you know when you're waiting for something to
happen time moves very very slowly but then when you're getting late for a meeting or you're you're
in a hurry time seems to move very very fast it's it feels like an eternity anyway it's already
55 uh and I think uh with all respects for the people who are here who turned up early I think we
should start so thank you very much once again for joining the money for life and Beyond webinar I'm
damodar Mata your uh your host and speaker for uh toni
ght the fact that you are here on a weekend
tells me how serious you are about managing your money and becoming financially successful I will
do my level best to provide as much as value as I can today and I promise to keep this session as
short and quick as possible so that I don't keep you for a long time from your weekend you're
able to go back spend your weekend with your family have fun at the same time you're able to
take home some useful some valuable lessons from this uh session so
thanks again and welcome
to the money for life and Beyond webinar as a token of gratitude for having shown up showing up
here on on a weekend I'm going to share with you three very very insightful useful Financial tools
worth $200 during the course of this webinar which you can use to enhance your financial well-being
enhance your sorry manage your money efficiently take care of your financial future these tools I
will be sharing with you during the course of the webinar and for those who a
re going to stay
at the till the end of the webinar I'm going to share a very Mega offer worth $1,500 it's a
surprise offer I'm going to share it only with the people who are going to stay until the end of
the webinar so please stay put stay uh until the end of the webinar to see what this Mega offer
is and benefit from it yeah moving on to the next slide okay I just want to give you a quick
introduction of who I am for those of you who don't know much about me um I want to give a quick
in
troduction of of myself I'm damodar mat I'm the author of the book eight steps to financial
Independence I'm also a financial blogger of the blog Financial Planning in dubai.com I'm
regularly quoted on various Gulf dailies like Gulf news colleage times and the national these
are uh a few testimonials which people have shared about me on my website on Google on LinkedIn
you can find various testimonials about me so that was a brief introduction about me now let's
go into the uh I want to sta
rt this webinar with a short story and this story goes a long long
way back you know so long way back that people were still hunting money was not invented uh
and people used to use barter system for for you know doing their Commerce transactions okay at
that time there was a person who was a hunter but he was not very good at hunting he had very good
skill though he had one good skill he could make the best arrows in town his arrows were straight
sharp hit the target precisely but he did n
ot know how to use them efficiently he was a bad Hunter
he did know hunting well so he always used to find it difficult to hunt and and get meat for
his family so he was struggling at the same time his neighbor was a very efficient Hunter he you
know even though he did not have the right set of tools he did not have the sharpest arrows he could
managed to get uh you know the hunt for his family every now and then and then he ALS always wanted
oh my goodness if I had only the sharp arrows as
my neighbor I would be so efficient in hunting
so what these people did was that they made an agreement and they agreed that the first person
would make the sharpest arrows the most straight arrows for the second person the hunter okay let's
call the first person the arrow maker and the second person the hunter so the arrow maker agreed
with the hunter that he will make the best arrows for the Hunter and the hunter will share his hunt
with him every day so that both of their needs are sati
sfied this went on for a while and uh the
hunter used to go hunt with the arrows which which the arrow maker made and used to get lots of hunt
and he used to come back and share with both the families so both of them were you know existing
peacefully happily everything was going well and one day another Hunter the third person came to
the second person the second Hunter and asked how come your arrows are so sharp they are precisely
hitting the Target and you're so efficient at hunting while
my arrows are not that good what
what is your secret can you share he said there's no secret on all man my neighbor so and so person
who's an arrow maker he makes the arrows for me and I I do the hunting and I share this share my
hunt with this person so he liked the idea and he asked him uh will your will your friend share uh
his his you know will will will your friend make arrows for me as well the hunter said I don't
know why don't you go and ask the arrow maker so he went to the arrow
maker and asked him will
you make arrows for me the arrow maker said uh you know what I I'm already getting enough meat from
the the Hunter and I don't need any more meat so I cannot make arrows for you fast forward today
we do not use barter system thankfully otherwise Commerce transactions will be so very difficult
today we use money which has made the transactions very very SE seamless however the supply of money
is limited yes or no yeah the supply of money is limited otherwise there wo
uld be loads of money
and there will be no value for money yeah moving on these are images from Germany and Zimbabwe
during periods of hyperinflation where uh women thought it was cheaper to use um money uh to burn
and to provide heat instead of using firewood children were able to get stacks of money lying
everywhere so that they could use it as building blocks because there was no value for money and
if you had to grow go for grocery shopping you probably had to carry cartloads of money t
o buy
grocery so the people at that time thought about it and they came up with an efficient solution
they printed notes of bigger value yeah this note is worth one is the $1 trillion note printed
in Zimbabwe okay at the time it was this was in circulation its value was 40 cents or 1.5 Dam
so do you think this is an efficient solution to mitigate inflation you can raise your hands
to speak or you can drop a comment let's make this session interactive uh please share your
VI for Vi so that
it I don't feel that that I'm the only person doing the talking here do you
think this is an efficient solution printing bigger notes of bigger value is an efficient
solution for mitigating inflation okay I think uh I will answer the question uh no printing
bigger notes is going to further devalue the currency and it's not going to help mitigate the
inflation risk yeah now before we understand what is uh how to how to mitigate the inflation risk
let's understand what is inflation inflation
is the general decrease in the purchasing power of
your money it makes you spend more and more over time to get the same value of goods and services
which you used to get before okay it is negative compounding working relentlessly eating away at
the purchasing power of your income and wealth and I like this quote this funny quote very much
which explains inflation absolutely brilliantly it says inflation is when you pay $15 for a $10
haircut you used to get for $5 before you know when you h
ad hair I was almost tempted to put
my picture here but then I thought thought this person has much less hair than me so I put
