mathematics. Just the right amount of investment, smart investment, and you have the answer for “Kaun Banega Crorepati?”

Investment avenue is one which gives you a significant return. This number crunching makes it very clear that insurance is not an investment avenue. A systematic investment plan is an investment avenue. So it makes no sense in investing a large sum of your hard-earned money in Insurance. God forbid, TIP (Term Insurance policy) takes care of your loved ones when things are not in your hand, SIP takes care of your loved ones when things are in your hand.

SIP and TIP is a win-win situation which proves my point, the coin does have one side. I rest my case.

Happy Investing!

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