POSTED BY October 18, 2013 5:54 pm ONE COMMENTON
I want to start investing for my long term goals(+20 years). I fall in 30% tax bracket and my wife falls in 10%.
I have following policies
1. Axis Tax Saver plan — SIP, 2 thousand per month
2. MAX ULIP changed to traditional plan with average 8-10% with No TDS for 10 years. The reason i changed it cause my ULIP was giving me awful returns. — 24 thousand per year.
3. One crore term insurance each for me and my wife i.e. 2 crore policy– 25 thousand per year
4. Tax Saver for my wife — SIP, 2 thousand per month
5. PPF for my wife — SIP, 2 thousand per month
6. PPF for me — SIP, 1/2 thousand per month depending on my expenditure.
Now I want to invest around more 14 thousand per month i.e. 1.58 lacs more per year. I read lot of articles on this forum and have come up with following portfolio
1. Gold ETF — SIP, 2 thousand per month
2. Equity diversified MF — SIP, 3 thousand per month
3. Large equity MF — SIP, 3 thousand per month
4. Balanced debt oriented MF — SIP, 2 thousand per month
5. Liquid Fund for emergency fund — SIP, 2 thousand per month
6. Recurring Deposit in Fathers name for Senior Citizen interest — SIP, 2 thousand per month
TOTAL investment per month : 25 thousand.
TOTAL investment per year : 3 lacs.
Following are my question’s
1. Shall I invest in father’s / mother’s name to dodge tax on profit earned as I fall in higher tax bracket. My parents don’t work and hence they do not fall in any tax category. I read that I have to make a gift deed in order to invest which is fine. Is it good idea to do investing in there name? OR invest in wife’s name.
2. Is my profile too risky? I am 28 and my wife 25. Currently I have no risks and so I decided to come up with this profile.
3. My wife’s 80 C section is sh0rt of around 40 thousand. Shall i Invest there first and then invest in MF? I think it will be better to invest in MF as growth potential is more than saving tax. And she is in 10% bracket, there will not be soo much huge difference. Besides, the lump sum amount which she or I will get as variable pay, can be invested in her PPF amount.
Experts, please advice.