Early start to help goals
Lekhya and Sapan Gupta are based in Noida, but have
bought a house in Bengaluru and have let it out.
Both are architects and live on rent with their
two-year-old son.They bring in a combined salary of `2.03 lakh and, along with
the rental income of `22,000, their monthly income adds up to `2.25 lakh. The
couple's goals include saving for emergencies, child's education and wedding,
retirement, vacation and buying another house. Financial Planner Pankaaj Maalde
suggests they put off the last goal till a substantial rise in income.
They can begin by setting up the contingency fund
of `4.18 lakh and can allocate their fixed deposit to it. This amount should be
invested in an ultra short-term debt fund.For the foreign vacation costing `14
lakh after five years, they can start investing `18,500 in an equity income
fund for three years and review the investment after this period.
For their twin goals of child's education in 16 and
19 years, they should start SIPs of `10,500 and `12,500, respectively, in
equity funds to amass `59 lakh and `1.08 crore. For the child's wedding in 23
years, they will need `1.4 crore and can accumulate it by starting an SIP of
`10,000 in an equity fund and `2,500 in gold bonds.
Finally, for retirement, the couple needs `9 crore,
for which their EPF corpus has been assigned. Besides this, they will have to
start an SIP of `30,000 in a diversified equity fund for the specified period.
As for insurance, the couple has four traditional
plans and Maalde suggests they retain all these as the debt portion of their
portfolio. They should also buy term plans worth `1.5 crore for each. For
health insurance, they have a `3 lakh plan each from their employers, and have
also bought a `5 lakh policy on their own. Maalde suggests they raise this
amount to `15 lakh at the next renewal.They are also advised to pick critical
illness and accident disability plans worth `25 lakh and `50 lakh,
respectively, for each of them to take care of all their insurance needs.
