My Financial Goal is to have Minimum Wealth for my child to ensure the child education is not disturbed in any means. My Salary is 42k. Please suggest me investment options/tax exemption suitable for my financial goals. I can spare 10k from my salary.
SKMani-It is half-baked question. Because I don’t know your current financial situation, like how you planned for life insurance, health insurance, accidental insurance or emergency fund. Also, what are your current investments?
Regarding this goal, I don’t know the timeframe of this goal. Therefore, it is hard for me to guide you.
I dont have any saving till date apart from PF for the last two years , 60% of my salary goes for Personal Loan , Home Loan & Jewel Loan.This is my current financial situation.I need to start saving for my child.Please suggest
With regards to insurance, company takes care of family insurance and i opened one for parents with the employer itself. Apart from this i dont have any investments til date.
Timeframe for the goal is 20 years.
skmani-Try to come out of those so called all loans. Create an emergency fund of at least 6-12 months of your expenses. Buy term insurance for around 15-20 times of your annual income. Buy health insurance on your OWN (Don’t depend on your employer provided insurance) and finally buy accidental insurance. Once these are set right, then think of investing.
Regarding, your kid’s planning, I don’t think you need tax saving option (considering the home loan and EPF-if you have). First set your financial base right. Otherwise, you don’t know when you withdraw from your fresh investment.
Thanks you basunivesh for your valuable suggestion.Can you suggest me choosing the term insurance ?
So are you suggesting that i dont need any kids plan , Since i have home loan & EPF ? Please clarify.
skmani-You can refer my earliest post on choosing a term insurance at “Top 5 Best Online Term Insurance Plans in India-2016“. I am not saying that you must ignore your kid’s planning over existing loans. But what I am pointing is, living too much on EMI or Credit Cards is a dangerous sign of financial life. Hence, try to come out of those loopholes at the earliest.
I said you don’t need kids plan for TAX SAVING PURPOSE, as your home loan and EPF will suffice to fill the tax saving limitations. So don’t concentrate on tax saving. But if you feel that you can manage your loans, EMIs or credit card payments even with investing for your kid’s future, then start investing. In my view, equity mutual funds are best than running behind any so-called Child Plans.
Thanks a lot basunivesh for valuable suggestions. Appreciate it.