WOMEN are often accused of being relentless hoarders. They keep everything from shopping bags, to used wrapping paper, old clothes, even older utensils and even the odd broken toaster. Men deplore this habit but they have to sit back and accept it.

Especially in a household where women called the shots. Yes, there are some matriarchal families like that of Mr Madan Rao (name changed) where women wear the pants. No these women don't go out and work, they are simple housewives who command enormous respect from the household.

Mr Rao approached me to help him save for his daughters' weddings. He is 52 years old and his priority was the wedding of his two daughters and he had estimated a cost of Rs 15 lakh (Rs 1.5 million) as on today for each of them. So he would need around Rs 40 lakh (Rs 4 million) in about eight to 12 years after accounting for inflation to give them a wedding as per his community standards. He also wanted to know if he had enough to ensure a completely non-compromising retirement.

Mr Rao belonged to the mid-cadre of management and had worked for about 25 years in the same company. His financial status currently was as follows:

1. He earned about Rs 35,000 per month and could save Rs 10,000 per month i.e. about 30% of his income after all his expenses and taxes.

2. He had no debts so liabilities were zero and for assets, he had a small house in which he would continue to live post retirement.

3. He had accumulated around Rs 8 lakh (Rs 800,000) in his provident fund (PF).

4. His public provident fund (PPF) was worth about Rs 5 lakh (Rs 500,000),

5. Fixed deposit (FDs) were around Rs 4 lakh (Rs 400,000).

6. And postal savings of around Rs 3 lakh (Rs 300,000).

7. Finally his bank balance was approximately Rs 40,000 to Rs 50,000.

Photograph: Sergio Dionisio/Getty Images

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e-mail: Kartik Jhaveri

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