Welcome to TRB Lounge. Today, I’d like to welcome author Deepak Mullick for sharing an excerpt from his latest release SimplyMutual: The 1% Formula To Gain Financial Freedom.
About the Book
SimplyMutual : The 1% Formula To Gain Financial Freedom
Everyone wants to be rich, but not everyone is. There is a method and meaning to it that’s more than just numbers.
In this book, investment veteran Deepak Mullick takes you on a journey to financial freedom. SimplyMutual isn’t just a guide to make more money, it is about building wealth to live the life of your dreams.
If you’ve ever thought of retiring in your 40s to do what you love, this is THE book for you!
How I gained my freedom at 45
On a warm summer evening in 1947, my grandparents packed their bags and left their life behind. FREEDOM. That was the chant in the air. History was being made as the British left a partitioned India behind. For millions of people this meant leaving behind everything they owned, their life’s work and savings, the security and comfort of their homes, of the life they had known, and moving to unknown lands with an uncertain future. My grandparents too made their way from Dera Ismail Khan in the Khyber Pakhtunkhwa province of what is now Pakistan, to Lucknow, Uttar Pradesh.
I grew up hearing the stories of their life. In the evenings when we all sat together in the courtyard of my grandparents house, they would get nostalgic. My grandmother would tell us about our culture, our food, the traditions, all the wealth we had, the lands we owned back then, and how we earned our surname Mullick, a title given to big landlords. Even as a child, I could hear the longing in her voice, and a note of bitterness at being uprooted. When I write this from the comfort of my home now, I can’t even imagine what they must have gone through. The way they had managed to move with just a few suitcases, hurriedly packed. The way they had to travel hundreds of miles in search of a new place to settle in an environment of extreme hostility.The stress and anxiety of not knowing where they are headed and the despondency of having to start living from scratch.
But start again they did! And they made quite a success of it too.
Why am I telling you this? What does a story about uprooting and migration have to do with a book on wealth building?
Well, in this story there is a lesson. That life is unpredictable. That ups and downs will happen. That sometimes everything you took for granted will be disrupted. But don’t lose your wits. Financial success is all about thinking in the long term. As the poster boy for long term investing, Warren Buffet said, “successful investing takes time, discipline, and patience.”
I’ll add to that and say wealth building is also about optimism. I consider myself an eternal optimist! It’s in my DNA! And even after witnessing the ups and downs of economies for over 25 years, I continue to believe in the India growth story. But more on that later.
I learnt important life lessons – resilience, optimism, and street-smartness – from my parents, grandparents, and my Alma Mater La Martiniere, that have helped me immensely on my path to financial freedom.
After I finished my schooling, I had the easy option to join the family business. But it wasn’t something that interested me. I wanted to look at work as something that helped me live the life I desired. And I am very unapologetic about it. I am a firm believer that you work to live and not live to work. Have you ever thought about it?
What would you do if you had all the money you needed to live a comfortable life?
Would you still pursue the job you have currently?
Would you go after something that you are truly passionate about?
Would you give and contribute to the world?
Would you spend time travelling the world, experiencing new things, and gaining different perspectives?
The thing is, most of us spend a lot of time in the lower 2 stages of Maslow’s Hierarchy. We struggle to make enough money to pay for our basic needs of food, clothing, and shelter. And we compromise on building meaningful relationships and on finding our true potential. Often because that raise or that promotion is so much more important. Well, I didn’t want to live all my life with some golden handcuffs.
So my aim was to find a career path that would help me realize my retirement goals (yes, I was thinking of retirement when I was 20!) by the time I turned 45. A highly ambitious goal given India’s economic situation then. However, in a series of seemingly unconnected events, I found my calling.
In the early 90’s when I was figuring out my career choices, the financial services sector was abuzz with activity. India was undergoing an economic transformation. From a bottomless pit for foriegn aid, India was creating Economic Liberalization policies that will make it an emerging superpower in just two decades. Companies were coming up with IPOs every other day and there was high demand for finance talent. Later, this timeframe would also be known as the IPO scam period. Amidst this turmoil, I passed out with an MBA degree and a campus placement in a financial services company that gave me a take-home salary of about Rs. 5000/- per month.
From a starting point of Rs.5000/- per month to a sizable corpus of a few Crores, I have come a long way to retirement at 45. And I have lived well. I’ve indulged in my passions and in things that interest me and my family. We’ve traveled extensively and experienced the world closely. From whisky trails to northern lights, we have made our way to 29 countries across 5 continents.
