I am 39 year old also retired from army total monthly income is 97k.
My liabilities are car loan-10256
Home loan -24000
Lend money -350000
School and tution fees
My investment is Lic -6339/pm
PPF 2500/pm
Pls suggest for best way to save and invest
Ans: serving in the army is commendable, and it's great that you're thinking about your financial future at 39. Let's break down your situation and explore some options:
Your Income and Expenses:
Monthly income: Rs. 97,000 (healthy!)
Liabilities:
Car loan: Rs. 10,256
Home loan: Rs. 24,000
Loan to others: Rs. 3,50,000 (significant)
School and tuition fees (amount not mentioned)
Existing investments:
LIC (Insurance-cum-investment plan): Rs. 6,339/month
PPF: Rs. 2,500/month (good start!)
Understanding your priorities:
Debt management: Your car loan and home loan EMIs seem manageable. The loan to others requires a plan.
Child's education: Factor in school and tuition fees for future planning.
Emergency fund: It's wise to build an emergency fund for unexpected expenses.
Retirement savings: Consider ways to boost your retirement corpus after army service.
Let's talk about your investments:
LIC (Insurance-cum-investment plan): These plans often have lower returns compared to other investment options. Consider consulting a Certified Financial Planner (CFP) to see if surrendering the policy and reinvesting in Mutual Funds could be a better option for your goals.
Here's why Mutual Funds might be a good fit:
Growth potential: Mutual Funds, unlike LICs, can offer the potential for higher returns, which can help you achieve your goals faster.
Diversification: Mutual Funds spread your investment across different companies and sectors, reducing risk.
Professional management: Fund managers actively research and invest your money, aiming to maximize returns.
Here are some next steps to consider:
Talk to a CFP! They can assess your financial situation, risk tolerance, and goals to create a personalized plan.
Review your loan to others: Is there a repayment plan in place? Can you recover some of this amount?
Emergency fund: Aim for 3-6 months of living expenses in an easily accessible savings account.
Increase PPF contribution: Consider increasing your PPF contribution for tax benefits and guaranteed returns.
Start an SIP in Mutual Funds: A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly, building discipline and benefiting from rupee-cost averaging.
Remember:
You've served the country well. Now, focus on building a secure financial future for yourself and your family.
A CFP can guide you through the investment process and help you make informed decisions.
I hope this helps!
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
