Help on Comprehensive Financial Planning

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Q & A Forum › Category: Financial Planning › Help on Comprehensive Financial Planning
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ilakkia asked 8 years ago
Hi Sreekanth, I am a homemaker with 10 month old son. Left my job 2 month back to take care of my child. My husband is an IT employee. His monthly salary is 47 K. Our goals are:
  1. Retirement planning
  2. Kids education
  3. To buy a house in 3 years ( at least I want to save 20 percent for down payment
  1. As of now, our savings are 1) RD for 3 Years - for kids school expenses, 5000 per month. Started 8 months back 2)having 3.5 lakhs in auto sweep savings account.(Saved for down payment)
  2. 3) having 60k emergency fund in auto sweep savings account (our monthly expense is 30k including 8500 house rent)Other than that, I didn't have any investments or Insurances. Planning to take hdfc click2 protect plus term insurance for 1crore coverage in this month. Pls let me know is it fine. Please guide us to attain our goals. How to save or invest for our future goals. Kindly waiting for your reply. Thanks in advance
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2 Answers
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Sreekanth Staff answered 8 years ago
Hi, Down payment : If you are planning to buy a property say within next 6 months or so, saving Rs 3.5 Lakh in Bank Savings Account makes sense. But if you are planning to buy after 1 year (< 3years) you may invest this amount in FD (interest is taxable) or Short term debt funds or even in Arbitrage funds. Kindly read: http://www.relakhs.com/best-debt-mutual-funds-india-top-debt-funds/ http://www.relakhs.com/best-arbitrage-funds-returns/
  • Whether your husband has any existing life insurance cover? 
  • May I know if the family has health cover?
  • Are you planning to take term plan (hdfc)?
Also, kindly read below articles and you may revert to me; http://www.relakhs.com/calculate-kids-education-goal-amount/ http://www.relakhs.com/retirement-planning-calculator-3-easy-steps/ http://www.relakhs.com/personal-financial-planning-articles-list/ http://www.relakhs.com/most-common-biggest-personal-finance-mistakes/  
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Sreekanth Staff answered 8 years ago
Hi, 1 - You can consider FD + MIP (Birla Fund). Kindly be aware of the tax implications on these options. Also, you may review the performance of MIP fund after 2 years and can take decision to continue with it or not till your goal target year. Yes, MIPs can generate (though rarely) negative returns as they invest around 10 to 15% of the corpus in Stocks.  2 - If you are ok with HDFC click 2 Protect plan, and it meets your requirements, kindly go ahead and do not postpone buying a term plan any more. Kindly read: http://www.relakhs.com/best-online-term-insurance-plans-india/ http://www.relakhs.com/irda-latest-claim-settlement-ratio-2014-15-best-life-insurance-company/ http://www.relakhs.com/hdfc-lifes-click2protect-plus-features-review/ Retirement & Kid's higher education, both are long-term goals in your case. So, invest as much as possible and as frequently as possible in Equity oriented funds. You can invest in one Diversified Equity fund + Mid-cap fund + Balanced fund for Kid's education. For retirement, you may consider Diversified Equity fund + Small-cap fund. Kindly go through below articles ; http://www.relakhs.com/list-of-best-investment-options-schemes-in-india/ http://www.relakhs.com/top-best-balanced-mutual-funds-returns/ http://www.relakhs.com/top-15-best-mutual-funds-schemes-2016-sip-lumpsum/  
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