Dad lost all money (~70L) in the stock market, seeking advice as a 22 y/o to make it all work

[minac]

@robinlynn1976 You mentioned loans from NBFCs, if your dad has multiple loans outstanding you should sort them in descending order of interest rate and pay them back.

Some banks also allow you to transfer loans to them for a one time fee, managing one financier will be better than dealing with multiple.

From what you shared, I think I know where you work, even when the RSUs vest, don't sell them, they nearly doubled this year and let's hope they get better.

 

[robinlynn1976]

@minac Sure brother I will look into this, thanks for the tips

 

[dallatu24]

@robinlynn1976 How are you getting 7% interest in 4.5L balance in idfc? They only provide 7% interest for > 5 lakh amount in Saving Account

 

[mayala03]

@robinlynn1976 Hey man

Just wanna say I am proud of you and your maturity.

Parents are not perfect

From what I have read, I am pretty confident that you are mature enough to deal with this. And know that not all money is lost. You seem to know what you are doing, the right and the wrong. Just take some time off. Accept parents'imperfection and rebuild happiness and stability.

Rest you will figure out I am sure.

proud of you homie

 

[robinlynn1976]

@mayala03 Thankyou for the kind words brother, hope I'm able to pull this off

 

[mayala03]

@robinlynn1976 You will. Don't stress my man. Ho jaayega. Tu us type ka Banda hai Jo problems se better banke bahar aata Hai. Give my regards to your parents. They are very lucky to have a son like you.

 

[dhow71]

@robinlynn1976 Bro my father lost lost 80l in a restaurant business and I 27(M) with 50k salary is paying whole emi taken against our property for last 4 yrs
No savings at all
Cnt plan for marriage or party is long way away
You atleast have savings as well as age on your side.
Don't take that much pressure bro,there are people in much much worse condition then you are still managing to live

 

[robinlynn1976]

@dhow71 Sorry to hear that brother, but this too shall pass, stay strong and I'm sure you'll do amazingly well for yourself and your family

 

[dhow71]

@robinlynn1976 Yes buddy but I am looking for somewhere I can do a wfh part time thing
Or someone who has a web designing work that they can freelance me will be grt for some additional income

 

[mercy74]

@robinlynn1976 Maintain a razor sharp focus on repaying all debt. Once your parents’ home loan is paid off and the bank has returned the sale deed, I propose you keep the deed with yourself. Your father is clearly addicted to gambling and can end up falling back in the same trap. You don’t want him to mortgage the home to finance his addiction.

You are doing the only right thing. Be strong. Also, use some of your money to do things u like/u want. Your mental health is very important.

 

[robinlynn1976]

@mercy74 Sure I will look into this, thankyou for the kind words

 

[aelita]

@robinlynn1976 In addition to others’ excellent advice:
If you want to settle the loans then
- avoid everything that is a “want “. For example, the Interiors and the bike are a “want”.
- do not marry and put someone else in trouble and uncertainty until you settle all loans first.
- get that Health Insurance for yourself and for your parents.
- get a Term Insurance with you as the insured and your Mum as the beneficiary. The cover amount should help settle those loans, provide for their future ( consult the fee only advisor on this). Check with the fee-one advisor if the setup could be such that no single person is in full control.
- if you are able to plan with a fee-only advisor, then get your Mum to accept that things can turn for the better and that she needs to stop fearing for the future and come up with specifics that you and the fee-only advisor can address. Her crying and sadness can be a distraction for your focus. I’m saying this from personal experience.
- You can aim for higher salaries within India as well as abroad. Upskill yourself. Learn how to clear FAANG interviews.
- are those mutual Funds Direct or Regular? Consider choosing Direct so that you pay lower commissions.
- it might be cheaper to liquidate all Mutual Funds And other instruments ( keep the emergency fund ) and pay off the higher interest loans.

Fee only advisors: https://www.feeonlyindia.com
Have a conversation with two or three of them and then choose one.

Tell your father to read The disciplined Trader and Trading in the Zone by Mark Douglas. If he cannot understand those books and if he cannot show a 20% profit from 30% of successful trades ( where 70% of trades are in a loss but one risks only 1% or less of over all capital in a trade), then he had entered active trading too soon. It takes about two to three years of practice to arrive at profitably strategies and six months to a year of trading with a small amount of real money to learn the journaling practices that help one attain the psychological resilience to avoid bad traps such as revenge trading and hope trading.

He now has neither the capital nor the luxury of learning Trading. He is better off taking a part time job to stay engaged rather than fall into to depression at home.

 

[robinlynn1976]

@aelita Thankyou for such a detailed advice kind sir. I will look into all the points surely.

To answer a few, health and medical costs are completely covered by my father's company, have invested in direct mutual funds, and currently focusing on repayment of debt.

I'll also look into getting a fee only financial planner in the near future, thanks a lot for sharing the resources and insights on the same

 

[aelita]

@robinlynn1976 See: https://www.indiainvestments.wiki/f...h-insurance-employer-already-has-group-policy

His health insurance will only last till he is employed. You have to think of cover post that.

Second, employer’s and Insurance companies often change the cover or eliminate cover entirely for specific items. This tends to happen when a number is employees suddenly take up a particular medical science support ( eg knee replacement for parents). Such a change could impact you negatively.

 

[bobo_mcpherson]

@aelita His dad is already retired. That's how he got gratuity. Health insurance of some PSUs last till lifetime.

 

[aelita]

@bobo_mcpherson Thanks for reminding me that his dad has retired. My context of sharing about health insurance was both due to my lack of awareness of PSUs and the related benefits, as well as because private sector employees are able to add their parents to their health cover but are caught by surprise when coverage is changed for various reasons.

 

[bobo_mcpherson]

@aelita For private folks, its absolutely necessary to have a separate insurance for their parents. Old age folks can hardly (read never) get insured beyond 65.

For example I'm working as a freelancer with no benefits other than cash. So I've highest category insurance for my parents which I pray I never get to use. I'd love that annual premium to go down the drain if my parents always live a healthy life.

 

[rae46]

@robinlynn1976 Dude, congratulate yourself . You have managed the family and your personal finances very well

You are doing well, keep doing the same I guess. Agressively save money, invest well and chill

From my own personal experience a bike is fairly regretful purchase , they are not fun for the daily commute, they have expensive maintenance. The thrill and charm of weekend getaways should be fulfilled with rental bikes. Might sound boring advice, but most of my friends harleys, kawasakis are just parked and depreciating.

 

[robinlynn1976]

@rae46 Thankyou for the kind words.

Agreed on the bike part, but let's see, don't have a plan to get it atleast before 2-3 years, so will plan accordingly then

 

[tabbycat]

@robinlynn1976 Reduce your miscellaneous spending for the next few months and pay towards the loans.

For the emergency fund you can put it into liquid mutual fund such as Invesco Treasury Fund or physical gold and silver. Pay the highest interest rates first and all bonuses, extra cash keep dumping into the loans.

If your sister has got a job ask her to pitch in as well either with the loans or with taking care of your parents.

Have a goal of closing the loans in a couple of years and don’t take on further loans no matter what! This is key otherwise you will keep digging yourself deeper. No emotional decisions such as marriage etc. for you or your sister until all the debt is paid.

I have been where you are it is a long up hill battle but stay strong and focused and you will make it!

If