Tuesday, June 18, 2013

Where will the Mango Man go?


Many years ago, I wrote a piece titled “Are we raising a generation paupers?”
In that I had argued that with all the proposals being made for investments in insurances of all sorts, SIPs, mutual funds, housing, luxury vehicles, savings for children’s education and marriages   plus the enticements of clubs and holidays etc etc,  how much did  the ordinary middle class  family have left to actually live on after all those putaways?
This morning a wealth management CEO told readers that he put 20,000/- a month in two SIPS since she was born, for his  daughter’s graduation and post graduation. And then another for her marriage.
Now if you are putting away thirty grand a month in three SIPs for your presumably only kid, how much must you earn to maintain the lifestyle while bringing her up, clubs, holidays, jewelry for the wife plus health insurance and life insurance and other investments, plus purchase of properties and cars? Suppose another kid came along? Then what?
Bank deposits are an absolute No-No.  You need the money multipliers.  No mention of now regular collapse of some mutual fund scheme or the other or the walking away of the foreign companies from desi insurance companies.  LIC is absolutely anathema to such advisors.
What on earth does the poor ordinary person do, our Mango Man (aam aadmi) with only 4 or 5 digit annual income and a family of parents and children support?   

Any convenient poisons like those our farmer brethren use?

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