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INSCRIPTIONS 8
WALL 2 PANEL 4
HIGHLIGHTS OF THIS ISSUE:
1) FUNDAMENTAL PRINCIPLES OF FINANCIAL PLANNING
2) THE DIFFERENCE IN DREAMING AND DAY DREAMING
AND THE SCULPTOR INSCRIBES TALKS ABOUT HOW TO RESPOND
TO CHANGES IN HIS ARTICLE ENTITLED “WE ARE BIGGER THAN
OUR CIRCUMSTANCE”

i
TITLES SPACE FOR P.NO
Sculptor Inscribes RG 2
Gurus speak Faculty Members’ space 12
Caterpillar Space Students and Trainees 19
News Channel Happenings at Gopast 22

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WE ARE BIGGER THAN
OUR CIRCUMSTANCES

WE ARE BIGGER THAN
OUR CIRCUMSTANCES
WE ARE BIGGER THAN OUR
CIRCUMSTANCES
R.GOPINATH
gopinathr@go-past.com
A change disturbs us.A changed regulation,
changed tax rules, withdrawal of products
which we used to sell and so on… upsets us.
We know changes are inevitable, they keep
happening all the while, yet we get disturbed
when some changes happen.We feel dislo-
cated, sometimes inadequate to face the new
situation.We fervently hope that this change
will disappear and the old situations will re-
turn back, the regulation will be defeated by
the council, the new tax laws will be stuck
down by courts.As a result of this, we wait
3
R.GOPINATH

for the “good times” and keep loosing the
good time available now.
Let us say, while going on a week-end trip
our car gets punctured say just 15 kms be-
fore our picnic spot, we curse the car, the
road, the Govt or may be ourselves.This
could be an opportunity to learn replacing
tyres, may be the family can work as a team
and get this done faster, it might get people
closer, it could be fun also. But then it is not
how majority of the people react. Most of
them would get into blaming act.
Why do we get disturbed when changes take
place, in professional arena, or in personal, or
family spectrum? Because, we found comfort
in our earlier situation and this new situation
is dragging us out of our comfort zone. It is
demanding more skills, equipments and edu-
cation to be dealt with. But let us remember,
our earlier situation was also a new one com-
pared to the one immediately previous to
that.We resisted the new one initially, but
when we came to know that this situation is
going to remain, then we got equipped to
face that and gradually mastered the art of
negotiating through that.
The recent changes in the insurance industry
in India has disturbed lot many agents and
managers.The year 2014 has been a challeng-
ing year in many ways. In India our friends in
the Insurance industry have had a uphill
movement, reducing the speed of their pro-
gress.
4

The change in the product structures at the
beginning of the year as instructed by IRDA
(The insurance regulator in India),The roll
out of products took considerable time and
even towards end of this year, not able to
match the range of products we had earlier,
The imposition of Service tax on the life in-
surance premiums by the Finance ministry.
Bringing insurance claims of certain policies
in the Income tax net, which has been so far
exempted for the tax on receipt. Following
this action with instructions of TDS deduc-
tion by the insurance companies.The benefit
illustrations to the prospects giving a 4% and
a 6% scenario for insurance products with
savings element (which no other savings or
investment product supplier need to do in In-
dia).The interest scenario in the country
firming up to show a better yield on savings
products like PPF, Post office savings, Bank
term deposits.The Capital market indexes
showing a bullish trend, attracting retail inves-
tors to invest in MFs, PMSs and other equity
based products.
For the first few months, many market play-
ers where hoping, that these changes may
not be implemented at all and some interven-
tion from the Government or other bodies
can roll back things to status quo positions.
As time passed by, when things did not work
the way many of us wanted, then and only
then, people started looking at how to now
cope up with this new conditions.
5

