Karthik and Uma are from Coimbatore and recently married. They wanted to plan their goals.
Karthik, 29, is employed in one of the main companies in Coimbatore. Your salary will be ₹ 80,000 per month after this April tax. UMA, 26, is currently not employed. She has completed her mastery in commerce. She is looking for employment in banks and preparing for exams.
They have a long list of objectives.
* They are looking to build six months or expenses as an emergency fund.
* They currently stay with Karthik’s parents and because to build an independent house on Earth given by Uma’s parents. The estimated current cost is ₹ 35 Lakh. They wanted to verify when and how to achieve this goal.
* Uma spends ₹ 5,000 per month for the preparation of your exam and has the hope of being used in the next 12-18 months. Total expenses, excluding their education expenses, are ₹ 50,000 per month. He wanted to give a bicycle to Karthik, which costs around ₹ 1.5 Lakh of his profits once he gets the work of his dreams. The initial salary is expected to be around ₹ 60,000 per month.
* Karthik’s savings in EPF, including the employer’s contribution, are ₹ 4,500 per month. I wanted to verify if you can withdraw at 55.
* They plan to have two children in the next five years. They wanted to assign enough funds for initial demands and education expenses as well. UMA has the hope of obtaining adequate family support and not waiting for any rest in its employment after childbirth.
Both have an aggressive risk appetite and are willing to have more than 50 percent of their investments in the capital asset class, since they are in the accumulation stage.
Reviews, recommendations
* KARTHIK will opt for a term insurance of ₹ 1 crore immediately and UMA needs to evaluate your insurance requirement after entering employment. They need to opt for a health coverage of ₹ 5 LAKH in addition to the health coverage provided by Karthik’s employer.
* They will have ₹ 20,000 per month as an investment surplus until UMA obtains employment.
* They were advised to follow a basket strategy to finance their objectives: ₹ 10,000 per month towards short -term objectives. This must be through recurring deposits, liquid funds and fixed deposits.
* This short -term basket will help them build four months of life expenses, ₹ 2 Lakh and ₹ 1 Lakh for the initial expenses of children and buy a bicycle. This basket will be built about five years with the provision of withdrawal towards short -term needs. Financing focuses on safety and liquidness.
* The next basket is to finance its medium-term expenses, such as the children’s school admission rate, 30-40 percent of the housing construction fund, the professional growth fund and the medical fund and the additional medical fund to support their parents, in case of any emergency. They are advised to assign ₹ 5,000 per month initially. UMA’s employment will help them increase the contribution to this objective. This financing will have 40 percent in the capital and the balance will be in the allocation of fixed income.
* The final basket will be handled towards its long -term objectives. As Karthik’s fixed income allocation is ₹ 4,500 per month in EPF, it was advisable to invest ₹ 5,000 per month in mutual capital funds such as long -term investments.
* If your contribution increases 8 percent each and the investment yield is aggravated annually to 12-15 percent over the next 25 years, they have a fair possibility of accumulating ₹ 3-4.4 million rupees at the end of 25 years.
* It was also discussed to focus on professional growth, accumulating wealth to think about retirement at a particular age. The investment must be intended for the creation of long -term wealth for young people. Additional objectives, such as the purchase of the car, the purchase of the house, the holidays, will exercise more tension in the cash flow than the savings and the investments.
Investing is a marathon. Many young investors we are talking about seem to understand this at the beginning. With the exception of some, many lose the long -term approach due to several challenges. Therefore, professional orientation at the right time can yield different perspectives and help make better decisions taking into account short, medium -term objectives and long term.
The author is a Sebi registered investment advisor, he can be contacted at www.financialplanners.co.in
Posted on April 12, 2025
