Physically and cognitively, we are hunters and gatherers living in this world with nice UI/UX, driving fancy cars, wearing stylish clothes armed with a brain that often misfires in modern contexts, leading to irrational choices.

A thread on behavioural biases

[1/11] Before we dive in, what does 'missing the context' mean? Here are a couple of examples:

1 Assuming the target audience for fintech innovation is all of India, rather than the ~10 crore individuals with mutual fund accounts.

2 Betting on dividend investing for passive income in India, simply because it works well in the U.S. market.

[2/11]

Exactly 3 years back, during peak COVID-19, I shifted back to Bhilai. Along with wife and daughter (6 YO now). After having lived in metros for over 15 years.

🧵 Thread on how this move has changed my life for the better & the downside of living in a smaller town

1/14

Some background before we dive in

I have been working remotely since 2017 - running two businesses. While I was based out of Bangalore, the team was/is spread across the country.

Was doing well, my daughter was 3 YO, my wife was on a career break.

And then COVID happened

2/14

"Stick to your asset allocation" - the most commonly used phrase in the current times

But what is asset allocation and how does one go about investing in various assets?

A thread 🧵

1/15 So what do we cover in this thread?

💰 Types of asset classes
💰 Why & What of asset allocation?
💰 Factors influencing asset allocation
💰 Reviewing asset allocation
💰 Investment process

2/15

Financially speaking, the payback period for an MBA course could be well over 10 years!

In this example, a 26 yo earning ₹12L/year chose to do a 2 year course costing ₹30L and bagged a starting salary of ₹20L/year To clarify, the example may not be representative and might not be closer to reality.

The intention is to share the underlying model with the aspirants so that they can make a more informed judgment.

PS: The model is currently being cleaned up and should be out soon 🙏

There are many paths to achieving Financial Freedom. But most of us who start our professional career in a corporate environment have only one path.

Thread 🧵 on what you should do in your 20s to achieve Financial Freedom by the time you turn 40 🚀

1/9 Let's first define Financial Freedom.

When assets can take care of all your future expenses and that of your dependents after accounting for inflation, lifestyle, and changes in life stages

Essentially, Level 6 in @millennialmoney's chart below

2/9

Saying returns from an annuity are sub-optimal is like saying returns from term insurance are zero (if you survive).

You are missing the point completely! 🤦‍♂️

Essentially, you are not accounting for the risk these products hedge

Long 🧵 on the annuity. Grab your coffee ☕

1/16 So what do I cover in this thread?

1️⃣ definition of annuities

2️⃣ types of annuities

3️⃣ why buy annuities

4️⃣ address common concerns with annuities

5️⃣ comparison with buying a government bond

6️⃣ spreadsheet model describing annuity cashflows (free to download.)

2/16

A lot has been talked about Financial Independence and investment instruments to achieve the desired retirement corpus.

This thread is about a boring yet extremely crucial part of the financial independence journey - the safety nets i.e risk management instruments

[1/10] If investment returns are an accelerator in the journey of financial independence, risk management instruments (largely insurance) are brakes. Brakes ensure that journey is not derailed and give you the confidence to drive faster🏎

[2/10]

Exactly a year ago, I decided to shift my base from Central Bangalore to Central India i.e. Bhilai

Thread on how it impacted my professional & personal life, health, financial independence journey, and more importantly the cost I paid/am paying!

[1/17] We landed in Bhilai on 1-April-2021. Experienced scorching heat & deadly second wave of Covid-19

It wasn't a warm welcome but we survived because of parents being around. The fact that we were close to our parents during the pandemic was equally comforting

[2/17]

Even though NPS is one solid product for retirement, most people get deterred by the illiquidity (of Tier-I) and mandatory annuitization at the time of withdrawal.

In my view, both are non-issues. Here is why I think so. A thread

[1/7] Illiquidity - Essentially the money invested in the Tier-I account cannot be withdrawn in "normal" circumstances until the age of 60 years.

I think this is a good thing as long as one only invests the money that wouldn't be required until the age of 60.

[2/7]

I am 35 and (nearly) financially independent. This is a thread on how being born to frugal parents, making a few good decisions, and practicing delayed gratification helped me get here despite inefficient asset allocation and sub-optimal investment returns. [1/18] First things first, what does being financially independent mean. When your assets are sufficient to take care of all the future expenses, you are financially independent. This is not synonymous with being rich or wealthy. Also, the first home is not accounted as assets [2/18]

Ever wondered if the term insurance you have (or intend to buy) protects you well? Or is it a good value for money? What riders to buy?

Find answers in the thread below. The comprehensive term insurance checklist of 16 questions that goes beyond the features is here! [1/n] Not in a mood to read a long thread yet keen on having the consolidated one-pager checklist along with the rationale? Follow the link. Answer 10 Yes/No type questions (without worrying about the accuracy). No email id/phone no. required

protectmewell.com/checklist

Reward --> [2/n]

Personal finance without insurance is like doing the trapeze act without the safety net!

Thread on the Why, What and How much of insurance cover i.e. the safety net

[1/n] Before getting into the specifics, here is a quick test to see if you need a particular insurance cover. In case an event occurs, would there be a financial loss large enough to derail the financial planning/lifestyle?

If yes, buy the insurance cover, else skip!

[2/n]

Sharing experience of practicing meditation for over 300 days. Thread alert!

Disclaimer: The experience is based on practicing Shambhavi Mahamudra learned as part Inner Engineering course offered by Sadhguru

[1/n] A bit of context. I chose to explore meditation when I had over-achieved in life and was yet not happier. I started on my own, made a fair amount of money, and appeared on TV. And even with all this happening, I was around to see my daughter growing up!

[2/n]

A thread on how InsurTechs are going to be impacted because of #Covid_19 and what's the best way to utilize the time between now and the time when life gets back to normal, which could be easily 6-9 months!

#InsurTech #Actuary #Funding - Given the slow down of businesses, which would create many other investment opportunities for investors, expect reduced interests from investors. Because for them InsurTechs is just another avenue, which may not be most attractive given other opportunities

#Actuary

Thread alert on IRDAI Regulatory Sandbox. Did an article on the topic a few days ago to demystify it. After having thrown some light on the regulation, I seek a few answers. Tweeps, time to return the favour :) Both answers and questions are welcome [1/n] Q1) Assuming an innovation requires relaxation in the existing regulations, which the regulator grants. What would happen to the innovation after the testing period of 6 months is over and the innovation, by design, cannot comply with the existing regulations? [2/n]