So right that it is wrong ?
Just about everyone says that when it comes to financial planning, our most important friends are:
(ii) RCA (Rupee Cost Averaging)
(iii) AAP (Asset Allocation Planning)
(iv) Saving on investment expenses & taxes
In this blog, I have recommended these myself. But sometimes, something can be so right that it is wrong!
Let me explain:
Going for higher education and acquiring skills are the right things to do. Most of us, who do it, make a reasonably good life. They give us the tools to make a good living. However, a Bill Gates or a Steve Jobs comes and makes billions with no college education...
And I think that this is fair - risks and rewards should be proportional.... We manage/minimize financial risks by doing RCA/AAP etc and we create so so wealth... someone else takes higher risk by going after a new idea and makes a lot more wealth.... this is how things should be.....
For most people, "so so wealth" is a pretty good thing and hence DCA/AAP etc are still valuable... but if everyone did these, humanity may miss out on some innovations. Humanity needs mavericks who will give higher education a miss… or who will refuse to diversify financial assets and put all eggs in a single basket (as Bill Gates did on Microsoft).
Makes me wonder… right and wrong can be so relative to the person!