Need help in Financial planning

POSTED BY K Balaji ON August 31, 2012 2:21 pm COMMENTS (20)

My Age: 33years Dependents: Wife and one daughter (3years) My Gross Salary: 41000PM
My expense : 8k rent, household expn 15k, PL -5k, entertainment exp – 3k, credicard exp – 4k (will close it in next 2 months)

My Goals:
1. Protection to my family.
2. Child Primary Education.- From Savings & Investment
3. Child Higher Education.in 2021- Investing in Mutual Funds( only through SIP) & PPF or anyother please suggest
4. Purchase Land in 1years-From Savings
5. Child Marriage plan – Investment
6. Retirement plan- Investing in Mutual Funds & PPF or anyother options please suggest

Savings:
Currently in saving account not more tha 15k

Insurance:
Bima Nivesh 2005 -SA 25000 single premium already paid maturity on 2016
New Money Back – SA 25000 qtrly premium 332, maturity on 2025 – no issue in continue this, since its been applied by my parents
Jeevan Varsha SA 200000 qtly premium 8k maturity on 2021 already paid 3 years and would like to contine for another 6 yrs, since term is for 12 years but premum to be paid till 9yrs only.

Would like to go for another insurance as a investment, kindly suggest.

Others:
1.PPF account opened in August 2012, planned to deposit alteast 2k very month
2.Gold ornaments-1.5 Lakhs
3.Loan for purchasing Washing Machine (0% Interest)-1100 PM- another 8months to pay.
4. Medical expenses will be beared by employer (ICICI lomboard) upto 3 lacs include Daughter & Wife

Please give your advice on any changes in the plan and suggestions or solutions to be made as per my goals. I will provide any other data if required.

Thank You

20 replies on this article “Need help in Financial planning”

  1. VenkateshBhagavath says:

    Hi
    The bhima nivesh policy which was opened in my name 5 years back, was matured on this October 2015.

    While maturity proceed happend, they deducted 2% tax on total matutiry value.
    But as far as I remembered the matuity value was tax free.
    Can you tell me whether I need to pay tax further based on my income slabs
    Also please let me know whether I need to pay tax on premium as well or only on the interest that is accumulated.

    Or is it that since i opened account when rules were different, do I get a refund

    1. Hi VenkateshBhagavath

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that

      Manish

  2. K Balaji says:

    Hi Lakshmipathy
    thanks for the info
    definelty will look into those topics, sicne i have already started reading topics on FP, MF,Insur, term polic .. on this forum for last 1 week.

    K Balaji

  3. Lakshmipathy G says:

    Hello Balaji,

    If you are looking for a quick fix for all your goals then please do not read further you will not have anything down.

    I am not an expert, but would like to give some things which i feel.

    1) Jago Investor as a website and forum give lots of handful information.
    2) Read the book Jago Investor Change your relationship with Money.

    Why all this because the information you provided has lots of clutters.
    With Clutters, No Solution will make you happy and Nothing will make you feel comfortable.
    If you are ready to pay for the financial planner go and pay your financial planner. Improving your financial knowledge will be your long time asset.

    1. K Balaji says:

      Hi lakshmipathy

      i dont want to fix my goal for shorterm profit. thats why i have joined this forum to get maxim knlwdge and long term plan.

      why u think i details are clutters..??

      wht kind of info u r looking tell me.. am ready to provide you.

      as for financial planner.. i dont have such plan …

      K Balaji

      1. Dear K Balaji, congratulations for the clear statement – Why did you join this forum. What dear Lakshmipathy G wanted to tell you is – sit in peace. Think over your situation & start linking the dots of your financial life. In the process, if you are finding it difficult to do it on your own, you may take help of a paid financial planner.

        I do not know that why do you write –
        Quote
        “as for financial planner.. i dont have such plan …”

        Unquote
        Is it due to the fee issues or the trust factor on an unknown person or your belief in your own that you can sort all these things out. Please share your views.

        Thanks

        Ashal

        1. K Balaji says:

          as lakshmipathy comment

          normal person can hve both the issues and am one of them. u cant make a trust immediately with unknow person also same time for paying fees.

          K Balaji

    2. Lakshmipathy G says:

      Hello Balaji,

      Relax,Let me get to the point. The things which i felt as clutters

      1.Insurance as Investment:

      https://www.jagoinvestor.com/2008/10/why-endowment-policy-are-never-best_08.html.

      You have 3 Insurance Policies as of now. Please take your action on this.

      2. Goals :How to create
      Reading this book Jago Investor Change your relationship with Money might help.

      Why i suggested financial planner for you?
      There are too many things to be worked for you, like
      1. how much money you should invest and save for your goals.
      2. How to surrender your insurance policies if needed
      3. How to go for a term insurance. If so given the lots of options which one to go for?
      4. How to choose the right investment vehicle as per your risk appetite and cash flow.
      5. Tax planning.
      Still lot more things.

      Having said that as you do not want to go for financial planner.
      To increase your knowledge first.

      you can go to http://www.jagoinvestor.com

      a simple search in google like
      1)Emergency Fund Jago Investor.com
      2)Financial Planning Jago Investor.com
      3)Insurance vs Investment Jago Investor.com
      4)SMART Goals Jago Investor.com
      5)Child Plan Jago Investor.com
      6)Retirement Plan Jago Investor.com

      Then when you read the answers from others queries it will give you more ideas.

