Judging the Book by its Cover

Any professional journey involves garnering different experiences along the way. Every experience brings about change in the way we think or do business. Let me share one such experience.

Some time back, a young couple approached me for investments. Although my husband knew them, I had not met them before. They were smart professionals, belonging to well-to-do families. As I started preparing for the meeting, I realized that I felt somewhat apprehensive on a few counts.

Misgivings

Still in their twenties and coming from affluent families, there was a strong possibility that they could be impulsive and high spenders. There is a trend amongst the youngsters to “spend on experiences” rather than “accumulating”. Thinking very long term may not seem relevant to them, at this life stage. High ambition and confidence may lead to the propensity towards higher risk.

At this stage, things seemed much in contrast to my inclination towards caution, frugality, and long-term thinking, as a planner and an investor.

 The way to proceed

I realised that most of my apprehensions were based on assumptions. Perhaps, I needed to be more open minded. I was aware that both of them lived away from their families. Who doesn’t miss ‘Ghar ka Khana’? And, hot meals often lead to warm conversations. I invited them for lunch, to which they happily agreed.

What turned out to be…

Both seemed intelligent, ambitious and sensible. They were looking to settle down and valued the importance of managing their finances well, right from the beginning. They did not want to be financially dependent on their parents. They loved shopping and eating out. Buying their own house after a few years, was on their aspirations list.

Their concerns

The girl’s father had lost a large chunk of his savings due to investing mistakes. She was scared of anything to do with stocks. She either kept all her money in the savings account or PPF a/c (mostly for 80 C benefit). He was confused with all the different investment products available in the market and did not know where his money should go.

Addressing the concerns

After hearing them out, I felt that we needed to begin with the basics. I intended to quell their fears and help them to start with their investing journey keeping in mind the sound investing practices. We spoke about their goals, inflation, compounding, the risks involved (in life and in investing), and the ways to manage these risks. By the time they were ready to leave, their hearts were lighter and stomachs full (and that made me happy too!).

Where are we now?

Both are disciplined investors, setting aside a fixed amount every month. They also have a budget for entertainment and continue to enjoy their lives. We are in touch regularly and they have thanked me several times. I never forget to mention how I am proud of them. It is truly admirable that they were not only keen to learn but also implemented their financial plan without any delay. Given their intent, discipline, and willingness to follow the process, undoubtedly, they will achieve great success in the years to come. There are times when they come up with requests such as redeeming part of their investments for purchasing a new car, or stock tips. I gently take them down the memory lane and back again. So, we are good. This also shows their openness to respect and follow professional advice, despite being in a position to carry out their wishes.

Learning for me

Firstly, it was a mistake on my part, to form a picture in my mind without checking on the reality. Although it was instinctive and extremely short-lived, I have learned to be more careful about forming any opinions, at the outset. Once that was cleared, an open mind, empathy, and a keen desire to help others in their investing journey, worked magic.

I look forward to being a part of many such journeys, sans any initial inhibitions or assumptions.