Need advice & suggestion on Retirement and financial planning

Dear Rashmi, 1 - Suggest you to first maintain and track your monthly/living expenses details for next few months. I am sure you will realize that some money is being spent on unnecessary items/services. Kindly try to build an Emergency Fund (can be at least 3 to 6 months of your living expenses) in the form of Cash, FDs, RDs, liquid funds/Arbitrage funds. 2 - May I know if both of you have life cover, Personal Accident cover & what about health cover for the family? Let me know if your in-laws have health cover? Kindly go through below articles and you may revert to me with more queries; http://www.relakhs.com/financial-planning-pyramid-wealth-protection-accumulation-distribution/ http://www.relakhs.com/insurance-importance-life-health-accident-covers/ http://www.relakhs.com/investment-planning-investment-plan/ http://www.relakhs.com/calculate-kids-education-goal-amount/ http://www.relakhs.com/retirement-planning-calculator-3-easy-steps/  

Dear Srikath,   I have throughly gone through your articles and to give you details   We have only mediclaim in offices No term insurance done  I have Vpf of 5000 month My husband has ppf , only 4k to 6K he is able to put in a year We have so many useless expenses , but they are unavoidable. I have three helpers at home, one maid, one baby care maid , one cook.I cant expect my In-laws to care for my baby.They can supervise but no work should involve. Staying at Chennai we have high electricity bills . Here goes my monthly income and expense detail.   My husband's after tax in hand  58000  Mine after tax in hand               45000   House rent - 14000 EMI for personal loan - 20763 Credit card payment  - 5000 to 8000 Maid - 9000  (for baby watching) cook - 6000 Maid - 1700 (House cleaning, dish wash) Glossary - 5000 (Approx..) Baby items "diaper, Milk dabba etc" - 3000 (Approx) Non-veg - 1500 Electricity bill - 10000 every two month once we get   Apart from the above fixed some floating expenses are there , like festive season comes , we did Dussehra shopping, we will spend some during Diwali.If any relatives visits us we do their train ticket.   After checking the calculator I found out for child I need to save for education.  INR                         4,594,973   and for retirements I need to save  INR 41,399,941 Now these amounts looks scary to me.   Please guide on it.   Thank you Rashmi

Dear Rashmi, 1 - High priority - Kindly both of you get Life cover & Personal Accident cover at the earliest.  Read: http://www.relakhs.com/best-online-term-insurance-plans-india/ http://www.relakhs.com/best-personal-accident-insurance-policies-in-india-details-comparison/ 2 - Buy a stand-alone Family floater insurance plan (for self/husband/kid). Do not depend entirely on Company provided health cover. Read: http://www.relakhs.com/best-family-floater-health-insurance-plans-details-checklist-comparison/ http://www.relakhs.com/best-health-insurance-comparison-websites-portals/ 3 - Better late than never. Do not worry about the Corpus numbers. But start investing now for your long-term goals. Invest as much as you can and as frequently as possible. Your highest priority goals are Retirement planning & Kid's education. Once your insurance requirements are met, can start creating SIPs for these long-term goals. Read: http://www.relakhs.com/list-of-best-investment-options-schemes-in-india/ http://www.relakhs.com/my-mutual-fund-portfolio-mf-picks/