NITIN & DEEPALI GAWADE, BOTH 31 YEARS, SALARIED, PUNE
High
surplus to help meet goals
Pune-based Gawades should have
little difficulty if they align their investments to goals and secure risks.
Nitin Gawade is a software engineer,
who lives with his homemaker wife, Deepali, in his own house, in Pune. Gawade
brings in a monthly salary of 99,000, and manages a surplus of 44,690 after
household expenses, home loan EMI (for a 13 lakh loan), insurance premium and
investments. Though his portfolio is a meagre 22.2 lakh at present, an early
start to financial planning means he will be able to meet his primary goals
with ease. His goals include building an emergency fund, taking a vacation,
saving for his future child’s education and wedding, and his retirement.
According to Financial Planner Pankaaj Maalde, Gawade needs to put his high
surpus amount to good use by investing it at the earliest.
Gawade can build an emergency fund of
2.9 lakh, which is equal to six months’ expenses, by allocating his cash of 2
lakh. For the balance, he should invest the surplus for two months before
starting investment for other goals. This should be invested in an ultra
shortduration debt fund. To amass 10.5 lakh for a foreign vacation after six
years, Gawade should start an SIP of 11,000 in a balanced for four years and
then review the investment. For their future child’s education corpus of 67.5
lakh in 18 years, he will need to start an SIP of 10,000 in a diverified equity
fund. As for the 1.08 crore for the kid’s wedding in 25 years, he will have to
start an SIP of 6,000 in a diversified equity fund and 1,500 in the gold bond
scheme. For retirement in 29 years, Gawade will need 5 crore and should
allocate his EPF and PPF corpuses. He will also have to start an SIP of 15,000
in a diversified equity fund and continue to put 500 a year in the PPF.
For life insurance, Gawade has one
term plan of 1 crore and three traditional plans worth 12.8 lakh. Maalde suggests
he surrender all traditional plans and continue with the term plan. As for
health insurance, Gawade is covered by his employer for 3 lakh and has an
independent plan of 2 lakh. He also has a 3 lakh plan for his parents. Maalde
suggests he stop the₹2 lakh plan and buy a family floater
plan of 10 lakh for 1,167 a month. He should also continue with the parents’
health plan. Besides, he should purchase a 25 lakh critical illness plan and a 50
lakh accident disability plan for himself at a cost of 1,167 a month.
