House magazine for the associates of Gopast. This is the FIFTEENTH quarterly issue. Inscriptions made on stone seldom fade, this is the core of the tag line of this magazine. Truth Stays Forever. This magazine will be of interest for people engaged in the financial services industry

1. INSCRIPTIONS 15
WALL 3 PANEL 3
HIGHLIGHTS OF THIS ISSUE:
1) HUMAN LIFE VALUE CALCULATION
2)THE SCULPTOR INSCRIBES ON EXPECTATIONS

2. i
TITLES SPACE FOR P.NO
Sculptor Inscribes RG 2
Gurus speak Faculty Members’ space 17
Caterpillar Space Students and Trainees 36
News Channel Happenings at Gopast 47

3. Inscriptions
15
“NOT EXPECTING TO”
IS A DISABILITY

4. “NOT EXPECTING TO”
IS A DISABILITY
“Not expecting to” is a “Disability”
R.GOPINATH
gopinathr@go-past.com
Let us take two persons of the same in-
dustry and compare their performance.
Say one person (Mr Alpha) is produc-
ing 60,000 units and the other one (Mr
Sigma) 6,00,00,000 units. It could be
rupee value or quality unit. The arithme-
3
R.GOPINATH
gopinathr@go-past.com

5. tic proportion of the difference is 1000
times. That means one person of the
same industry is 1000 times more suc-
cessful than another person belonging
to the same industry. Both of them are
operating in the same environment.
What can this difference attributed to?
1000 more knowledge, or so many
times more skilled?
I have worked with many such success-
ful people and i have seen they are cer-
tainly more knowledgeable than their
weaker counterparts and more skilled
even, but the difference is not as much
as 1000 times. The difference is at times
that they are twice as knowledgeable or
may be thrice utmost. Then what is it
that contributes that huge difference in
the level of successes.
4

6. When I interact with Mr Alpha i under-
stand that they also want to achieve the
levels that Mr Sigma has touched. Mr Al-
pha also has big dreams. He is also am-
bitious, but still not able to reach the lev-
els the Mr Sigma has done. The intrigu-
ing part of this story is that Mr Alpha
also knows the secret of success of Mr
Sigma, but he is still not able to use it.
What stops Mr Alpha from using the
known secret? What is this disability?
I have been working in Insurance indus-
try for 3 decades now. I have seen
many such examples. I have encour-
aged many personnel to acquire Insur-
ance Institute certifications like Licenti-
ate, Associate and even Fellow of the in-
stitute. There are big incentives awaiting
once they clear such exams, both mone-
tary and career growth. Many people
do signup for such courses. In the begin-
ning the classes are full. But as time
goes by, the attendance trickles down
and only a handful continue. Many of
them even pay the exam fees. But only
a handful write the exam. Everybody
knows the incentives awaiting. They
need those incentives. Some of them
need it badly. But this happens invaria-
bly, that handful of the hundreds ap-
pear at the exams. Why would the oth-
ers not do this? What is this disability?
5

7. Marketing agents want to become suc-
cessful, earn more commissions and win
awards at the various industry new busi-
ness competitions. Let us say they know
that if the identify 20 prospects, seek
personal appointments and then present
their products/services then they might
succeed in selling to 2 people. They
have been trained on the methods of
prospecting. Even though they want that
incentive and even though they know
that they must identify 20 prospects and
work with them, that can earn them this
incentives, they still are not able to get
those 20 prospects, they mostly end up
with identifying 5 prospects. What is this
disability?
Success is the result of a behaviour. If
the behaviour is different then the re-
sults produced are also different. We all
know that motivation to behave in a cer-
tain fashion comes from an unfulfilled
need of an individual. When a person is
motivated then he will perform. In all
the above instances that i have men-
tioned, they do need those results, but
then why are they not able to behave
the way that can earn them those re-
sults?
6

8. The answer is “They don't Expect to pro-
duce those results”. There is a differ-
ence between wanting to and expecting
to. This is the disability.
Expectation is an estimate of the results
that an effort (behaviour) can produce.
Somewhere deep in their heart they
don't expect to produce such big results.
They don't expect to clear the exams. Af-
ter attending a few classes, they have
seen that this might be difficult. They
really want to, but they don't attend the
7

