Dear Sir,
I am very much inspired by your advice. I still dont have any financial plan. Here are my details age 26 income 30,000/- per month dreams own bungalow 25 lakhs in 5 years car 5 lakhs in 1 years Marriage in 3 years 3 lakhs secure my family by buying insurance & health insurance (if required??).
I read articles on retirement planning. Should I start investing in ELSS for creating corpus for my retirement as well as tax saving purpose? I also work as a self employee where I can earn 50,000 per month with serious 2 months efforts. Looking for your valuable advice. Thank you
5 Answers
Hi,
Suggest you to give high priority to buy a stand-alone Personal Accident Insurance Plan & a Health insurance plan.
Do you have any family member(s) who are financially dependent on you? If yes, you have to buy a Term insurance plan. If buying a car is not a NEED, you may post pone it.
Read:
Yes, retirement planning should be your top priority long-term goal. You may start a SIP with an ELSS fund, and also buy additional units of the same fund as and when you earn EXTRA income from self-employment.
Read:
Thank you for your valuable advice. I studied on links suggested. I am taking information and suitability of plan. I need to buy a car to grow opportunities in self employee. I want to know allocation to achieve goals like marriage 3 lakhs in 3 years, home 5 years, retirement (ELSS is enough or anything else) Also may I know standard or common percentage of income to be invested, saved and used to achieve short term, medium term goals? I am looking for good return from equity mutual fund in long term. Please suggest me allocation in large cap, mid cap, small cap, micro cap for time horizon 3-5 years, 5-10 years and more than 10 years.
Dear,
You can use calculator available in this article (click here), to know the required savings to meet your marriage expenses. As the time frame is 3 years, suggest you to invest the required savings amount in safe bets like RDs/FDs/Debt Funds/MIPs.
Read:
Retirement Planning: Use the calculator to know the approx savings required, read: Retirement planning goal & calculator. You may consider below funds; 5 year goals - HDFC Balanced fund + Birla Sunlife Frontline Equity + Franklin Prima Plus. 10 year goals - Franklin Smaller companies fund + HDFC Mid-cap opportunities fund + Franklin prima plus/ICIC Pru discovery fund.
Read: What are large/small/mid-cap funds?
Thank you for your valuable advice.
After our discussion I am about to invest in following Edelweiss Tokiyyo life insurance till 80 years of my life.
Star health insurance individual plan for me & floating plan for parents.
For retirement planning a) axis long term equity b) franklin tax or reliance tax saver c) icici tax each 1000 SIP Multi cap ICICI value discovery UTI mid cap, canara robeco emerging equities, DSP blackrock micro cap fund tata balanced or hdfc balanced???
Please guide me about term plan of Edelweiss and above funds initially each with SIP 1000/- I can invest 15000 per month. Should I increase allocation in mid cap & small cap as I have long time horizon also I can take risks .
Also suggest me any good liquid fund for creating emergency fund. Is this good or RD of any good bank?? Also I am planning to buy direct funds as my maximum allocation is in equity. How to access all funds together?? I heard about CAMS?? what is it? how can it useful for accessing multiple mutual funds together? is it free or with any service charges?? Kindly give your valuable guidance.
Thank in advance.
Hi,
1 - The policy tenure of Term insurance plan can be based on your expected retirement age and/or on your financial commitments/obligations. You may buy a plan from any company which you are comfortable with. Read: Best Term insurance plans list.
2 - Read : Best health insurance plans for Parents/senior citizens.
3 - Retirement planning & MFs: Suggest you to trim down the MF list. My picks would be : Axis LTE, ICICI Value discovery, DSP Micro cap & TATA balanced fund (from the list shared by you). As you have a long-term horizon, yes you can allocate higher SIP amount to mid/small cap fund. You may consider another small cap or mid-cap fund like Franklin Smaller companies fund or HDFC Mid-cap opportunities fund.
4 - For Emergency fund creation, you first priority can be cash, FD/RD and then Liquid fund.
Read: Best Debt funds.
5 - You may consider investing in Direct plans through MF utility platform.
Read:
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