Hyderabad-based Vidyut Vinayak is a 31-year-old
programmer who earns Rs 2.2 lakh a month. He lives with his wife, who will
start working soon. They live in their own house worth Rs 67.5 lakh, for which
Vinayak has taken a loan of Rs 53.7 lakh and is paying an EMI of Rs 37,232. He also has a car loan for which he is paying an EMI
of Rs 10,385. Vinayak is left with a surplus of Rs 91,955 every month and
Hyderabad-based Vidyut Vinayak is a 31-year-old programmer who earns Rs 2.2
lakh a month His goals include building
an emergency corpus, home renovation, saving for his future children’s
education and weddings, and his retirement.
Financial Planner Pankaaj Maalde suggests that
Vinayak start by repaying his car loan of Rs 4.3 lakh with the cash in bank. He
should then build an emergency corpus of Rs 3.5 lakh, which is equal to three
months’ expenses, and a medical buffer of Rs 4 lakh for his parents. He can do
so by investing his remaining cash and fixed deposit in a liquid fund. For home renovation in a year, Vinayak
will need Rs 8 lakh and can save the surplus of Rs 60,000 in a liquid fund for
this period.
To amass Rs 67.5 lakh for his future child’s education
in 19 years, he will have to start an SIP of Rs 10,000 in a diversified equity
fund. For the second child’s education in 22 years, he has estimated a need of
Rs 83 lakh and can build the corpus by starting an SIP of Rs 7,500 in a
diversified equity fund. For the first child’s wedding in 26 years, he needs Rs
1.08 crore and can build it by starting an SIP of Rs 6,000 in a diversified
equity fund and Rs 1,500 in the gold bond scheme.
Similarly,
for the second child’s wedding, he needs Rs 1.3 crore in 29 years. He will have
to start an SIP of Rs 5,000 in a diversified equity fund and Rs 1,500 in the
gold bond scheme to achieve this goal. Finally, for his retirement in 29 years,
Vinayak will need Rs 10 crore, and will have to allocate his EPF, PPF, NPS,
stocks and mutual funds for this goal. He will also have to start an SIP of Rs
15,000 in a diversified equity fund and continue investing Rs 500 a year in the
PPF.
For life insurance, Vinayak has one traditional
plan of Rs 1.2 lakh and Maalde suggests he continue with it. He also needs to
buy a term plan of Rs 2.5 crore at Rs 1,834 a month.For health insurance, he
has a Rs 15 lakh plan provided by his employer. He should buy a family floater
plan of Rs 10 lakh for a monthly premium of Rs 1,167. He should also pick an
accidental disability plan of Rs 50 lakh for Rs 667 a month.
