Looking for financial advice

POSTED BY Revathy ON February 21, 2013 1:35 pm COMMENTS (10)

Hi,
First of all , I thank all of you for taking time to answer the questions.
I am 31 years male, my take home is 13000 per month( as I am studying B.E in part time , I continuing with this job. I am waiting for my results now hence will get placed in another company with in 6 months duration)
I am staying with my wife who was working upto last month. As she got conceived , she quit her job.this is our first baby.  She was Woking as a software engineer and earned 25000 INR.
 I have no dependants except my wife.we are in a rental home which costs 4500 rs per month.
I have ancestral properties in my native.currently I have 6 lachs at my hand.
My elder brother is advising to buy a residential plot for that 6lachs as I don’t have own house.he says that it will help you to build home later.
But my wife says that ” we will suffer from financial crisis as I quit my job. So we will invest this amount into term deposit for one year.  So we can get some amount from it every month. It will help us until you get a better job”.
So I confused that what to do? Please let me know your suggestions or advice. 

10 replies on this article “Looking for financial advice”

  1. Dear Revathy, what about the amount received by you wife at the time of resigning?

    Thanks

    Ashal

  2. Revathy says:

    Hi ,
    Yes I not falling under tax now. I opened it will be helpful in future.
    What I am looking for is monthly income till I get a better job.

    Yes all of the A/c has netbanking facility.
    Thank you for all your inputs.

    1. Ramesh says:

      1. Put 3 months requirements in cash account.
      2. Put next 12 month expenses + requirements in Templeton Low Duration Fund, and start an SWP of your required amount starting from 3 months now.
      3. Put rest of the money in Templeton Short-term Income fund. Withdraw partly, if required.

  3. Revathy says:

    Hi Mr.Ramesh,
    I don’t have any mutual fund investment.my salary a/c is with indusind bank.currently I opened sbi for PPF a/c.
    My wife owns lvb , axis ( salary) and Kvb bank a/c.
    She is telling that if we get some regular income every month that would be very helpful.it can be 1000 rupees or 10000 rs. Every penny is helpful.so why don’t we deposit that money for 1 year in lvb term deposit as it gives 9.5% interest rate now.we can submit 15g/h to avoid tds deduction.

    Can you tell me how much I will get roughly every month.do i need to split this amount into two term deposit under both of us name? Is there any advantage by splitting it?
    Please let me know ur thoughts ?

    Thanks a ton.

    1. Ramesh says:

      I am a bit confused about what exactly do you want?

      I. Do you want (a) monthly income, if so, how much or (b) principal protection for next 6 months, and then you will decide depending upon your new job OR (c) growth of the money?

      Decide first on this.
      Just to keep things in perspective, when you were thinking about putting money into a plot, you were thinking about option (c). While in this post, you are asking for “every penny is helpful”, which means option (a).

      II. PPF account for what? You do not have enough income to put money in any tax saving instrument. So, PPF does not make sense to me given your current situation. Anyways, once it has been opened, you need to put 500 per year.

      III. All of your banks should have an online banking facility and canbe used with most AMCs. I would suggest you fill up a form from Franklin Templeton AMC and use their Direct Investing for all your needs.

      As compared to the 9.5% interest rate, many of the debt funds will give you more than that, with compounding and more flexibility.

  4. Ramesh says:

    Your wife is correct.

    Put this amount in the following ways:

    1. Do you have a medical insurance? Have you provided a decent amount of money for a normal delivery?
    2. Do you have a life insurance cover? If you do not, get one as soon as possible. Consider you have 2 dependents now (not one). Take any of the online term insurance policies of an appropriate amount.
    3. Put next 1 year’s expenses (why 1 year? because 6 months for completion of your course plus 6 months so that you are not pressed to get a job on 6 months, day 1.). Keep this amount into bank account / FD / flexi-deposit.
    4. The rest of the money can then be deployed for longer term investment purposes.

    Basic things to remember:
    1. Keep your money in liquid instruments, so that you can use it if you require. Residential plot is utterly illiquid instrument and not at all good for you at this stage.
    2. Think more about the risks you are facing now. Now you are the sole earning member, with definite expenses related to pregnancy and early child care. At present, you are studying too, so consider your mental peace first, rather than supposedly good investment options like land (By the way, you already have ancestral land). Once these risks are over, do consider things in a different light.

    And, keep your wife in the loop. Understand things together.

    1. Revathy says:

      Hi Mr.Ramesh,
      Thanks a lot for your reply.

      Yes I have taken mediclaim of 300000 rupees (family floater).
      And I have 30 sovereigns of gold jewels.
      No loans at all.
      Need to take term insurance.

      1. Ramesh says:

        Good.

        Discuss these ideas with your wife, and then come back with your final ideas.
        Also,
        Do you have ANY mutual fund investments? If yes, which company?
        Which bank is your main bank? Does it have online banking option? Have you opted for it?

        Then we can discuss further.

    1. Revathy says:

      Yes I have updated my question now.

      Thanks a lot.

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