9. classes. They want to earn the resultant
incentives, but they don't appear at the
exams. They bunk. They do not prepare
well.
They do not make the phone calls that
can earn them the appointments, they
keep postponing the attempts to seek
appoints. And one point of time they de-
cide to make those calls and start off.
But they are not so effective. Even when
they call the requisite numbers they still
do not get the result they wanted to pro-
duce.
Let me introduce a formula here:
R=E
This is to say the R- Results that we pro-
duce will be equal to E- Efforts that we
have put in. This formula is universally
true.
But then if you further break this E into
components, the formula will be like
this:
R= Ev*Ei*Ep
8

10. Let me explain this.
Ev means Efforts in terms of volume of
work done. For example 8 hours of
work or say 200 Calories or say mak-
ing those 20 phone calls.
Ei means the Efforts in terms of the inten-
sity. When a person puts his heart and
soul behind the efforts, he gives his
best.
Ep means the process adopted. Like the
step 1, 2 and such sequence.
Let us take the previous example of the
sales person making 20 phone calls
seeking an appointment so that he can
explain his product. Ev is 20 calls. Ei is
his involvement, while making those
calls. How deep was he into this activ-
ity? His sincerity? Or was he making
calls because it is what is expected of
him. Was he making the calls just to re-
port to his supervisor that he did make
those calls?
I was at a dance concert recently.
Kuchipudi is a classic dance form. It is
supposed to have its origin from Lord
Shiva Himself. The dancer was depicting
9

11. the story of Tripurasamhara, where Lord
Shiva destroys the demons. The dancer
was fully into it. She brought the whole
scene right before our eyes, to the ex-
tent that some people in the audience
st ar t ed c hanting Shambo Shiv
Shambo… That was the intensity of the
dance.
In the previous example of making calls,
the sales person was making efforts, but
the level of involvement was shallow.
What response can he get from the audi-
ence he was addressing to? In the case
of the dancer, she was fully involved
and her efforts was at the peak of inten-
sity. We have witnessed the response
from the audience.
Results depend upon the behaviour and
the behaviour depends upon expecta-
tions. Expectation is an estimate of the
results that an effort (behaviour) can
produce.
Let us take a sideline story here:
But then what is the connection between
our behaviour and expectation?
10

12. To understand this we need to under-
stand our nervous system and neuro-
chemistry. Without becoming too techni-
cal, let us understand it from a common
man level of learnings.
Our brain is the supreme controller our
body. Our brain can trigger a set of
chemicals (hormones) to be released
into our blood and our blood will carry
those and deliver it to the exact organs
of our body, causing that part to act in
a specific way. When the brain tells the
body to do something, such as to sit
down or run, this also sets a chemical
process in motion. These "chemical com-
municators," or neurotransmitters, are
the "words" that make up the language
of the brain and the entire nervous sys-
tem.
These chemicals function in certain spe-
cific ways. For example Oxytocin is ex-
pected to create a feeling of closeness
to the others. Low levels of Serotonin is
supposed to make a person feel de-
p r e s s e d , o r l o n e l y . G a m m a -
aminobutyric acid, or GABA reduces
speed of action or even triggers inac-
tion. Adrenaline makes the person feel
more energetic.
11

13. Look at the picture of vending machine
here and equate it to the brains func-
tions of releasing a dose of chemicals.
At the press of the button the vending
machine dispenses with a particular
drink. The same way does the brain too.
But the pressing of button is done in the
brain by our thoughts. When we think
about the likely outcome of an action,
(expect) the button gets pressed and
that releases the chemicals into the nerv-
ous system, and so we act the way act.
All these things happen at a lightning
pace. So we do not even realise that
12