his picture here and my picture in the next slide okay so this is a quote which I came up
with inflation is the most potential and the least understood Financial Risk a lot of
people account for Market risks currency risks uh you know geopolitical risks and so many
risks but they failed to account for inflation and as far as my knowledge goes for me this
is the mos
t potential Financial Risk for uh people like you and me who are looking to
create wealth for their future so we need to be very very careful about handling inflation
and we need to to address this risk efficiently moving on to the next slide I created a small
poll uh which I'll share with you in in a in a second the poll goes like the question of
the poll is which is which according to you is the most powerful currency in the world I'll
share the poll right now uh please answer the poll wh
ich you think is the most powerful currency
in the world can you see the poll can uh it's on the right hand side corner of your screen yeah
okay someone said Indian rupe can I get any more answers please US dollar okay any more answers
US dollar okay okay and then someone is saying Euro and any more answers are people done okay
so got 40 percentage for US dollar 40 percentage for Indian rup now it's 50 percentage for US
dollar and 33 percentage should I wait for 30 seconds more is anybody y
et to answer okay
I'll end the poll now yes US dollar is the most powerful currency in the world despite being the
most powerful currency the US dollar has lost 96% of its value in the last 100 years just a couple
of slides before I told you that inflation is the most potential and the least underst Financial
Risk so do you realize how potential it is that it has made the strongest or the most powerful
currency in the world lose 96% of its value yeah let me see if there new attendees have j
oined
yes okay great moving on to the next slide okay the same thing um here's a small chart or a Qui
chart which shows what has been the real impact of inflation on the day-to-day grocery purchases
so if you are in 1913 you could actually purchase 30 herses chocolate bars with $1 okay in 1933
you could get 10 bottles of beer with $1 and in 1944 you could get 20 cans of Coca-Cola 20
bottles of Coca-Cola for a mere $1 which is like 5 cents a can okay today probably you could
get a few Lemon
s with $1 or maybe a coffee in the US at McDonald's because it is priced at that
entry level yeah so that's been the impact of inflation yeah now that we understand that the
risk of inflation is real and its potential how do you beat inflation I have another quick Poll
for you how do you ensure that you have enough money for your life and Beyond let me share that
poll with you and let's see what the answers are okay so how do you beat inflation I I published
this poll now you can see this p
oll on the right hand side corner of your screen um do you keep
earning more and more money to beat the inflation do you spend less every uh time the inflation is
going up so that you save for your future or you keep investing for your savings so that the
money keeps growing what do you think is the right answer okay A lot of people are answering
most of you are answering invest your savings I think that's the right answer I will end the poll
now you people are smart and you're getting the
right answers always yeah so let's let's move
on um so today I'm going to share with you an actionable plan on how to invest your savings in
the next coming few slides but before I share that uh slide I want to ask you a quick question does
anybody know any of you people know why Egyptians built pyramids you can either raise your hand
speak or you can drop your uh you know if you know the answer you can you can drop a comment
thank you you uh Raja muray for mentioning US dollar as a powerfu
l currency ashik uh for
for adding your comments please feel free to answer this question as well why do you
think the Egyptians built the pyramids any guesses no okay let me let me let me give you
the answer the pyramids where Egyptians plan for life after death okay now they isn't
it ironical that we modern human beings find it difficult to plan for the next 5 years
where the ancient Egyptians had the means and intention and the resources to plan for even
life after death it's very ironi
cal yeah so let me ask you another question why do you
think the Egyptians chose the pyramid shape why not a square or a cylinder or a rectangle
there are a few engineers in this house can anybody answer why do you think um uh the the
Egyptians chose the pyramid shape science okay yes it's it's it's according to science yes
Mohammad ashik thank you very much any other answer okay let me let me uh provide you this
answer now the pyramid is the most stable structure known to man because of it
s wide base
and the strong Foundation it the pyramids have been been able to stand the test of time and bear
as a witness for the great Egyptian civilization even after thousands of years they stand strong
and Tall so we are going that's the reason why they chose the pyramid shape now how many of you
are wondering why a financial adviser is talking about pyramids and rectangles and and and Egypt
instead of talking about money let let me explain the connection to you okay today we are going
to
I'm introducing to you the money for life pyramid which has four stages the purpose of this money
for life pyramid is to help you plan save and invest to grow wealth and ensure that it's that
the wealth is able to last for your lifetime and Beyond okay the money for life pyramid as I said
before has four stages okay the stage one consist uh is about providing or creating a Financial
Security by providing or by having a strong and a wide base for your pyramid okay the three aspects
that
provide a strong Foundation to your financial pyramid is efficient cash flow planning having
adequate emergency savings and having adequate life and critical illness Insurance to protect
against loss of income so let's see each of them in detail okay now I want to imagine I want
you to imagine a company a company that has no books of accounts no profit and loss account
no balance sheet they don't even have an account steam but they are very very efficient in all
other aspects of their busin
ess they are very good at selling they're very good at manufacturing
they're very good at marketing they do everything else efficiently just that they do not have an
account team okay how long do you think this company is going to survive is is there anybody
who says that this company will survive for a long period I don't think so right the company will not
survive for a long period because they wouldn't know how much money they are making or what
are their profits what are their expenses
they wouldn't be able to control any of these aspects
okay so you also are a are are like a like a company who's trying to make money by exchanging
your time and skills and it's important that you measure your productivity or your financial growth
so that you can efficiently manage it if you don't know yes they don't have pass data thank you ribu
Sur thank you Sur for your comments yeah so just like the company you are also trying to make
money by exchanging your time and skills and if you
do not know how much you're earning how much
you're spending how much assets you have how much liabilities you have you cannot optimize it so
that you cannot use it properly to grow and and ensure that you have money throughout your life
