Financial Planning for Future

POSTED BY sreeram ON January 15, 2013 2:05 pm COMMENTS (9)

Hi Manish,

I am Sree aged 33yrs, Married and have dependant Parents,i have a kid of 3 yrs ols have taken KOmal Jeevan 11000 PA and Tata Maha life 17700 PA for him. I bot a house in 2007 for 15 lakhs and closd the Loan,my only Asset..I have bot my 2nd house for 40 Laksh last year with a housing loan of 35 lakhs,My take home per month is 1,00,000.I have very LIC policy for 4 lakhs for me paying Qtrly premuim.My wife has 2 lakh worth policy paying Qtrly premium…

monthly expenses household 30000 pm

rental income of 7500 pm frm my 2nd property

investing in RD 3000 pm

apart from this I get incentives of 50k every Quarter,i use tat to repay principal on my housing loan,Company PF is around total of 60k per year.

I dont have any Term Insurance or SIP in MF,

pls provide me a better planning…



9 replies on this article “Financial Planning for Future”

  1. Dear Sreeram, let’s go into some nos. You are paying 100 Rs. as prem. towards your child policy. A part of this is deducted towards agents’ commission (actually it’s quite big one in intial years) another part towards insurance (this insurance is almost negligible as per your actual requirement is a diferent question in itself). Now whatever remaining amount is there, is invested. Now if your insurer is earning 8% on this remaining amount, it ‘ll deduct it’s own charges from this earning towards it’s admin expenses. Now do tell me if 70-75 Rs. are invested in the 1st year & around 80-85 Rs. 2-3rd years & 90 Rs. onwards in subsequent years, what ‘ll be your actual return from those 100 Rs. yly prem.?

    Will it be 8% or some where around 5-6%?

    Please answer this simple question.



  2. sreeram says:

    Thanks for ur reply…
    I calculated and Failed…So where can I diversify the investment? will any Equity diversed MF work? or something else…

  3. Dear Sree, now check how much money ‘ll you get from those child policies & how much in actual your family requires? I do hope I’m not irritating you by my continuous questioning. Instead of spoonfeeding you, I want you to be feed by your own ‘Brain’. That’s by posing questions again & again to you as I do have faith in your own brain.



  4. Dear Sreeram,

    We’d say better late than never! Its good to know that you wish to buy a term insurance policy. You may consider ICICI Pru iCare, a term plan from ICICI Prudential Life Insurance which can easily be purchased online and allows you to get a cover of upto 1 crore without any medical tests. This makes it very easy and quick to get protected. Term Insurance is not only affordable, but is also one of the simplest forms of insurance to secure your family. To learn more about the benefits of Term Insurance watch this video We are happy to share that consumers have voted ICICI Pru iCare as Product of the Year 2012 in the Life Insurance Category based on survey of over 30, 000 people by Nielsen.

    Regarding your concern about securing your child’s future with world-class education, ICICI Prudential Life Insurance has Child Plans, designed to give you money at key stages of your child’s education. And most importantly, in case of your demise, all future premiums payable under the policy will be paid by ICICI Prudential Life Insurance. If you want to know more about our Child Plans please visit

    We will be happy to assist you if you have any further queries.

    Please understand that we only offer suggestions based on your requirements, however choosing a policy most appropriate for you remains at your discretion.

    Warm Regards,
    Life Insurance Help
    ICICI Prudential Life Insurance

  5. sreeram says:

    question pricks…thats Y i am here to do something

    I have made a Asset of 20 lakhs worth,an apartment and closed the loan,apart from this I dont have anyhting to safeguard them…

  6. Dear Sree, please answer a naked & blunt question. If you are no more today, how ‘ll your family pay that 35L Rs. loan & how ‘ll they life there after?



  7. sreeram says:

    Thanks FFC,

    If I surrender the LIC policy where can I better invest?

    And I am the only bread winner of the family,Shouldn’t I need a term Insurance to protect my family? [i have short listed ICICI pru iCare]

    How to secure funds for my childs Education?

    thru ur calculator I have arrived at 1.5 crore.

    1. of course you need term insurance. Please get one online asap

      Since your goals are quite far away you should be invested in MFs to about 70% and rest in debt instruments.

      You could open a PPF account in your name and put a little each month or year towards retirement. Increase the contribution as you age.


  8. planning for what would the first question.

    You home loan is not a problem. You are making enough to pay it off.

    I can see two major goals

    You childs education and your retirement. besides other goals that you may have.

    Please use the goal optimizer available at

    to find out the minimum amount you need to save

    The ask yourself this: will the LIC policies that you have help for your goals.

    The answer would be yes but only to a small extent. So can you do better. Depending on how long you have held them you can make the either paid up or surrender them and use the money to invest elsewhere wisely

    Assuming you will get the rental income for life you can use the
    retirement planner for the middle aged employee available at the above site to
    find out how you need to save for retirement taking into account your rental income and PF balance.

    Ask yourself why are you investing in the RD. Is it tax efficient. No when compared to debt mutual funds

    Find out how much life insurance you need using the comprehensive child planner at above site

    Start investing in equity mutual funds. You could use the mutual fund guide at above site to learn how to choose a MF.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today