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  • Category: Miscellaneous

    What you do when your parents hear to others, not yours’?

    Many a times when we give some advice to our elders they don't listen to us and in the same time listens to others, mostly non-family members, like their friends and relatives. My father always ignores my mothers' and mine advices and suggestions. He always take his friends' and relatives' advices for any kind issues. In 2008, he invested in one of the policies in Bajaj Allianz Insurance without asking me (and as per my uncle's advice) and he lost more than Rs. 80,000. Similarly he invested lakhs in chit funds in Odisha and lost everything.

    No doubt, parents always think for their children and do investment for future necessities. However, what's wrong in asking their spouse or children while doing so? Who's responsible for such losses? Nor my uncle will bear the losses and nor the agents. Then why such arrogance among elders I don't know. Please comment with your valuable thoughts and experiences.
  • #578380
    It is not a matter of arrogance. As far as investment decisions are concerned, practically neither the individual concerned, nor his/her family members know much about the subject matter, though there may be few exceptions.

    The individuals are prone to be very proud of the money which they have earned themselves and tend to have total control on it and therefore take investment decisions without taking approval/concurrence of all the family members . It often happens that some friend or a relative who pose themselves as an investment expert, lure the gullible to invest in a certain product which is subject to the market risk.

    I believe that any investment decision which looks very lucrative always has a catch. It is better to not aspire for more than 10% annual return at the most. Yields of 15% or more are positively likely to lead to misery. Freak cases and short term gains by luck not to be counted.

    Let us encourage each other in sharing knowledge.

  • #578382
    Thanks Kailash Sir.
    Actually I've given my own experience about the investments, chits and frauds here. However, it is not my issue or matter of discussion. My concern is about the motives of elders who always think of their mind and/or take other advice, even after their children are educated and responsible for their families.

    For example, one of my friends who belong to a marvadi family and their father own a reputed store in Bhubaneswar. My friend did CA and wants to go for a reputed company with some respectable position; but his father don't want this. His father says, his duty was to educate their children. Whatever he learnt, must implement and support in his business. No need to go for any job.
    What do you say on this issue?

    Naresh Kumar
    'Every bad situation will have something positive. Even a dead clock shows correct time twice a day.'

  • #578384
    A qualified CA must be competent to assess the net worth of his father's business and the potential for further growth in due course. In my opinion, joining a bigger setup is likely to enrich the experience and broaden the vision of the son which may subsequently be applied in the case of his father's business.

    Primarily, it will depend on many factors like if the individual is an only child and the depth of the emotional bond with the family. As a CA his expertise is likely to be always available to his father's business but it appears that he may not be willing to spend full time in the store for routine management activities. The type of commodities being handled in the store also matter.

    Let us encourage each other in sharing knowledge.

  • #578396

    I do understand your angry against your parents especially your father who does not consider your advise as matter to accept. There may be two reasons for that. Your father might have thought that you are too young for him to advise in the matters of investment and so. Secondly he believes in someone who already gone through those investment and got benefited through it. Normally the persons in the home wont listen to advise but always consider the advise of others just on the face value. But what I feel that children should also be involved in taking some major decisions in the family. That will not only give wider acceptance but also a satisfaction of having consulted every one and taken decision. Normally investing in Insurance and chit funds needs expertise to gauge the moves of those groups and thus one have study well before investing, otherwise they loose the hard earned money in a huff.

    K Mohan
    I consider myself as the learner everyday

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