Financial Planning – Future Investments – Need advice

Hi, 1 - NSC is it a one time-investment? For 5 years or 10 years? 2 - SBI LIFE Smart performer is an ULIP. Are you sure that it has 5 more years lockin-period? Kindly recheck this. By the by are you happy with its performance? 3 - You have mentioned that your spouse (wife) is a home-maker, so life insurance cover may not be required. Kindly share details about LIC policies (Plan name, tenure, commencement date etc). 4 - ICICI Pru Life stage Wealth II is an ULIP plan. May I know the commencement date? Are you satisfied with its performance? My First impression after looking at both the Portfolios is - they are highly skewed towards Debt / Fixed income oriented schemes. Another important point is, looks like you are under-insured. Kindly buy a Term plan (if you do not have one) and also a stand-alone Personal Accident insurance cover. Do you all have a Health insurance cover? Kindly use the calculators provided in the below articles and check how much approx savings you have to invest to reach your long-term goal values (like Retirement & Kid's education). You may have to increase your allocation towards Equity oriented investment options to achieve better Inflation adjusted returns. Read:

• What is Real rate of Return?
• Why one should avoid investing in FDs/RDs for longer period?
• Retirement planning goal calculator
• Kid's education goal planning calculator.
• List of articles on key aspects of Personal Financial Planning.

Dear Sir, Thanks for your reply . All information are so easy to understand even for beginners like me. Specially the retirement calculator is simply awesome.Here are my replies: 1.As per the retirement calculator, I have to invest 50k/month to reach my goal.At present I can invest only 40k/month,since I have home loan of 32k/month. Am ready to invest in Equity oriented investment options. If I want to start with SIP of say 10k/month, Please let me know ,which bank is the best to trust for monthly SIP with best returns. 2.NSC is one time investment for 5 yrs made on 1 june 2016. 3.ICICI Pru Life stage Wealth II started on 03/09/2011 , its for 10 years, maturity- 03/09/2021.sum assured as per documents is 480000. Sir, am paying premium regularly but never bothered about it's performance. Please suggest shall I continue or not. 4.MY WIFE'S lic - LIC Jeevan Surabhi, STARTED ON 13/09/2008. In 2019( after 12 yrs of start) ,i will get last sum assured i.e 40% (I already got two 30% , 30% sum assured).So shall I continue with this policy for 3 more years. Shall I take a LIC for myself. Pls suggest which LIC policy will be best for me. 5.SBI LIFE Smart performer commencement date-02/11/2010 , premium paying term=5 yrs, date of maturity/cover end date=31/08/2020 ,Sum assured=800000. SBI MF guys told me that I can take the amount after 5 yrs but If i will keep it for 5 more years ,then I will get based on highest NAV. 6.which Term plan will be the best for me looking at my age and salary. As per my knowledge,Term plan is good only if the insured dies within term,if not there is no cash return or cash benefit. Is that correct. Thats the reason,I was always hesitant to buy term plan.Please advice.

Hi, 1 - It is not mandatory to invest in Mutual funds through a bank only. You may invest in MFs directly or through agent or through any online platforms. Kindly read:

• What are Direct plans of Mutual Funds?
• MF Utility online platform.
• Direct plans Vs Regular plans - returns comparison
• Best Equity funds.

2 - Kindly note that interest income on NSCs is taxable. 3 - You SHOULD be bothered about your ULIP's performance. You are investing your hard-earned money, isn't it? If you are not happy with its performance, you may surrender the policy and re-invest in equity mutual funds. 4 - LIC Jeevan Surabhi is a Money back plan. You may get maximum 4 to 5% returns on this plan. Suggest you to make it PAID-UP. Read: How to get rid off unwanted life insurance policy? 5 - It is a Life insurance product then how come a SBI MF guy advising you? Suggest you to surrender this policy and re-invest the surrender amount in better options. 6 - Returns is not everything in life. Responsibilities also do matter, am i right? Kindly go through below articles;

• If life is unpredictable, INSURANCE can't be optional.
• Term insurance Vs Traditional life insurance plans.
• Best Term insurance plans.

 

Hello sir, 5.SBI LIFE Smart performer commencement date-02/11/2010 , premium paying term=5 yrs, date of maturity/cover end date=31/08/2020 ,Sum assured=800000. SBI life insurance guys told me that I can take the amount after 5 yrs but If i will keep it for 5 more years ,then I will get based on highest NAV. I checked through SMS. my fund value as on date is 491177.38 units(NAV). Index fund: 4850.8888(15.7784) and daily protect fund 28845.9958(14.3742). highest NAV from commencement date to till date :14.48. Please suggest ,shall I wait till 2020,to get on highest NAV till that date or shall I surrender this policy.

Suggest you to kindly surrender this policy and re-invest in well performing Equity funds. 

Dear Rajesh, Request you to kindly post a separate and new question. You can have a dedicated thread (discussion) for yourself. Do not post your queries in this thread.  Thank you!