Financial Planning advise

POSTED BY snp nair ON February 7, 2013 6:53 am COMMENTS (4)

Hi,

I am 40 and my current portfolio looks like this.

——————————————————
– Equity Stocks: 7 Lakhs
– MF’s: 1,51,000/-
– FD: 6 Lakhs (contingency fund)
– Gold: 10 Lakhs
– Liquid Cash: 5 Lakhs

– LIC: Premium 80,000/- per annum (20 Lakhs sum assured
 for 20 years, started 2012).
– PPF: 1 Lakh per annum (for 15 years, started 2012).

– Housing Loan EMI: 30,000/- (Total 30 Lakhs pending on a 17 years loan)
——————————————————

I would like to have expert opinion and portfolio guidance for my future goals as below.

– Retirement Corpus: 3 Crores (Time Horizon 15 years)
– Child Education: 15 Lakhs  (Time Horizon 15 years)
– Child Marriage: 10 Lakhs (Time Horizon 20 years)
– Closure of current home loan (Time Horizon 5 years)
– Property purchase – 10 Lakhs  (Time Horizon 3 years)
– Additional corpus funds in hand – 10 Lakhs (Time Horizon 2 years)

Can I get some expert opinion / guidance on this? What level of (aggressive) investment approach / monthly outgo should I be initiating to achieve this goal?

Thanks,
snp

4 replies on this article “Financial Planning advise”

  1. Dear snp nair, can you explain your thinking process that on what count you are planning to retire at age 55 & in your retirement age you are planning to marriage your child rather lavishly? May I know for which policy you are draining your money for 80K grand to LIC & that’s too yly for measely sum assured of 20L Rs. only?

    Please think over the paid financial planner thing as suggested by dear FFC.

    Thanks

    Ashal

  2. Here are some general observations:

    1. If you want detailed analysis you would need to pay for the services of a planner. The cost of this is much lower than your present net-worth and the benefit will be immense. If I were you I will not waste time in a forum like this and get professional help You could approach Manish himself reg. this.

    2. Your FDs could be used for your short term goals

    3. The liquid cash seem on the higher side. You need to divert them to other goals depending on your expenses. All you need is about an years expenses in liquid instruments

    4. You are sitting on a lot of gold. Divert this to other investments. Gold should not be more than 10% of your folio.

    5. You LIC policy is a bad choice. Determine the amount you need to save for your long term goals each month. If the effective monthly premium for the policy is much lower than the monthly savings needed you could probably continue. Otherwise best to stop paying premiums now and cut your loss.

    6. Insure yourself adequately (health and life) Use this planner to find out the insurance needs considering your child’s needs

    http://freefincal.wordpress.com/comprehensive-child-planner/

    You can use the goal optimizer from the same site to find out how much you need to save

    For more specific advice contact a financial planner

    1. snp nair says:

      Thank you MP. That helped. At this time, I understand that I will require financial advise. However, as an immediate step, I needed to understand where I am headed and what are the various Mf mix to achieve the goals. Any recommendations? Thanks.

      1. first you need to figure out how much you need to invest for your goals. The you need to figure out your risk appetite and then start investing in MFs

        Here is a step by step guide to select a MF

        http://freefincal.wordpress.com/step-by-step-guide-to-choosing-a-mutual-fund/

        Under ‘goal planning’ you can find a calculator by which you can optimize the investment required.

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