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Steady Your Inning in the Middle Overs (30-60 years)

CA Umesh Sharma , Last updated: 08 April 2024  

Arjuna (Fictional Character): Krishna, the season of cricket is in its full flow. How thrilled are you watching the exciting encounters?

Krishna (Fictional Character): Arjuna, Indeed we are witnessing the new highs in the sport this year. These cricket matches are very similar to the financial innings of the individuals. Just as the cricket team focuses on registering a good total for their bowlers, the individuals are more concerned about growing their wealth for their children. Also, the investors shall have all the required knowledge before making investment, just as cricketers should know the pitch and match conditions. Unfortunately, many people still give more importance to the innings in their TVs then focusing on their individual financial innings.

Arjuna (Fictional Character): Krishna, it is said that Middle Overs are the most crucial overs in any game. How do you think the individuals shall steady their innings in the Middle Overs(30-60 years)?

Krishna (Fictional Character): Arjuna, the middle overs are make or break phase of any innings. If you have already made a brisk start i.e. started investing from your early age, you shall maintain the strike rate(SIPs) and create a good scorecard(portfolio). Even if you have made a slow start and not used the powerplay(compounding benefits) very well at the early age, you can still anchor your innings and register a good total for your team(family).

Steady Your Inning in the Middle Overs (30-60 years)

The following points will assist you in building your innings in the middle overs (30-60 years)

1. Debt Freedom

Begin by focusing on efforts to pay off loans, especially high-interest ones. Just like high required run rate affects batsman's mindset, regular high EMI payments would not allow you the freedom to use your funds for investing purposes.

2. Take Help from the Third Umpire

Just as umpires take assistance from third umpires for crucial decisions you shall also engage with your financial advisers, whose expertise can guide you through complex financial decisions.

3. Planning for Child's Higher Education

Create a steady platform for the next batsman(children's). Allocate funds for your children's higher education. With the increasing cost of education, early planning ensures you're prepared for their future without straining your finances.

4. Planning for Second Inning

Retirement planning cannot be overstated. Start early with regular investment in Provident Funds and Mutual Funds.

5. Safeguarding Health and Harmony of Senior Players

Create a dedicated fund for your parents' healthcare needs. Regular Investment shall be made in insurance and other fund.

6. Inning Review

Just as great batsman regularly their innings amidst changing match conditions you shall regularly review and adjust your financial plans to reflect changes in your life, the economy, and financial markets.


7. Dream Team

Diversify your investment portfolio which shall include the perfect balance of all-rounders and power hitters i.e. include a mix of stocks, bonds, mutual funds, and real estate. This reduces risk and increases the potential for returns.

8. Captaincy Transition

For smooth transfer of captaincy(ownership) to next contender(heir) one shall draft a will. Drafting a Will ensures your assets are distributed according to your wishes, providing clarity and security for your loved ones.


9. Team Game

Allocate a portion of your wealth to charitable causes. Supporting social causes not only contributes to societal well-being but also brings personal fulfilment.

Arjuna (Fictional Character): Krishna, what should one learn from this?

Krishna (Fictional Character): Arjuna, One should remember that life is more like a test match than a T20. You should always keep the future and second innings(Retirement) in mind while making your financial decisions. Hasty and Rash decisions can cost you your wicket(setback) and you should give your inning(investment) more time to grow. Regularly review your scorecard(portfolio) and take wise decisions.

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CA Umesh Sharma
Category Income Tax   Report



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