How should Raj manage his Finances?
Raj is a young
professional earning 4 lacs p.a. He has very few family responsibilities or
commitments and has no clue about savings, insurance or investments. Having started to earn Mr. Raj has to plan for Marriage, settlement, Children & their
Education, Family pleasures, Vacation and Retirement. Well, there are multiple saving & investment options. Inspite of that Insurance Investment gives you multi-fold benefit, which is not available in in any other investment. If I were to be asked what is the best & safest investment with guarantied returns, I would say Insurance!!!
Because I invest only in Insurance!!!
I have just created a virtual character to understand the information realistically! Mr. Raj is a young professional who is just married with a long life ahead. Planning from the beginning can put him in a very comfortable position with growing age and responsibilities.
What should Mr. Raj do to secure his life and future?
Raj has to get a 50 lacs pure Insurance
coverage to protect his dependants, for which he has to pay only 6000 p.a. – With this Raj’s Wife & children are taken care off in his absence.
Raj needs to create a corpus of 20 lac in the
next 20 years by just saving Rs. 5000 p.m. – Raj
can use this amount for his future needs like, marriage, investments, retirement, etc.
In the following 2-3 yrs. Mr. Raj's salary increases. This will enable him to invest a bigger amount in short term plans (5/10/15). After the term, he can continue to save the fund 25-30 yrs. This investment not only gives him life coverage and tax benefit; it also allows him to make partial withdrawals when ever required. With this investment Raj can meet his Children's educational needs, holiday trips, foreign trips, etc.
What else can Mr. Raj do?
In the next 8-10 years with his professional growth Raj’s salary can multiply by 5-7 folds; his savings & Investment capacity becomes strong along with enhanced family responsibilities.
In the next 8-10 years with his professional growth Raj’s salary can multiply by 5-7 folds; his savings & Investment capacity becomes strong along with enhanced family responsibilities.
- At this stage it is advisable for Raj to go for short term premium, say 5 yrs with an option to retain the fund for a longer term. This option not only adds to his existing Insurance coverage but also enables him to make partial with drawls every year, if required.
- If Raj is a young investor he needs to go for regular Pension planning, if Raj is above 50 yrs he must think of immediate pension.
If the above information has been of any help to you and If you are looking for someone to help you to make you understand your needs better, feel free to talk to me.
Mrs.
Srivani Gorantla,
Sr.
Insurance & Investment Adviser
(M)
9849097646
