Need help in my financial planning – Income 1.7 lacs per month

POSTED BY amit.sharma111 ON November 6, 2014 11:03 am COMMENTS (10)

Hi, I severely need your precious help in financial planning. Below are my details:

Monthly Take home salary: 1,70,000 INR

Monthly expenses: 65,000 INR (including Home loan EMI of 21500 INR)

Insurance taken: 1 Cr – Aviva i-term life insurance 5 Lacs – LIC Jeevan Anand Policy Loans taken: 10 Lacs (SBI home loans) for 60 months (remaining months: 15 )

Cash in hand: 10 Lacs

Gold coin in hand: 40 grams

Financial goals:

Retirement – 1 Cr by 2044

Child education: 30 L by 2030

Child marriage: 20 L by 2035

Please suggest me how and where should I invest to fulfill my goals. Currently I am investing 10,000 Rs / month in PPF & 1800 Rs/month in PF. I also take 20 grams of gold every year.(Gold in hand = 40 grams) I am ready to invest in mutual funds but not getting where to start with. Also please suggest if I should invest in Direct/Growth/Growth dividend type of MF – I don’t really understand it. Thanks a ton in advance !!!

10 replies on this article “Need help in my financial planning – Income 1.7 lacs per month”

  1. Hemanth says:

    I would suggest you to approach a fee-financial planner for the same.

    this link mught help you.

    http://freefincal.com/list-of-fee-only-financial-planners-in-india/

  2. amit.sharma111 says:

    Hi Ramakantp,
    Thanks for pointing it out. I have corrected the inforamtion.
    1. Last 2 months onwards, PF deduction at my part is 1800 Rs.
    2. I have taken home loan of 10 Lakhs for 5 years(60 months). Remaining months to repay the homeloan is 15.
    Please suggest me some good investment options.

    1. Ashish Garg says:

      Hi Amit,

      Suggestions:
      1. Take a note of how much amount do you have available for investment every month, after deducting all you expenses – loans, household, insurance premiums etc.
      2. As pointed out earlier, you are under insured so please insure yourself duly.
      3. If you have medical insurance for yourself and family – good, else take a mediclaim policy with any provider of your choice and comfort.
      4. Study more about investment and avenues availbale.
      5. Note down all possible investment options that you know off
      6. Divide these options in 2 sections – Risky (Equity/market) and non risky (Debt)
      7. Have a look at the list again and put some money across these options. The one you are not comfortable with, just put ZERO against them.
      8. As per your risk appetite you may choose allocate more amounts towards the section Risky / Non Risky.
      9. At your age, you can choose to allocate more towards Equity / market – but then choice is yours.
      10. SIP in 3-4 MFs (2 Large Cap funds, 1 Mid Cap-small cap, 1 debt) should be good. Note that both large cap funds you choose should have a variance in the holding pattern.

  3. ramakantp says:

    Hi Amit,

    I see some discrepancy in your question:
    1. For the salary 1.7 Lakhs per month the pf should be much more than Rs. 1800/- As it is 12% of the basic.
    2. For home loan of 5 Lakhs of duration 5 years the EMI comes around Rs. 10k assuming 10.15% interest.

    If the given details are correct then your per month saving is more than 1Lakh. At this rate you can achieve the goals you have mentioned by just keeping your money in saving account.

  4. amit.sharma111 says:

    Thanks Abhinav ! Just a matter of hardwork and luck.
    I would surely consider hiring an advisor but want to take help of this superbly useful site. I’m sure that here I can get a variety of suggestions as many people are here to help with their own precious knowledge and experience.
    Request you to share your inputs.

    @Manish: Fully agree with you.

  5. abhinav says:

    30 yrs and earning INR1.7L PM !!! Thats quite mind blowing on your part.

    Coming to your question:

    Review your insurance: For a guy earing 1.7L pm, 1 Cr. term insurance to me is inadequete. Also, include a health cover for you and your family.

    Regarding your decision to invest in mutual funds/equites, i could advice to read and understand them more, if you want to invest in it. (same goes with any financial product).

    Please understand that advising someone for her financial goals is a serious affair (which is why there are planners who charge fees for this).

    For advising you on your financial planning, my advise , in a nut shell would be:

    1. Take some time and understand equity/debt/mutual funds (Its not that complex)

    2. If you are not comfortable doing it, then hire a professional financial planner.

    Regards,
    Ainav

    1. Abhinav

      I recently worked on a clients financial plan . He was 34 , earning 3-4 lacs a month and has a networth of 4.8 crores .. 🙂

      Manish

      1. Anshul Gupta says:

        Curious to know the company. Amazing net-worth if the person hasn’t inherited !

  6. amit.sharma111 says:

    My age is 30 years.
    Married with no child as of now.
    Have 3 dependents – Parents & Wife

    Thanks Hemant for looking at my question !

  7. Hemanth says:

    What is ur age ?

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today