14. there was a dopamine attack or a sero-
tonin suction etc.
Now let me get back to the original
story:
A person “Mr Mars” who is searching
for job applies to various vacancies. He
gets an interview letter. He wants this
job. He sits down to prepare for the in-
terview. A college mate of him “Mr Jupi-
ter” calls him and says he has got an in-
terview letter for the same position in
the same company. This man knows that
his friend Mr Jupiter is more intelligent
and smart than him. This person Mr
Mars now expects very less chances or
even no chance of him getting selected.
This expectation affects his preparation.
He is now not fully prepared. He didn't
take much care for grooming his appear-
ance on that day. The interview commit-
tee members are not impressed. He then
comes to know that his class mate Mr Ju-
piter has not come for the interview, as
he got some other better offer. Mr Mars
blew up his chances of getting selected
for a job which we wanted.
Imagine if one expectation can do this
to a person, what a set of expectations
can do or undo? People who want those
13

15. incentives of passing the exams do not
even appear at the exams. They have
made a mental estimations of the out-
come of their appearing at the exams.
The sales person makes the calls but on
a customary basis, without adequate
preparations, his voice tone modulations
are not effective. For he expects not
very encouraging results for his phone
calls.
Let us reverse these situations and see
what can happen. If Mr Mars expects
he stands an even chance of getting this
job, if he does well in the interview,
then he would have made adequate
preparations. The company wants a
good employee, if they find Mr Mars
suitable, then they would certainly take
him.
In the Insurance institute exams, there is
no ceiling on the number of people that
can pass the exams. If all of them write
correct answers then all of them also
can pass. If the employee expects that
he can stands a good chance of passing
the exam, he prepares well.
In fact many of the expectations are
based on our previous experiences. Let
14

16. us say that the previous attempts had
yielded poor results, then it is natural to
expect poor results now also. We can
not deny our experiences. They are
real. But we must understand that these
experiences happened in a certain set
of circumstances. But if we change even
one element in that set of circumstances
then we can derive a new experience.
Look at the picture which lists a few ele-
ments of the circumstances that gave us
that experience last time. Even if one
element in this list changes we are
bound to get a different experience. For
example let us say timing. If earlier at-
tempts were done in the evening, now if
they are done in the morning, we are
bound to get different experience this
time. Even a trivial change can bring
about a new experience.
Now the final part:
How do we change our expectations?
15

17. 4 steps:
1) Let us be aware about our expec-
tations. Are they aligned with our
wants?
2) If they are not aligned then order
the brain to expect differently this time
3) Focus on the action plan that can
take you to achieve what you want and
keep doing it one step by another step.
4) Fine tune Ev, Ei and Ep till you
get what you want.
“Not expecting to” is a “Disability”. Let
us eliminate this disability and enable
ourselves and others to achieve what
they want.
16

18. CHAPTER 2
GURUS
SPEAK
WEALTH THAT LASTS FOREVER
PART 10
R.GOPINATH
gopinathr@go-past.com
www.go-past.com

19. 18
8 Governing principles:
1) If a person adopts the formula “Income - Expenses = Savings” then he can never become
wealthy.The correct formula is “Income - Savings = Expenses.
2) Regularity is the key to wealth. (The key to wealth is not the ROI, IRR, CAGR etc)
3) Start early and reach safely.
4) Gold and greed can never stay together.
5) Purpose must decide the choice.
6) Financial Pyramid
7) Draw the map before you start the journey.
8) Professional support helps.

20. WEALTH THAT GROWS AND LASTS FOREVER
PRINCIPLE NO: 6
“FINANCIAL PYRAMID”
“PROTECTION- THE FOUNDATION”
gopinathr@go-past.com
19

21. 20

22. 21

23. WEALTH THAT GROWS AND LASTS FOREVER
PRINCIPLE NO: 6
“FINANCIAL PYRAMID”
“PROTECTION- THE FOUNDATION”
continued from the previous issue
gopinathr@go-past.com
To one of the wealthy person in the India, I had recommended a `200
Crores (2 Billion) insurance cover, and he agreed to buy `150 Crores (1.5 Bil-
lion) and submitted a proposal for the same amount and the Insurance com-
pany underwrote that proposal and offered him `120 Crores cover (1.2 Bil-
lion), which he agreed.
Why would anyone need such a huge cover of insurance?
22