Even before i suggest 10 ways to respond to
the present situation, let me invite you to
read the following paragraphs and in the end
the suggested 10 responses too.
Let us first look at some facts of life.We are
much bigger than our circumstances
Yes, we are much bigger than our circum-
stances. Even in epics you would have read
stories of men overcoming extreme situa-
tions, fighting against all odds and accomplish-
ing what they wanted. The story of a small
boy David fighting against a giant Goliath as
mentioned in Bible,The small boy Baktha Pra-
halad resisting the demon father Hiranyaka-
shibu and securing release for his country-
men as mentioned in Bagwath are just a few
examples.
Not just that even in the modern history
you find such instances. One person Ma-
hatma Gandhi leading a whole country to
freedom, following Ahimsa (Non-violence)
and Satyagraha (Civil disobedience) route to
achieve the objective, is a profound example
that we are bigger than our circumstances.
People like Nelson Mandela. Mother Teresa
have proved it again.There are stories of peo-
ple single handedly fighting mighty draconian
6

systems, cleansing corrupt practices and es-
tablishing new societies.The recent winners
of Noble peace prize are testimonies to this.
Even on a personal front, we have seen ath-
letes fighting injuries and bounce back to
their tracks and winning championships.We
have seen a number of people fighting deadly
diseases like cancer, meningitis, polio attacks,
loss of limbs in accidents but fought back to
glory in their respective fields. Financial bank-
ruptcies, hostile takeovers, Crippling strikes
of some unions have not stopped some peo-
ple from rising up and establishing new busi-
ness empires in many geographies.
All these prove that we as hu-
man beings are individu- ally bigger
than our circumstances.
We are not just men and women, but we are
in fact Supermen and Super women.Where
do we get this authority to be supermen? It
emanates from 4 endowments vested in us:
7

1)

Creativity

2)

Judgement

3)

Energy and

4)

Ability to learn.
These four endowments make us supermen
and superwomen. Creativity gives us the ca-
pacity to invent solutions.All the things we
see today on planet Earth, other than the five
elements given to us by God have been cre-
ated by us. Electric bulbs,Airplanes, Ships,
Computers all of those other than the five
basic elements of this planet Earth, Sky,Air,
Water and Fire have been invented or cre-
ated by Human beings.
We are Supermen and Superwomen.We are
bigger than our circumstances.Therefore to
submit to circumstances and accepting defeat
meekly is not our nature at all, it is an artifi-
cial behaviour created by us.
The endowment of Judgement gives us the
wisdom to differentiate between the wrong
and the correct. It helps us to make choices.
We are able to expect, estimate and get pre-
pared in advance for any impediments.
Energy is flowing all through our body. It is
unending and boundless. It is available as long
as we are alive.We run, jump, work, lift
weights, cross distances all with this energy
that flows inside us.
8

Ability to learn is the best of all the endow-
ments. It is the source of our growth.We
have learnt so many things since our birth.
We can learn any subject, any art, any lan-
guage using our cognitive mind. So even if
there is a wide gap between the present day
champion and us in terms of knowledge or
skills, we can bridge the gap by learning those
skills.We can learn to adapt to our new cir-
cumstances and we can also learn to master
them.
All the four endowments make us superman
and superwomen.
95% of what is happening to us is created by
us. 95% of what is happening to me is cre-
ated by me. By doing certain things or by not
doing certain things, we have landed here to-
day.We are the cause and we are the effect
too. Out the balance 5%, a small percentage
can be attributed to the Regulator, some to
the Government, some to the market condi-
tions, some to factors like my birth-star etc.
But mind you 95% of what is happening to us
is created by us.That means by changing the
cause, we can change the effect.
We can therefore overcome any circum-
stances.We need not be scared in any situa-
tion. Some people keep asking me, how long
this slow-down will continue?,When will an-
other boom return to our insurance market?
All the questions or any similar ones, have
9

only one answer,“I don't know when, but i
know for sure that fertile days will come”.
Changes make us more able.They compel us
to learn.These abilities acquired and learning
acquired are going to remain with our for-
ever.They increase our market value. But for
such changes we would not have known
newer techniques.
Ten ways to respond to the present slow-
down in the market?

1)

Accept that the rules of the game
have changed, rather than hoping a rollback
in the new rules.

