All goals to be met with ease
High surplus and savings mean that Mumbaibased
Sharmas will face no problems.
Anuj, 35, and Ruchi, 31, stay with their newborn
child in Mum bai and bring in a combined salary of `2.44 lakh. After expenses
and investment, they are left with a surplus of `1.17 lakh. Their goals include
saving for emergencies, vacation, house, child's education and wedding, and
retirement.
Financial Planner Pankaaj Maalde suggests they
build an emergency corpus of `11.35 lakh by allocating the fixed deposit.This
should be invested in arbitrage and ultra short-term funds. For vacation in
three years, they need `5 lakh and can amass it by starting an SIP of `12,500
in an equity arbitrage fund. To accumulate `25 lakh in five years for the down
payment of a new house, they will have to start an SIP of `43,500 in an equity
savings fund for three years and then shift to an arbitrage fund.
For their child's education in 18 years, they need
`1 crore and can build this fund by by starting an SIP of `15,000 in an equity
fund. For the child's wedding in 25 years, they will need `2.5 crore and to
achieve the goal, they will have to start an SIP of `20,000 in equity funds and
gold bonds. For retirement in 26 years, they will need `8 crore and should
assign their EPF, stocks and equity funds. They should also start an SIP of
`20,000 in a diversified equity fund.
As for insurance, Anuj has a term plan of `1 crore,
but Maalde suggests that he buy another term plan of `1 crore and a `50 lakh
plan for his wife. These additional covers will cost `1,325 a month and can be
sourced from the surplus. As for health insurance, the couple has a `7 lakh
cover from their employers and a `10 lakh family floater plan of their own.
Maalde suggests that they raise this amount to `15 lakh and include their
newborn child in the cover. Anuj should also buy a critical illness plan of `50
lakh and an accident disability plan of `1 crore, which will cost `1,000 a
month .
