Inaugural Post : Hum Fauji blog - the wealth creator for faujis

I, Col (retd) Sanjeev Govila, have created this blog as a link to my website www.humfauji.com, two days after taking premature retirement (PMR) from the Indian Army on 31 Mar 2010. This blog is to act as a direct link between the website and the visitors in a very informal manner - something that a medium as formal as a website can never do.

The very first thing that I wish to write on this blog is the reason why I have created my company and taken this 'Initiative' which, as far as I know, has not been ever attempted earlier.

My initiative through my company 'Hum Fauji Initiatives' is to create a medium through which I can provide financial stability to the otherwise chaotic lives of us faujis. Throughout my almost 27 years of fauji career (31 years, if NDA and IMA are also included!!), I have seen a general apathy towards something as fundamentally important to us as management of our own hard-earned money. Though the trend is thankfully changing, but just about so. The dominant view still prevalent in the fauj is that we officers should not indulge in something as petty as management of money. Somebody indulging in shares or property is still looked down upon, though his wealth so created is looked at with jealousy - a sheer dichotomy indeed. But apart from a problem of our own mindset, there is a real problem related to our professional hazards too.

The way we move around every 2-3 years or even earlier, and the kind of places we get posted to, there is no real financial help available except one odd LIC agent, who, with his very limited knowledge (but good oratory skills), makes us believe that an insurance policy is the best saving instrument under the sun. Consequently, many of us have a large number of insurance policies of all hues. And by the time we realise (if at all!) that we have have been saddled with lemons, there is not much that we can do. I have always maintained that, as Class I Gazetted officers, we have a fairly good pay which can easily ensure that we lead a good life while in service as also after our retirement. However, what is required is its good management. This last part is what we are neither able to do ourselves nor able to get good help to do at a resonable cost.

The last two words of 'reasonable cost' are very important. There are any number of portfolio managers available especially in large metros who are scouting around for HNIs (High Networth Individuals). Though competition has ensured that they are ready to manage portfolios worth just about Rs 5 Lakhs too, their expenses are so high that most of us would just cringe back. The question is - does it really cost so much to manage anybody's portfolio? My calculations have shown that it is merely a case of unlimited greed and hype around Portfolio Management Services (PMS) that these people charge so much, which puts it well beyond the reach of middle class - in fact, the class that needs such services the most.

This brings me to the reason why I decided to launch this 'Initiative'. I have seen so many proud faujis in my life who lead great lives as long as they are in service and have got all the fauji facilities. But the day they retire, they are literally out on the streets. Many of them don't even have a single house and they regularly dip into their retirement money for routine expenses. What happens a few years down the line is just a nightmare. Consequently, just to make ends meet and to discharge their balance of responsibilities, they have to work till late into their retired lives. At times I have seen many such retired officers take up jobs which definitely are low and unthinkable by any standard. A little financial prudence during the service or sane timely financial advice would have easily avoided such a situation. I have decided to take up this challenge and offer financial services targeted solely at faujis at rates which just about meet my costs. Of course, I aim to survive myself by generating volumes - hoping that people will realise the wisdom in what I am attempting to do and my noble intention behind this risk that I am taking for myself. Though approved for the next rank of Brigadier myself, I have refused it just to be able to fulfill my long-standing ambition of giving back to this great institution of Indian Army in a small manner, what I have got from it in plenty in the past 30 years or so.

I have tried to be as accessible as possible - through landline, Cell-phone (Voice as also SMS), website, email and this blog apart from the usual letter by snail-mail. I aim to make available the entire range of professional financial services - wealth accumulaion, planning for children, retirement planning, mutual funds, property across 25 cities, Income Tax returns through GHQ(IT) Pune and insurance - but the main thrust of my company remains the long-term goal-based financial planning which, through a system of regular though small investments, makes sure that you get the minimum two houses before you retire, get your children the best of education, and a comfortable retirement and other goals if you start early enough. My team, which consists of experts in almost all the fields that are connected to a fauji's finances, is able and dedicated enough to ensure a quick delivery of all that we promise.

I hope that I am able to achieve what I have dreamt all these years and able to make a difference to the lives of my brethren in fauj!!