POSTED BY November 17, 2011 11:58 am COMMENTS (3)ON
If Sushil Kumar , the KBC winner comes to you and asks you to advice him on how he should use his 3.5 crores for his life , how will you advice him or allocate this 3.5 crores ?
Would like to hear how others think ?
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3 replies on this article “How KBC winner Sushil should use his 3.5 crores ?”
My First take ‘ll be to procure a PAN Card for himself & notify it to KBC for the credit of TDS deducted from the prize money. Procuring PAN Card ‘ll require around 20-30 days time. Till that time keep all the 3.5 crores Rs. in the SB account.
After coming back from Delhi & Mumbai return to his job of 6K mly salary & keep working for next 4-5 months. Thinking that it’s still was a dream. From next FY i.e. From April 2012 on wards only he should think of any planning.
This doing nothing approach ‘ll give him the time to concentrate on his priorities.
I would agree with Asav! 6 months to sit with that money is a good time. Instead of leaving them in a savings account I will let him push them into a Short term debt fund [NO EXIT LOAD] where the returns are close to 8.5% to make a cool 15 Lacs in 6 months!
However beyond this period, when he has learnt some personal finance, he must opt for a diversified portfolio allocation with Debt, euity, Gold and real estate – all this to be done gradually over 24- 36 months.
There are a dozen ideas that come on how to allocate the money. But not knowing his specific circumstances it may not be right to provide any reco, except the general gyan!
Good luck to him!!
My first advise will be – Put this money in bank savings account for minimum 6 months and don’t do anything with it for at least 6 months.
Let all the emotions and desires passes away. Let everybody give suggestions. But don’t do anything for minimum 6-12 months with that money.
Instead during this time invest time and efforts to increase the Financial IQ.
Buy some good personal finance books of the WESTERN AUTHORS. (Sorry. I don’t mean to say that Indian personal finance authors are not good. This is because Indian Personal Finance literature is not that much advanced so better to learn from western literature.)
Ideally he should read books like following.
Book: Sudden Money by Mary Martin (PhD).
Such kind of books are MUST read books in these situations.
Because its not about just managing your money but its about mastering your emotions.
So in my opinion, the First thing he should do is – To spend his time and efforts to become the financially well educated.