SMALL INVESTOR’S BIG PROBLEM

POSTED BY vimal vinod singh bhadauria ON February 17, 2012 12:21 am COMMENTS (5)

I am a private teacher & tutor,
male 35 yr old living in my own house .
Father of one boy 9 months young & one daughter 5 year .
Please suggest me
what should i do to cover my future finance needs ,

My present financial status is as follows==*

Annual income 3,50,000

Agricultre’s income 50,000

Owner of one bike

but likly wanted to buy a car

investment as follows

1=Lic bimagold 3,000 per yr (sum
assurd 50,000) for 16 yr

2=Lic marketplus 20,000 single premium

3=Lic moneyplus 10,000 single premium

4=Maxnewyork life SIPS penson plan
15,000 pr yrt

5=ICICIPRU LIFE SMARTKID RICH 2 PLAN 15,000 pr yr

6=Reliance life health plan 6500 pr yr (covering 2 lakh for me & wife)

7=UTIMF DYF growth SIP 1000 started nov 2011

8=HDFC TOP200 SIP 1000 started feb 2012

9=Bank RD 500 started feb 2010

10=Sbi PPF account just opend
with 1000 feb 2012

11=Sbi 999 days FD 20,000

MY GOAL AT THE AGE 55 yr

1=In saving account 20,00,000

2=for son 50,00,000

3=for daughter 50,00,000

4= for extra expenses 50,00,000

Plz suggest me how to achieve this.
I am trying to increase
my income and i can bcoz i will do it any how…..

5 replies on this article “SMALL INVESTOR’S BIG PROBLEM”

  1. Dear Vimal, Once your Term cover is active, start thinking of surrendering or making paid up these policies.

    Please concentrate on proper investing instruments like PPF, MFs & bank FDs & RDs. Do not mix insurance & investments.

    Thanks

    Ashal

  2. Dear Vimal, You are highly under insured. For the annual income you are earning i.e. 4L Rs., you should have a sum assured of at least 50L Rs. if not more.

    So first please purchase a term cover of 50L Rs. from the insurer of your choice. Please do remember, LIC’s term cover, Amulya Jeevan is one of the costliest. Still if you are comfortable with LIC only you may opt that. Else I ‘ll prefer an online cover for you like ICICI Pru Life’s I-Care.

    Rest I ‘ll discuss more after reading your inputs.

    Thanks

    Ashal

  3. Dear Vimal, Please indicate the Sum assured against each of these policies.

    1=Lic bimagold 3,000 per yr (sum
    assurd 50,000) for 16 yr
    2=Lic marketplus 20,000 single premium
    3=Lic moneyplus 10,000 single premium
    4=Maxnewyork life SIPS penson plan
    15,000 pr yrt
    5=ICICIPRU LIFE SMARTKID RICH 2 PLAN 15,000 pr yr
    6=Reliance life health plan 6500 pr yr (covering 2 lakh for me & wife)

    Thanks

    Ashal

  4. vimal vinod singh bhadauria says:

    yes i can give detail of my insurence
    1=Lic bima gold sum assured 50,000 money back policy
    2= icici smart kid sum assured 1,50,000
    3= maxnewyork SIPS PENSOIN PLAN sum assured 1,50, 000
    4= reliance health plan cover 2 lakh for me and wife only

  5. BanyanFA says:

    Hi Vimal,
    It is nice to see your goals and your efforts to reach them.

    At the inception, it appears that you may not have a good insurance cover. You seem to have a couple of insurance policies, but all of them seem to have a low sum assured. Can you please confirm the total sum assured on your policies. Try to have a minimum 50 lacs sum assured via a Term Insurance policy.

    Your PPF account is a good choice. Please ensure that you invest atleast 1K per month into it. While you have an option to invest upto Rs.1lac into it, I would suggest that you should in your case refrain from investing complete 1 lac into it.

    Your combined goals appear to be around 1.7 cr in next 20 years. It is difficult, but not an impossible task if you invest wisely and in a disciplined manner. To achieve this target, you would definitely have to take assistance of investing into Equity Markets via Mutual Funds. Currently you have just Rs. 2K per month. Try to increase it to over 5K per month. Your investment into Max New York SIPS pension plan may not be able to provide the required growth as pension products invest funds very cautiously and hence in low growth.

    Regards
    BFA

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