Need advice on my Investments & Financial Planning

Q & A ForumCategory: Financial PlanningNeed advice on my Investments & Financial Planning
satyasiddem asked 8 years ago
Hi Sreekanth, Many thanks for creating a great platform  that provides financial literacy. I would like to seek an advice on my financial planning. I am a 30 year old service sector employee with 80K/month take home salary. Below are my current assets, liabilities and investments. My current expenses per month are 25K-30K and I would like to lead the same life style after 20 years where I planning to retire. On top of this I would need around 50Lakh  for my child education and marriage. Also I would like to set  aside some emergency fund for my medical expenses  at the age of 50 (considering the future medical expenses)
  1. Jeevan Anand started in 2009 with premium 35K/annum  with life cover of Rs. 5Lakh and policy term 16 years
  2. LIC children money back plan taken in 2016 with premium of 25K/annum with Rs.6Lakh sum assured with 25 year term
  3. Has 2.2Lakh in ING Market shield ULIP invested over 5 years since 2011. This has a life cover of Rs.5Lakh for 20 years or closure of policy whichever is earlier. Over the last 5 years this fund hardly yielded 4% returns. - Can this amount be invested in ELSS and Term plan which would serve returns of 10-15% over 15 years and provide a life cover(with accident benefit) of 10 Lakh.
  4. SIPs started from Jul 2016 with 3K,3K,1K per month in Franklin Indian Smaller Com Fund, UTI Mid Cap and SBI Magnum Global fund respectively. I would like to continue the SIPs  with target of 10 years and expecting annualized returns between 15-24%.
  5. Planning to start an ELSS from Nov '2016 with 3K per month in Axis LOng Term Equity fund and  stay invested for 7-10 years
  6. Planning to take car loan of Rs.8Lakh to buy a car in Jan 2017
  7. Have DEBT of Rs. 2.5 Lakh which appreciates by 10% per annum
  8. Have lands that are worth Rs.20Lakh at this moment.
  9. Has income from agricultural lands around 50K per annum.
  10. Currently has  8 year service with 3 Lakhs in PF account and contributing to EPS right from my career.
  11. Has Family floater health insurance of 3 Lakh provided by my organisation.
Thanks In advance. Regards, Satya
1 Answers
Sreekanth Staff answered 8 years ago
  1. Existing insurance policies & suggestions:
  • Your highest priority is to buy an adequate life cover (may be at least for Rs 1 cr, considering your salary, profile & obligations).
  • You can then make jeevan anand policy a PAID-UP one.
  • LIC children money back plan can be discontinued.
  • Consider buying a stand-alone Personal accident insurance plan.
  • Buy a health insurance plan.
  • You may surrender the ULIP plan too. The saved premiums from discontinuing the existing policies can be used to buy term plan, PA plan, health plan and invest in equity mutual funds too for long-term goals.
Read: 2. Debt of Rs 2.5 Lakh - Are you referring to debt investments or loans? 3. For MFs analysis, kindly go through below articles;   4. For Kid's education & retirement goals, kindly read below articles;   5. If you are planning to build Corpus for meeting any unforeseen medical expenses (after 50 years of age) then you may consider investing in a SIP in a balanced fund. (assuming you do not need this corpus at least for next 10 years or so).      
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