24. Let us look at an example here:
Let us say a farmer has been nurturing an apple tree for almost 20 years
now and he has been getting an yield of 1000 fruits on an average every
year from this tree and at the current prices he gets a net profit of `10 per
fruit. He and his family take care of this tree, nurturing it and doing all that
it is needed to keep the tree healthy on a daily basis.
One day the Government of that state orders a take over of that tree for
their own purpose. The farmer seeks compensation for that tree from the
Government. If you were the adjudicator, how much compensation will you
order the government to pay to the farmer’s family?
Assuming that the tree’s life is for about 100years, for the remaining 80
years of its life at the same rate `10,000 net per year, the farmer’s family is
like to get and income of `800000. On this basis you may order the govern-
ment to pay this amount to take over this tree.
23

25. Now the prosecution lawyer says to you, My Lord, this farmer does not de-
serve this compensation, because he is not a poor farmer, he is rich. He has
3more trees left with him even after we (Government) take over this tree.
Will you then change your order? Will you consider that since the farmer is
rich, he need not be compensated for this tree or will you revise the
amount that instead of `800000 it will be sufficient that he paid `100000? I
don't think you will do that. You will still feel that the Government has to
compensate for the loss of this tree to the farmer, irrespective of how
many other trees he owns or his richness.
Look at human beings who are earning income using their potentials.
These earnings can get converted into assets for the self and his family.
Every individual owns two types of assets.
24

26. 25

27. Examples of transferable to our beloved are given here under:
26

28. There is another asset that we own, that we can use it as long as we live,
but can not be transferred to our beloved. This asset is based on 4 endow-
ments that we got:
27

29. Let us consider the example of an architect. His knowledge related to his
profession and his understanding of his job are all a part of his “INTEL-
LECT”. The way he negotiates his deals, his creativity adding value to the
buildings are all a part of his “TALENTS”. The way his customers respect
him, and the opinion of other market participants about him or his reputa-
tion are all a part of his “BRAND”. The number of years that he been en-
gaged in his profession, including all the complicated issues that he has
dealt with, the ups and downs that he has undergone in so many years and
the lessons that he has imbibed into him because of this are all a part of his
“Experience”.
All the four endowments contribute to his earnings now. He can use them
and earn more for himself and his family. But he will not be able to pass on
this asset to his children like the assets upon his death. He can train them,
teach them and guide them to acquire these 4 endowments, but what he
has with him is only his and can not be passed on.
28

30. His partners, family members can create various levels of Intellect, Talents,
Brand and Experiences for themselves, but can not be able to use any of
their father’s or Partner’s.
We have seen film actors and their siblings or children also join the film in-
dustry, but they do not command the same reception from the audience.
What they have is of their own. Initially they may get a small break
through by their inheritance of the family name, but that lasts for a very
short period only.
If God permits this person to use these 4 endowments for the next few
years, then the family is also likely to be benefitted in a big way. But if for
some reason (say death) if the person does not get that few more years,
then the family is deprived of what it was likely to get. If he had got, say, 20
more years of usage, then he would have given his family his existing assets
plus what he would earn in those 20 years. But if he happens to die now,
then the family have to settle with his existing assets transferred to them
by his will. Why should they be deprived of that value?
29

31. Even though a person can not transfer this asset ( earning capacity based
on the 4 endowments), he can if he wishes, pass on the value of this asset
to his beloved one. The only way in which this can be done is by way of life
insurance of that value on his own life. If he did get to work for the next 20
years then he would any way create more assets for his family by using
these 4 endowments, and if he does not that chance due to his death now,
then the family will get the life insurance amount.
I believe the family members have a right on this value, because in many
ways they have contributed to the building go these 4 endowments in him.
The family would have let him follow his passion, allowed him to work with-
out worrying about them, allowed him to take the risk in his business,
knowing well that such a risk can harm them too, if things do now work the
way it was expected. Therefore they are entitled to derive value from these
endowments.
30