okay let's move on to the next slide you know um for a company uh the the company's financials
are very very complex you know you need a team of people efficient qualified people uh to record
the transactions to you know to prepare financial statements whic
h can be interpreted it's a complex
process but thankfully personal financial plan person personal financial statements are not
at all complex they're very very simple two piece two two paper uh templates which which I
will share with you in just a minute's time okay the first one is a Networth statement which tells
you or which helps you calculate your netw worth by helping you list your assets on one side and
the liabilities on the other side when you list these assets and liabilities and
you do this
process every year you're able to determine whether you are making Financial progress every
year whether you are making more money or whether you are living off your past savings or whether
you are living on borrowing you know it gives you a clear idea as to where you stand in terms
of your money today it's a a snapshot in time it's a snapshot of your financial situation on a
particular date this is one of the most important and and crucial personal financial statement
the nex
t statement is the cash flow statement which helps you budget forecast your income
and expenses in such a way that you are able to create an investable Surplus with which you
are able to build wealth consistently a lot of people have a misconception that you know that a
budget is a very restrictive process it's boring uh and it is it is curbing it's depriving you the
real purpose of a budget is not to deprive you or to curb or to stop you from making expenses in
fact the purpose of a budget
is to help you do more with your money okay your budget budget's
real purpose is to help you generate an invest investable Surplus which you can build to last to
you know to create lasting wealth that is the that is the tool which helps you Det determine or helps
you create the Surplus that's the main ingredient that helps you create wealth yeah I've created
as I said before I have created simple Excel uh templates I'm going to share them with you now
please download those templates and ma
nage your money efficiently I've sharing these templates for
both net worth statement and the forward cash flow planner these are very efficient tools and they
are worth $200 and I'm also sharing with you my uh ebook h to eight steps to financial Independence
please uh download them have you received are you able to see the link um can you can someone
confirm if if you able to see the link to download yes ribu thank you very much for for Raja
muray thank you very much much for confirmation
Rea thank you for the confirmation uh for for uh
that you are able to download or or rece see the links for downloading so to to just to summarize
the purpose of a budget is to create an investable Surplus not to make ends meet not to fit your
expenses within your income but to create an investable Surplus at the end of the month okay
so where you put in your income goes in you pay for your needs wants and savings and then at the
end of it you need you need to have an investable Surplus yea
h okay moving on to the next aspect
okay um I'm sure you will all agree when I say that our life is a beautiful MC of surprises uh
some of them are good some of them are bad and few of them are quite ugly you know while um good
and pleasant surprises uh make our life happy the ugly ones like a family emergency or a loss of
job or a death disability or critical illness cause as immense physic physical and emotional
pain yeah the most important question is that are we financially prepared to
handle such emergencies
or loss of income okay there is a very quick and simple uh method or simple way to handle such
emergencies is by having at least three months of income as emergency savings now this three
months of income is not going to help you avoid those problems but it can definitely put you in
a state of comfort that at least money is not a worry this is something which you can already
plan in advance make the necessary provision that God forbid there if there is a loss of inco
me
or if there's an emergency uh or anything of that sort where you are in in stress you at least
have the money to take care of it yeah uh coid was a very very starch reminder of the fact and a
lot of people who did not have adequate emergency savings were suffering because of loss of job
because they were not able to you know many businesses had shut down during coid because they
could not sustain even for 3 to 6 months without a regular income and we saw a lot of people
also suffering d
uring this period but those people who had adequate emergency savings and in
fact higher savings were able to take advantage of the uh situation by a lot of stocks which were
available at a deep discount even properties were available at throwaway prices during coid I know
many people who had invested in property who have been able to double and triple their value of
property in in in a 2 to three years time yeah so the ideal thumb rule is that you should have
3 to 6 months income as emerge
ncy savings the purpose of the emergency savings is to you know
it has two purposes a it provides you a comfort it provides you the Peace of Mind in knowing that
at least the financial uh Financial aspect of it is taken care of it provides you a safety net
and then most importantly it helps you avoid borrowing at the last minute at high interest rate
credit card or personal loan which puts a further burden on your budget so please try and create an
emergency savings up to 3 months in the fo
rward cash flow sorry in the networ statement you can
also find uh an emergency savings calculator which tells you how to create an emergency savings
and how much you have to save every month to to reach a particular Target of emergency Savings
please use these templates uh and and benefit out of them okay moving on to the next slide am I
going the is uh is is it okay am I going fast I feel like I'm going a bit fast uh is it okay
thank you thank you Asik download for downloading uh please c
onfirm if I'm if the pace at which I'm
going is is it okay am I going fast should I slow down okay Raja you Raja thank you very much
Raja perfect thank you Rea thank you ribu okay moving on to the next slide um these
are all celebrities these celebrities have one thing in common uh the celebrities
as well both set of celebrities uh have one set of in common do you first of all do
you recognize these celebrities and if you can recognize these celebrities what do you
think is the most common
theme among these celebrities any guesses thank you ashik okay let me let me
give you the answer all these celebrities were survivors of major ailments like cancer heart
attack kidney failure Etc they had yes Raja Mur thank you uh all these people were affected
by a major or a drastic disease like cancer Etc yeah Rea they are influencers they are celebrities
yes that's a common theme but another common theme is that all of them all of the people had uh a
major ailment okay thankfully for t
hese people they are celebrities and they had access to a
lot of money they did not have to worry about uh money they were focused on uh fast recovery
and recuperation because all the finances were already in place but what about you and me are
we prepared to handle such more permanent loss of income or such unfortunate events in our
life okay to at least address the financial aspect of it to at least address the loss of
