Need ur guidance in my financial planning. I want to make my savings for both kids professional graduation say medicine .. Im planning to buy an independent home in between 3-5 yrs from home, where I need fund of atleast 10 lakhs for down payment, im just NPS subscriber by my employee. I didnt take any other retirement plans yet. I am a bank employee and my spouse is Soft. Engnr. We both earn around 85k and aged 37 and 29. Till I managed finding for emergency fund for abt 2 lakhs. Every month we are paying 2500 for lic policy for first child where we get returns from 14th year of child to 20yrs of 6 lakhs. Kindly guide me how to plan to achieve our goals. We both have health insurance from our both employers. We dnt take any term insurance yet. Thanks inadvance.
My both kids aged 5yrs and 14 months
Madhurii-First both you must buy term insurance to the tune of around 15-20 times of yearly income. Never depend on employer provided health insurance. Hence, buy health and accidental insurance separately. If you feel Rs.2 lakh will suffice for at least 6 months of household expenses and other committed savings, then let it be like that. Otherwise increase to it. Existing LIC plan will fetch you around 5% to 6% return. Hence, try to close that at the earliest.Regarding retirement and kids education or marriage, I strictly recommending you to start investing in equity mutual funds. This will give you an edge over inflation cost for your long term goals. Let me know if you have doubts in this.
We were planning to take term insurance in Kotak Mahindra
Hello sir, As per suggestion we planned to take term insurance in Kotak mahindra, can we go with Kotak or should we switch to another. Regarding kids education we are nil knowledge at equity mutual funds. Please guide us how to invest n how much amount to invest to meet inflation after 15years for their professional education. Please tell what is less? How to invest in it, is it by sip or one time investment/year