If you talk to some of the “financial advisers” who are into selling financial products, they are likely to talk you out of the following products. You will know why soon as your level of understanding goes up.

1. Savings Bank account: Most of the advisers will try to talk you out of keeping money in savings bank account. The alternatives will be thrown at you – liquid fund, ultra short bond fund….etc. Frankly I do not see anything wrong with a savings bank account – and keeping a balance there. Say you keep your money in a bank like Bandhan bank…you could get 7% interest (tax free for most people), access to the money by an ATM, safety (at least up to Rs. 1L). Seriously I do not have any argument against this product, or leaving a balance there!
2. Term Insurance: “Sir you will not get the money in your life time”. The stupidest argument ever. You must counter this by saying “Idiot Insurance is not about my death, it is about providing money for my family which will live”. Your wife and children are not going to die on the day you die, are they? So term insurance is about providing for your dependents – parents, kids, spouse, employees, partners,…what have you.
3. Endowment insurance: Of course I have spoken against it at many forums. However for my 32 year old maid servant it is a great product. She will pay Rs. 6000 for the next 30 years and get a SUB OPTIMAL return. She will never ever default (because I have told her), and get a decent sum at the age of 60 years. Her other options are chit funds, Vee Cee, local money lender (he charges for safe keeping, if you didn’t know), recurring deposit (and the attraction that it can be withdrawn). Get the drift? No. For you and me it may not make sense, but for her it makes a lot of sense.
4. Credit Card: too many financial advisers tell you that it is better to use a Debit card instead of a Credit card. I dramatically differ. You should have 2 credit cards – one with a small limit (say Rs. 1L) and one with a big limit (say Rs. 15L). Keep the securities in place (my 15L card is capped at Rs. 50k a day and 50k a transaction), my big card can’t be used abroad (I have locked it). A lost debit card can be far, far more expensive. BTW I leave the bigger card at home.
5. Annuity without Return of Premium: People ask me “what if I take an annuity plan for Rs. 1 crore and die immediately? will this amount not be wasted? Well, my term insurance premium was wasted for the past 20 years, right? and I lived with that? An annuity is not a great product, but it is the ONLY PRODUCT that can NEVER ever go to zero when you are alive. That is amazing, is it not? If you don’t understand, buy it all the same. Which one do I have? well LIC. I do think that it is not a well managed fund, but THE GOVT OF INDIA will not allow the LIC Annuity to fail. I prefer that.

5 is a good figure to start….