income aspect there is a simple solution called a life insurance polic
y with a critical illness
benefit that face a cash lumpsum in the event of diagnosis of a major ailment like a heart attack
cancer Etc there are companies which cover up to 35 36 critical illnesses and this pays out
in the event of diagnosis okay now a lot of people confuse critical illness insurance with
medical insurance I will clarify that confusion the purpose of the medical insurance is to is
to reimburse the medical costs your hospital and the treatment cost however the purpose of
cr
itical illness insurance is to replace loss of income if a person is unable to work due
to ailment they cannot earn if they cannot earn their expenses are not going to work wait
for them till they come back and earn so this critical illness insurance pays out a cash lump
suum which you can do whatever you want pay your medical bills pay for your household expenses
clear off your mortgage it's absolutely under your discretion which you can use it so it helps
you protect against loss of incom
e instead of worrying about money according to a survey done
by FBI about 80% of UAE residents do not have critical illness cover the question which you
have to ask yourself is whether you are one of them okay moving on to the next step okay so to
summarize the stage one the stage one provides the strength and reliability to your pyramid by
having adequate emergency savings by managing your cash flows efficiently and by having adequate
life and critical illness insurance this provides you u
h Financial Security or a protection from
poverty Now we move on to the next stage where we are saving and investing for the most crucial
and most non-negotiable and important goals like retirement planning uh saving and investing
for your children's higher education property investment passive income generation and other
important goals this is the meat of the webinar this is where we will have maximum information
shared okay and this is a typical stage where parents uh you know have a hug
e dilemma which is
this dilemma is much bigger than the chicken or egg dilemma chicken or egg situation you always
wonder which came first so here the Dilemma which parents are facing is whether to prioritize
their own retirement or to prioritize their children's higher education which comes first
and typically when my clients ask me D what should I do should I prioritize my retirement
or should I start an invest start a saving or investment plan for my child I tell them Mr
client you shou
ld prioritize your retirement first have you traveled in a plane in a plane
they tell you to put the mask first on yourself and then help your children and other people the
same logic applies here you have to start saving and investing for your retirement first and
then look at other goals uh like children's higher education Raja thank you very much for for
retirement okay uh for commenting as Retirement then you can focus on other goals like children's
education property investment mortgag
e payoff Etc because there are many banks institutions and uh
you know there are many government institutions which provide either subsidies grants loans
for children's higher education if worst come push comes to the worst case scenario there are
these options available but is anyone aware of any institution which provides a grant subsidy or
loan for retirement especially in the UAE or India no right I don't think there's any institution
which provides you a loan for retirement except if y
ou have a property and you do a
reverse mortgage yeah so so because you cannot get a loan and you have to depend
on either your children or on your existing savings it's important that you prioritize your
retirement first instead of you know supporting your children and and providing them them an
education platform and then being dependent on them for your future livelihood it's better that
you prioritize your retirement first okay second uh an average college lasts anywhere between
four y
ears to 6 years or maybe 8 nine years if your children are studying medicine yeah
but an average retirement can last anywhere between 1 to 40 years depending on how early
or late you retire also depending on your life expectancy talking about life expectancy uh
how would it be can you imagine if that you know how would it be if you live for
100 years or more do you think it's possible yeah well it appears to be because
according to Stuart Kim a professor of Developmental biology and genetic
s uh you know
he's he's an expert on human life longevity he strongly believes that the first person to live
up to 200 years or more is already born and living among us on this Earth human life expectancy is
constantly consistently increasing uh in 1990 to 19 between 90 to 90 to 95 human life expectancy
was 65 years average across the world today um sorry in 2020 2010 to 2015 it is 71 which means
people between 1995 and 2015 are living six more years and spending six more years in retiremen
t
imagine if an average person retires at 60 uh according to the life expectancy standards in
1990 they would have average person would be living at until 65 so 5 years in retirement okay
but now in 2010 and 2015 the global average has increased to 71 okay which means people are
living 11 years in retirement average on an average some are living shorter some are living
longer but the average retirement span would be 11 years now if this number is keep on increasing
if a person is going to
live more and more number of years in retirement that means they need
a bigger retirement Corpus okay and there's one important aspect which multiplies or has a
bigger impact with time is inflation you already saw that inflation is the most potential but
least understood or least understood Financial Risk but with the longer time the impact of
inflation is higher so it's important that we invest our savings wisely and and and provide
for this long life which we uh which we can be blessed wi
th in the future so by 2045 to 2050
when most of us here in this webinar are likely to be retired the average life expectancy in this
world is going to be 77 imagine people would be living 12 more years in retirement uh than than
somebody someone in 1990 and 1995 yeah so that is a very very important aspect to consider when
planning for retirement uh Savings in the future moving on to the next aspect um on one hand uh
human life expectancy is constantly increasing the on the other hand the
concept of a stable
job is slowly declining slowly fading and the gig economy is fast emerging in the last two
decades and the recent co9 crisis made things more faster the technological innovations have
totally disrupted the Outlook of uh you know future outlook of economy and employment this
is actually a screenshot of a video on YouTube which was posted in 2014 with a titled hum with
a title called humans need not apply this video talks about the the impact of Automation and
robot robot
s which will have on which will replace human jobs at different Industries and
different skill levels um and and despite all this awareness and all this happening of AI and
so many things changing around us I see very very little change in the way people are saving and
investing for their retirement in fact people are not so not even so serious about saving and
investing for their retirement that is where uh people like me financial advisers I think we
should we should take it as an initiat
ive to raise awareness among people and show them
