Your advice needed for financial planning

POSTED BY Ashwin Rao ON September 14, 2012 8:27 pm COMMENTS (9)

Hi Manish and Ashal…
Here is my query

I am 33yrs old unmarried guy working in the IT services sector. Currently, I am drawing 38k/pm as my take home salary. I have personal and car loans scaling to 25k/pm. Need your advice in investment options.
Apart from this, I have couple of queries.
Query 1> On March 2010, I started investing in BajajAllianz MaxGain for a term of 10yrs; although, the premium is to be paid only for 7yrs. I am paying 25k/pa. I did not realise, neither researched about the product and blindly believed a not-so close friend of mine who is in to this line for his living.
When I went today to check the current status of my investment, I got the shocking news that the current value is only 65,389/- as against my investment of 75k. Quite obviously, I will not pay any further premiums, but my dilemma is whether to keep the money with BajajAllianz for the complete term of 10yrs and then withdraw (hoping that I get the complete 75k back) OR withdraw whatever I will get during the surrender time, i.e., April 2013. As is evident from my foolish decision of investing in this plan without researching, I am seeking your advice here.
Query 1> Around 1 month ago, I got a call from SBI explaining about Shubh Nivesh plan. The lady explained me that if I invest 50k for 5yrs, then the 6th year I can get 3.2laks in returns. My plan is to invest 35k in something which is risk free and which has decent returns, I am not expecting some exaggerating growth of my money.

Please advise if I should invest in this SBI plan or go with LIC Jeevan Aanand. Or if I should split the 35k in to 1 long term LIC plan like Jeevan Aanad and another in to a short term LIC plan which you can suggest. I am frequently proposing LIC as I feel that it is the safest investment option available in India. Please advise and relieve me off this confusion.

Relying completely on your advice,
Thanks & Regards,
Ashwin

9 replies on this article “Your advice needed for financial planning”

  1. Ashwin Rao says:

    Hi Ashal,

    I dont mind harsh answers as long as they do good to me.

    Let me be very honest about my backgound and plans. I dont have a backing of any parental property or financial support from my parents.I have led my life until now in a very hard and crude manner. All I have to do for my + my family’s future is on my own. And I am not in that section of IT where you get good handsome package. As mentioned earlier, my income currently is in the 35k/pm range.

    First and foremost, I am looking for couple of basic requirements. Later, if things go well then definitely with your help I will look out for more investments.

    So below is my basic need…

    1> a money back system which will provide me 1-2lacs very 5yr or so for the next 20yrs [education expense of my kids]
    2> a retirement policy which should fetch me at-least 15-20k monthly after 50yrs of age.

    I guess both these requirements can also provide me life cover also.

    I am not in a mood to invest in market linked plans as I already have done that with a bad outcome. Currently my financial situation allows me to invest 35k/pa, so I need advice on the above 2 queries in this premium range. Please let me know if this possible or not, or if these requirements need more yearly investments/premiums. Also what kind of investments should be done? I mean, term-plans, insurnace-plans ???

    Thanks & Regards,
    Ashwin

    1. Dear Ashwin, thanks for the detailed reply. Your 38K mly income translates into yly income of 4.6L Rs. roughly. Now at age 33 & still unmarried you are entering the wrong side of age barrier without completing some basic financial liabilities for your family (here family means you, your wife & kids). 1-2L Rs. every 5Y for kids’ education & so do for your retirement receiving just 15-20K mly pension, my dear friend, you are not counting the impact of inflation. May I know this 20-21K EMI for Personal Loan is for a single loan or multiple loans? Please clarify.

      Thanks

      Ashal

  2. Ashwin Rao says:

    Hi Ashal,

    I have personal loan of 6.5 laks and car loan of 1.5 laks. I am paying 21k emi for personal loan and 4k emi for car loan. I am ok with managing my household expenses along with these emis.

    My most important queries ->

    1) I want to know whether to withdraw the money that I have invested in the BajajAllianz money or keep it there until the completion of the term.
    2) How about investing in the SBI Shubh Nivesh, is it ok to put the complete 35k in this plan or shall I use some in LIC Jeevan Aanand.

    Please advice,
    Regards,
    Ashwin

    1. Dear Ashwin, personally my take in your given condition ‘ll be to first pay off your Car loan from the surrender amount. In between, please visit this forum & read past queries. There is a lot of info hiding here in this forum. You are not the first person & surely not the last one which such mess of your finances. I can’t say that you are lucky or unlucky for the fact-you are unmarried. Had you been married, this situation of 25K EMI was a sure shot recipe for disaster.

      Thanks

      Ashal

    2. Dear Ashwin, again for your 2 most important queries, I w’d ask you read this forum on daily basis for past queries. Why? Your income is 38K, out of which you are paying nearly 65% money in EMIs & still you want to go for suicidal way of Shubh Nivesh or Jeevan Anand. May God save you.

      If you feel my reply is harsh to you. I’m sorry in advance for that. I want to help you so trying to wake you up from your sleep.

      Thanks

      Ashal

  3. Ashwin Rao says:

    Hi Manish and Ashal…
    Here is my query

    I am 33yrs old unmarried guy working in the IT services sector. Currently, I am drawing 38k/pm as my take home salary. I have personal and car loans scaling to 25k/pm. Need your advice in investment options.
    Apart from this, I have couple of queries.
    Query 1> On March 2010, I started investing in BajajAllianz MaxGain for a term of 10yrs; although, the premium is to be paid only for 7yrs. I am paying 25k/pa. I did not realise, neither researched about the product and blindly believed a not-so close friend of mine who is in to this line for his living.
    When I went today to check the current status of my investment, I got the shocking news that the current value is only 65,389/- as against my investment of 75k. Quite obviously, I will not pay any further premiums, but my dilemma is whether to keep the money with BajajAllianz for the complete term of 10yrs and then withdraw (hoping that I get the complete 75k back) OR withdraw whatever I will get during the surrender time, i.e., April 2013. As is evident from my foolish decision of investing in this plan without researching, I am seeking your advice here.
    Query 1> Around 1 month ago, I got a call from SBI explaining about Shubh Nivesh plan. The lady explained me that if I invest 50k for 5yrs, then the 6th year I can get 3.2laks in returns. My plan is to invest 35k in something which is risk free and which has decent returns, I am not expecting some exaggerating growth of my money.

    Please advise if I should invest in this SBI plan or go with LIC Jeevan Aanand. Or if I should split the 35k in to 1 long term LIC plan like Jeevan Aanad and another in to a short term LIC plan which you can suggest. I am frequently proposing LIC as I feel that it is the safest investment option available in India. Please advise and relieve me off this confusion.

    Relying completely on your advice,
    Thanks & Regards,
    Ashwin

    1. Dear Ashwin, 38K mly income, 25K in EMI, Can you please provide the details of this situation or say background?

      Thanks

      Ashal

  4. Ashwin Rao says:

    Strange… even I am confused, where did all the typing disappear.

  5. Dear Ashwin, where is the query? What do you want to know or what sort of help do you need?

    Thanks

    Ashal

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