Hello Guys! My details are:
Age=29 years, Occupation=Railway Employee, Monthly take home salary=20340/-, PF=960/month, Total PF balance=76243/-, dependants=Mother (family pension holder @ 13450/month) & Spouse.
Assets=House(5-BHK paid in full worth 45L), Gold worth 2L & RD worth 70K.
Loans/Liabilities=1) Car loan from Magma Fincorp to be paid @ 6450/month till Apr 14. 2) Co-operative society loan to be paid @ 1912/month till Jan 17. 3) Money borrowed from relative to be paid via RD @ 4000/- till Jan 15 & @4500/- till Oct 15.
Insurance=1) 30 year Term plan from Birla SunLife @ 560/month worth 40L, 2) LIC Jeeval Saral @ 510/month salary saving (worth 20K as of now), 3) Reliance Life Insurance Classic (50K lumpsum in equity option).
My questions are as follows:
1) My monthly expenses are @ 10000/month. I have been serving in Railways for past 10 yrs. As you can see that, I am in a tight spot right now and have to rely on my mother’s pension to make ends meet. However I have managed to own a big house and a car despite my low age + meager salary. Should I start investing in MFs through SIP right now (long term 22 years) or wait till all the loans are paid.
2) Should I surrender the LIC Jeeval Saral & Reliance Life Insurance Classic to prepay my loans as i have opted for BSLI term plan. The Jeevan Saral will complete 5 yrs in Aug 13.
3) I started a RD aacount as an emergency fund for my mother last year which is worth 35K as of now. Will it be a good idea to use the money I get from surrendering the above policies towards this fund.