My Investment Journey / Journal - 2- Some reflections
Graduating from a passive investor to being a judicious one is not a linear path. The new found awareness and interest prompted me to shop around the Financial literature and Fintech market in the digital world - at a frenetic pace and excitement for a few months. I carpet bombed myself with reels from self-proclaimed wannabe financial advisors, videos on Youtube, literature from blogposts & podcasts, etc. I will be dishonest if I do not admit that, I was at times carried away by the information I was fed on - and mistook popularity for wisdom. The late-bloomer inertia in me was a saving grace - as I managed to give an expected performance of not-acting on the dose of adrenalin. It is at this stage that I got enrolled into the MBA program (30 years after graduating). This stint helped me to stay grounded to take an organic approach.
I felt, it is also important that I shed my diffidence about the approach I have already taken into - for my financial scenario which was built on a conservative footing - relatable to possibly every salary-class middle-class individual of the times - in tune with financial instruments available to this class in that period - Bank deposits, Provident funds (hosted by the Govt / Employers) and Life Insurance policies (packaged as savings instruments). While these models were often ridiculed or seen with askance by the non-salaried fraternity - there were by-far the best in terms of incremental additions, capital protection, life-cover, and a rainy day providence for the retired lot (Life Insurance premiums were akin to the SIP s (Systematic Investment Plan) in Mutual Funds that are in vogue today). TVM (time value of money) was sold in the form of Life cover and Terminal benefits (albeit without our understanding - and now it is wisdom in hindsight - as I feel, the likes of me could not have got a better deal than this). I am glad I subscribed (good to say bought into / forced into) into this. This was the future that my father foresaw for me - and ensured I had reasonable TVM, Life cover and a discipline of incremental savings. I would have drawn a blank at this stage of my life but for his doting advise and intervention. I am deeply grateful to my father - Sri KB Krishna Moorthi, a veteran Chartered Accountant, an experienced Actuary by trade.
We are now in an era of changing jobs at a greater frequency. A 30 year career will see an average of 4 to 5 job-changes. (I will not delve into the career-cycles here. I am reflecting on the impact of job-changes on incremental savings leading to terminal beenfits at retirement). I have had 5 hops over 33 years (some bumps were closer). It is important to keep the savings increments during job changes (continuity of premiums for insurance, & others if any). It is also important to keep the provident fund untouched & let it continue. Job changes mostly risk the continuity of Provident Fund accmulation for employees - in which case they lose the advantage of long-term compounding. I was fortunate to be advised on this risk. (2 decades ago, the PF system was not as comprehensive or accessible as it is today. So there was considerable mistrust in the way it would be handled, so I have withdrawn my PF accumulations prematurely - however, I was advsied to invest them in equivalent instruments so it stayed untouched).
So given the context of the last 30 years, while there was a drift in spending patterns - the foundational aspects of incremental savings is still in vogue (set till my 58th year) - and it will hand me over a corpus (which should not be measured in value in today's scale) - a promised delivery of a reasonable TVM for the quantum of incremental investments vested-in.
- Is it enough / substantial in today's terms - NO.
- Could I have done anything better when it all started - NO.
- Was I aware of what I was doing with a reasonable view of the future at that time - YES.
- Does it make me feel good - YES.
- Am I am in a better place to do better - YES.
At any point of time - there was always wisdom in hindsight (my father's hindsight was my future plan) and a plan for the future. Now the onus of planning for my future wrests totally on me - on how informed I am and how this intelligence enhances my foresight for future from here - and whether this portends to be better hindsight when I look back from the future.
My posts are not intended for experineced finance wizards and veteran investors. Nor is this unsolicited advisory for the uninitiated. It has been my wont to reflect once in a while. Reflections of the past become a bedrock on which foresight would rest. There is a desire to talk this out to near & dear but time & timing & dwindling attention spans make it difficult for engaging interactions. Hence this journal. I thank my children to have persisted me to journal. Writing is an earthing experience !!
In my next posts, I intend to delve upon my views about
- The evolution of the Mutual Fund & Investment landscape (as I am witnessing it),
- My learning efforts into nuances of Budgeting and Finance (from a milddle class prism)
- The opportunities and challenges that the investing ecosystem presents for novices & aspriing investors
- My views on the financial advisory ecosytem
- Anatomy of an(y) Investment Portfolio
- Challenges in qualitiative and quantitative portfolio analysis
Please find my previous journal here -
https://akuppa69-3.blogspot.com/2025/07/my-mf-investment-journey-journal.html
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AK
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