High surplus to ease journey
Kolkata-based
Sandip Goyal should link his investment to goals and increase his insurance.
Sandip Goyal, 37, works with an MNC
and stays with his homemaker wife, seven-year-old child and father in his own
house, in Kolkata. He has saved and invested aggressively and has a net worth
of 1.69 crore. He has no liabilities and his portfolio comprises a house worth 25
lakh, cash of 15 lakh, debt in the form of EPF (20 lakh) and fixed deposit (27
lakh), and equity in the form of mutual funds (50.6 lakh) and stocks (8.03
lakh). His goals include building an emergency corpus, buying a house, saving
for the child’s education and wedding, and retirement.
Financial Planner Pankaaj Maalde
suggests Goyal build the emergency corpus of 8.1 lakh, which is equal to six
months’ expenses. He can do so by allocating a portion of his fixed deposit and
investing it in an ultra-short duration fund. He also wants to buy a house
worth 1 crore at the earliest, for which he can make a down payment of 75 lakh
by allocating his house, silver, cash and remaining fixed deposit. For the
remaining amount, he can take a loan and at 8.5% for 20 years, and his EMI will
come to 21,300. This can be easily sourced from the surplus.
For the child’s higher education in
11 years, Goyal has estimated a need of 84 lakh. He can allocate his stocks to
this goal and will also have to start an SIP of 21,000 in a diversified equity
fund. For the wedding of the child in 18 years, he wants to save 1 crore. For
this, he can allocate his gold and remaining silver, and will also have to
start an SIP of 10,000 in a diversified equity fund. However, since he doesn’t
have the required surplus, he can do so after a rise in his income.
Finally, for an early retirement in
18 years, at 55 years of age, Goyal will need to build a retirement kitty of 8.2
crore. For this goal, he can allocate his mutual fund corpus and EPF. In
addition to this, he will have to start an SIP of 24,000 in a diversified
equity fund for the specified term.
For life insurance, Goyal has two
term plans worth 1 crore and two traditional plans worth 2.05 lakh. Maalde
suggests he retain all the plans and buy an additional term plan of 1 crore at 1,167
a month. For health insurance, he has a family floater plan of 10 lakh and
another 8 lakh cover provided by his employer. He is advised to buy a top-up
plan of 15 lakh with a deductible of 5 lakh, at 667 a month. He should also
pick a 50 lakh accident disability plan for 500 a month.
