How to retire Rich and Young? - Business & Economy - Stock Market - TIK Share

How to retire Rich and Young?

Kishlay Singh


Stock market has always intrigued me. As a child I have always wondered what it is like to be an investor. My parents used to warn me about the danger of investing in the stock market. “It’s Gambling", they used to say.

I had been ignoring their advice until I heard the news of my uncle. He was working as a production manager in Reliance Limited back then. The company suddenly announced downsizing! The downsizing was a result of falling share prices due to massive economic depression. A lot of share holders lost their money including my uncle, though he was lucky to retain the job. I was convinced that share market is a risky investment scheme which can turn a rich person into broke overnight!

But my notion gradually changed when I read books on investment by Robert Kiyoski. He is the best-selling author who wrote a series of book on financial education called ‘Rich Dad poor Dad’. After reading the books, I was enlightened to find that there’s real money in the stock market. No matter what the common people say about investing, if you know the investment strategies, you no longer see it as gambling, but a game. It can make you rich and help you retire young so that you have enough time and money to do what you desire! Just like Robert did!


The worst financial advice that one can give to others regarding stock market is: It’s risky, so better invest in mutual funds which are safe(er). A lot of pension plans are dependent on mutual funds, but the returns are low. And there is no guareentee that money will still be there after you retire, because, as the disclaimer says: “MUTUAL FUNDS ARE SUBJECT TO MARKET RISKS”.  If any economic turbulence happens in future like nuclear war, terrotist attacks, massive loss of weath and property, and governmental faliure, the ones who invested money into pension plans supported by mutual funds regarding it as safe will be on the roads after they retire. Seriously that’s more risky than investing for short term in individual stocks. It will help you retire rich and young. (What’s the use of money if you don’t have the strength and vitality to enjoy it!)


 The financial advisors also suggest keeping a diversified portfolio, i.e, buying a number of stocks of different companies so as to minimize the risk of losing money. While it does curtail the risk, it also reduces the possibility of making mega-money. Unless and until you take risk, you cannot achieve your dream of retiring rich and young. How much risk you should take is determined by your risk-tolerence that depends upon a number of factors like your salary, your liquid assets, your bank balance etc…


The most stupid of all investment advises is to invest for a long term. It is based on the general notion that stock market prices always go up. That’s exactly what my uncle did, and an overwhelming majority of people do. They invest for long term in a hope that with time their share prices will go up. But when unseen and inevitable forces like economic depression befall, they lose money!


I have always wanted to become a professional stock market investor. When I was a kid, I had been conditioned to believe that life is “working for others 9-5 for a paycheck”. That’s what my mom and my dad had been doing. And the neighbors next door too! But, owing to my unquenchable curiosity, I figured out that working for others for salary is not the only way to live life. There are lot of other ways to earn money without making life so monotonous. By the time I reached college, I opened my trading account and started investing pennies that I would save every month from my pocket money. I recieved a return of 11 percent on my money in two months, and that is a very surprising! People who save money in savings cannot have that privilage. Even CDs don’t give that benefit.

The problem with stock market is that you need money to make money, and since I am still a student, I am not able to invest much. But one thing I am proud about is that I have learned how to survive in the stock market, and make money even during recession. I can double my 5k to 10k in as less as 6 months, and with my strategies I can turn 2 crores to 4 crores overnight! The more money you put in the market, the more you make. Impressed by my investment strategy and the return I recieved on my money, my parents have agreed to lend me a substantial amount of money to invest in the stock market just after I pass out from college!





Suppose a long term investor who is about 30 years old buys 1000  stocks in 2010 at 65 rupees per share, and expects that by the time he retires at 65, his stocks will significantly appreciate as his financial advisor suggested! Now look at the graph above. The price of the share in 2010 was 65 and it did increased to a staggering 165 rupees  somewhere near 2011. Wow great ! But wait, the stock prices fell down in 2012 back to 66. The return on investment was 0. But hopefully it rose again, the investor seemed happy to see a sharp increase from 66 to 143 in mid of 2013. But again it fell down to 66 and rose up again. This trend will tend to continue throughout his career owing to be volatility of market, and by the time the investor becomes 65,  he may get a heartache to find that his stock has not appreciated in value as he expected. The money he might be left with would approximately be 65000 rupee, which is same as the amount he invested. Pretty sad, eh?

People who invest in 'retirement funds' are long term investors who seek good return on their investment. Because the retirement funds are diversified, the risk of loosing all the money or making nothing at all is mimimised, but the money recived after retirement is not substantial. When inflation is taken into consideration, the investor realizes that he has raised a hell for himself. But since he is old now, he can do nothing about it and lead a miserable life, perhaps depenent on the income of his children.


 Suppose an investor buys 1000 stock in October when the price of share was about 108 rupee. Since he is a smart investor, he knows that stock market is volatile, and the prices rise and fall unexpectedly. And in November he does find that the stock price rose to 130. So he sells the share making a profit of 1000*(130-108)= 22000 rupees. Now he has altogether 108000+22000= 130000 rupee. And with extra profit, he can buy more shares worth rupees 108. In November, he invests all his money(protfits included) to buy similar stock priced at 108(say), and this time more in number because he has more investment capital. He sells it again in similar fashion, and buys again. In very less times he becomes rich, and is no longer dependent on government securities for his old age. In fact he has lots of money while he is still young, and now he can live a life of his dreams!

*This a very layman description however. Before you invest money in stocks for short term, I advice you to educate yourself financially. I recommend reading all the books written by Robert Kiyoski before putting your money in the stock market. Also educate yourself on country laws regarding taxation.


CA Pulkit Sharma


Good to see awareness about stock market investing. You are doing a great job. Due to design of commenting section its not possible to discuss the details of article here itself. I am opening a thread specially to discuss your article because my ways of handling stocks is completely different from what you wrote in articles. But then everyone have their own rules!!!! But again i would say i have written more articles and more forum discussions than anyone on this site, but wish i could achieve the expertise you have in writing :)


sanjit singh


Sorry not satisfied with your idea for short term investment idea... which like bubble. Invest book profit or book lose. Buy good stock sit tight. You given one example its gone up and came down. If go down after investment if some go through your idea he book loss in panic or after investment go up and book profit and then stock go more up then he will miss the rally he will never enter at higher rate. My suggestion that who go for short term then he should keep stop loss and target for stock which come first and not think after what happen to that stock...


Kishlay Singh


Dear Mr. Sanjit Singh, Maybe what you suggest would work for you, but how can you guarantee that it will work for every one? Advising people on how to avoid risk in STOCK MARKET is an oxymoron in itself. There is nothing like risk-less investment. And I don't advice people on how to invest safely. It is something they must learn to do by themselves. I encourage people to learn to invest. It takes a great deal of financial education. There are no hard and fast rule, as it is the emotions of fear and greed that dominates the market. Those who know how to control these emotions will prosper in the market. As far as short term investment is concerned, you can always have a insurance for your stocks in the name of hedging. That will minimize the risk. What I do with my stocks are very peculiar. And it makes me money. If I make 100, and then loose 50, I am still a winner.