I 'm 42 yrs old, quit my job 2 years back and I\'m into full time volunteering activity now.I have some piece of land and also own a flat (in which I do not stay but need to pay yearly maintenance ~50k). I have a PPF account in which I have been investing since more than 18 yrs. Single, no dependents. No pension, dependent on bank FD interest solely.
I would be very grateful if you can guide me on how to invest my savings.
My goals are as follows -
- Monthly income of Rs. 25,000 to begin with and a yearly appreciation (how much?) to counter inflation. (Current expenses are ~2L per year. So need to get a steady income for all the remaining years of life that considers inflation).
- Yearly wealth appreciation of atleast 15%.
- Emergency medical fund (5L) that can be liquidated immediately. A useful Health Insurance plan (perfectly healthy, no issues )
- If I have Rs.100 as my entire savings, all into bank fds, what would you suggest? What percentage should I invest in MFs, which type, how much in debt vs equity vs balanced? What is a good strategy to begin investing in MFs to test waters? Should I invest some in tax saving bonds, what percentage, which are recommended? Do you think its worthwhile to rent out my flat to cover the yearly maintenance? Should I continue investing into PPF?
1 Answers
Hi,
1 - May I know if you get rental income from your property? If yes, where do you invest / save this money or do you use it for your monthly living expenses?
2 - What is the corpus amount do you have now?
Calculations : To receive monthly income of around Rs 25,000 for next 43 years (life expectancy assumed as 85 years), rate of return @ 9% and inflation @ 8%, you have to invest around Rs 1 crore now. (Rate of return on conservative basis).
3 - If your expectation of return on your portfolio is 15% then you have to invest in Equity oriented schemes.
4 - Suggest you to consider buying a Personal Accident cover with permanent & temporary disability cover.
Kindly read:
http://www.relakhs.com/best-personal-accident-insurance-policies-in-india-details-comparison/
5 - Consider buying a mediclaim policy.
Read:
http://www.relakhs.com/best-health-insurance-comparison-websites-portals/
http://www.relakhs.com/factors-tips-best-health-insurance-plan-india/
6 - Maintain atleast 6 to 9 months of your monthly living expenses in liquid investment options like Cash + Liquid debt fund + FDs + Arbitrage funds.
Read:
http://www.relakhs.com/best-debt-mutual-funds-india-top-debt-funds/
http://www.relakhs.com/best-arbitrage-funds-returns/
http://www.relakhs.com/list-of-best-investment-options-schemes-in-india/
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