Saturday, March 11, 2017

Learn to Earn -Wealth Talk

"Discipline decides Destiny". Unquote.
Last evening, I was fortunate to attend an Investment Education Seminar. About 200 of us in the room, were enthralled by some invaluable insights on Wealth Creation. The three speakers sensitised us to several home truths, any demystified myths that have been handed over through generations, that need review in the present context.
Some of the takeaways I had-
-Investments ought to be measured not merely by the 'interest' rate but by keeping an eye on the returns (that beats inflation and taxation).
-Wealth creation is distinct from financial planning, cash management and (goal based) investments, as often one is prone to be confused.
-And yes, it is best left to professionals who are in the best position to advise you based on the specific individual needs/ability, be it risk, returns on a short term or for a long term. Every year, there are several new products being launched that cater to different asset classes.
Several examples were shared. It didn't matter how little you earned -but it did matter how early one started. And how beneficial some instruments are, comparatively to others, helpful to stretch the 'delta' earning. There is indeed an opportunity cost-that is underlying in any investment decision, which often as individuals we get numbed to.
But what dawned on me- was that how most do not consider Careers as an essential option for wealth creation! It is just as much as a financial asset for most professionals, and while there are "wealth managers" or "private bankers" to help manage one's portfolio of investments, we do not come across as many "Career managers"!
More so, in the VUCA times that we are, where business models get obsolete overnight, large business groups become extinct, and yes, a large number of Fortune 100 companies are 'new age' businesses-less than 15yrs of existence, that perhaps are part of an ecosystem, where valuation and M&As drive business decisions.
The younger generation is more sensitive to 'work-life' balance, participate in more 'marathons' than perhaps the Baby Boomer generation. And I am sure as lifetime employment is passe, the onus of managing one's career is now very much in each individuals responsibility. There is room for more innovation in planning & managing one's career.
Job tenures are shorter. Skills in demand change fast. Salaries are no longer linear with the number of years of experience. Layoffs are increasingly common as one is likely to have over a dozen jobs in a lifetime.
Yes, we are in more control of our career, compared to most other financial assets we invest in. Seriously. Are we? Whose life is it anyway?

No comments: