SINGLE IS BLISS!
Single: Carefree (Less than 30 years old)
- Typically a carefree person, and you are probably building wealth you don’t need to have more than 5-10% of your money in savings accounts to cater to any emergencies.
- We suggest you start investing in Equities (50-70%) as per our risk appetite and financial goals, the number will change as per the scenarios.
- Once you begin to have your own family, the daily expenses tend to rise for the first few years as you settle down, leaving less scope for investing.
- Always good to keep some money (10-20%) in fixed return to cater to any short-term requirements. 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.
- Having insurance is essential to safeguard yourself, and your investments, and provide peace of mind with financial security. Insurance protects you and your investments from financial risks, providing coverage for unexpected events and minimizing potential liabilities, serving as a crucial safeguard.
You are carefree now, but plan for the future!
| Monthly Expense | Rate of Inflation; | No of yrs for retirement | Future Value |
|---|---|---|---|
| Rs. 30000/- | 7% | 25 | Rs. 1.63 lacs |
MARRIED (TWO CHILDREN)
Married (Two Children): Investing as per financial Goals and Requirements mostly focused on retirement and children’s wellbeing – (30-45 years of age)
- You need to plan for the days ahead -not only for yourselves but also for your children’s future and basic needs and mostly importantly for Quality Education. As they grow, they will need an education and maybe some starting assets in life.
- You don’t need to have more than 10 % of your money in savings accounts.-
- Keep a decent amount of money (50%) in equity -you should not need that money in a hurry so you are unlikely to be a distressed 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 debt mutual funds/Bonds. The interest/ Capital appreciation 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):
Aggressively building retirement corpus (45 – 55 Years)
- You are in the process of building a nice retirement corpus and must have almost completed all the higher educational financial requirements for your children by now.
- You don’t need to have more than 15% of your money in savings accounts to cater to emergencies
- Keep a decent amount of money (50%) in equity – you should not need that money in a hurry so you are unlikely to be a distressed 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. 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 good education and financial assets 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 early retirement and are spending more time traveling, doing social work, and helping out relatives and friends.
- And till now as you were working with the armed forces, so there were no requirements for taking a residential house as the accommodation was taken care of by the defense services, but now you may be having requirements for a residential house and the same can be catered by the retirement corpus accumulated and the amount received on retirement from the defense.
- Owing a house is a personal decision, some people prefer to live in their own house and some in rented due to low returns on residential real estate, and after retirement an armed officer receives a pension and medical needs they are covered by ECHS and the pension is also sufficient in most of the cases to cater the needs and in case of any shortfall the amount can be catered from the retirement corpus invested in various asset classes
- You don’t need to have more than 20% of your money in savings accounts.
- Keep a decent amount of money (20-30%) in equity – you should not need that money in a hurry so you are unlikely to be a distressed 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 (40-50%) in debentures and bonds. The interest/capital appreciation 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 debt instruments 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!