the right aspects or right ways to save and invest for the future yeah we will discuss
more strategies as we move forward um okay I can see a comment uh also domestic health will
be expensive in be retirement okay absolutely yes with birth rate falling uh you know everybody
will be old uh getting old and you will not be able to get help or or or access to Services which
is absolutely very good point mmati thank you very much let's move on to
the next aspect you know
children uh Parent Parenthood is a subtle uh blend of love joy and anxiety our children bring
in boundless Joy at the same time we are always anxious curious worried about their future and
our responsibilities how we'll be able to prepare for them how we'll be able to give them the best
platform so that they could launch their launch their career and future from there so this is very
much shown in the in the survey conducted by HSBC where 82% parents surveyed uh th
ey ready to make
personal sacrifices and financial sacrifices for this to see their children succeed because they're
already you know always constantly worried about their children they are a they are willing to
make sacrifices at many levels 8 2 percentage of parents were willing to make sacrifices not
only with time effort money every aspect yeah and 65% of parents in the UAE are considering to
send their children abroad for higher education this is one of the highest numbers in the world
highest number of parents who are wanting to send their children abroad okay as a result 63% of
parents spend 2.4 times the global average on University education alone I'm not talking about
schooling I'm not talking about other expenses I'm just talking about University expenses that
parents are spending 2.4 times the global average on University education alone because most of
the parents are sending are aspiring to send their children to the top university destinations
across the world
may be Canada may be USA may be Singapore UK Hong Kong China Germany you know
to India they sending it to Switzerland they're sending it to the best best un sending the
children to the best universities across the world hoping to provide their children amazing
opportunities so that they could launch their future yeah so this is a chart which tells you
on an average how much does it cost to send your children to University so if you're planning to
send your children to Canada it might cost
you about $35,000 a year and about $140,000 for
four years uh for uh us it's about $40,000 and $160,000 for over 4 years UK it will cost you
about $50,000 or or a three-year graduation will cost you $150,000 Australia Hong Kong Singapore
are around the $35 $40,000 range so on an average you need uh $160,000 or approximately 600,000
dams as of today to send your child to University abroad in any of these countries okay in UAE you
could you could do it with $1,000 to $120,000 and on top of it
if you apply 5 6 7 percentage
inflation depending upon the the destination of your of your education you would need that
much more money over the next 5 10 15 20 years in whatever time your children are going to the
university yeah now how do you save and invest for your children's higher education there are
two ways a you can start saving diligently start saving early invest in invest in good assets so
that you are able to beat inflation and grow your capital or do nothing about it and bo
rrow pay a
higher amount as interest along with the impact of inflation if you're going to invest you're going
to actually spend up spend less because your money is going to work for you if you don't save an
invest early then you will have to end up paying higher interest because this is a non-negotiable
go you want to send your children to college if you want to send them might as well start saving
and investing early yeah the choice is yours what you want to do okay now you could say d it
it's
easy for you to say you know invest your savings but it's not so easy yeah do do do you agree that
is investing easy or hard difficult can anybody comment if investing was easy everybody would be investing and everybody would be rich
isn't it who all thinks investing is easy okay I think people are uh busy with the
weekend they don't want to yeah Rea thank you very much for answering yes investing is difficult
and that's why we are going to use some strategies uh to to understand how
to invest generally when
people are looking to invest they are overwhelmed in their mind with a lot of questions where
to invest when to invest how to invest what to invest in uh and and you know who to who to get
information from there are so many questions and investing becomes more complex it's more difficult
than losing weight because here at investing uh there is a risk of losing Capital so this risk
of losing Capital makes the equation more complex yeah now in order to invest wisely I
'm giving you
a 5c blueprint the pillars of prosperity or a 5c blueprint which you can use uh to invest wisely
without apprehensions yeah maduma you are saying easy to do if you do ETF monthly yes very good
Investments need discipline absolutely uh both losing weight and investing needs discipline hard
work sincerity commitment all these are very very important thank you very much Punit for sharing
your comments um yes so let's look at the 5c's blueprint for investing the first one is Clari
ty
okay now before you actually start investing it's important to understand or it's important to
create or determine what goals you are looking to invest for whether it is for your retirement
child's education uh or or buying a property you have to determine what goals you are looking to
achieve and determine what is the objective of the investment whether you're looking to generate an
income or whether you're looking to grow Capital you have to determine what is your risk capte
you have
to determine what is the right the best action or the best way to uh action plan
to achieve your investment strategy so these are very very important aspects of clarity that
you should have before you start investing only then you will have the right motivation and you
would have the purpose if you don't know what you are investing for or why you are inv inting for
it be very difficult to stay committed to your investing goal yeah the next one is consistency
Brule is the is the epitome of c
onsistency he's being is he is is that's a super power so after
having the clarity you need to be consistently saving and consistently investing because as I
said before your investable Surplus is the key and the most crucial ingredient okay which can
help you create lasting wealth which can help you convert your income into wealth this aspect
this aspect of consistency helps you convert your regular income into lasting wealth which can
support you for the whole life okay when you are inves
ting consistently on a regular basis
it helps you harness the power of compounding and then also you are able to benefit from the
dollar cost averaging these are two important investment terms which are really really powerful
and the regular investment as as Rea said that you invest monthly in an ETF they help you harness
the power of compounding and dollar cost averaging over a period of time when you do this you are
able to grow your wealth exponentially okay the next C that we should loo
k at is courage okay
now investing typically involves volatility and risk but um this fear of risk should not you
know Financial loss should not paralyze you it's natural to get fearful especially um especially
