Broad Custom Plan As Per Your Lifestage

Benchmarks at Various Stages in Life

What Broad Financial Strategy Should You Follow?
The paths taken to financial independence vary depending on the risk profile of the investors, the amount of capital they begin with, and the targeted capital that they wish to end up with. There is also a factor of luck and timing that many investment advisors do not like to acknowledge but is a fact of investing and planning. The most carefully laid out plans can be challenged by special, unforeseen circumstances. And conversely, sometimes those who did not have a plan end up reaching financial nirvana by sheer good luck and fortune. But though we respect the power of luck and timing, we still believe that most people who plan their financial future will have a better understanding of what they need to do to achieve their targets than those who rely only on luck. The suggested broad financial strategy below is only a guideline since the actual personal plan will be entirely individual specific as per his requirements, risk profile, commitments, priorities, market conditions, state of the economy and finally, what’s available in the market!!.

SINGLE IS BLISS!

Single : Carefree (Less than 30 years old)

  • Typically a carefree person, you don’t need to have more than 5% of your money in savings accounts.
  • We suggest you start investing in a property (50%). Once you begin to have your own family, the daily expenses tend to rise for the first few years as you settle down. That does not leave much scope for investing. Though the returns from property may not be very high, it is good to have the security and comfort of owning your own home early.
  • Keep some money (30%) in equity. Equities as an investment may be good long-term investments but they can also have one or two bad years and, if you need the money urgently, you may be selling into a distressed stock market.
  • Always good to keep some money (10%) in fixed return instruments. The interest from the money invested in fixed income instruments may be given to your parents or brothers and sisters in case they are financially dependent on you.
  • And keep some (5%) in gold too. Gold is an international asset priced in US Dollars and sometimes acts as a hedge against loss of wealth due to a weak Indian Rupee.

You are carefree now, but plan for the future!

Single : Building Wealth (30 -45 Years)

  • You are probably building wealth. With no immediate family to support, you may have already acquired your own property (40% of your investment pool) so free up money to invest in other assets.
  • You don’t need to have more than 5% of your money in savings accounts.
  • Keep a good amount of money (35%) in equity – you should not need that money in a hurry so you are unlikely to be a distress seller of shares. Equities as an investment may be good long-term investments but they can have one or two bad years and, if you need the money urgently, you may be selling into a distressed stock market.
  • Keep a decent amount of money (15%) in fixed return instruments. The interest from the money invested in fixed income instruments may be given to your parents or brothers and sisters in case they are financially dependent on you.
  • And keep some (5%) in gold too. Gold is an international asset priced in US Dollars and sometimes acts as a hedge against loss of wealth due to a weak Indian Rupee.
  • We wish you all the best in your efforts to build wealth for a happy future!

Single : Adding to Wealth (45-55 Years)

  • You have probably accumulated some wealth. With no immediate family to support, you may have already acquired your own property (30% of your investment pool) so free up money to invest in other assets.
  • You don’t need to have more than 5% of your money in savings accounts.
  • Keep a large amount of money (45%) in equity – you should not need that money in a hurry so you are unlikely to be a distress seller of shares. Equities as an investment may be good long-term investments but they can have one or two bad years and, if you need the money urgently, you may be selling into a distressed stock market. The good thing about investing in equities is that, if you made the right selection, you can actually generate good returns to take care of your retirement days. Although you are still young and hopefully in good health, start thinking about the eventuality of retirement and how much money you will need to maintain a decent lifestyle.
  • Keep 15% in fixed return instruments. In addition to being a stable part of your portfolio, the interest from the money invested in fixed income instruments may be given to your parents or brothers and sisters in case they are financially dependent on you.
  • And keep some (5%) in gold too. Gold is an international asset priced in US Dollars and sometimes acts as a hedge against loss of wealth due to a weak Indian Rupee.
  • We wish you all the best in your efforts to add to your wealth!

Single : Carefree Retirement (More than 55 Years)

  • You have probably accumulated some wealth. Retirement is around the corner if not already upon you. Steadiness and safety are your prime investment objectives at this stage. With no immediate family to support, you may have already acquired your own property (30% of your investment pool) so free up money to invest in other assets.
  • You don’t need to have more than 5% of your money in savings accounts.
  • Keep 35% of your money in equity – you should not need that money in a hurry so you are unlikely to be a distress seller of shares. Equities as an investment may be good long-term investments but they can have one or two bad years and, if you need the money urgently, you may be selling into a distressed stock market. The good thing about investing in equities is that, if you made the right selection, you can actually generate good returns to take care of your retirement days. Although you are still young and hopefully in good health, start thinking about the eventuality of retirement and how much money you will need to maintain a decent lifestyle.
  • Keep 25% in fixed return instruments. In addition to being a stable part of your portfolio, the interest from the money invested in fixed income instruments may be given to your parents or brothers and sisters in case they are financially dependent on you.
  • And keep some (5%) in gold too. Gold is an international asset priced in US Dollars and sometimes acts as a hedge against loss of wealth due to a weak Indian Rupee.

