Financial Planning and Investment plan for IT professional

POSTED BY rkg_83 ON September 25, 2014 7:40 pm COMMENTS (2)

Hi, I am 31 year old an IT professional. I have done some investment for my family… I am giving below some information. Please suggest me if I am in a correct way: My Monthly Intake – 87000/Month Company PF – 110000/Year LIC Jeevan Anand – 36050/Year LIC Jeevan Saral – 15500/Year SIP : Birla Sun Life – 2000/Month DSP Blackrock – 3000/Month ICICI Pru – 3000/Month. Loan EMI – 20000/Month for next 20 Year. I have two Kids (2 month and 3 year old).

I am planning to have 40 Lakh in next 17-18 Year for my kid’s education and approximate 1 Cr in next 25 Year for my retirement. I am confused about Child Education Plan, RD, Term Insurance and Medical Insurance. I need your suggestion to help me to plan accordingly. Thanks Rakesh

2 replies on this article “Financial Planning and Investment plan for IT professional”

  1. Senthil T says:

    Hi Rakesh,

    From your post, I see the outflow for 2 LIC policy is close to 42,000 p.a. How of much of Sum Assured your dependents would get incase of any unfortunate event happening to you?

    You can get an simple term plan for 9,000 p.a (if non-smoker and no existing health issue) which gives you a sum assured closed to 1Cr. The rest of the 33,000 you would save from LIC policy can go to various mutual fund based on your goals.

    Please stay away from children education plan offered, you can do a better job with PPF/Mutual fund combo.

    In case of medical insurance, if you have only your company provided health insurance its better to take one personal insurance as well, which will cover you/your family when changing jobs. Also if you take health insurance at an younger age, the premium will be lower and you can continue the same insurance.

    There are quite few things you have asked in a single question :), from my experience, i would suggest you to read previous post in JI which talks about each of these points and you can also visit Freefincal, which has good information on these.

  2. ramakantp says:

    rkg_83,

    Your total SIP outgo at present is Rs 8k, assuming 12% return for 17 years will fetch you more than 45 lakhs. This should be good to fulfill your first requirement.

    Your PF outgo is Rs110k, this amount will give you around target corpus for your retirement(use some online interest calculator to compute the values.).

    Break your future investment in terms of your goals(short term, medium term and long term) and distribute investment in MF and RD accordingly.

    These are just guide lines, investment choice is a very personal subject. Please do self research or take professional help.

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