House takes pri­or­ity

The other goals can be achieved in a stag­gered man­ner.

The Times of India (Mumbai edition) - - TIMES PERSONAL FINANCE -

Shiv and Smita Baruah stay in a rented house in Noida and bring in a com­bined salary of `1.38 lakh. Their goals in­clude build­ing an emer­gency cor­pus, buy­ing a house and sav­ing for re­tire­ment. Fi­nan­cial Plan­ner Pankaaj Maalde sug­gests that since they don’t have any chil­dren, they can stag­ger their child-re­lated goals and start in­vest­ing for these af­ter a few years.

The cou­ple can achieve the goals as per the ta­ble given be­low. For the house worth `50 lakh that they want to buy in 18 months by mak­ing a down pay­ment of `10 lakh, they will have to start an SIP of `53,000 in an ul­tra short-term fund. For the re­main­ing amount, they will

HOW TO IN­VEST FOR GOALS

have to take a loan for 20 years. At an in­ter­est rate of 8.5%, the EMI will come to around `34,700 and this can be eas­ily sourced from the sur­plus.

As for life in­sur­ance, Shiv has a term plan and a tra­di­tional plan worth `51.5 lakh. Maalde sug­gests he re­tain the two and buy an­other term plan of `1 crore for him­self and `50 lakh for Swati, at `1,417 a month. The cou­ple has a fam­ily floater plan of `5 lakh, but should buy a `10 lakh plan at `1,666 a month. Shiv should also buy a `25 lakh crit­i­cal ill­ness and a `25 lakh ac­ci­dent dis­abil­ity plan for him­self, and a `25 lakh ac­ci­dent dis­abil­ity plan for Smita at `1,000 a month.

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