The Two Balconies of Dona Paula

My dear friend, come sit. Let me tell you about two houses that sit side-by-side in our beautiful Dona Paula. From my clinic window, I see their balconies every day. In one, sits Uncle Pereira, a retired government officer. In the other, sits Aunty Mehta, whose husband passed away ten years ago. Both are of the same age. Both raised families here. But today, their mornings tell two very different stories.

The Pension Trap: Uncle Pereira's Anxiety

Every month, on the first, Uncle Pereira walks to the bank. His pension arrives—a fixed, respectable sum. For years, it was enough. But have you seen the price of fish lately? Or medicines? His pension, like a slow leak in a boat, buys less and less. His balcony talks are of cuts: "We don't travel now," "We switched to a cheaper doctor," "What if one of us needs long care?" His security has become a cage of worry. His money is static, but life is not. Inflation is the silent thief visiting his balcony every day.

He told me last week, "Celso, I worked 35 years for this peace. Why do I feel so insecure?"

The Money Tree: Aunty Mehta's Simple Secret

Now, look to the next balcony. Aunty Mehta sips her chai in peace. Her husband, a wise man, was not a high-ranking officer. But he was a consistent investor. Long ago, he started putting money into good equity mutual funds. He called it "planting trees for her old age." When he passed, she was lost. But the plan he set up didn't need a genius to run it.

She came to me, and we simply set up a Systematic Withdrawal Plan—an SWP. Think of it like a money tree. The corpus (the trunk) stays planted and growing. Every month, like clockwork, a fixed amount (the fruit) is automatically sent to her bank account. It's her self-made pension. Some months, the tree gives more fruit; some less, but it always gives. And the beautiful part? The trunk has grown bigger over the years, even as she picks the fruit!

Your Family's Financial Lesson

You see, a pension is a promise from an employer. An SWP is a promise you make to yourself. One is rigid. The other is yours to design. You don't need to be a crorecpati to start. You need to be consistent.

Here is what you must do:

• Start Early, Start Now: Even if it's just ₹2000 a month. Time is the magic soil for your money tree.
• Separate the Tree from the Fruit: Build a retirement corpus (the tree) separately from your emergency fund (the fruit basket in your kitchen). Never cut the tree for daily expenses.
• Automate the Harvest: When the time comes, set up the SWP. Let the system work. Your emotion should not decide when to withdraw; a plan should.
• Respect Inflation: Your needs will rise. So, your monthly "fruit" should too. Plan for withdrawals that increase slightly every year to beat inflation.
• Seek Guidance, Not Gossip: Talk to a fiduciary advisor, not just relatives. Build a plan based on your family's dreams, not on market rumours.

A pension is what you are given. A self-made pension is freedom you build.