2)

Believe that as much as you have mas-
tered the earlier changes, you will overcome
this as well.

3)

Focus on prospecting activities to get
more and more ﬁrst appointments.

4)

More than adequate preparations be-
fore making phone calls, before meeting in
person.

5)

Shift from a Mass market approach to
Target marketing approach.

6)

Shift from a commodity sale approach
to comprehensive solution approach.

7)

Defocus on subsidiary businesses and
focus sharply on the core business.

8)

Schedule thinking time and learning
time in the calendar, and never miss out on
that schedule.
10

9)

Build a compelling brand for yourself
by using PR and Publicity means

10)

Conduct seminars for the clients to
explain the impact of the changes and on the
necessity to anchor themselves to fundamen-
tal principles of Finance rather than get car-
ried away by the short-term trends that get
easily highlighted in the media. Meet people
eye to eye and pour out our conviction on
our systems, products and companies that
we work for, and bring about transformation
in them.
We have seen tsunamis, earthquakes, volcano
eruptions, tornadoes, ﬂoods, epidemics, wars,
civil commotions and we have survived them
all. Because we are supermen and superwo-
men.We are bigger than our circumstances.
Let us bring that giant out of us through our
convictions.We are not rabbits in the wood
looking for hiding, but we are the unstoppa-
ble lions on the prowl.We are not hapless
small agents selling a few products for our liv-
ing, but we are the change agents who drive
the economies of our countries.
Let us bring back the glorious times. Let the
year 2015 be a great year for us, and may this
beginning provide us breakthrough into hith-
erto untapped potential areas.
11

CHAPTER 2
GURUS
SPEAK
WEALTH THAT LASTS FOREVER
PART 3
R.GOPINATH
www.go-past.com

13
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.

START EARLY; REACH SAFELY
PRINCIPLE NO 3
At traffic signal posts and traffic islands you will get to see this board,“ Start early; Reach
safely.” This to say that if we leave our place even 5 minutes early then we can reach our desti-
nation calmly and if we leave even 5 minutes later, then we have to take unnecessary risks of
road, like speeding over limits, jumping lanes, overtaking rashly etc to make good the time lost.
The same is true in the area of finance. Starting our savings plan a few years early gives us ade-
quate money to meet our goals and starting the same put us under the strain of looking for
high yielding instruments to match up adequacy of the money available then. In the process
these high yielding instruments come with varying degree of risk on the capital often resulting
in the erosion of capital, the hard earned money.
Let me demonstrate this through an example:
SCENARIO 1
Mr Prakash and Mr Atul of friends working the same company drawing same levels of income.
They are identical in their ages and even the family size. Mr Atul started saving `10,000 per
month from his age 25 and he kept saving the same amount every month till his age 35 expect-
14

ing the plan to provide his a retirement fund when he becomes 60 years of age. From age 35
up he had family responsibilities and had to spend on their requirements.
Mr Prakash started saving `10,000 from his age 50 once his children had settled down in their
lives and his target was to have fund providing him a decent retired life. If both Mr Atul and Mr
Prakash had invested in a plan which yielded 8% IRR then Mr Atul will be having `1,26,12,000
and Mr Prakash will be having `18,41,000. Even though the contribution from both have been
the same.
If Mr Prakash wants to equal the fund available with Mr Atul then he must contribute `68,500
every month from his age 50, against the `10,000 every month invested by Mr Atul.
If Mr Prakash wants to keep the contribution at `10,000 level then he has to invest in an instru-
ment that yields 37.5% IRR compounding monthly against the 8% yielding investment that Mr
Atul had done for himself.
SCENARIO 2
Mr Atul starts saving `10,000 per month at age 25 and continues till his age 60 @8%, he would
have got a fund of `2,31,00,000 at his age of retirement. Mr Prakash starts at age 35 the same
plan contributing `10,000 per month, he will be left with `95,00,000.
15