32. How to estimate the value of these 4 endowments? His intellect, talents,
brand and experience. Based on the value that these 4 endowments have
created for his family in the present times, we can project the value that
these 4 endowments are likely to add in the next so many years, before he
actually plans to retire from his occupation.
I had met one builder Mr Prabhakar Reddy a few years before, in process of
advising him for life insurance policies. Mr Prabhakar Reddy was then a
very important builder of a great standing in the market and was also a
very wealthy person. He expressed his feeling that he may not need any life
insurance policy, because the family by itself is very wealthy and all their
needs can be met easily with the assets like landed properties, bonds, jew-
els, equities that he has now, even if he happens to die.
I explained him that over an above the landed properties, bonds, jewels, eq-
uities and other assets he has now, he also possesses an asset that he can
use but can not transfer its ownership to his beloved family. From that
point the discussion started, and I had explained the whole of the above
31

33. write-up, apple tree, 4 endowments, in detail to him. The he asked us how
to estimate its value.
This is the data related to Mr Prabhakar reddy.
• MR PRABHAKAR REDDY IS 43 NOW. HE IS THE PROMOTER OF
GPR INFRA.
• THEIR FAMILY BUSINESS IS TRADING IN AGRI PRODUCTS, BUT
HE MOVED AWAY FROM THAT LINE AND SET UP HIS CONSTRUCTION
COMPANY, FOLLOWING HIS PASSION.
• HE HAS WON 2 INTERNATIONAL AWARDS IN THE LAST 5
YEARS.
• HE IS KNOW FOR HIS TIMELINESS AND FINENESS, BOTH OF
WHICH ARE RARE QUALITIES TO BE SEEN IN EXECUTING BIG PRO-
JECTS.
• HIS PREVIOUS YEAR NET INCOME WAS `8 CRORES. (80 Million)
• HE PLANS TO RETIRE AT 55 YEARS OF AGE.
32

34. We asked him how much growth does he expect in his business in the com-
ing days, he mentioned that we can easily factor 15% growth on an average
year after year. His is foreseeing good opportunities in the international
market for his company.
Based on this data if we project his future income it will appear like this;
THE PRESENT VALUE OF THIS STREAM OF INCOME IS 217 CRORES.
33

35. THIS A GRAPHIC DEPICTION OF THE FUTURE EARNINGS.
34

36. So I recommended him to propose for a life insurance cover or 200 Crores
(2 Billion). After some discussions he agreed to buy 150 Crores cover, after
the proposal was underwritten the company agreed to provide a cover for
120 Crores (12 Billion).
The present value is arrived at by discounting the future stream of income
@7%, for in those days that was the prevailing safe interest rate. This
method of calculating the risk cover needed is called Human Life Value.
35

37. CHAPTER 3
CATERPILLAR
SPACE
THIS SPACE IS MEANT FOR
THE STUDENTS OF GOPAST

38. D.BALU, M.Com., M.B.A., I.M.,Student of Gopast
MDRT AGENT – TIRUPUR BRANCH
WHAT TO DO ? WHEN TO DO ? HOW TO DO ? (WWH)
One day morning I called my customer over phone.
“Hello Mr.Ram, How are you”
“I am fine”
“Do you heard about “WWH” in financial planning?”
37

39. “No I don’t. What is that? can you explain to me?”
“Certainly, but not over phone. Because, it requires an hour
time. If you permit me I will come and explain to you in per-
son.”
“You are always welcome.”
“Thanks, but a small request, I wish to give this presentation in
front of your family members Is it ok?”
“Ok, we will meet this Sunday at my home around 11 am”
“Thanks”
38

40. Sunday I went to my customer house and as per my request all
the family members were waiting for me. Formal wishes over. I
opened my laptop.
“WWH” means What to do, When to do, How to do? I learnt
this concept through “PALM LEAF”
“You mean ancient palm leaf used for writing scripts?” calmly
he asked.
I replied gently, not exactly but the results are like Veda’s. It’s
a web site created for a financial planner like me.
Ok, let me come to the point.
Mr Ram, I would like to show you the PALM LEAF’s A/H FORU-
MULA. I will ask you few questions, you must answer correctly
39

