Dr. Neil Fernandes sat staring at his hands. On any ordinary day, his hands would be busy, dexterously performing a root canal or executing a perfect filling. He was loved by his patients and ran a flourishing practice in a major city in Goa. Hard-working, knowledgeable and highly skilled at his work, Dr. Neil made way more money than most of his contemporaries.
But that was during ordinary times, and there is nothing ordinary about the present times. The Coronavirus has paralyzed the entire world, killing thousands and forcing billions to stay at home.
While social distancing seemed to be a good idea to reduce the spread of the deadly virus, it also meant no patients for Dr. Neil, and hence, no income. With all the skill and expertise and goodwill, he would be out of work for an indefinite period.
He looked around his rather large house, which he had purchased a year ago, and for which he was paying hefty EMIs. He had no idea for how long he would be able to borrow from his savings to pay his bills. Morose and grim, he sat unblinkingly, not knowing what to do when his phone rang, pulling him out of his reverie.
‘Hey, Neil, my man! How are you doing buddy? And how’s your family?’ Dr. Roland’s voice boomed on the other side.
‘Huh! I am … OK?’
‘What’s wrong? You don’t sound anything like OK to me? Be honest with me,’ urged Dr. Roland.
Dr. Neil and Dr. Roland, both dentists of high repute with their practices in different cities, were great friends since college. Over the years, both prospered and remained good friends.
Dr. Neil was surprised, and a bit peeved, to hear the positive cheer in his friend’s voice. ‘Isn’t he going through the same professional problems as I?’
‘Roland, you are chirping happily. It looks like there is a long queue of patients outside your clinic,’ Dr. Neil jibed bitterly.
But Dr. Roland took it sportingly, ‘I know, there’s no work, but I am making the best of this time by being around my family; you know how rare that is for us!’
‘I know, I also like being around my wife and son. But isn’t the loss of income bothering you? I am going mad thinking about the losses I am incurring. I have to pay my mortgages, insurance premiums, rent for my clinic, and hundreds of other bills,’ lamented Dr. Neil.
‘Wait, but you don’t have to rely on your clinic income to pay your bills, right? Isn’t your portfolio giving you a fixed income each month?’
Dr. Neil was bewildered, ‘What portfolio? Of course, I have to earn each month to pay my bills. How have you been paying yours?’
Dr. Roland realized that his friend was one of those professionals who earned a lot of money but were still a slave to money. To earn a living, they had to slog each day at work, and even a day’s absence from work meant a loss of income.
Taking a brief pause, Dr. Roland explained to his friend that he had been saving and investing each month for a long time. Immediately after college, Dr. Roland had come in contact with a famous financial expert who advised him to start investing a little portion of his income each month. As his practice flourished, Dr. Roland increased the investments substantially.
‘I have a thriving portfolio, which keeps growing on its accord, even when I don’t invest any further,’ explained Dr. Roland. He also revealed to Dr. Neil that a few years ago, he took an investment option called systematic withdrawal plan or SWP. Under this plan, his large portfolio remained invested in the market, earning from the market movements, while he also started getting a fixed income each month in his account.
‘My fixed income was getting clubbed for some time, and now it is serving as a passive income for me. In fact, I continue to receive my monthly income. So, whether I practice dentistry or not, I would always be able to pay my bills.’
Dr. Neil marvelled at his friend’s financial acumen and was motivated to create wealth for himself so that the next time when a crisis like the COVID-19 strikes, he would be prepared.
Dr. Roland assured his friend that things would soon get better and that it was more important to be at home with loved ones. He also made Dr. Neil promise to ask for financial help whenever required.
Dr. Neil was feeling much better now. He had a friend by his side to ride through tough times and an objective of creating passive income. Sometimes, it takes only a phone call to turnaround your day from glum to gleeful.
Dr. Celso Fernandes, fondly known as the Financial Doctor of Goa, has been driving the awareness about financial independence. Over the last decade, he has helped hundreds of households and youngsters in working towards financial freedom. Dr. Celso also runs a social organization, Nave Marg Foundation, that works primarily towards providing better sanitation and infrastructure amenities for school children.
Nave Marg 