Dear Manish/Ashal and other Gurus,
Thanks a bunch for running such a wonderful forum. It’s really helpful to illiterate people of Finance management.
I did all the mistakes like mixing of investment with insurance and no other thoughts on saving, just living as it goes with time. But, It’s my luck I got jagoinvestor link on last August 15th (a real Independence day for me) went through all the posts and gained some fair knowledge in this area J.
Now, I’m working on my savings & investments and need your valuable suggestions to avoid pitfalls.
My Details:
Name: Kumar.G
Age: 29
Occupation: Software Engineer
Income : Monthly Take Home Rs. 50,000/-
Married: yes
Wife Age: 24 (House Wife)
Children: 1 (Baby Girl) : Age : 8months
Dependents : Wife , daughter and parents
My Father is a retired State Govt Employee and he gets a pension of Rs.10000/- every Month. Mother is house wife. They live in my Native place and have a own house.
My Financial state:
A) LIC Jeevan anand : Rs.14500/- premium /year for 2lac Sum Assured ( Total 4 premiums paid ). L
à Planning to Discontinue this and have two new term insurance worth Rs. 1.2 Crore ( Not yet Taken, planning to have them in next month with premium of 11k-12k)
1. HDFC Click 2 Protect
2. Aviva iLife term insurance
(After reading “Mistake in your Medical report while taking Term Plan – Real Life Experience” , excited to check my % of luck and experience with term plan)
B) SBI life insurance (Smart Performer): Rs.50,000/- premium/year for 5lac Sum Assured (3 premiums paid and 2 premiums pending )
-> Planning to surrender this police in November.Not sure how much I’ll get exactly after deductions.( Assuming I’ll get around 1.3 Lac in worst case)
Q1. Please suggest best investment option for this 1.3 Lac.
C) PPF Account : I’ve a PPF account in SBI and investing Rs. 5000/- per month
Q2: Should I continue this?
D) Chits funds : 5500/- per month ( It’s a two year Chit and my bad I started it on last march and can’t discontinue it) Helpless L.
E) I’ve a liquid cash of 3Lacs in my savings account.
Q3. I want to keep this as emergency fund but want to get some fair returns on them. Please suggest an option?
F) My company provides medical insurance for Me and my Family. For each one 2 Lacs and a Family Floater of 5 Lacs. (I’ve taken this medical insurance for my parents by paying an extra premium of 16k/anum from company )
-> Next year onwards, I’m planning to take a separate medical insurance for my parents.
Q4. Is it a good idea to take policy outside for Senior citizens or should I have two medical policy for them?
G) Recently registered one open plot on my name after reading “How Delay in Land Registration Costed Rs 50 lacs to Vivek – Real Life Experience”
This is my over all financial status. I ‘ve no Loans/EMIs to pay so far.
My financial goals(present values):
1. 50 Lac for Baby Education and Marriage (want this money in 15 years
2. 50 Lac Want to own a home in Hyderabad city In next 5 years. ( I do have a own house in my native, but want to have one @ my work place J)
3. Retirement Fund 1 Crore and above ( 30 years )
I can invest 20k per month ( excluding 5500/- chits amount). I don’t have knowledge on MF, SIP ,stocks etc… but I’m planning to take help from HDFC people on this. Recently I’ve taken a demat/trading account from HDFC ( Free for 1 year) to use just in case J.
10k Low risk and Low/Guaranteed retunes
5k Moderate Risk and Moderate returns
5k High risk and High returns
So could you please suggest best investment portfolio options to achieve my financial goals with inflation. Looking forward for your valuable suggestions.
Thanks,
Kumar . G