I am a 35 year old Software consultant working in an IT company. Annual CTC around 16 lacs. I am a single working woman and have no dependents as such so far.
My current investments/ savings include:
FDs: Rs. 30 lacs
PPF: Over 8 lacs so far (opened 10 yrs ago)
MF sips: Rs. 20k p.m. (started in Sep 2017)
Term insurance: Rs. 15 lacs cover (4k premium p.a.)
I need to invest 80,000 lump sum for tax saving (over and above EPF deduction) under sec. 80c. Request you to please suggest what should be good tax saving options for me? Options before me include:
- Increase term insurance (as my personal insurance cover is only Rs. 15 lacs now). What should be ideal insurance cover for my profile?
- ELSS – not sure how safe they shall be considering i have already SIPs running in normal MFs
- PPF – i have been investing in PPF all these years but not sure if its a good option now with reducing returns
- NPS – have not heard much good reviews on this
- some ideal mix of the above
Requesting your kind guidance. Many Thanks!
- The ideal insurance coverage should be around 15-20 times of your yearly income. However, if don’t have any financial dependents, then you no need to go for a SINGLE RUPEE OF LIFE INSURANCE.
- Investing for the sake of TAX SAVING is the biggest mistake. Invest based on your financial goals.
- PPF is best debt product. However, if the goal tenure matching with PPF maturity, then you can consider.
- NPS is one of the illiquid and horrible taxing product at retirement. Stay away from such products.
Note-The fullfledged planning can’t be done with mere few lines of sharing.