Need advice on my Investments & Financial Planning

Q & A Forum › Category: Financial Planning › Need advice on my Investments & Financial Planning

kailashgd84 asked 10 years ago

Hi Sreekanth, I am 33 year old working as Senior Passenger Guard in Indian Railway/MUMBAI and will be retiring in 2044 Monthly income approx 70k. I have some queries for which please refer to below details. Current money exposure 1.> 3 LIC policy taken 6 years back for insurance cover as well as investment purpose. Taken for 20 years. Here is the LIC policy details

Marriage Endowment / Educational Annuity ( Table No. :90

Policy Term- 20 years Premium- 37727 yearly Date of commencement- 22/2/2010 S.A- 705000 lac

MONEY BACK WITH PROFIT (Table No. 75

Policy Term- 20 years Premium- 31437 yearly Date of commencement-22/2/2010 S.A- 500000 lac

MONEY BACK WITH PROFIT (Table No. 75

Policy Term- 20 years Premium- 15537 yearly Date of commencement- 22/2/2010 S.A- 250000 lac These 3 LIC policies i have currently. I have approx 1 Lakhs Rupees in savings account for combined expenses. 4.>Rs.12500 per months towards NEW PENSION SCHEME (including government fund 50% ) 5.>RS.60000 YRLY IN SUKANYA SAMRIDHI YOJANA Current money expenses

90000 Rs/year towards LIC Policy
25000/month monthly expenses.including all expenses and house rent in Mumbai vasai area.

Incoming funds

My 70000 per month in hand salary.

My future targets:- Emergency Fund – 2 lakhs Insurance if required any Wealth building Retirement fund – Yet to plan to invest in which Kid’s education For Girl child marriage ( she in 4 years old now) House in next one or two year. Car in 2 Years – 1.5 lakhs (rest will be used from Car loan; Total Value of car 7 Lakhs) Mid term goals like family vacations, home/furniture upgrade etc – 1 Lakhs in every 5 years. My query:- 1.Am I sufficiently covered present insurance schemes or do I need to take one pure term life cover ? 2.I need fund considering the timeline of new born baby boy. 3.What kind of investment should I take now onward as I wish to plan in advance to avoid last minutes? 4.Am I in a position to take the Flat costing around 35 lacks with loan amount of 30 lacks in next one or two years? Thank you. Kailash

1 Answers

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Sreekanth Staff answered 10 years ago

Dear Kailash, 1 - Existing Life insurance policies : LIC's Marriage Endowment / Education Annuity Plan (Plan No. 90) & the other two Money-back polices are traditional life insurance plans. The returns on maturity can be around 5%. Considering your age, financial obligations and existing life cover, you are UNDER-INSURED. Suggest you to buy a Term insurance plan and then discontinue these policies. Once you buy the term plan, you can invest the saved premiums for your long-term goals. Read: http://www.relakhs.com/traditional-life-insurance-plan/ http://www.relakhs.com/term-insurance-plan-a-waste-of-money/ http://www.relakhs.com/best-online-term-insurance-plans-india/ 2 - You may consider buying a Personal Accident insurance cover too. Read: http://www.relakhs.com/best-personal-accident-insurance-policies-in-india-details-comparison/ 3 - Do you have Health cover for self & family? 4 - Start accumulating for Emergency fund (Rs 1 more lakh). You can consider investing in Liquid funds/Ultra short term debt funds for this purpose, besides some amount as Cash in hand. Read: http://www.relakhs.com/debt-funds-types-benefits-risk-vs-return/ http://www.relakhs.com/best-debt-mutual-funds-india-top-debt-funds/ 5 - Regarding Kid's education & Retirement goals, kindly go through below articles and you may revert to me with your analysis/calculation; http://www.relakhs.com/calculate-kids-education-goal-amount/ http://www.relakhs.com/retirement-planning-calculator-3-easy-steps/ 6 - With your income eligibility, you may easily get a home loan, but if you have not made allocations for your long-term goals (especially for retirement/kid's education), then you may post-pone your decision to buy the property.