How to Buy a House and Plan for a Child at a Same Time ?

POSTED BY abhi@jagoinvestor ON January 1, 2014 9:49 am COMMENTS (5)

Hello,

I have following financial goal.

  • Want to buy a house approx. cost 28 L. in around 4 Yrs.
  • Plan for a post child birth expenses in 1 yr.
  • Family’s Gross income (Yr.) – Rs. 2,46,000/-

Assets

– FD – 6,00,000/-

– Gold – Rs. 37,00,00/-

– Silver – Rs. 1,00,000/-

-Share – Rs. 55,000/-

I am allocation of investment of Rs. 5000/- but I am confused, where should I invest means I want to no the asset allocation in term of my goals.

(Note: Salaried Income will be increased more than 10%)

5 replies on this article “How to Buy a House and Plan for a Child at a Same Time ?”

  1. ashalanshu says:

    Dear Abhi, in 4-5Y, you should not expect mind boggling returns. At best 7-8% post Tax return from debt products. I’m not considering Eq. as intermediate volatility may eat up your capital also.

    Thanks

    Ashal

  2. abhi@jagoinvestor says:

    Currently I can invest up to Rs. 5000/- per month.

    Whatever the goal period, in current scenario I can have parts of this investment. One will go for child’s post birth expense and one will be for home. Considering the priority I can have lager share for the 1st one, but defiantly I can invest at least Rs. 500 for 2nd one. As investment quota goes up , It can be managed raising up the investment.
    But to do that I need a proper choice which will give max return on 4-5 yrs, what are the choices related to that.

    RD ?
    FD ?
    Or else ?
    (Future value for the home have been considered.)

  3. ashalanshu says:

    Dear Abhi, Now it’s simple to you. focus on your near term goal for saving for your to be born child. Once you reach the target amount divert saving towards home related corpus building.

    Thanks

    Ashal

  4. abhi@jagoinvestor says:

    Buying a house max. up to 7 Yrs.

  5. ashalanshu says:

    Dear Abhi, which of the 2 goals you can postpone for 7-8 years? Your answer ‘ll guide you to take correct actions on your financial planning.

    Thanks

    Ashal

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