Need help for financial planning

POSTED BY Shanmughan Tharayil ON July 10, 2012 8:16 pm COMMENTS (6)

My son, aged 27, is working in an IT company. His current salary is around 60K per month. He got married this year to a girl in same company drawing similar salary. Their company has a good contributory PF, Gratuity and Medical Insurance, which gives ample protection to them and their dependents. As of date, he has following LIC policies :-

Policy Name/Sum Assured/Premium/Mode/Commencement date/Maturity Date
ProfitPlus-188/250000/50000/yearly/15-Jan-10/15-Jan-30
Health Protection plus plan-902/500000/15000/yearly/15-Jan-10/15-Jan-50
Endowment Plus-802/1050000/50000/yearly/31-Jan-11/31-Jan-31
New Bima Gold-179/1000000/49605/yearly/28-Jan-12/28-Jan-28

In addition to this he has following Mutual Funds, too:-

Fund name/ No. of units held as of date
BIRLA SUN LIFE TAX RELIEF 96 – DIVIDEND 226.91
HSBC TAX SAVER EQUITY FUND – DIVIDEND6,125.95
SUNDARAM BNP PARIBAS TAXSAVER – (OPEN ENDED FUND) – DIVIDEND 5,167.84
144-KOTAK TAX SAVER – growth (144) 1,461.56
02G-BIRLA SUN LIFE TAX RELIEF96 (ELSS U/S 80C OF IT ACT) – Growth 2,274.95

They are staying in a rented house now (rent 20K per month). They plan to buy a car and later a good flat raising a loan.

All the above instruments were bought blindly based on an agent’s suggestion.

Request your guidance on their future financial planning and any correction in the already made investments.

Regards

T Shanmughan

6 replies on this article “Need help for financial planning”

  1. kayleemegn says:
    July 11, 2012 at 5:13 pm

    Thanks ! It is the query i was also seeking for.

    Reply
  2. Ashal Jauhari says:
    July 11, 2012 at 3:29 pm

    Dear Shanmughan, on a serious note, I w’d like, your son come to the forum & asking his queries directly. There may be a friction in future between what you suggested from this forum or elsewhere & what your son think for his own financial life.

    Take note of it.

    Thanks

    Ashal

    Reply
    1. Shanmughan Tharayil says:
      July 11, 2012 at 6:02 pm

      Thank yoiu Ashal. Financial planning is needed for DIL too. They seem to be too busy to look at all these. I appreciate your concern of conflict of interest! I will try to persuade them to be in touch directly. However, would appreciate if you could give a broad guideline.

      With regards,

      T Shanmughan

      Reply
      1. Ashal Jauhari says:
        July 12, 2012 at 1:51 pm

        Dear Shanmughan, The task starts from here.

        Ask each one (Son & DIL) to purchase a term cover of 1C at least.

        Regarding the Car, I do not know the price point but w’d like to invest 20K Rs. (cost of the car divided by 24 months) on mly basis in a liquid fund – Quantum Liquid Fund.

        Please ask them to purchase a health insurance of 5L Rs.

        Ask them or rather force them to put 30-35-40K Rs. mly (the possible EMI amount they ‘ll pay for their home loan in future) in a liquid fund.

        Apart from the above ask them to create an emergency fund of 6-9 months mly expenses.

        Thanks

        Ashal

        Reply
  3. Ashal Jauhari says:
    July 11, 2012 at 3:27 pm

    Dear Shanmughan, what about the financial investments of your DIL? Because now her investments & choice ‘ll also impact the financial life of the family (your Son & DIL).

    Thanks

    Ashal

    Reply
  4. Ramesh says:
    July 11, 2012 at 12:01 pm

    My advice will be to Open your eyes. Please do not remain blind even to well-meaning people like on this forum or elsewhere.

    Unless, you know the basics, you will never know what and how of things. And you cannot take a proper course.

    Before buying a car, it is better to learn driving. Same is with investments.

    Ramesh

    Reply

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