Financial planning: Curious case of Murli’s free-for-all purchase plan
His choice of products depends on the market conditions — if the rate of return on fixed instruments is high i.e. above 9 per cent he will invest there and when they are low, he will go for equity mutual funds. This is his style and method of financial planning.
Towards the end of each financial year he would invest the said surplus in lump sum for his financial goals and also complete his little bit of tax planning investment if necessary.
What a strategy! Whatever you spend you get it back in 20-30 years or even earlier. Sounds unreal but is quite logical and possible.
If you do not live to that point of time, you simply leave it as inheritance to your children. Over time, if you feel your children don’t need that inheritance you spend whatever has accrued and do what you like whenever you like. Take a three month holiday hopping around the world if you please.
You could fulfil shortfall in any financial goal in future. You can use the accrued money now or during retirement. It is all extra money anyways.
Like I mentioned earlier, I am not commenting on what Mr. Murli does is right or wrong or how effective his method
