Expert Advice for Child Education, Child Marriage & Retirement Planning

POSTED BY SANDEEP JAIN ON February 9, 2014 10:23 am COMMENTS (12)

Hi Manish/ Anshal,

I Would like to seek experts guidance for my query.

I am 31 years old and married with a kid of 4 years and my Parents are with me, my father is not dependent on me and my mother and wife is house wife.

My Monthly Income = 22000

My Monthly Expenditure = 22000

My EMI on 40Lacs Loan (Started in June 2013) = 40000

Current Policies available with me as below

LIC POLICIES

Yearly Premium

Start Date

Maturity Term

LIC-Jeevan Anand  Sum Assured -200000

10369

28-Dec-2007

75

LIC – Jeevan Saral  Sum Assrd- 375000

18015

28-Dec-2007

25

LIC – Jeevan Sathi  Sum Assrd – 200000

8565

24-Dec-2009

21

Term Policies

 

 

 

HDFC -Click2Protect- Sum Assured 5500000

7169

 

 

Aegon Religare-ITermPlan- Sum Assured 5300000

7147

 

 

SBI – Swadhan Sum Assured 50000

562

02-Jul-2012

 

OThers

 

 

 

PPF (Yearly)

1000

 

 

PF (by Company)

45000

 

 

Health Insurance

Policy Name

Policy Type

Annual Premium

Sum Assured

Start Date

Covers

National Insurance

Company Provided

0

250000

25-Aug-12

Myself, Wife & Kid

Oriental

Family Floater

19320

700000

14-Nov-11

Covers my family and my parents

Current Fixed Deposits

Details

Start Date

Amount Invested

Maturity Date

Maturity Amount

Bank FD

14-Dec-11

20000

14-12-16

22725

    Loan

Loan Type

Start Date

Loan Period (Yrs)

EMI per month

Outstanding Loan

Home Loan

10.06.2013

20

40000

 3950000

Other Savings

Name

Maturity Date (If applicable)

Current Worth

Rate of Int Earned

Cash in Savings Bank

 

60,000

3%

Loan given to someone

 

400,000

11%

Infrastructure Bonds

12-12-16

20,000

9%

Gold/Silver

Not specially bought for investment so far

 

 

Goals

Goal 

Target Year

Amount Required

My Priority

(Todays Value)

Child Education

2032

500000

1

Daughter  Marriage      

2032

2000000

2

Retirement Fund

2042

3000000

3

Please guide me in achieving my goals.

Regards,

Sandeep

12 replies on this article “Expert Advice for Child Education, Child Marriage & Retirement Planning”

  1. ashalanshu says:

    Dear Sandeep, there are plenty of MF plans available. Please check on your own for these 2 plans. All your goals can be started from these 2 funds alone. You need to increase your amount into MFs for goals not the no. of funds for goals. 🙂

    Thanks

    Ashal

  2. SANDEEP JAIN says:

    Hi Ashal,

    Thanks for your valuable research and reply.

    Yes sure i would like to move for Franklin India bluechip or Quantum Long Term Eq, but are these the only two MF with whom shall i go and can i divide my amount with multiple MF ?

    Secondly also please check for my other goals Like Child education, Marraige and Retirement. the Above MF may be suitable for one of the three goals.

    Please revert.

    regards,
    Sandeep

  3. ashalanshu says:

    Dear Sandeep, The combined surrender value from the 4 policies is 153758 Rs. Now you may invest in any other instrument of your choice to recover your past loss from surrender as well as some positive earning. If you are willing to invest for 10+Y at least, i w’d prefer this amount in a single shot in Eq. MFs like Franklin India bluechip and Quantum Long Term Eq.

    Thanks

    Ashal

  4. SANDEEP JAIN says:

    Hi Ashal,

    PFB the Surrender value of LIC policies

    Policy No. Surrender value as on 26.02.2014 Policy
    674747401 43625 Jeevan Anand
    674747593 28884 Jeevan Sathi
    894237717 67246 Jeevan Saral
    894237716 14003 Jeevan Nischay

    and regarding Surrender value of SBI Swadhan, I have asked the bank but they said it may take 7 to 15 days time to know the surrender value and they dont have the info with them right now (Very shame on SBI :(, but will try to get this ASAP.

    Regards,
    Sandeep

  5. ashalanshu says:

    Dear Sandeep, please contact LIC to get surrender value of all the 3 policies. Please update here for the same. If you opt to stop these 3 policies + SBI swadhan, you w’d left with close to 37500 Rs. which is around 3050 Rs. mly. Even a simple product like RD ‘ll provide more return than these policies. Do not go by my words and check on your own. Add the surrender value from the 3 LIC policies and you ‘ll earn a decent corpus. Hey I’m not asking to invest in RDs. I’m asking just to compare.

    Now if you are ready to put this money in MFs for those similar term of LIC policies, you ‘ll earn quite a decent return. Insurance needs are already taken care off by 2 term plans hence the sum assured from these 4 policies are of no value to you.

    Your update on surrender value and views on the above please.

    Thanks

    Ashal

  6. SANDEEP JAIN says:

    Hi Ashal,

    Thanks friend, I am glad to give you my answers anytime :).
    yes yet another mistake 🙂 sorry again., the maturity amount is 32772/- and its an 5 year FD eligible for 80C.

    Please revert.

    Regards,
    Sandeep

  7. ashalanshu says:

    Dear Sandeep, how come the FD for 5Y is maturing with 22K Rs. only against the basic amount of 20K Rs?

    Please do not get irritated from my continuous counter queries. Before answering anything, I want to understand the situation properly. 🙂

    Thanks

    Ashal

  8. SANDEEP JAIN says:

    Hi Ashal,

    Thanks for your mail.

    Yes, after deducting investments in 80 C i.e., LIC premiums, Company’s EPF, i invest the balance in PPF to make it total 100000/- .

    SBI Swadhan was the policy acutally forced to me by OFFICIALS of SBI while opening of SB account. So i have opted to this with Auto Debit of Premium amount of 550 annually.

    Please let me know for any more information requried.

    Regards,
    Sandeep

  9. ashalanshu says:

    Dear Sandeep, in PPF only 1000 Rs. yly or it’s also typo mistake? Why did you start the SBI swadhan in 2012?

    Thanks

    Ashal

  10. SANDEEP JAIN says:

    Hi Friends,

    Sorry for my typo mistake, Please read it as 92K instead of 22K.

    Looking for your expert opinion.

    Thanks & Regards,
    Sandeep

  11. ashalanshu says:

    Dear Sandeep, mly income 22000, expense 22000 and EMI 40000 Rs. how is it possible?

    thanks

    Ashal

  12. anil says:

    As per the information shared your monthly income is 22k and you are paying monthly EMI of 40K ?. Is there any additional income source ?.

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