  4. K Balaji says:

    hi
    its ok suggest me know what to do? in HDFC along with that inlcuded stax and cess.

    in online i have just checked the quoate of 12k. i will take anyway 50l of term insurance this month. suggest me which one i goahead.

    apart from this tell me about other plans i mentioned.

    thanks
    K Balaji

    1. Dear K Balaji, What’s ok? I’m unable to keep track of you. Please do not mind, but can you tell me your thought process – wjy you are thinking for Insurance policies only as a solution for all your financial problems?

      I’m ready to help you. But to help you, I need your help to understand what is your real problem.

      Please open up.

      Thanks

      Ashal

      1. K Balaji says:

        hi Ashal

        Problem is that am unable to plan my saving in proper way, and u only asked the if i am no more that what my family will get interms of financial backup hence i thought get the term policy with immediate effect.
        rest give the solution on proper way for savings.

        I have planned to save atleast 5k every month, tell me how to go about this. If you want i will try to stretch another 2k in a month. this is the current situation.

        1) i dont have any emergency fund to take for immediate help – give me your suggestion to take care this first.

        2) for my child education and her future

        3) for future retirement plan

        anything else u required pl let me know i definetly will provide the data.

        thanks

        K Balaji

        1. Dear K Balaji, now we are going on right track. As you admitted you do not have any emergency funding. Saving for this emergency fund, should be your first priority. A simple way is to open a bank RD account & keep investing 5-6-7K Rs. on mly basi for next 6 Months. Once this RD of 6 months is over, open another one & at the same time use maturity amount of 1st RD to create an FD.

          By the way, you did not answer the question – Why are you thinking only insurance policies for saving & investment?

          Thanks

          Ashal

          1. K Balaji says:

            Hi Anshal
            I have already mentioned that my saving accoutn is not more than 15k as of today. i dont know how u missed that line in my initial question

            i dont think that insurance is the way.. am just asking you to get a flavour.

            thts why i mentioned can u suggest me for other source.

            if u say MF. i mentioned earlier dont hv knwldge about these and started reading the forum conversation on these subject getting to know the details for the last 1 week.

            K Balaji

          2. Dear K Balaji, I hope the emergency funding creation part is over (Bank Rd & Fd later on). Now comes the insurance part to secure the financial risk of your family in your absence.

            For that, please purchase a Term cover of at least 15 times of your yly income + Loan liabilities if any.

            Check your own requirement on this parameter.

            For investment, please opt pure investment products like MFs or PPF or FDs.

            Thanks

            Ashal

  5. K Balaji says:

    i know that amount mentioned is not even worth at this stage,
    hence i am asking the suggestion. you meant to say take some term policy.
    yest i have checked the HDFC click.. for 1 cr its almost 13k per year which is almost same like LIC, thn why its say cheap in online.
    suggest me how to go about this?

    thanks

    K Balaji

    1. Dear K Balaji, how can you prem. are same? What is the sum assured for LIC’s 13K Prem.?

      Thanks

      Ashal

  6. K Balaji says:

    Hi
    ths why am here to seek help from you all members.i know i am no more today all the savings, insurance and pf all putogether it will be around 5-6 lacs only which is not even a drop in the ocean.
    i need your help to plan my both current anf future.
    thats why i joined this forum to understand and get solutions for my financial plan.

    K Balaji

    1. Dear K balaji, now do teel me the insurance should be 60-75L or even 1 crore or just 5-6L? You decide.

      Thanks

      ashal

  7. Dear K Balaji, if uyou are no more today, how much amount your family should have, to achieve all the goals which you are planning? Can you put down a number today?

    thanks

    Ashal

  8. K Balaji says:

    My Age: 33years Dependents: Wife and one daughter (3years) My Gross Salary: 41000PM
    My expense : 8k rent, household expn 15k, PL -5k, entertainment exp – 3k, credicard exp – 4k (will close it in next 2 months)

    My Goals:
    1. Protection to my family.
    2. Child Primary Education.- From Savings & Investment
    3. Child Higher Education.in 2021- Investing in Mutual Funds( only through SIP) & PPF or anyother please suggest
    4. Purchase Land in 1years-From Savings
    5. Child Marriage plan – Investment
    6. Retirement plan- Investing in Mutual Funds & PPF or anyother options please suggest

    Savings:
    Currently in saving account not more tha 15k

    Insurance:
    Bima Nivesh 2005 -SA 25000 single premium already paid maturity on 2016
    New Money Back – SA 25000 qtrly premium 332, maturity on 2025 – no issue in continue this, since its been applied by my parents
    Jeevan Varsha SA 200000 qtly premium 8k maturity on 2021 already paid 3 years and would like to contine for another 6 yrs, since term is for 12 years but premum to be paid till 9yrs only.

    Would like to go for another insurance as a investment, kindly suggest.

    Others:
    1.PPF account opened in August 2012, planned to deposit alteast 2k very month
    2.Gold ornaments-1.5 Lakhs
    3.Loan for purchasing Washing Machine (0% Interest)-1100 PM- another 8months to pay.
    4. Medical expenses will be beared by employer (ICICI lomboard) upto 3 lacs include Daughter & Wife

    Please give your advice on any changes in the plan and suggestions or solutions to be made as per my goals. I will provide any other data if required.

    Thank You

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