during terms during times of UNC you know during coid I saw many many many investors pulled out
their investment okay they were skeptical they pulled out the investment they wrote off 20 30
40 50% law they said boss what if the market Falls below that I want to book my loss get out s
o
this courage is very very important it should not paralyze you and one more important aspect is
indecision people are always planning planning planning planning whether I should invest here
whether I should invest there they will keep on exploring options but they will take very little
action indecision is the mother of procrastination leading to missed opportunities and the risk of
not being able to achieve your financial goals as I said before you have to have Clarity you have
to have
consistency and the courage to invest and stay invested during difficult times that's the
most important aspect and these difficult times not only happen with the market they might
have happened in your personal life there could be a temporary job loss or there could
be an emergency at home but you still have to keep take a small break and keep focused on
your come back to your financial goals stay focused on them that's the third C of uh the Five
Pillars or the 5c blueprint yeah UAE has a
lot of opportunities taking calculated risks can provide
you substantial rewards and help you grow your wealth exponentially let's see the fourth seek
confidence confidence coming from comes from knowing what you're doing a lot of people just
invest blindly they they ask your friend hey what is the good classic example data Motor stock was
90 INR okay Raja m is commenting classic example t m Motor stock was 90 INR while Co today is
650 yes of course that's a great opportunity and because yo
u were you had the confidence you
had the courage you if you had invested at that time you would have probably you know multiplied
your wealth six times that what that's what I was saying it can multi uh exponentially multiply your
wealth if you are courageous if you are confident and if you're knowing what you're doing that is
exactly where the knowledge and association with the financial adviser or people who can give you
the right advice comes in okay it's important to align your investm
ent go Investments to your
financial goals some people's financial goals would be due in two years but they will be in 100%
risk 100% equity and maybe leveraged equity and exactly when they need the money the market will
fall this is where people goals and uh investment Horizons are not aligned you should always align
your investment Horizon to your financial goal to to your investment if your investment if your goal
is 10 years away then you plan accordingly so that you are able to take ou
t the money before 10 years
if your investment is due in the next if your goal is due in next two years you cannot put in Risky
assets you probably have to put in bank or put in bonds where it can be safe the number one reason
people uh sorry the number two reason people fail at investing is misalignment of investment
Horizon and investment strategy yeah so uh aligning your uh Investments to your risk appetite
and investment Horizon is crucial and implementing a robust asset allocation dive
rsifying your
portfolio across different assets a person should have four or five assets in their portfolio
they should have stocks bonds ETFs or mutual funds they should have cash they should have gold they
should have real estate and they should have cash okay these are the four five assets each and every
person should have in their portfolio because each asset class has a cycle sometimes bonds are
going up sometimes stocks are going up sometimes property is going up sometimes uh gold is
going
up and each of them have the cycle so it's better to diversify your investment have a right ass
asset allocation strategy and also have a solid risk management strategy reviewing your portfolio
on a regular basis rebalancing your for portfolio gives you the confidence to stay committed okay
now let's look at the last aspect commitment yeah it's important that you focus on the long term
okay uh I'll give you a small uh example now there is an aspect called growth and there is an
aspec
t called progress both growth and progress are essential to create lasting wealth okay now
let's say for example if you invest uh 100,000 sorry 100 100 dams okay and in one month you got
100% return it became 200 th 200 dams do you think it's going to make a difference in your life 200
dam is not going to make a big difference in your life even though you got 100 percentage return in
one month it's not going to make a big difference in life at the same time if you're investing 100
dams ever
y week for the next 20 years and this portfolio is growing by 10 percentage every year
it makes a big difference in your life so both growth and progress are important so commitment to
stay focused for the long term is a crucial aspect of succeeding at investing yeah diversification
of portfolio regular reviews rebalancing all these are important aspects uh which which you have to
look at yeah now we addressed how to invest where to sorry why to invest and and uh you know when to
invest now
we are going to look at where to invest the typical uh places where you can invest for
achieving crucial goals like retirement children's education is in lowrisk assets which help you
focus on Building Wealth converting your income into wealth so that these goals can be achieved
whenever they are due as with With Sips regular investment plans pension plans endowment plans
child education plan mutual funds ETFs depending upon your level of understanding of the markets if
you are a advanced
person if you are financially aware and you understand mutual funds and ETFs
choose mutual funds and ETFs if you are not so very financially savvy Look at Endor plans
which are low risk pension plan which are low risk regular investment plans which are low risks
and they give you an opportunity to consistently accumulate your your savings and and grow it uh
by by beating inflation yeah these are the places where you can invest your invest for achieving
crucial goals in your life moving on t
o the next aspect this is one big dilemma which people are
facing off late in u especially um more so in the recent two years because the rents are constantly
increasing people are woring whether I should continue renting in the same house or I should
go uh look for an apartment with a lower rent or I should buy a property so that you know I don't
pay rent and I pay Equity so that over a period that property becomes mine so people are always
wondering about this and they many many customers
came and asked me also so I did some research and
I figured out there is a thumb rule for buying a property using a mortgage okay the thumb rule is
very very simple absolutely simple no rocket signs the property value which you are intending to buy
should not be more than five times your annual income okay very simple if you have no debt you
can go up to five times your annual income let's say for example your annual income is 300,000
dams 25,000 dams a month 300,000 Dam a year you can go
for a property up to 1.5 million provided
you do not have any liabilities okay if you have existing liabilities and you are paying uh less
than 20% of your income let's say using the same example let's say you are paying 5,000 dams as
Emi on other loans you can go up to four times your annual income up to 1.2 million dhams okay