41. because, the accuracy of this formula is based on your reply.
My first question is what is your income? Mr Ram says
Rs.1200000 per annum and subsequently I asked about all
other sources of income. I noted his personal income in the col-
umn ‘A’ and all other supported income like rental income,
spouse income, Bank interest, dividends, parents side support
income , royalty and other sources of income in the column ‘B
to G’ respectively
I came to understand that his supportive income ‘B to G’is nil.
After totaling the columns from A TO G it shows Rs. 1200000
which I noted it in the column ‘H’ now by applying the for-
mula as per PALM LEAF
40

42. The formula is A/H x 100 [1200000(A) /1200000(H) x 100
= i.e., your risk percentage is 100.]
Mr Ram asked me “what this formula indicates?”
My conclusion is you need insurance.
“I am already having insurance worth of Rs.10 lakhs in my
name.” he replied instantly.
Well, once you understand the concept it is a good sign. Now
we will check your Capital Need Analysis (CNA) which helps
you to know how much insurance is needed and according to
that we will check how much you have and how much isre-
quired. Again I need your support to use this tool.
41

43. Before that, I briefly explain about CNA. Our life is like a com-
pany. In a business we need working capital, fixed capital, re-
serve capital and borrowed capital to run it smoothly. Simi-
larly, in our personal life we need money to meet out the ongo-
ing essential monthly expenses, major future responsibilities,
emergency needs and full and final settlement of borrowed
capital. If you give me your details correctly I can show you
how much insurance required to you.
“How many children you have and their age?”
“I have two children a boy and girl. My son Vishnu age is 4
and my daughter Karthika is just 11 months old.”
42

44. Wow, then you spend nice time with your kids.” I know your In-
come now, I added with 6% inflation and 4% discount rate to
find your future value. Do you have an idea about your chil-
dren education expenses from now to complete the curriculum?
And both their marriage commitment? If not, I will help you.
“Thanks I have an idea,to spend around 50 to 55 lakhs for
each child for their studies from right now, in different stages.
Similarly around 50 to 60 lakhs required for their marriage.”
Well, do you know how much money you required for your
emergency need?
“Almost, I need three lakhs of rupees at any point of time”
43

45. Well, do you have any borrowed capital like home loan, car
loan, and credit card?
“Yes I have car loan for Rs.500000 and EMI is around
15000/- pm and I have home loan around Rs. 2500000 EMI
around 27000 pm and credit card expenses around Rs.5000
pm.”
Thanks for your information last and final question, how much
money you need to run your daily routine expenses?
“Really, I do not know. You can ask this question to my wife.”
she replied we need around Rs. 30000 pm.”
Now, I answer you with the help of Palm leaf you need Rs.
2,52,76,660 insurance as such you have the insurance value of
44

46. Rs.10,00,000/- so you have to upgrade your insurance amount
to another 2.43 crores of Rupees.
“I have two questions, 1) is this result is accurate? 2) Why you
recommend insurance?”
Good question. Yes, this result is accurate. If you have any
doubts I can able to show you how this result comes. Even
though you are not satisfied, you can check this figure with any
charted accountant or whoever well-wishers of you.
Secondly, why I recommend insurance means, you are the only
earning member of your family. Your wife and children are de-
pend on you and also considering your liabilities if anything
45

47. happens to you, there is no other option in front of you like life
insurance.
Thanks for giving me an opportunity to discuss about your life.
“Good bye”
“Yes, To-day is a wonderful day to us. We will discuss this mat-
ter and call you soon. Thanks a lot for coming to my home and
giving a valuable advice to my family. Good bye”
46

48. CHAPTER 4
NEWS
CHANNEL

49. 48

50. NEW OFFICE OPENING OF MR RAVIKUMAR AT BEN-
GALURU

51. MR NAYAN BOWMICK FROM
SHILLONG, RECEIVING THE MERIT
CERTIFICATE OF SIXER COURSE

52. 9th Batch Advance level MDRT SESSION AT CHENNAI

53. 30TH BATCH OF MISSION MDRT SESSION AT CHENNAI

54. PARTICIPANTS OF “TRANSFORMER” SES-
SION FOR ALICA DOING A CASE STUDY
ON RETIREMENT PLANNING.