Advice!

sanrags · Feb 28, 2013

Stressed out i think, mast post

rgsrinivasan · Mar 1, 2013

iamsrihere;bt90511 said:

oh yes,but rgs dont call me madam:notthatway:,instead sri..howz this:biggrin2:
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Thats a deal Sri. Thanks very much. -rgs

rgsrinivasan · Mar 1, 2013

sanrags;bt90514 said:

Stressed out i think, mast post
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Thanks Sanrags, for your appreciation and continuous support. -rgs

shyamala1234 · Mar 1, 2013

Dear rgs,

Shall I tell you my reasoning?

All the other advices he used to give to people were professional and he got fees for those advices. If he tells everyone invest in FD nobody would come to him for advice.People go to financial advisors to make their money increase quickly and of course safely also. There he acted as a professional and he did a good job.

But in the village with his father's friend it is not professional advice, father's friend asked him for suggestion to invest for a good purpose and many would be benefited and it involves a temple also. He gave this advice as a friend's son and not as a professional...for a genuine cause. FD is a safe investment and interest can be used for the poor children and temple forever. Here safety of the money is important. In stocks and share market...one has to monitor it constantly and after Ramakrishnan dies nobody would be there to do it and the money may collapse. But FD is safe.

rgsrinivasan · Mar 1, 2013

shyamala1234;bt90555 said:

Dear rgs,

Shall I tell you my reasoning?

All the other advices he used to give to people were professional and he got fees for those advices. If he tells everyone invest in FD nobody would come to him for advice.People go to financial advisors to make their money increase quickly and of course safely also. There he acted as a professional and he did a good job.

But in the village with his father's friend it is not professional advice, father's friend asked him for suggestion to invest for a good purpose and many would be benefited and it involves a temple also. He gave this advice as a friend's son and not as a professional...for a genuine cause. FD is a safe investment and interest can be used for the poor children and temple forever. Here safety of the money is important. In stocks and share market...one has to monitor it constantly and after Ramakrishnan dies nobody would be there to do it and the money may collapse. But FD is safe.
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Thanks so much Syamala. I deliberately avoided explaining this point, as I knew that it would be definitely picked up by smart readers. Very happy to receive your feedback. Thanks. -rgs

AkilaMani · Mar 1, 2013

A financial wiz went to his native, where he has no close ties, to destress.... makes me think it could be either of the two reasons 1. he had recently made a bad decision and was hurting financially 2. because he was a simple man he found going to his native appealing.

I would like to play with the first idea and say that at that particular moment, he thought that rather than keeping a keen eye on the investment and speculating, it was better to have it in FD where it was safe.

But we cannot ignore the fact that he was a simple man, so he went not because he couldn't afford a costly retreat in some exotic resort, but because he wanted to go. So his advice was purely based on respect to an elder who had already made up his mind and was only looking for approval from a financial wiz. Since it was a safe choice and would not hurt the ego, paranthaman just went with it!!

A good one rgs!!

Akila

ps: this is my 3rd response and this time i hv smartened to copy it, jus in case the system decides its still not the right time to post my comments...... (i lost my previous two comments....)

rgsrinivasan · Mar 1, 2013

Akila Mani;bt90566 said:

A financial wiz went to his native, where he has no close ties, to destress.... makes me think it could be either of the two reasons 1. he had recently made a bad decision and was hurting financially 2. because he was a simple man he found going to his native appealing.

I would like to play with the first idea and say that at that particular moment, he thought that rather than keeping a keen eye on the investment and speculating, it was better to have it in FD where it was safe.

But we cannot ignore the fact that he was a simple man, so he went not because he couldn't afford a costly retreat in some exotic resort, but because he wanted to go. So his advice was purely based on respect to an elder who had already made up his mind and was only looking for approval from a financial wiz. Since it was a safe choice and would not hurt the ego, paranthaman just went with it!!

A good one rgs!!

Akila

ps: this is my 3rd response and this time i hv smartened to copy it, jus in case the system decides its still not the right time to post my comments...... (i lost my previous two comments....)
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First of all, thanks for your tireless attempts in responding to this post Akila. And thanks for a fantastic response too. Liked your analysis. -rgs

quantSundar · Mar 2, 2013

Being a finance professional ( I am not an investment adviser though) I will also make the same suggestion. Investing in stocks is not for the faint-hearted. Here is a man who has just retired. His risk appetite is close to 0. Any sound investment adviser should take into consideration his client needs. Very few other investment avenues are open for exploration in this case. Investing in bonds (for a slightly higher interest rate without the surety of no-default ) , NSC . These are all I can think of. The stock markets are not crash-proof !! .So even the best investment advisers' predictions can go wrong. Suppose Mr P takes the responsibility of handling the cash for Mr R , then in the event his ideas go awry it will be very difficult to explain it to Mr R,more so when you are related to him. Not all understand how the market works . So this is the best advise Mr P can give. He makes sure the money is wisely invested with minimum risk and also he tactically gets himself out of a catch-22 situation.

rgsrinivasan · Mar 3, 2013

quantSundar;bt90598 said:

Being a finance professional ( I am not an investment adviser though) I will also make the same suggestion. Investing in stocks is not for the faint-hearted. Here is a man who has just retired. His risk appetite is close to 0. Any sound investment adviser should take into consideration his client needs. Very few other investment avenues are open for exploration in this case. Investing in bonds (for a slightly higher interest rate without the surety of no-default ) , NSC . These are all I can think of. The stock markets are not crash-proof !! .So even the best investment advisers' predictions can go wrong. Suppose Mr P takes the responsibility of handling the cash for Mr R , then in the event his ideas go awry it will be very difficult to explain it to Mr R,more so when you are related to him. Not all understand how the market works . So this is the best advise Mr P can give. He makes sure the money is wisely invested with minimum risk and also he tactically gets himself out of a catch-22 situation.
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To be honest, I thought along the same line, but I would never give a candid explanation as you did here, QuantSundar. Thanks a lot. Very happy to receive a first from you, in blog section. -rgs