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Gurgaon, for the next 24 months he was to remain without any income. This was assuming that he would need a year to complete his study and another for his practice to start gener- ating income. Besides, there was a fur- ther expense of `1.5 lakh on his edu- cation and `50,000 for meeting the initial marketing expenses. To this pur- pose, he used his provident fund and gratuity payments and redeemed some of his investments in mutual funds. “It helped that I had built up substantial savings during my years in the US. Otherwise, I would not have been able to plan the way I did,” adds Kukreja. At the same time he ensured that under no circumstances would he liq- uidate any of the investments he had made for his children, though he might not be capable of topping them up during these two years. The transition phase. He also took a cautious approach to spending, ensur- ing that he spent money only when absolutely neces- sary. “When my television set and laptop conked off, I had them repaired rather than buy new ones,” Kukreja says. He spent one hour in the morn- ing daily playing with his son and then prepared himself for the weekend classes. He also attended Art of Living sessions to build up his mental strength and confidence. Nevertheless, he had his fair share of doubts. “Initially, it took me a while to get clients and then I wondered whe- ther I had taken the right decision, or whether take an U-turn and go back to IT,” he says. But his determination and guidance from established profession- als in the field kept him going. Fortunately, his practice kicked off from January 2012. He also got an opportunity to host a personal finance show in a TV channel right after com- pleting his CFP course. This opened further doors and provided him with an opportunity to contribute to publi- cations. While it enhanced his visibili- ty, Kukreja also spent `50,000 on marketing and for designing a website and taking intellectual property rights. Here and now. Kukreja’s business is growing but his cash flows are still irregular. He is also aware of the fact that a lack of sales and marketing experience has been a drawback. Says Kukreja: “It requires a huge effort to convert prospects into clients. Initially I did not realise this aspect of my practice, but am learning it now.” When he is not meeting clients at their homes, he takes them to the club across the street. “Good coffee, good food on the table and a relaxed ambi- ence is necessary to make the clients feel comfortable,” he adds. Looking ahead. As of now, Kukreja is not investing. While he has used up a part of his retirement corpus, he has consciously decided not to rejig his existing portfolio. Nevertheless, he wants to again resume the systematic investment plans (SIPs) for building his children’s education corpus and to bring up his retirement portfolio to the level it would have been had he not taken a break. “Right now I am investing in build- ing a rich relationship with my clients so that they stay with me for life. I would rather have a smaller number of clients with richer relationships and a high income stream than the other way around,” says Kukreja, who expects to reach a stage of steady cash flows in a few more months. For Kukreja, who believes in helping his clients achieve their financial goals and also a right balance of wealth and happiness, financial discipline begins at home. And more often than not, that makes all the difference. ❒ [email protected] ACTION PLAN ■ For a mid-career transition, have an idea of what you want to do and the skills you need to add for your new career. Talk to people who have established themselves in that field ■ Plan in advance for the transi- tion. Build up a contingency cor- pus for the duration you will be unemployed and till the time your new career starts generating a steady income ■ Invest the corpus in liquid assets to cover your regular expenses, insurance premiums and EMIs dur- ing the entire period ■ If your chosen career option is entrepreneurial in nature, do factor in the ongoing business expenses for at least a year ■ Ensure how you can keep the existing investments for goals such as your own retirement needs and your children’s future. Have a plan to get them back on track I ew ones,” Kukreja hour in the morn- with his son and then or the weekend ended Art of Living p his mental dence. had his fair share of ACTION N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N PLAN ■ For a mid-career transition, have an idea of what you want to do and the skills you need to add for your new career. Talk W hen Amit Kukreja, 39, left his job at a leading IT multi- national company (MNC) in November 2010 to become a financial planner, there was a lot of resistance from his wife and parents. Why such a drastic change?, Why now?, Why not wait for a few more years?, and so the questions went on. But Kukreja had made up his mind. He knew he had age on his side to establish himself in his new career. After that it was just a matter of con- vincing them and, soon enough, he had all the support that he needed. “I told myself that in case my career does not take off, I will do part-time IT assignments but never a full-time job,” says Kukreja. The IT professional was based abroad for seven years before he decided to return to India in 2003. He he had a hectic career that involved a lot of travelling and, so, wanted to take a break. “Above all, I wanted to give more time to my son, Aaditya, who was less then a year old then, some- thing that I was unable to give to my daughter, Yuvna,” he says. The big shift. When Kukreja called it quits, he was the service delivery lead for a UK business unit. He says: “I rea- lised I had done everything there was to be done in the IT industry and all I could do next was a similar job on a larger scale. I felt I was more suited to directly consult with clients and help them manage their financial goals.” Kukreja had a keen interest in per- sonal finance and behavioral finance and soon realised that his true calling lay as a financial planner. So, after quitting his job he enrolled himself for a Certified Financial Planning (CFP) certification and also got himself a degree in financial planning and wealth management. By October 2011, he had his CFP certification and was eligible to start his own practice. Money matters. Kukreja chalked out a plan with his financial planner to see him through his transition. Thus, a year before quitting his job he ensured that he had adequate health and life cover for himself and his family. The next stage was to identify a cor- pus that would provide for an infla- tion-adjusted monthly outgo towards all his expenses, including insurance premiums and equated monthly instalments (EMIs) for his home in 52 OUTLOOK MONEY ● 12 DECEMBER 2012 ● www.outlookmoney.com BY ANAGH PAL A SECURED PLAN A SECURED PLAN FOR A SOLO DRIVE FOR A SOLO DRIVE With a proper financial planning even you can leave a thriving career to follow your heart as Amit Kukreja Family Transition http://digital.outlookmoney.com ● 12 DECEMBER 2012 ● OUTLOOK MONEY 53 x http://twitter.com/OutlookMoney; http://www.facebook.com/olmindia Family Transition ▼ Up next x Base Metals Set To Shine pg 54 Update Start Manage Senior Money Spend AMIT KUKREJA 39 WealthBeing Advisors x HIS STORY Started his career in 1996 and worked abroad till 2003. Came back and joined a lead- ing IT MNC in Gurgaon Quit in 2010-end to start a career as a financial planner. Got a CFP certification and degree in October 2011 Has clients, but is also aware it will take time to generate income BHUPINDER SINGH Amit Kukreja with his wife Hridi Kukreja ANIL PANWAR
