The Two Balconies of Dona Paula

Hello, my friend. Dr. Celso here. Come, sit with me. Let me tell you a story about two houses next to each other in our beautiful Dona Paula. In one, lived Uncle Pereira and Aunty Maria. In the other, lived Uncle Krishnan and Aunty Lata. Both couples retired around the same time, with smiles and dreams of a peaceful life.

The Pension Trap

Uncle Pereira was a government man. He received a faithful pension every month—Rs. 25,000. It was his trophy for 35 years of service. He and Aunty Maria planned their life around this number. For the first few years, it was enough. Groceries, medicines, a little outing.

But then, inflation—the silent thief—came visiting. The price of fish, vegetables, and even Aunty Maria’s blood pressure tablets began to climb. Their Rs. 25,000 started to feel smaller, tighter. They began to cut back. No more Friday dinners at Martin’s Corner. The annual trip to visit their son in Pune became a distant memory. Their world, once so full of possibility, began to shrink to the four walls of their sitting room. Fear was their uninvited guest.

Uncle Pereira once told me, with a shaky voice, "Dr. Celso, the pension is fixed, but life is not."

The Neighbour's Secret: A Money Tap

Now, look at Uncle Krishnan. He was a college professor. His pension? A modest Rs. 15,000. But he and Aunty Lata lived without that pinched look of worry. They travelled. They hosted family. They even bought a new music system.

One evening, over *chai*, I asked him his secret. He smiled and said, "I built a second pipeline, Doctor. While I was working, I invested in equity mutual funds—systematically, for 20 years."

At retirement, he didn't break that nest egg. Instead, he set up a Systematic Withdrawal Plan (SWP). Every month, like clockwork, a sum of Rs. 20,000 would flow from his mutual fund investment into his bank account. It was his own, personal pension that he created.

"The magic," he whispered, "is that the rest of my money stays invested and keeps growing, fighting that inflation monster for me. My pension is Rs. 15,000, but my income is Rs. 35,000."

Your Family's Lesson

You see, Uncle Pereira depended on a single source—his employer's promise. Uncle Krishnan depended on his own wisdom and the power of the market. Their balconies told the whole story: one couple looking in, the other looking out at the horizon.

It is never too late to start, but the earlier, the sweeter. Here is what you must do:

• Start Now: Do not wait for the "right time." The right time is today, even if it is just Rs. 1000 a month.
• Invest for Growth: Use equity mutual funds (through SIPs) for the long term. They are your wealth creators.
• Plan the Exit: Years before retirement, start shifting a portion to a balanced portfolio. This is the capital for your SWP.
• Turn on the Tap: At retirement, activate the SWP. Let it pay you a monthly "salary" from your own created wealth.
• Sleep in Peace: With two incomes—a pension (if any) and your SWP—you control your dignity and your dreams.

A pension is given to you, but financial freedom is created by you.