if you have liabilities more than 20 percentage then you can go up to three times 900,000 dhams
okay whether you get a one-bedroom Studio that's your that's your uh
luck but if your income if
you are paying more than 20% of your income as Emi then you should not buy a property more
than three times of your annual income if you are paying more than 30% of your monthly income as
Emi do not buy a house continue renting that's a simple simple thumb rule okay let me know uh in
the comments if this thumb rule was useful for you okay now we have come to the stage uh four sorry
stage three where we are looking at uh ways of catapulting wealth okay in this stag
e we focus on
rapid multiplication of our wealth by investing in assets that involves a certain element of risk
volatility this is not for uh you know beginners or noes who are are not good at investing you are
not experienced at investing you know to reach here at least you should have three to four years
of experience at investing you should understand ETF mutual funds very very well only then you
should reach here typically you could invest in assets like stocks cryptocurrency leverage
products uh speculative assets and investment properties okay these assets are very potential
okay like little while back Raja m m was saying that uh that Tata Motor stock was 90 rupees and
then been to 650 rupees because he is experienced because he's constantly you know looking at the
markets he's aware what is a good price what is the bad price that's why he was able to enter
that at that price and then take advantage of the growth yeah so at the same time there have
been many instances
uh where the sh values have become zero so there is there was a share of
called Eurostar yeah Eurostar sorry Os Os in India where the share price was 232 rupees and it
became zero there are other stories as well so it only for these kind of Investments are only for
qualified investors who have a lot of experience because these are risky and volatile they can
catapult your wealth at the same time they can cause huge losses so it's important that you only
invest a small portion of your actual
wealth and after you have you know made Provisions for your
crucial goals which are non-negotiable yeah so that's the uh assets you can invest here in this
stage stage three stage uh and you know inspired by her mentality and inspired by the investment Bo
in 2021 many new investors put their life savings in meme stocks technology stocks cryptocurrency
and lost all of them okay we should avoid doing this it's important to get your Basics rights
it's important to strengthen your financial py
ramid by you know providing a strong base saving
and Investing For Your crucial goals and invest a small portion in Risky assets leverage assets meme
stocks where wherever you want you can invest but a small portion and even when you are investing
in that you should constantly review the portfolio rebalance and book the profits bring it back to
further strengthen your pyramid yeah that's your stage three moving on to stage four stage four
is a stage where you are looking at Absolute Financi
al Independence this is a stage where
your assets are working for you providing you passive income okay in order to obtain passive
income you can invest in assets like a pension plan a pension plan is something which provides
you guaranteed income every year on a particular date without fail okay and then you could invest
in rent yielding properties Prime rent yielding properties okay dividend paying mutual funds bonds
dividend stocks structure products Bank deposits all these can provide y
ou a passive income
these are like the golden egg laying geese which can keep on giving you passive income
and when this passive income is equal to your living expenses you are financially free this is
the time you should move your focus from growing your wealth to preserving your wealth you should
preserve your wealth and ensure that this wealth lasts for your lifetime and you pass on to the
next Generation by having adequate vehicles or adequate measures like a will uh a life insurance
p
olicy for legacy or a trust so that your family does not have challenges in receiving the money
I know a lot of family who are suffering or who had suffered big time because they did they did
the the person the person who owned the assets did not have clear documents stating who should
receive what a lot of people's assets were stuck or frozen due to Sharia law and various other
things even in India you know there are three succession laws in practice you have Hindu
succession law you have
Muslim succession law you have Christian succession law and each have
different ways of apportioning wealth to their loved ones so it's important whether you are in
UAE or in India wherever your wealth your assets are to have a will very very important document if
you have Assets in multiple countries it's better to create a trust or a company where you have
all the assets under one umbrella okay and most important especially if you are an expert and if
you have minor children to have a wil
l to include the you know who should have the custody of your
children because in this according to this part of the world the the husbands family are the ones
who should receive the custody of the children and not the wife so it's important to have all these
aspects covered in your will uh ensure that your assets wealth is protected at this stage in life
instead of growing wealth you should focus at preserving wealth and creating passive income so
these are the four stages of financial ind
epend sorry your your financial pyramid and follow
by following the steps you can ensure that your money lasts for your lifetime and Beyond let me
summarize the whole action uh the summarize the action items a start with the budget budget with
an intention to to create an investable Surplus and stick to your budget a budget's purpose is
not to curb you or not to make you do less but to help you do more with your money that's the
purpose of your budget save for emergencies and protect agains
t loss of income through adequate
life and critical illness Insurance track your net worth every year only then you will grow whether
you only when then you will know whether you are actually making Financial progress or living off
your savings or living off your debt okay use the 5c blueprint for investing have Clarity have
commitment have confidence okay all these five CES you have to you have to take care of okay and
pay of debt if you have debt is like is a cancer pay of debt like if yo
u have follow the thumb rule
for property investment avoid speculation if you do not have adequate knowledge even if you have
adequate knowledge put very little you know uh portion of your wealth into speculation because
you know it can either catapult your wealth or it can become zero so avoid speculation as much
as possible invest within your risk appetite do not get greedy just because your neighbor or
your friend or colleague are getting making tons of money by investing you should not
follow
their paths without the right knowledge because they have gone through a different journey and
reached to that position you are beginning now so you should want you should actually have to
go through the Journey before you reach there otherwise if you want to do what they doing right
now you could end up in trouble stay committed to your financial goals do not give give up and
focus on achieving Financial Freedom yeah this is the summary of of the the session now as
I promised here