Enjoy a carefree retirement!

MARRIED AND WORRIED

Married (No Children) : Property Top Priority (Less than 30 Years)

  • You need to plan for the days when you may have a family. Property is your top priority. Keep 50% of your money in property.
  • You don’t need to have more than 5% of your money in savings accounts.
  • Keep a decent amount of money (30%) in equity – you should not need that money in a hurry so you are unlikely to be a distress seller of shares. Equities as an investment may be good long-term investments but they can have one or two bad years and, if you need the money urgently, you may be selling into a distressed stock market.
  • Keep some money (10%) in debentures and bonds. The interest from the money invested in fixed income instruments may be given to your parents or brothers and sisters in case they are financially dependent on you.
  • And keep some (5%) in gold too. Gold is an international asset priced in US Dollars and sometimes acts as a hedge against loss of wealth due to a weak Indian Rupee.

You have just started. But if you plan it well, the journey is fun and the target is achievable!

Married (No Children) : Building Wealth (30 – 45 Years)

  • You need to plan for the days when you may have a family. Hopefully, you have already made your investment in a property. Keep no more than 50% of your money in property
  • You don’t need to have more than 5% of your money in savings accounts.
  • Keep a decent amount of money (30%) in equity – you should not need that money in a hurry so you are unlikely to be a distress seller of shares. Equities as an investment may be good long-term investments but they can have one or two bad years and, if you need the money urgently, you may be selling into a distressed stock market.
  • Keep some money (10%) in debentures and bonds. The interest from the money invested in fixed income instruments may be given to your parents or brothers and sisters in case they are financially dependent on you.
  • And keep some (5%) in gold too. Gold is an international asset priced in US Dollars and sometimes acts as a hedge against loss of wealth due to a weak Indian Rupee.

Married (No Children) : Planning for Retirement (45 -55 Years)

  • You should have built a nice, cozy nest for yourselves by now. Maybe you could think about an earlier retirement. Spend more time travelling, doing social work, helping out relatives and friends. Hopefully, you have already made your investment in a property. Keep no more than 40% of your money in property.
  • You don’t need to have more than 5% of your money in savings accounts.
  • Keep a decent amount of money (30%) in equity – you should not need that money in a hurry so you are unlikely to be a distress seller of shares. Equities as an investment may be good long-term investments but they can have one or two bad years and, if you need the money urgently, you may be selling into a distressed stock market.
  • Keep some money (20%) in debentures and bonds. The interest from the money invested in fixed income instruments may be given to your parents or brothers and sisters in case they are financially dependent on you.
  • And keep some (5%) in gold too. Gold is an international asset priced in US Dollars and sometimes acts as a hedge against loss of wealth due to a weak Indian Rupee.

You are soon set to enjoy the benefits of your hard work. But don’t lose sight of your financial goals. And your discipline.

Married (No Children) : Carefree Retirement (More than 55 Years)

  • You should have built a nice, cozy nest for yourselves by now. Maybe you have already taken an early retirement and are spending more time travelling, doing social work, helping out relatives and friends. Hopefully, you have already made your investment in a property. Keep no more than 35% of your money in property.
  • You don’t need to have more than 5% of your money in savings accounts.
  • Keep a decent amount of money (30%) in equity – you should not need that money in a hurry so you are unlikely to be a distress seller of shares. Equities as an investment may be good long-term investments but they can have one or two bad years and, if you need the money urgently, you may be selling into a distressed stock market.
  • Keep some money (25%) in debentures and bonds. The interest from the money invested in fixed income instruments may be given to your parents or brothers and sisters in case they are financially dependent on you.
  • And keep some (5%) in gold too. Gold is an international asset priced in US Dollars and sometimes acts as a hedge against loss of wealth due to a weak Indian Rupee.

You are probably enjoying the benefits of your hard work. But don’t lose sight of your financial goals. And your discipline.

