Hi sir, first of all thanks for approving my account.
I need some advice regarding finance management, just now I started earning, I am a doctor and earn 1 lakh per month.In about 6-7 years I may earn 1.5 lakh monthly and I am planning for d following
- Own a house
- child education plan
- retirement plan,
hence I request you to guide me in proper investment and tax savings
Ramakrishna-Before jump into investment. First do the emergencies at right. You started earning just. Hence, it is best to have protection from emergencies. First create an emergency fund of at least from 6 months to 12 months of your monthly committed expenses. Second, buy a term insurance to the tune of around 15-20 times of your yearly income. Third, buy health insurance equal to the sum insured of around equal to your yearly income. Fourth, buy an accidental insurance to the tune of around 10 times of your yearly income. Once all these are in place, then list your financial goals. Again in that the priority goals. Give importance to priority goals than fancy goals. Once all these are met then you can go for fancy goals like owning a high-end car or international vacation.
Coming back to your financial goals, it is hard for me to calculate without understanding the time frame of each goal and how much money you set it for each these goals in current values.
Thank you sir for valuable suggestionAs a beginner I want to know what is difference between term insurance and accidental insurance
Ramakrishna-Term insurance is a life insurance. Your nominee receive the sum insured in policy when your death occurs. In case of accidental insurance, you will receive the compensation when death occurs due to accident, disability due to accident or partial disability (based on the product feature).