Budget aims to fix ‘nuts and bolts’ of state machinery
Harsh’s take on some of the less discussed aspects of budget 2023. article in Business standard
Financial
Beware! Govts do default on pension liabilities
Employees who are taken in by the promise of old pension scheme could do well to learn from Gandhi ji. In 1942, while the II world war raged, the Cripps Commission made a vague promise of granting Dominion Status after the war was over, if Indians would support the war effort. “I refuse to accept a post dated cheque on a failing bank” Gandhi ji responded. Politicians who are making the promise of restoring the “Old pension scheme” know that they will not be around when the time comes to actually pay the pension. They are just looking to save on making the employers contribution to NPS. The demand for the “Old Pension Scheme” explained through a Fable in Harsh’s article in Business Standard
Leader in tech, laggard in succession systems
India’s ultra modern banking system with global class technology has a creaky antiquated succession system that is causing immense hardship to family members trying to get access to a deceased account holder’s funds. Harsh’s article in Business Standard talks of what needs to be done bring the succession systems on par with the ultra modern technology systems of the banks. your comments welcome as always.
Opt for regular investing over extreme frugality
“Delayed Gratification” taken to extremes is as bad , if not worse, than “Instant Gratification”. Harsh’s article in the business standard on why the “Financially Independent, Retire Early”(FIRE) approach is not meant for everyone. Your comments let us know that you read through his articles ?
Learn to draw lessons from mistakes, then share them
Harsh narrates, “Many thoughts crossed my mind before I wrote this article on the mistakes I had committed in the past and the invaluable (and expensive) lessons I had drawn from them. I had always used the lessons with our clients without sharing the specific experience as I was apprehensive about client response on the disclosure. I got the courage to share when I heard a podcast by Rick Kahler a US based financial therapist and financial planner where he narrates about how clients relate to him much better after the disclosure. I will await your feedback.”
When emotions overrule neatly laid financial plans
While it is important to be technically proficient in the investment advisory profession, it is even more important to understand that there are limitations to technical expertise. As the examples cited in Harsh’s article in Business Standard show client’s emotions can completely change the best laid financial plans.
Use data on education loan defaults to rank courses
Course wise education loan repayment aggregate data can help lenders, students and even the education institution themselves to take more informed decisions. Harsh’s article in Business Standard on why this aggregate data should be made publicly available to aid better decision making benefitting the entire economy.
Transparency as antidote to conflict of interest
Upfront transparent disclosure of conflict of interest situation is required under the Investment adviser regulations. In Harsh’s article in business standard, drawing on his personal experience, he write about how this can actually assist in building long term trust with the client. Comments welcome as always.
Time-starved investors must stick to index funds
Conscious inaction is patience else it is inertia or laziness – which if coupled with mindless diversification can lead to disappointing outcomes from equity investments.