If he wants to match up with Mr Atul in the fund size at retirement then he has to contribute
`24,100 every month instead of `10,000 every month.
If Mr Prakash wants to keep the contribution at `10,000 level then he has to invest in an instru-
ment that yields 13.2% IRR compounding monthly against the 8% yielding investment that Mr
Atul had done for himself.
SCENARIO 3
Mr Prakash starts at age 40 with monthly contribution of `10,000 @ 8% he will get
`59,00,000. If he wants to match Mr Atul’s Fund then he must contribute monthly `39,000 in-
stead of `10,000 done by Mr Atul
If Mr Prakash wants to keep the contribution at `10,000 per month then he has to invest in an
instrument that yields 18% IRR compounding monthly as against the 8% yielding investment
that Mr Atul had done for himself.
putting into a tabular form:
16

There is more to follow on this topic, like the story of 4 people nearing retirement and the
proportion of the risk related to the duration of postponement, so stay connected for the
next issue.
18

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

Difference between Dreaming and Daydreaming & financial Goals
BY
DHIREN GALA CA
The dream is not what we see in sleep; dream is that which does not let us sleep. By dreaming, we let people
know that we are alive.
If we want our dreams to come true, don't sleep..." In reality most of us dream big and then go to sleep. We
dream of creating wealth, luxuries in life, and lots of riches but unfortunately we do not stay awake to plan for
those dreams and make them reality - we just daydream about them.
Someone who dreams has desires, aspirations, ambitions etc. On the other hand a daydreamer only builds cas-
tles in the air.
Dreams are wishes and dreams when written down into quantitative, qualitative, specific terms, time are goals.
Once goals are written down, calculate how much money is required today to achieve them and how much we
have to increase it every year. Also calculate with keeping in mind the INFLATION FACTORS. Review It regu-
lary.
First step to realize any dream/goal is to crystallize it. It is not good enough to say I want luxury apartment. It is
important to be specific - I need luxury apartment with 3 bedroom, guestroom, garden, Gym, in specific loca-
tion, specific floor, worth Rs 100 lakh (Rs 10 million) after 6 years. Similarly, do not have it in the 'back of your
mind' to save money for your angel - daughter’s marriage. List it down. Clearly state how much funds we wish to
spend on her marriage. If time cannot be decided now, approx years left should be calculated
20

Be prepared for events that can upset our plans to reach those goals. Events like job loss, business recession, etc.
if they occur then they will deplete funds, which have been created for our dreams. Therefore set aside contin-
gency reserve
After creating contingency reserve, we should evaluate our existing insurance both health & Life. Check out
whether sufficient health insurance is taken because in case of ignored or reduced health insurance and sud-
denly someone from the family falls ill, we will erode our savings, which was initially being set for our goals.
Lastly, protect our property - our house, car, jewelry etc. by buying relevant insurance.
Who stops us from this beautiful planning & execution of goals? "WE-OURSELVES." Our habits of procrastinat-
ing and spending for something not required for are, stops us from reaching our goals.
Sooner we start walking on our path to reach goals destination, by regularly saving and investing, faster we will
reach, with less pain. Stop procrastinates. Focused on goals. If we loose focus, we will start utilizing our hard
earned money into other unnecessary expenses and not realize our dreams.
Don't just dream about future, plan for it. Remember famous saying "If you fail to plan, you plan to fail."
21

CHAPTER 4
NEWS
CHANNEL
PALM LEAF PORTAL WAS LAUNCHED
ON 14TH APRIL 2014

Competition for the
users of Palm Leaf -
“KNOWLEDGE
TREASURE HUNT
23

MARKETING MANAGERS, BRANCH MANAGERS
AND SALES MANAGERS OF AMANA TAKAFUL LIFE SRILANKA
WRITING THEIR EVALUATION EXAM ON COMPLETION OF
TWO DAYS WORKSHOP ON PROFESSIONAL EXCELLENCE
CONDUCTED BY GOPAST AT COLOMBO

PARTICIPANTS OF MISSION MDRT 25TH BATCH AT CHENNAI

PARTICIPANTS OF ADVANCE LEVEL MDRT SESSION AT THANE

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