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POSTED BY ON September 25, 2010 7:09 pm COMMENTS (2)
I would like to request you to advice for new investment strategy based on my income and expenses. Before proceeding we will discuss on how to achieve realistic financial goal. This time, please suggest how to go; I really do not understand how we can start.
We will make new strategy base on my (income and) investment.
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KINDLY ADVICE NEW STRATEGY FOR INVESTMENT, BASE ON INCOME & EXPENSES
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Below are the details of expenses (refer pie chart based on this table:
|
We can invest additional amount in SIP |
10,500 |
126,000 |
|
Household Expenses |
5,500 |
66,000 |
|
Mom’s monthly expenses |
1,200 |
14,400 |
|
Self expenses (Travelling and food) |
4,500 |
54,000 |
|
Telephone (LL) and internet rent |
485 |
5,820 |
|
Cell phone bills (mom and self) |
600 |
7,200 |
|
Others Expenses |
2,500 |
30,000 |
|
Cash in hand (for contingency) |
1,000 |
12,000 |
|
A) Total |
26,285 |
315,420 |
|
|
|
|
|
Mediclaim ^ |
– |
11,227 |
|
a) for my mom |
7,262 |
|
|
b) for me & spouse |
3,965 |
|
|
Insurance Premium ^ |
– |
14,750 |
|
a) for me (~1 crore) (now insured for 30Lacs) |
10,400 |
|
|
b) for my spouse (50 Lacs) |
4,350 |
|
|
Annual personal expenses (vacation travel) (Approx)^ |
– |
36,000 |
|
B) Total |
– |
61,977 |
|
|
|
|
|
(A + B) Annual Total |
– |
377,397 |
^ =This amount needs to be redeemed on annual basis from my Investment.
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SET GOAL FOR MY DAUGHTER
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We have expanded our family with a baby girl (Asmi) in month of March 2010.
We need to plan for Asmi’s education and her future.
So let’s say my child is a Seven-month old and would like to plan for her future from today, and require your help again.
There are several milestones will come in her life (education) roadmap:
(I have not yet decided about her education; let’s assume standard education with today’s education cost (fees))
Step 1: Playschool: Age 2.5 – 3.5
Fees: Ranges in-between from ~Rs 10,000 per year to ~Rs 70,000
How to pay: This will have to be paid out of regular investment.
Step 2: Regular school: Age 3.5 – 17
Fees: Ranges from Rs 20,000 per year to ~Rs 1 Lacs (we are thinking to get admission in ICSE/CBSE School)
How to pay: Again, from out of my regular income/investments. (This means that I will choose school depending on my affordability).
Step 3: Graduation (including foreign course): Age 17-21 (~ Rs40lakhs [after 17years])
Fees: This really depends on what course my child could pursue. Of course that is so difficult to figure out now but we could, to be on the safer side, take the higher estimate. For instance, today the costs for graduation are:
BCom/BSc/BA: ~Rs 20000 per year or ~Rs 75,000 for 3 years
Engineering: ~Rs 75000 per year or ~Rs 2.25 Lacs
Medicle/pharm: ~Rs 3 Lacs per annum or ~Rs 15 Lacs for 5 years
National Institute of Design/ Fashion Technology: ~Rs 1 Lacs per annum or ~Rs 4 Lacs for 4 years
(Today, foreign degree course is cost ~Rs 30 Lacs, we can say after 21 years it would cost us ~Rs 1 crore)
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FINANCIAL (short/long-term) GOAL
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|
|
High Priority |
Low Priority |
|
Short Term (<3 yrs) |
_ |
Own Car in 2013 : ~Rs 6.5 Lacs |
|
Mid Term (3-6 yrs) |
Initial Child Expenses : ~Rs 1 Lacs in 2015 |
|
|
Long Term (7+ yrs) |
Retirement Corpus : ~2 crores in 2035 |
Own House: ~Rs 50 Lacs in 2020 |
|
Long Term (7+ yrs) |
Child Higher Education : ~40 Lacs in 2021 |
|
Regards
Digamber
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I suggest below given steps:
1. Term Insurance – cover of 1 crore atleast. (Highest Priority).
2. Health Insurance (cashless facility) – cover of around 5 – 8 lacs (High Priority).
3. 2 PPF accounts (one in your name and other in your daughters name), both maturing in a gap of a couple of years.
4. Invest in good diversified equity mutual funds (Large Cap and Mid Cap Funds) such as:
Large Cap Funds: HDFC Top 200, DSP Blackrock Top 100 Equity fund, Birla Sunlife Frontline Equity, etc.
Mid Cap Funds: Reliance Growth, Birla Sunlife Mid Cap Fund, Sundaram Select Midcap, etc
5. Avoid Ulips and Endowment Plans in any form – keep your insurance and investment seperate. (very important) want to know why? search for related articles on Jagoinvestor.com
Disclaime : These are my personal views and may or may not be suitable for you. Please do take advise from a Financial Planner to have a clear path.
Let me tell you one thing frankly friend, you won’t get complete answer on such discussions. You need to sit with financial planner, make a portfolio & review it from time to time.
Just to mention some points here.
Take term insurance for a min. of 1 crore as you’ve the responsibility of many family members on you.
Go for quality equity diversified mutual funds through SIP mode.
Invest some amt. (say 10%) in Gold ETF & (10% in Fixed deposit / PPF / NPS).
All the best & Congratulations! on birth of baby girl (Asmi). May God Bless Her!
MoneySavingsHelp