-- Posted Thursday, 21 April 2011 | | Source: GoldSeek.com
In the month of March 2011, I had injured my right ankle and right leg’s thumb. I was advised by the doctors to take a three week rest. I did not go the office. I just worked from bedroom. I reduced my work hours to just seven hours to eight hours day (from the normal twelve hours to fourteen hours a day). Being a commodity analyst and foreign exchange analyst, I need to work for long hours with very still mind as it covers different markets and different time zones. I have been in this field of work for more than ten years. Three weeks has been a very long break for me. It gave me time for introspection. One of the first things which struck me was that had it not been for a very supportive team and a very supportive family my work revenues would have been badly affected. Clients need quality service and they need no reasons or alibis for the same.
Had I been alone I would have lost on two counts (1) Rise in medical expenses (2) Fall in revenues. It made me think of the need to save for disability and invest the same in highly secure but low return investments. Unforeseen circumstances can come anytime. We cannot predict the same but need to prepare ourselves for the same.
Medical Insurance is on the rise in India. But we still need to extra funds for expenses which are not covered by insurance. Firms can take a “Keyman Insurance” policy to meet needs. But an individual (whether businessman, in the job or any other person) can take a disability insurance. In the age continued rising needs and rising expenses we need to make an effort to increase savings rate and also invest at least thirty percent of savings in highly secure and zero risk investments.
Some of secure investments are:
1) Bank Fixed Deposit
2) Public Provident Fund (PPF)
3) Government securities.
4) Bank Recurring deposit schemes (offered by state run banks)
5) Post office savings schemes
6) Indira Vikas Patras etc
These are just some of the examples. There are others, but almost all of them fetch a yearly return of less than ten percent in India. One must ensure that these investments must be highly liquid as we may need the funds anytime.
I had been off for just three weeks. There can be a longer duration for others. Planning for disability and other unforeseen events which reduces our one capacity to earn is must for everyone. I am not pessimistic but just trying to secure the future insecurity through disability planning, disability savings and disability investments.
Please Note: Gold and silver are great long term investments. But the current pace of rise and current high volatility makes me believe that in India it is not a very great short term investment. High Indian interest rates also takes the case against secure short term investments in gold and silver.
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. Prepared By Chintan Karnani. Website www.insigniaconsultants.in
-- Posted Thursday, 21 April 2011 | Digg This Article
| Source: GoldSeek.com