is the Mega offer somebody's yes somebody's put a chat okay here as I promised
here is the Mega offer um I'll share this offer I am providing a free consultation two sessions
of free consultation for anyone who is taking advantage of it today absolutely no charges
no costs no expectation of business two free consultation sessions to discuss your financial
plan I I'll help you create a financial plan I'll generate a detailed report for you I'll provide
you an action plan look at your uh look
at your risk caped I'll give you a clear action plan on
how you can how you can invest to grow wealth so whoever wants to take advantage of the situation
can uh can can can Avail this offer I'll provide you two sessions worth $1,500 as as a as an offer
or as a compliment for people who have took time to attend this webinar on this weekend uh that's
the offer yeah take a advantage of this this is open until for 24 hours you'll also get an email
uh with this with this uh details aail this if
you are interested and only if you're serious
about you know saving and investing for your future yeah so you can Avail this offer
in in the the due course of time now I will open the floor for question and answers
if anybody needs to ask a question you can raise your hand and I will enable the mic
for you or you can also drop a comments in the in the comment box so that I can answer
your question please feel free to ask your questions any questions anybody either I was very very clear or
I did not
make any sense at all so that you don't have any questions can you explain about UA National bonds
correct Rea thank you very much for your question is it worth investing yes absolutely every asset
has its purpose UA National bonds are very good assets for keeping your liquid savings UA National
bonds National Bonds in the UA do not give you big returns maybe 1 2 3 percentage they give you as
returns but they are a safe secure location to keep your liquid savings or emergency savi
ngs that
is the purpose of national bonds I hope I've made it clear pun thank you very much uh for for saying
all clear anybody else has any questions okay Raja ribu Mahajan what are the products available for
guaranteed returns after retirement your pension plans pension plans there are many endowment plans
in India pension plans in the UAE in dollar terms uh then there are certain mutual funds which
provide you a regular income distribution uh and then you can have a property which can gi
ve you
guarant which which can give you regular rent then you have structure products which can give you a
regular income every six months or every year or every quarter so there are many many assets and
if you are interested to know more about them in detail um I can I we can we can you can book uh
the the uh consultation and then I will have uh provide you more information okay vo banks give
6% on savings and account balance yes vo bank is a new bank digital Bank uh now in fact most of
t
he banks are most of the banks are providing four five six percentage interest uh but do not
put all your eggs in one basket diversify your money uh these new age banks are good but do not
put your full wealth in one account uh diversify your savings keep them in even if you're getting
getting half a percentage or one percentage less keep it in reput Banks do not put all the money
in new Banks okay uh considering rupee getting weekend is it better to send money back to India
or keep within
in UAE with FD of 4.5 percentage now uh Raja this is a very very good question
thank you very much for asking this question it really depends on what are your intentions if
you are looking to if you are looking to retire in UAE or elsewhere outside India it makes no
sense to send money uh for your retirement to India because there are going to be rupee as you
said is going to depreciate there are going to be repatriation challenges there are going to be
taxes there are going to be uh many i
ssues but especially the Indian government has now started
Living a tax called TCS tax collected at source although it's paid and then reclaimed but it's
still a 20% deduction when you are transferring money other than education or medical expenses so
any money you send outside India more than $10,000 or 7 lakh rupees in a financial year you would be
taxed or you have to pay a TCS of 20% and claim it later okay so these kind of challenges could
happen in future more challenges could happen
in future so if you are planning to retire outside
India in UAE or elsewhere it's recommended that you do not send money you save and invest through
dollar denominated assets which are which is considered to be a favorable currency and invest
in Global Market markets which can give you good opportunities we can also invest in Indian markets
in dollar denomination through various platforms available in the UAE for detailed discussion
please book a session with me I will show you where all yo
u can invest and and benefit from the
uh strong currency and access to a wide range of markets pun khwani thank you very much for your
question do you see do you see a risk of dollar losing status of world currency in light of recent
steps of countries buying in their currency okay so this is a very atable aspect so on one side
dollar has been Supreme for the last 50 60 70 years and every time there has been a threat to
a dollar we have seen some major Calamity in the world there was in 200
8 recession and then uh
there various instances which we can which we can see that every time Dollar has weakened there
has been some major event pushing the world into a recession and then as a result dollar is
become uh you know Supreme okay about 70% of global wealth is still held milon dollar and uh a
lot of companies a lot of big major companies are still US based and and yes there are countries
like China Russia Saudi India which are trying to form a conglomerate or or or a Syndicate
uh to
trade within the the their own currencies uh this is going to weaken dollar to a certain extent
but I don't see any one currency emerging as a contender or to replace Dollar in the next
20 30 40 years at least not for the 20 next 20 30 years in my generation at least I don't
see it happening maybe in the Next Generation there could be some other currency maybe a
cryptocurrency or maybe some other currency which might replace dollar as of now I don't
see any other currency strong enou
gh to replace dollar okay there is a link the national news
Okay W expands to Yes W as I said it's a good good uh choice but then do not put all
your eggs in one basket that's something which I always caution everyone any other
questions before we end the session for the day I hope your sessions are fully your questions
are fully clarified I hope you are able to take value out of this out of this uh session
you will get an email shortly uh seeking feedback please feel free please drop in a
couple of lines feedback whether you liked it good bad whatever your feedback honest
feedback is please share it'll help me uh you know correct uh my my Approach and and
offer better Solutions or better content for future people who are attending thank
you very much uh everyone for attending this webinar I hope you were able to take
value from this enjoy the weekend take care bye-bye thank you Punit thank you for your comment
I please drop in a line or two uh in in as feedback that would b
e very very useful
Rea Punit Raja uh thank you very much maduma great thanks all good night
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