14 Oct We are All so Blind…!
A 24 year boy seeing out from the train window, shouted,”Dad look the trees are going behind”.
Dad smiled and a young couple sitting nearby, looked at the 24 year old’s childish behaviour with pity.
Suddenly he again said “Dad look the clouds are running with us!”.
The couple couldn’t resist and said to the old man,
“why don’t u take your son to a good doctor?”
The old man smiled and said,
“I did it and we are just coming from the hospital,my son was blind from birth, he just got his eyes today”.
Till yesterday this boy was blind and today he was able to see things.
This is also the story of scores of investors who are born blind for whom only financial education can restore their sight.
People in general are blind to several things with regards to personal finance.
They are blind to the potential of market based financial instruments
They are blind to the benign returns from traditional instruments
They are blind to the power of compounding
They are blind to the true meaning of risk. (According to them risk is only about losing money and not about volatility)
They are blind to the concept of CAGR. They don’t understand the significance of this major wealth multiplier
They are blind to the risk of liquidity.
They are blind in their love for ‘real estate’
They are blind to the bite of inflation.
The reason for their blindness is on account of the following reasons:-
They have never visited a Financial Advisor / Financial Educator (who is like the doctor who cured the boy)
Whatever little education they have has been handed over to them from their parents.
While it may be a perfect thing to have our parents educate us on life “values”, it is quite another thing to ask them to educate us on computer technology.
Likewise personal finance solutions that were relevant during the times of our parents are no longer relevant today.
If one wishes to get rid of their blindness, it is imperative that he or she visit a Financial Planner who like the ophthalmologist would cure them of their blindness and show them wealth creation opportunities that lie before them.
And then will the investor will enjoy these opportunities just like the young boy was enjoying the sights of clouds and trees.
Dharmendra Satapathy at NextLevel-Education