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POSTED BY ON April 12, 2011 6:51 pm COMMENTS (3)
Hi finacial gurus,
please tell me whether my below financial thinking/plan is correct
Aim : To serve my current financial needs of 1.5 lacs and future financial liability of 2 lacs successfully.
condition 1: I have two lac rupees now .
condition 2: I have immediate financial requirement of 1.5 lacs now for some personal use.
condition 3: I have Future financial liability to buy gold in 2 years time 2014 for sisters wedding
condition 4: I am salaried class , salary gets revised yearly
condition 5: The loan interest would be i guess around 15% of my current income which i can service easily
keeping all these four cases in mind, i am thinking
action 1 ) Purchase Gold worth Rs 2 lacs now.
action 2 ) Purchase a Gold loan against the same, To satisfy the current financial requirement
action 3 ) continue servicing the loan for the loan period.
core logic :
a) The Gold prices are increasing continuously and if the gold price continue to increase in the similar way , May be the rise in the price might offset my interest amount paid.
b) I will have the gold to take care of wedding.
Please let me know if my above planning is correct, is there anything which i am overlooking like what if Gold price crashes then what .
Thanks and Regards
Vijay
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i suggest you to visit http://www.onemint.com for coverage of the topic ‘where to buy gold coins in india’ alongwith the reader’s comments. further go through http://www.mnc.com and http://www.buyorsellcoin.com for a reputed firm of chennai for bullion. they sell bulk gold of 50gm 24 ckt on 12 installments, under scheme ‘goldmine’. i hope, this information would help you.
@Vijay
Personally if i were in your condition, i would prefer to keep the things simple. Just pay off the debt with available money and invest remaining 50k in E-gold. Additionally i would buy e-gold every month with the surplus amount in hand. e-gold takes the problem of storage (as in buying physical gold) and liquidity&tracking error problem (as in gold ETFs) out of equation. Plus you can take physical delivery at the end of the tenure. you can refer this article to know more about e-gold – http://www.moneylife.in/article/e-gold-a-new-option/14965.html……
Please remember one thing – Future is always uncertain and nobody can assure where gold price will be in 2 years time….
Regards
Jagadees
Dear Vijay, Use 1.5L Rs. for your current financial problem. Invest remaining 50K Rs. in a bank FD of similar term matching with your sister’s wedding time. Instead of paying Interest & loan repayment, use the mly amount to invest in Gold either thru your demat account in Gold ETF or you may contact some reputed jewelers of your city or one like Tanishq. these jewelers have schemes like deposit 1-2-5-10 K (as per your cash flow) amount mly for 11 months. the 12th month amount ‘ll be added by your Jeweler (Tanishq) & at the end of term i.e. 12 month, you may use that amount to purchase jewelery from the same shop.
2L Rs. in 2Y time means you may reach your target with 8K mly amount & remember in case of Gold price goes up, that 50K FD ‘ll provide you the cushion & in case prices crashes from now onwards, you ‘ll be able to get more gold for the same amount.
Thanks
Ashal