High surplus to help goals
Despite the large
number of goals, the Bengalurubased couple will achieve these without
difficulty.
Software professionals, Manjunatha
G.T. and Gayathri C.M., stay with their three-year-old child in a rented house,
in Bengaluru. They bring a combined income of 1.44 lakh and are currently not
investing the high surplus of 81,625. Their goals include saving for
emergencies, buying a car and a house, taking a vacation, saving for child’s
education and wedding, and retirement. Despite the long list, they will be able
to achieve these given the reasonable size of goals and adequate time for
investing.
Financial Planner Pankaaj Maalde
suggests they first build an emergency corpus of 4 lakh by assigning their cash
of 3.7 lakh and investing it in an ultra short-term fund. To buy a car worth 8
lakh in two years, they can assign their fixed deposit, putting it in an
arbitrage fund after maturity. As for a vacation worth 2 lakh in three years,
they can start an SIP of 8,000 in an ultra short-term fund. The couple also
wants to buy a house worth 51.5 lakh in eight years without taking a loan. For
this, they will have to start an SIP of 35,000 in a balanced fund.
For their kid’s education in 15
years, the couple needs 55 lakh and should start an SIP of 11,000 in a
diversified equity fund. To accumulate 88.5 lakh for the child’s wedding in 22
years, they should start an SIP of 8,000 in an equity fund and 2,000 in the
gold bond scheme. Finally, for retirement, they couple will need 8 crore in 27
years, for which they can assign their stocks, EPF corpus and Ulips. They will
also need to start an SIP of 12,000 in an equity fund.
For life insurance, the couple has
two Ulips and Maalde suggests they review these after five years. They will
also have to buy term plans of 1 crore (Manjunatha) and 50 lakh (Gayathri),
which will cost them 1,500 a month in premium. For health, the couple has 8
lakh of cover provided by their employers. They should also buy a 10 lakh
family floater plan at a cost of 1,667 a month. Manjunatha should also pick a
critical illness plan of 25 lakh and an accident disability plan of 50 lakh for
himself. These will cost him 1,167 a month in premium.
