Best time to plan for retirement is......

Best time to plan for retirement is:

At the time of Birth.

(Because the 8^th Wonder i.e. Power of Compounding only works/works best when this power is given plenty of time/maximum time).

So, it is only in the hands of parents to give the best retirement to their child.

But how? Very simple. Parents just need to open a separate Trading cum Demat A/c for their newly born child and invest whatever amount received on the birth ceremony into Index ETFs and invest whatever amount received on child’s every birthday again into Index ETFs.

Ex. Suppose Rs. 51K invested at the time of birth and Rs. 11K invested at the time of every birthday till 30 years.

Assumed CAGR is 15-18% p.a. (given in past and very reasonable expectation)

Further, assumed that the newly born child will take her/his retirement at age 60 (Present Life expectancy in India is 70.15 years, will increase further in future).

Now, see the power of compounding when added with power of TIME:

@ CAGR of 18% (One-time investment of Rs. 51K + Annual investment of Rs. 11K for 30 Years)

After Years	Amount Invested till date	Value of Investments	Real Value of Investments (considering Inflation rate of 6% p.a.)
10	1.61 Lacs	5.26 Lacs
20	2.71 Lacs	30.00 Lacs
30	3.81 Lacs	1.60 Crores
40	3.81 Lacs	8.38 Crores
50	3.81 Lacs	43.86 Crores
60	3.81 Lacs	229.57 Crores	6.96 Crores

 

@ CAGR of 15% (One-time investment of Rs. 51K + Annual investment of Rs. 11K for 30 years)

After Years	Amount Invested till date	Value of Investments	Real Value of Investments (considering Inflation rate of 6% p.a.)
10	1.61 Lacs	4.30 Lacs
20	2.71 Lacs	19.62 Lacs
30	3.81 Lacs	81.59 Lacs
40	3.81 Lacs	3.30 Crores
50	3.81 Lacs	13.35 Crores
60	3.81 Lacs	54.02 Crores	1.64 Crores

 

“So, Dear Parents, if you want to give me the best of the best gift when I get born and join you all on this planet earth, please gift me the “gift of my retirement”. - Your newborn child (yet to be named) 😊”

Enjoy retirement planning !

Enjoy NOW !

How SUCCESS in Stock Market (Investing/Trading) is like a Chinese Bamboo Tree?

 

How SUCCESS in Stock Market (Investing/Trading) is like a Chinese Bamboo Tree?

Have you heard about wonderful Chinese Bamboo Tree?  The biggest teacher i.e. our mother nature gives us biggest lessons on patience, faith and perseverance through these Chinese Bamboo Trees.

Chinese Bamboo Tree, like any normal plant, needs nurturing of water, fertile soil and sunshine. After nurturing for full first year, you will see no visible signs of any activity. In the second year, no sign of growth above the soil. Same for third and fourth year as well. Your patience is tested. Your faith is shaken. You begin to wonder whether your efforts (nurturing & caring) are going waste. Will your efforts be rewarded or not?

And then we enter into the 5^th year and comes a miracle! We experience growth, phenomenal growth. This Chinese Bamboo Tree grows 80 feet in just 6 weeks!!

So, the big question is: What was this tree doing all these 4 years?

Was this tree completely inactive for more than 4 years only to grow exponentially in the 5^th year, or

Was this tree growing underground, developing & strengthening its roots strong enough to support its potential huge growth in the 5^th year and onwards?

Of course. The second is the answer.

Similar is the case in Successful Stock Trading & Investing.

Successful Stock Traders & Investors first make their foundation/base strong in their initial struggling years when no visible sign of success (in terms of profits) appears. They spend huge time on learning and applying their learnings, thus making their base (root) so strong that they start making good to great profits in coming years without much further hard work.

While other category of traders, who haven’t spent good amount of time in getting proper knowledge and luckily makes good amount of income/wealth all of sudden in very short period of time, usually are unable to sustain their wealth and give back all the earned profits as well as part or full of their capital to the market.

So, the point is:

Becoming successful trader & investor is not easy. It is frustrating, demotivating, unrewarding at one stage of period. But those traders, who are serious in their dream / passion (of becoming successful trader), keep focused at it, keep trying always and be patient and persistent during such period, will certainly will become successful, very successful traders ultimately.

So, have full faith in yourself and keep nurturing your “Chinese Bamboo Tree” (Stock Market Passion), keep improving as trader/investor even if the changes are very slow or invisible at times and one day will come when you will surprise yourself.

Remember, Learning = L + Earning = Learning Leads Earning

(First make Strong Base of Learning then enjoy reward of Huge Earning)

Enjoy learning from Mother Nature !

Enjoy NOW !!

Is Stock Market Gambling/Speculation?

 

Is Stock Market Gambling/Speculation?

Short answer is Yes and NO, both.

 

Speculation is everywhere if you do not care.

Speculation/Gambling is in every field of life if you do not care / value of that respective field.

Ex. Health, Relationships, Family, Life, Career, Normal Business etc.

 

If you are in extramarital affairs, you are gambling with your beautiful married life.

If you make friends only for personal motives, you are gambling with long term deep friendship.

If you ride two-wheeler without good helmet, you are gambling with your precious life.

If you are not studying seriously during your academic life phase, you are gambling with your future.

If you are addicted to intoxication, you are gambling with your valuable health.

If you have not taken term insurance, you are gambling with your family’s future.

If you are not providing good products/services to your customers/ clients, you are gambling with your business/profession.

Similarly,

If you are taking stock market as lottery/casino/some type of ‘get rich quick’ scheme and expecting unreasonable returns (viz 2%-5% daily or15%-30% monthly etc.), you are treating it as pure gambling and not as serious business.

But,

If you are taking stock market as vehicle for substantial income generation and long-term wealth creation by expecting reasonable returns (viz 1.5% to 3%+ per month), by putting required amount of discipline, patience, time & mental efforts and using power of compounding, you are NOT gambling and you are taking stock market just as pure business like other businesses.

 

“No matter how great the talent or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant.” – Warren Buffet

Enjoy Wealth Creation through Stock Market !

Enjoy NOW !!