High savings to help with
goals
The Thane-based working couple can achieve their
primary goals easily, but need to secure their risks.
Shrikar, 37, and Shrutika Dange, 35,
are IT professionals and bring in a combined monthly income of 2.6 lakh. They
live in their own house worth 1.1 crore, for which they have taken a loan of 67
lakh and are paying an EMI of 80,000. Their goals include building an emergency
corpus, saving for their future child’s education and wedding, buying a car and
another house, taking a vacation, and saving for retirement. Though they have a
high amount of surplus and have saved aggressively, Financial Planner Pankaaj
Maalde suggests they put off buying another house and taking a vacation for
now, and focus only on their primary goals.
To start with, they can build the
emergency fund of 5.58 lakh, which is equal to their three months’ expenses.
For this, they can allocate their cash (1 lakh), fixed deposit (1.5 lakh),
recurring deposit (2 lakh) and insurance surrender value (2.8 lakh), and invest
it in a short-duration debt fund. For their future child’s education in 18
years, they need 3.4 crore and can build it by starting an SIP of 45,000 in a
diversified equity fund. To amass 5.5 crore for the kid’s wedding in 25 years,
they will have to start an SIP of 27,000 in a diversified equity fund and 3,000
in the gold bond scheme. For retirement in 23 years, they will need₹7.3 crore and can assign their EPF, PPF and NPS
corpuses, besides their stocks and Ulip. They should continue investing 500 in
the PPF, 1 lakh in the Ulip and 75,000 in the NPS every year. To buy a car
worth 10 lakh in a year, they can take a loan for five years and the EMI of 21,250
can be sourced from the surplus.
For life insurance, the couple has
eight traditional plans and one Ulip, worth 65.8 lakh. Maalde suggests they
retain the Ulip and four traditional plans, but should surrender the remaining
four plans. Both Shrikar and Shrutika should buy a 1 crore term plan each, for
a monthly premium of 2,333.
For health insurance, the couple has
a 10 lakh family floater plan provided by their employers. Maalde suggests they
buy an independent family floater plan of 10 lakh for 1,167 a month. They
should also buy a 25 lakh critical illness plan each, and a 50 lakh accident
disability plan each, which will cost them 2,666 a month in premium. This
should take care of their insurance needs.
