Hello sir,
I am 36 yrs serving in a PSU. I am having 1.6 lakh PM gross salary. I deposite 1.5 lakh in self PPF, 1.5 LAKH in wife PPF and 1.5 lakh in daughter(7 yrs old) SSY(for which i opened an FD, RD and SIP MF to get 4.5 lakh at 1st week of april to deposite). Also i and my wife having LIC policies of 12 lakh S.A. (jeevan labh) for which i deposite 10500/- pm altogether. I am covered with suffucient amount of compulsary term insurance by office. Also we are covered under compulsary mediclaim by office. In NPS 29k is being deposited monthly as on date(including employers 14%).I have 2 kids(7 yrs daughter and 3 yrs son).
Is it sufficient for my future?????
Ans: At 36 years old and serving in a PSU, you have a solid financial foundation. Your monthly gross salary of Rs 1.6 lakh and various investments show your commitment to securing your future. Let's assess your current situation and see if it’s sufficient for your future needs.
Existing Investments
PPF Contributions:
Rs 1.5 lakh in your PPF.
Rs 1.5 lakh in your wife’s PPF.
These provide long-term tax-free returns.
Sukanya Samriddhi Yojana (SSY):
Rs 1.5 lakh annually for your daughter.
You have planned an FD, RD, and SIP to fund this.
LIC Policies:
Policies with a sum assured of Rs 12 lakh.
Monthly premium of Rs 10,500.
Term Insurance and Mediclaim:
Adequate term insurance from your employer.
Comprehensive health insurance cover for the family.
National Pension System (NPS):
Monthly contribution of Rs 29,000 (including employer’s contribution).
This will help build a substantial corpus for retirement.
Financial Goals and Assessment
Children’s Education:
Ensure you have planned for your children’s higher education.
Costs can be substantial, and early planning helps.
Retirement Planning:
Your NPS contributions are a good start.
Consider additional investments for a comfortable retirement.
Emergency Fund:
Maintain an emergency fund for unforeseen expenses.
Typically, this should cover 6-12 months of expenses.
Recommendations
Review and Adjust Insurance:
Evaluate your LIC policies. They might offer low returns.
Consider investing in mutual funds for higher returns.
Increase Equity Exposure:
SIP in mutual funds offers better long-term returns.
Avoid index funds; opt for actively managed funds for higher growth.
Education Fund for Kids:
Start a dedicated fund for your children’s education.
Equity mutual funds can help grow this corpus.
Regular Financial Review:
Periodically review your financial plan.
Adjust based on life changes and financial goals.
Consult a Certified Financial Planner:
A CFP can provide tailored advice.
They help optimize your investments and ensure you meet your financial goals.
Insight into Insurance Policies
Life Insurance:
Your LIC policies might not be the best investment.
Consider surrendering and reinvesting in mutual funds for better returns.
Term Insurance:
Ensure your term insurance cover is adequate.
This protects your family in case of any unfortunate event.
Benefits of Professional Guidance
Certified Financial Planner (CFP):
A CFP can help balance your portfolio.
They provide insights into better investment options and tax-saving strategies.
Final Insights
Diversify Investments:
Diversify across different asset classes.
Balance between equity, debt, and insurance.
Focus on Long-term Goals:
Plan for your retirement and children’s education.
Regularly review and adjust your financial plan.
Seek Professional Advice:
A Certified Financial Planner can offer a 360-degree solution.
They ensure your investments are aligned with your long-term goals.
Summary
Your current investments are solid.
Review and adjust your insurance policies.
Increase equity exposure for better long-term returns.
Consult a Certified Financial Planner for tailored advice.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
