watch this video..and if it does not scare you, NOTHING will.
This is in USA. It is worse in India.
7 thoughts on “The Retirement Time bomb…”
Gov
Subra, what’s your take on this video as far as equity allocation is concerned? I see a lot of doom & gloom videos once in a while but don’t see much option other than equity for young folks (<40) for the long-term..
SS
Hi Subra sir,
A recession of equity markets is due no doubts about that. I wonder if this is really a permanent problem as far as India is concerned. Please allow me to share some thoughts & let me know if they are wrong.. –
(1) In India, no. of investors in equity markets is 5% of total population. (NSDL, CSDL data says so). 130 Crore population only 5 crore is active in markets. Even though recession affects all people (all 130 Cr say) ‘temporarily’, they will get out of situation with time. But only 5 crores are vulnerable to ‘permanent’ capital loss as they are directly involved and if they do not play safely.
(2) Ratio of import&export :to: GDP is around 20% only. In other words, 80% of economy is self-sustained within India. Near my house there is a grocery shop, pharmacy shop, barber, garment shop, a school and whatever shops we find on the street. During 2008 they did not bat an eyelid.
(3) India consumption pattern is already ‘cut-to-bone’. Many will not open their wallet to spend unless pushed to wall*. The video says post retirement spending changes. In India, post retirement, only income ceases. The spending was already in control – in most cases.
*Maruti: has 49% of market. even if people can afford any other. Chervolet simply did not know what to do – exit..
Mobiles: Almost all Indians have phones. But for Apple, India is still untapped.
(4) India wealth in general – 50% in Real estate, 25% in Gold, 15% in FDs, 5% in some other property, 5% in equity/MF (say) .. For a common middle class man – is this not true? Will the things he talks about in the video really affect anything in India?
CK
Culturally and historically, majority of Indians live by ‘hand-to-mouth’ existence and thrive on Jugaad strategy for survival with least resources. Does it mean comparing to US is like comparing apple to orange?
Gov
Excellent points from SS above
ABC
Agree with ‘SS’. Subra sir – Which part of video applies to India? Like video suggests to stop investing in Equity as it will only go down in 2-3 years and think about investing in CRYPTO? Please share your thoughts.
Narasimmamurthy
RE is quite appealing for 35 year old nephew though he does not know or figured out where he will settle. He may be opting for a housing loan which would be let on rent !!
He has to fend for his (3 year old ) son’s education besides building “retirement corpus”. My attempts to dissuade from housing pursuit were of no avail.
rajeev
I feel the doom and gloom video is a one sided thought. Indian population is young. We are still growing. The Indian businesses will continue to benefit from the growth in consumption. Due to growth of the economy, Indians will start spending more.
Stock markets go through ups and downs all the time. Nothing to worry about if your investment is for long term.
Gov
Subra, what’s your take on this video as far as equity allocation is concerned? I see a lot of doom & gloom videos once in a while but don’t see much option other than equity for young folks (<40) for the long-term..
SS
Hi Subra sir,
A recession of equity markets is due no doubts about that. I wonder if this is really a permanent problem as far as India is concerned. Please allow me to share some thoughts & let me know if they are wrong.. –
(1) In India, no. of investors in equity markets is 5% of total population. (NSDL, CSDL data says so). 130 Crore population only 5 crore is active in markets. Even though recession affects all people (all 130 Cr say) ‘temporarily’, they will get out of situation with time. But only 5 crores are vulnerable to ‘permanent’ capital loss as they are directly involved and if they do not play safely.
(2) Ratio of import&export :to: GDP is around 20% only. In other words, 80% of economy is self-sustained within India. Near my house there is a grocery shop, pharmacy shop, barber, garment shop, a school and whatever shops we find on the street. During 2008 they did not bat an eyelid.
(3) India consumption pattern is already ‘cut-to-bone’. Many will not open their wallet to spend unless pushed to wall*. The video says post retirement spending changes. In India, post retirement, only income ceases. The spending was already in control – in most cases.
*Maruti: has 49% of market. even if people can afford any other. Chervolet simply did not know what to do – exit..
Mobiles: Almost all Indians have phones. But for Apple, India is still untapped.
(4) India wealth in general – 50% in Real estate, 25% in Gold, 15% in FDs, 5% in some other property, 5% in equity/MF (say) .. For a common middle class man – is this not true? Will the things he talks about in the video really affect anything in India?
CK
Culturally and historically, majority of Indians live by ‘hand-to-mouth’ existence and thrive on Jugaad strategy for survival with least resources. Does it mean comparing to US is like comparing apple to orange?
Gov
Excellent points from SS above
ABC
Agree with ‘SS’. Subra sir – Which part of video applies to India? Like video suggests to stop investing in Equity as it will only go down in 2-3 years and think about investing in CRYPTO? Please share your thoughts.
Narasimmamurthy
RE is quite appealing for 35 year old nephew though he does not know or figured out where he will settle. He may be opting for a housing loan which would be let on rent !!
He has to fend for his (3 year old ) son’s education besides building “retirement corpus”. My attempts to dissuade from housing pursuit were of no avail.
rajeev
I feel the doom and gloom video is a one sided thought. Indian population is young. We are still growing. The Indian businesses will continue to benefit from the growth in consumption. Due to growth of the economy, Indians will start spending more.
Stock markets go through ups and downs all the time. Nothing to worry about if your investment is for long term.