At a family function a few days ago, I posed a simple question to my cousins.

I asked them:“Give me ₹1 lakh every year for next 15 years. After 15 years, I will start paying you ₹1 lakh every year for the next 50 years.”

Some got excited. Some were doubtful.

To make the deal sweeter, I added:

“At the end of 50 years, I will also return your original ₹15 lakh (Rs. 1 lakh annually paid over 15 years initially).”

Now most of them were convinced — except a few who asked for a guarantee. I said the guarantee would be backed by my property papers.

And that sealed it.

Who doesn’t want a guaranteed outcome? All of us do.

But here’s the irony:

The rate of return on this deal is less than 5% per annum.

Most of us know how to earn money. Very few of us know how to handle money. Unfortunately, our college curriculum never taught us money management.

This example itself has many flaws:

No inflation adjustment 

No taxation impact

And the biggest question — how real is the “guarantee” over such long periods?

Yet, this emotional pull of “guarantee” is exactly how most fraud and mis-selling happens in India and globally too.

Sadly, it is often done by trusted bankers, agents, and brokers, by playing on our fear and our desire for certainty.

So many “guaranteed” and “annuity” plans are mis-sold by insurance companies and their distributors — locking people into poor, inflexible, and low-return products for decades.

So, the next time someone tries to sell you a guaranteed income plan, ask them one simple question:

“Are you planning my retirement… or yours?”

At Naveen Rego Capital, a fee-only wealth management firm, we are never about financial products.

We are about you, your life, and your long-term financial well-being.

If you don’t want to commit costly financial mistakes, connect with us at the earliest.

Happy Financial Planning!

Naveen Julian Rego – CFP®

MD & Principal Officer

Naveen Rego Capital

SEBI Registered investment adviser

Reg No: INA000019211

BSE Membership ID: 2178

Financial Planning | Investment Advisory | Wealth Management

Date: 16-01-2026

Disclaimers:

1. Investment in the securities market is subject to market risks. Read all the related documents carefully before investing.

2. Registration granted by SEBI, membership of BSE and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

3. Financial products recommended by us which are under the jurisdiction of other regulators are beyond the scope of SEBI’s grievance mechanism.