PPF WITHDRAWAL

rS. 80000 TRANSFERRED FROM MY PPF A/C TO HDFC  OD ACCOUNT.

RS 40000 TRANSFERRED FROM KAVITAS PPF ACCOUNT TO HDFC OD A/C.

RS 30000 MIS ACCOUNT CLOSED AND PROCEEDS TRANSFERRED TO HDFC OD A/C.

OD ACCOUNT NOW HAS 200000

BY JUNE ANOTHER 310000 WILL BE TRANSFERRED FROM RBI BONDS TO OD ACCOUNT.

FINANCIAL PLAN

I am 43 yrs old now. Assuming that I will live for another 57 years, I have to plan my life. Anisha is 13 ys old while Raashi is 8 yrs old. Assuming that both of them gat married at the age of 24 yrs

2012    Anisha goes to class XI                                                        10 lakhs.

2014   Anisha goes to college.                                                          10 lakhs

2016   Raashi goes to Class XI                                                         10 lakhs 

2018    Raashi goes to college.                                                          10 lakhs

2020   Anisha's wedding                                                                   1 crore.

2025    Raashi's wedding.                                                                  1 crore.

This adds up to 2.4 crores. Another major outgo will be when I build my house in Sector 2. Right now the cost of construction  is around Rs. 1000 per sq ft. Assuming that I will need around 2000 per sq ft of my 1400 sq ft house, it will require around 30 lakhs.  Further I will need at least 2 crores   for the living expenses of myself and Kavita after retirement. Thus if I achieve a net worth of 5 crores ( debt + equity), then I will be able to meet all my obligations.

 SO MY TARGET IS TO ACHIEVE A NET WORTH OF Rs. 5 CRORES AT LEAST.

I also remember my earlier vision :

Starting with Rs 10 lakh in 2008, to successively double it 20 times, to achieve a  portfolio value of Rs. 1 lakh crores.

AGAINST THE TIDE

My record shows that I have always risen against the tide. In school, no one expected when I bagged 8 grades in ICSE. Ditto in class XII. I was the classic underdog who rose from the ashes to clear all the four entrances including IIT. In Roorkee also I  cleared CAT written exams against all odds.

In all these cases my approach was unique and courageous. In class XII I analysed  board papers and decided  to study only selected topics for exam and still managed to get 88 %. for the entrance I decided to leave inorganic chemistry and still managed to clear all the entrance exams. In BE final year I took a novel way of approaching the CAT question paper and managed to get two interview calls.

At every stage of my life, my unique and novel  approach to problems has always paid off. Similarly I hope that my novel solution during this difficult phase in the markets, whereby I have taken a calculated risk by converting all my holdings into Glodyne, will work.  Like me, Glodyne is thriving in difficult times . I hope my strategy will prove to be right.

Remember, WHEN THE GOING GETS TOUGH , THE TOUGH GET GOING.

CASH FLOWS IN 2009

RBI  BONDS  : rS. 310000/-

MY SALARY : 45000/-

KAVITA SALARY :  144000/-

INTEREST:               30000/-

DIVIDEND :              50000/-

PPF :                          100000/-

The ppf and RBI bonds proceeds have to be used to fill my curent account so as to reduce my monthly interest outgo. The salary and interest incomes have to be used  for our monthly expenses and to increase our gold reserves.

The moment Glodyne touches 350 , I have to start selling with a target of selling 10000 shares for Rs. 40 lakhs. This 40 lakha can then be used to get rid of debts, build my house and to shore up my monthly income and therefore my peace of mind.

My plus points :

Employability.

A working  and talented spouse who not only manages the household well but also takes care of the kids.

Well behaved and obedient kids.

imited expenses.

A promise

Having seen the behaviour of your parents and spouse during a downturn has taught me certain lessons and I do hereby make a promise to myself in this difficult phase:

I will maintain a cash reserve of Rs. 25 lakhs in a flexi account which can be accessed in times of need. As soon as Glodyne attains a value of 350 , I will start selling it with a target of selling 10000 shares for a net realization of Rs. 40 lakhs.  Out of these 40 lakhs, around 8 lakhs will go towards settlement of loans and liabilities. Building of my house in Sector 2 will need around 20 lakhs in a phased manner. This will leave me with a cash reserve of 12 lakhs, which can be used to shore up my monthly income as well as to give me some peace of mind. 

The remaining 14200 shares that I will have of Glodyne and 250 shares of SBBJ will provide me with dividend income and will build up my networth for the purpose of meeting my retirement expenses and the expenses for the wedding of my daughters.

If I can hold Glodyne till it attains a price of 2000, then it will give me around 3 crores, which I think will be more than sufficient for me to live a peaceful life.

FINANCIAL WELLBEING

*  I have a 250 sq yards plot of land in Bahadurgarh, whose mkt value is around 50 lakhs.

* I have around 25 lakhs in FD's @ 8 % pa.

* I have around 24220 shares of Glodyne which is a fast growing company, worth around 45 lakhs.

* I have gold worth around 10 lakhs.

* My father has this house worth around 70 lakhs.

* He has FD's of around 20 lakhs.

* My father in law has FD's of around 10 lakhs .

* If my investment in Glodyne performs as I expect it to perform, then it should touch 500 ps by the end of this year. That will make my investment worth 1.3 crores.

As of today, I need just Rs. 10000/- per month for my expenses. Our earnings are 19000 pm.

If I sell 50 shares of glodyne every month then my holdings will last me 480 months or 40 years.

I am 42 now. I do not think I should last beyond the age of 80. But then Glodyne is not going to remain at 200 ps for ever. If the company continues to grow as it is doing now, then each share might potentially be worth 5000 or more.