Major goals to be met easily
| Aggressive saving and investing should
help the Delhi-based couple avoid any financial pitfalls. |
Shourya and Neha Asthana stay in a rented house in
Delhi with their five-year-old child. Together, they bring in a salary of `2
lakh a month and also earn a rental income of `20,000 from a house, for which
they are paying a home loan EMI of `30,000.They also have a plot of land. After
expenses and investment, they are left with a surplus of `617. Their goals
include saving for contingencies, child's education and wedding, retirement,
vacation and another house.
According to Financial Planner Pankaaj Maalde, they
should first repay the home loan of `9.6 lakh from their fixed deposit.They can
then build an emergency corpus of `4.9 lakh by allocating their cash holding
and investing it in an ultra short-term debt fund.
To save for their child's education in 13 years,
they will need `68 lakh and for his wedding in 25 years, they will require `70
lakh. For the former goal, they should start SIPs of `17,000 in equity funds,
and for the latter, they should start an SIP of `8,000 in an equity fund and
invest `2,000 in the gold bond scheme. For retirement, they will need `15 crore
and will have to allocate their land as well as their PPF, EPF, NPS, stocks and
mutual funds. Besides these, they will need to start an SIP of `30,000 in an
equity fund and a contribution in the PPF, EPF and NPS till retirement. As for
buying another house worth `1.25 crore, they want to sell their existing house,
but this will not be enough and they don't have any surplus to fund it. So they
should reconsider this goal. For vacation in two years worth `10 lakh, they can
assign their balance fixed deposit and insurance surrender value, worth `6
lakh, but should avoid taking a personal loan.
The couple has six traditional plans, two term
plans and two Ulips. They should close the Ulips and two traditional plans.
They should buy two term plans worth `50 lakh for each. They don't need more
health insurance (see table), but should pick critical illness and accident
disability plans worth `25 lakh and `50 lakh each.