This financial freedom has been a journey of considerable learning. First, I found a God-sent friend, philosopher, and guide with whom I have had the privilege of working for two decades. And then, for over three decades, I had the opportunity to witness the rapid evolution of the country’s economic constituents – the businesses, the consumers, the regulatory environment, government policy, the markets, and the ever-changing global scene. I have figured out what works and what doesn’t. I have learnt to tame the volatility and to invest in a way that sustains my lifestyle choices while building my corpus of funds. I have distilled this learning into this book and created the 1% formula to gain financial freedom.
The idea of this book came from my experiences of sharing my technique with friends and family members who wanted to quit the rat race, to pursue other life goals, and passions. And most of them have benefitted by following my technique.
This book is written as an equity investing guide for those who are keen to make their money work for them. People in their 20’s and 30’s who are looking to retire by 45 or those who have 7-10 years before they want to retire. People who want an easy to understand insight into how investing works. This book is your ticket to long term wealth creation and living comfortably off that wealth without giving in to stress, anxiety, or overwork.
In this book I will tell you the secrets to financial success. I’ll share stories of people who have seen the light and changed their investing behaviors for enormous gains. I’ll help you build good investing habits and make informed investment choices.
While there are different assets you will invest money in – both physical and financial, we will not cover the entire umbrella of financial planning and management. And there is a reason for that. I believe that if you understand equities the right way, and work with the 1% formula, the need for other kinds of investment vehicles is greatly reduced.
In my 25 years of experience in the financial sector I have got a fair idea of practices of banking industry, insurance industry, and the quality of the advisory business across categories of advisors. I have worked with several financial planners, attended many workshops, and deep dived into the subject of financial and investment planning. I’ve looked at all asset classes – real estate, gold, debt, equity, foreign equity, etc. from the lens of factors such as – returns adjusting for risks, returns adjusting for inflation and taxes, liquidity, volatility, convenience, costs of investing, etc. I’ve realized that Equity Mutual Funds is where the best balance can be achieved. In fact, I’ve been able to pull out of my term life insurance policies because of the corpus I have built through equity MF investments!
And so, this book will deal in equity investments only, and more specifically investing in equity through mutual funds. For the purpose of this book I am also considering Hybrid Mutual Funds with over 65% investments in equity as Equity Mutual Funds.
By reading this book, you would:
- Get a better understanding of the India opportunity and how long will it remain
- Get the right perspective on share-markets, understand emotional hurdles and mistakes on the way to financial freedom, and gain insights on how to benefit from the markets
- Learn a simple equity-based technique to build wealth and to create your own “Salary-Pension” stream for retirement
Like every great adventure, this book is a start. And as you read it, I’d like to give a word of caution. This book focuses on financial resilience. That means periods of no-gain or even loss that you sit through for long-term returns.This book is NOT about quick fixes or immediate gains. If that’s what you are looking for, then this book is not for you. If thinking long-term does not appeal to you, then this book is not for you.
That said, in the coming pages there is a wealth of knowledge and tried and tested methods that work. I hope you’ll find them as useful as I have, and use them to find your financial freedom.
About The Author
Founder and Chief Wealth Strategist, SimplyMutual
Deepak has spent over a quarter of a century in the investments industry, working with the country’s largest wealth creators. His last assignment was a 15-year stint at HDFC Mutual Fund. He was their Business Head for North, South and East India during different parts of his tenure. Having dealt with a large spectrum of investment avenues, Deepak realised that Equity Mutual Funds is where the best balance can be achieved. This belief in the India growth story and its potential to create wealth for decades to come stems from deep experience.
Deepak spent decades in the financial sector witnessing the fast evolution of each constituent of the investments industry — mutual funds, banking, insurance, investment advisors, NBFCs, the regulators, etc. He associated with the country’s top minds in financial and investment planning, attended numerous workshops and conferences, and dived deep into the intricacies of the business.
To come up with the best solutions for investor needs, he constantly drew comparisons between the most popular asset classes, such as equity, debt, real estate, fixed deposits, and gold, and other new asset classes like foreign equity, cryptocurrency, and art. He weighed each option with an exhaustive list of factors such as liquidity, volatility, regulatory environment, transparency, cost of investing, cost of holding and maintenance, convenience, and returns adjusted for risks, taxes, and inflation. This analysis has cemented his belief in the importance of Equity Mutual Funds for individual investors and given him the foundation to create SimplyMutual: The 1% formula to gain financial freedom.
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