Hi, At present i am paying an EMI of my housing loan (LIC HFL) with floating interest rate of 10.1 (2 years Locking period) and amount=25,0000/month. I am completing my 2nd year of repayment in 2 months. Now I can invest 10,000 extra every month . So i see 3 options :
1. pay this extra amount also in to housing loan ( make total 35000/month) to reduce the burden
2. start investment with low risk.
3. pay 5000 in housing loan (30000/month) and invest the other 5000 ( like PPF/NPS – among this which is better scheme)
You have to come out of LIC and buy a pure term plan (both of you) to the tune of around 15-20 times of your yearly income.
Consult a planner of your area or calculate on your own using some online financial planning tools about the exact requirement of child future and retirement. Once you arrive at the required monthly investment, then whatever left out can be diverted towards home loan.
You must not ignore the goals which are sure to come (kids education and retirement). Hence, if you are affording EMI, then along with that you must also concentrate on building corpus to such surely goals.