Financial Discipline and How to Start Investing Early – Awareness Session for T&AS Engg Employees
Few weeks back, we got invitation from T&AS Engineers to conduct seminar for their employees on Money management and How to start investing in early stage of life. The topic was inline with what I have been writing for several years on this blog. The interesting part was the employees of the company are young and average age is below 25. I have covered few pointers which I am putting this as part of the article that would be useful for our blog readers too. How to be Financial Discipline and Start Investing Early in your life?
What does T&AS Engineers do?
T&AS Designtech Services Private Limited is a full service provider of IT-enabled engineering services serving clients in North America, Europe and Asia. With its headquarters in Hyderabad, India, centrally located to the major manufacturing hubs, T&AS delivers top-notch quality deliverables to its clients. The average age of the employees is 25 years. They just started saving money and majority are not yet aware where to invest their money in future.
What we covered as part of the Financial Discipline and How to Start Investing Early – Awareness Session?
Last week we conducted a seminar with their 140+ employees discussing about financial discipline, money management skills and how to achieve their goals faster. We have created a theme around this and presented to the employees of the company.
Few highlights of the Seminar / Awareness provided to them
1) Why to understand about Financial Discipline & Money Management?
2) How to be successful in your financial life?
a) Prepare a Budget
b) Have adequate Insurance. Recommendation given to take a best term insurance plan + Top-up health insurance plan over and above company provided medical insurance policy.
c) Maximize your savings. Sample provided about how savings matter and not earnings. See below sample.
d) Invest Savings in Smart way
e) Plan your taxes. Explained various tax saving options where a salaried employee can save income tax.
f) Achieve your financial goal faster
Q&A Session was interesting
There were various questions from employees as well from their team leaders. Here are few useful ones
1) I am a high risk investor, where should I invest?
Since you are high risk investor, investing small amounts in some of the Best Small cap mutual funds or Top Midcap mutual funds would be a good idea. However, one has to invest for medium term.
2) I want to invest lumpsum and expecting good returns, where should I invest?
One can try IPOs, however no guaranteed returns. In case of mutual funds, if you can hold for medium to long term, try investing in debt mutual funds and do systematic transfer plan (STP) to largecap equity mutual funds for 6-9 months. You need to hold for atleast 8-10 years to get good returns.
3) Should I buy ULIPs?
Straight answer is NO. Insurance agents have cheated many investors by mis-selling ULIPs indicating that these would provide good returns. In reality, many investors burnt their fingers and their invested value has eroded by more than 30% which they realized after 5 years. We have given sample examples of LIC Money Plus and ICICI Pru Wealth Builder Plan where myinvestmentideas was the first which unearthed the negative points of this ULIP and thousands of investors surrendered such ULIP.
4) Whats your view on Cryptocurrencies?
This was the most difficult question I ever faced. Cryptocurrencies like Bitcoin, Litecoin etc., came to limelight last year on BIGBANG and vanished at the same speed it came. My advice was that these are academically good, but not that good investments.
Few snaps from the Session
1) Suresh KP i.e. me talking about How Savings Matter and NOT Earnings
2) Responding to Queries raised during money management and financial discipline session
3) Token of appreciation received from Mr.Prasanna, Director of T&AS
Would like to have similar session for your company employees?
This session was conducted out of my passion and without expecting any monetary benefits. If you like to conduct me such session for your employees, you are free to reach me firstname.lastname@example.org. I can conduct such session on Saturday or Sunday only.
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