FUNDING 3 GENERATIONS IGNORING THE 4TH GENERATION
37 year old Abhishek earns 3 lakhs a month.
Good salary.
Good career.
Own house.
Two children.
Yet, every month, he wonders:
“Where did all the money go?”
AMG COMES INTO PI
CTURE:
He contacted an AMG (Advisor/Mentor/Guide).
The AMG looked at his monthly cashflow.
₹35,000 for his parents.
₹75,000 for children’s school and activities.
₹80,000 home EMI.
₹40,000 household expenses.
Insurance. Car. Holidays. Unexpected medical expenses.
And somewhere in the corner was sitting his most critical goal.. his RETIREMENT!
FUNDING 3 GENERATIONS:
This is the reality of many Indian families today.
We are not funding one life.
We are funding three generations.
Our parents’ needs.
Our children’s dreams.
And our own future.
Its not the mistake of people like Abhishek that they ignore Retirement. They simply cannot afford because income is carrying too many responsibilities.
And hence something has to be sacrificed. And we all know when things get tight, we usually sacrifice the person who do not openly ask!
And in this case, its RETIREMENT
We stop the retirement SIP.
Postpone investing.
Dip into long-term savings.
“Let things improve, I will restart”
THE FINANCIAL SANDWICH
Think about our parents.
Lower living costs. Affordable education. Cheaper healthcare. Some had pensions. Expectations were simpler.
Then came our generation.
Private-sector careers.
Home loans.
Private hospitals.
Expensive schools.
Foreign education.
Longer life expectancy.
And for many, no guaranteed pension.
Now our children are growing up in an even more expensive India.
AND WE STAND IN THE MIDDLE.
Supporting the past. Funding the present. Preparing for the future.
That is the Financial Sandwich.
Three generations. Three different financial realities. One income.
CHILDREN’S EDUCATION ALWAYS GET PAID FIRST :
Your Children’s school do not say “Pay whenever possible”
The School gives you a number.
₹2 lakh. ₹3 lakh. ₹5 lakh.
And that too with a deadline ! And the sandwich gets a just a bit heavy.
And of course .. for Retirement, there is no reminder/deadline/invoice saying “You have to invest Rs.50,000 for your retirement by 31st March”
THEN COMES THE WEDDING
A wedding comes with a date, a budget and, of course social pressure.
The venue, jewellery, clothes, guest list, destination …... each decision gets influenced by what OTHERS are doing.
The ₹20 lakh budget suddenly becomes ₹25 lakh, then ₹30 lakh.
So the Sandwich grows heavier.
PARENTS CANNOT AND MUST NEVER BE IGNORED :
Our parents grew up in a time when many had pensions, lower healthcare costs and more affordable insurance.
Today, pensions are not universal, health insurance premiums are rising, and hospitalisation can wipe out years of savings.
So when parents need ₹30,000 a month, or a medical emergency demands ₹3 lakh, we step in.
Sometimes even Health Insurance may not help and we simply cannot say no to our parents.
And this is where the sandwich gets even heavier.
FIRST PROTECT YOURSELF :
Since you are the sandwich generation and looking after 2 more generation (parents and children) your protection is paramount.
If your income is affected due to ill-health, the financial commitments get affected too and hence HEALTH INSURANCE IS A MUST before any other financial commitment.
Closely follows the LIFE INSURANCE COVER.
GIVE EVERY RUPEE A JOB TO DO :
Break your Income and Corpus pool into different parts.
Some for Emergencies
Some for Parents Medical Back Up
Some for Children’s Education
Some for Children’s Marriage
Some for Near Term Commitments
Some for Long Term Goals
And DEFINITELY SOME FOR YOUR OWN RETIREMENT.
Now every part of your rupee has a responsibility and works only for that part and hence every part of your financial life is taken care of.
THE GOAL THAT NEVER CALLS YOU:
Retirement Goal never sends you a reminder that its waiting and is inevitable.
Your Children’s School sends you reminder about School Fees
Your Bank sends you reminder about the upcoming EMI
Your Insurance company sends reminder about Policy premium renewal
Your Government sends you reminder about the Tax you need to pay
But your Retirement will never send any reminder that it is waiting for you.
Treat your Retirement as another Family Member and make it the FOURTH GENERATION OF YOUR FAMILY!
REMEMBER CASH FLOW PLANNING IS NOT SAYING NO TO ENJOYMENT
Cash Flow and Investment planning is not about saying:
No Holiday
No Car
No Outing
No New Vehicle
Not helping Parents
Not spending on Children
A good Cash Flow Planning is saying yes to all of these in disciplined planned manner and most importantly without sacrificing any of the committed inevitable goals including YOUR OWN RETIRMENT.
Give each goal a number, a timeline and have a funding strategy and with a good plan you can easily make rooms for all of your goals as well as enjoy the life journey.
Remember, one of the greatest gifts we can give our children is not an expensive wedding, a larger inheritance or even a foreign education.
ITS OUR OWN FINANCIAL INDEPENDENCE
Regards and wish you all the best,
Sr
ikanth Matrubai
Srikanth Matrubai | ARN-51423 | AMFI Registered Mutual Fund Distributor
Mutual Funds are subject to Market Risk. Read all documents carefully before investing.
All the best,
Regards,
Srikanth Matrubai
https://t.me/joinchat/AAAAAELl4KUnaJzi-JJlDg/