MARRIED AND MORE WORRIED (TWO CHILDREN)

Married (Two Children) : Property top Priority (Less than 30 Years)

  • You need to plan for the days ahead -not only for yourselves, but also for your children. As they grow, they will need an education and maybe some starting assets in life. A small property or co-ownership in a separate property may not be a bad idea to give them that extra security. But a property of your own is your top priority at this stage. Keep 50% of your money in property.
  • You don’t need to have more than 5% of your money in savings accounts.
  • Keep a decent amount of money (30%) in equity -you should not need that money in a hurry so you are unlikely to be a distress seller of shares. Equities as an investment may be good long-term investments but they can have one or two bad years and, if you need the money urgently, you may be selling into a distressed stock market.
  • Keep some money (10%) in debentures and bonds. The interest from the money invested in fixed income instruments may be given to your parents or brothers and sisters in case they are financially dependent on you.
  • And keep some (5%) in gold too. Gold is an international asset priced in US Dollars and sometimes acts as a hedge against loss of wealth due to a weak Indian Rupee.

You have just started. But if you plan it well, the journey is fun -and the target is achievable! What’s more, you will be the proud parents of two grateful children.

Married (Two Children) : Planning Children’s Future (30 – 45 Years)

  • You need to plan for the days ahead – not only for yourselves, but also for your children. As they grow, they will need an education and maybe some starting assets in life. A small property or co-ownership in a separate property may not be a bad idea to give them that extra security. You should be well on your way to having a property of your own at this stage. And maybe you should begin to focus on money for the children’s education. Keep 50% of your money in property.
  • You don’t need to have more than 5% of your money in savings accounts.
  • Keep a decent amount of money (30%) in equity – you should not need that money in a hurry so you are unlikely to be a distress seller of shares. Equities as an investment may be good long-term investments but they can have one or two bad years and, if you need the money urgently, you may be selling into a distressed stock market.
  • Keep some money (10%) in debentures and bonds. The interest from the money invested in fixed income instruments may be given to your parents or brothers and sisters in case they are financially dependent on you.
  • And keep some (5%) in gold too. Gold is an international asset priced in US Dollars and sometimes acts as a hedge against loss of wealth due to a weak Indian Rupee.

You have just started. But if you plan it well, the journey is fun – and the target is achievable! What’s more, you will be the proud parents of two grateful children.

Married (Two Children) : Property for Children (45 – 55 Years)

  • You should have built a nice, cozy nest for yourselves by now. Hopefully, you have already made your investment in a property for yourselves and for the children. The education part of their lives is the focus of your attention at this stage. Keep no more than 50% of your money in property.
  • You don’t need to have more than 5% of your money in savings accounts.
  • Keep a decent amount of money (20%) in equity – you should not need that money in a hurry so you are unlikely to be a distress seller of shares. Equities as an investment may be good long-term investments but they can have one or two bad years and, if you need the money urgently, you may be selling into a distressed stock market.
  • Keep some money (20%) in debentures and bonds. The interest from the money invested in fixed income instruments may be given to your parents or brothers and sisters in case they are financially dependent on you. Additionally, the interest from the debentures should help you maintain a decent lifestyle as you contemplate retirement.
  • And keep some (5%) in gold too. Gold is an international asset priced in US Dollars and sometimes acts as a hedge against loss of wealth due to a weak Indian Rupee.

You are soon set to enjoy the benefits of your hard work. But don’t lose sight of your financial goals. And your discipline. Meanwhile, your children are well taken care of with a good education and property in their names. Well done.

Married (Two Children) : Retired / Children on their Own (More than 55 Years)

  • You should have built a nice, cozy nest for yourselves by now. Maybe you have already taken an early retirement and are spending more time travelling, doing social work, helping out relatives and friends. And your children if they need your help. Hopefully, you have already made your investment in a property. Keep no more than 50% of your money in property.
  • You don’t need to have more than 5% of your money in savings accounts.
  • Keep a decent amount of money (20%) in equity – you should not need that money in a hurry so you are unlikely to be a distress seller of shares. Equities as an investment may be good long-term investments but they can have one or two bad years and, if you need the money urgently, you may be selling into a distressed stock market.
  • Keep some money (20%) in debentures and bonds. The interest from the money invested in fixed income instruments may be given to your parents or brothers and sisters in case they are financially dependent on you. Additionally, the interest from the debentures should help you maintain a decent lifestyle as you contemplate retirement.
  • And keep some (5%) in gold too. Gold is an international asset priced in US Dollars and sometimes acts as a hedge against loss of wealth due to a weak Indian Rupee.

You look behind you at what has been achieved and you can smile. Your planning has done you well. Enjoy the satisfaction of having fulfilled your duties and take some time to enjoy yourselves. Very soon, you may have grandchildren to share your joys with!

But don’t lose sight of your financial goals. And your discipline

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