Hi sir I am 34 years with take home 75k.
Present wife not working and we are having w year daughter and 2 months son.
My tax regime is new
My expenses as
Home loan 11k.
Car loan 10.5k.
Other expenses 10k.
Home expenses and maid 10k.
Term insurance yearly 19k with 1 cr coverage.
Please suggest me investment of 10-12k
Daughter
Son
Kids higher education
Retirement
My planning ssy of 50k yearly and nps of 50k
Please suggest.
Ans: It's wonderful to see your proactive approach to securing your family's financial future, especially with young children to care for. Let's explore how you can allocate your resources effectively to meet your various financial goals.
Prioritizing Your Investments
Given your income, expenses, and specific financial goals, here's a suggested investment strategy tailored to your needs:
1. Children's Education:
Investing in your children's education is crucial for their future success. Consider opening separate savings accounts or investment plans for your daughter and son. Allocate a portion of your monthly budget (around Rs. 2,000 to Rs. 2,500 each) towards these accounts to accumulate funds over time. Opt for investment options with moderate risk and potential for long-term growth, such as mutual funds or child education plans.
2. Retirement Planning:
It's never too early to start planning for your retirement. Allocate a portion of your monthly budget (around Rs. 3,000 to Rs. 4,000) towards retirement savings. Maximize contributions to your NPS account, taking advantage of the tax benefits offered under the new tax regime. Additionally, consider investing in equity mutual funds or voluntary provident fund (VPF) to supplement your retirement corpus further.
3. Term Insurance:
You've already taken a significant step by securing term insurance coverage of Rs. 1 crore. Ensure that your coverage amount is sufficient to meet your family's financial needs in case of any unfortunate event. Review your insurance needs periodically, especially as your family and financial responsibilities evolve.
4. Emergency Fund:
Building an emergency fund is essential to handle unexpected expenses or financial setbacks. Aim to set aside an amount equivalent to 3 to 6 months' worth of living expenses in a high-yield savings account or liquid mutual fund. Start with a small portion of your monthly budget (around Rs. 1,000 to Rs. 2,000) towards this fund and gradually increase it over time.
Monitoring and Adjusting Your Plan
Regularly review your financial plan to track progress towards your goals and make any necessary adjustments. As your income increases or expenses change, you may need to reallocate your resources accordingly. Consider consulting with a Certified Financial Planner to ensure that your investment strategy remains aligned with your long-term objectives.
Conclusion
By following this investment plan and staying disciplined in your approach, you can build a solid financial foundation for your family's future. Remember that consistency and patience are key to achieving your financial goals over time.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in