Buying a house takes
priority
The Pune-based couple will focus on house purchase
and retirement before tackling other life goals.
Aditya Sharma, 31, is employed and
gets a monthly salary of 54,000, while his wife, Anvesha, 26, is a homemaker.
The couple does not have any children and stays in a rented house in Pune. They
have, however, booked a house with the payment of ₹1 lakh. After a year, they will make a down payment
of 3 lakh and start with the home loan EMI of 30,000. Besides the house, their
primary focus is building an emergency corpus, starting saving for their
retirement, and buying a car. However, Financial Planner Pankaaj Maalde
suggests they put off buying a car till a rise in income. Their debt portfolio
comprises 3 lakh in fixed deposit, 50,000 in a post office scheme and 10,000 in
the EPF. As for equity, they have 50,000 in equity funds.
The couple can start by building the
emergency fund of 2.91 lakh, which is equal to six months’ expenses, by
allocating their post office scheme corpus of 50,000. They will also have to
start an SIP of 30,000 from their surplus in an ultra short-duration fund.
Next, they want to buy a house worth 39
lakh, of which they have paid 1 lakh as booking amount. In a year’s time, they
will need to make a down payment of 3 lakh, which can be done by assigning
their fixed deposit of the same amount. For the remaining amount, they will
have to take a home loan and the EMI, which will amount to nearly 30,000, can
be sourced from the surplus after the contingency corpus has been built.
Finally, for retirement, the couple
has estimated a need of 3.4 crore in 29 years. For this goal, they can allocate
their EPF corpus of 10,000 and mutual fund corpus of 50,000. These will yield
nearly 34 lakh in the specified period. For the remaining amount, they will
have to start an SIP of 10,000 in a diversified equity fund. However, due to
lack of surplus, they will have to start with 5,000 and increase the amount
after a rise in salary.
For life insurance, Aditya has one
traditional plan of 2 lakh, but Maalde suggests he surrender it and buy a term
plan of 1 crore, which will cost 833 a month. The family also has a family
floater plan 3 lakh, and Maalde suggests they increase the cover to 10 lakh,
which will cost them 1,167 a month.In addition to these, Aditya should buy a 25
lakh accident disability cover, which will come for a monthly premium of 250
only.
