Thursday, 16 October 2014

Financial Planning - How disciplined savings can help Chandras meet their financial goals

amount of Rs 6,576 from their existing mutual fund investment. Similarly, for Meghana's marriage in 13 years, they will need a sum of Rs 40.79 lakh. For this too, they can allocate an existing SIP amount of Rs 7,042 a month to arrive at the desired corpus. If, however, they decide to use the existing gold fund SIP of Rs 3,000, they will have to allocate an SIP of Rs 4,042 in an equity fund to meet the goal.
Next, the Chandras require a sum of Rs 9.4 crore in 16 years to fund their retirement. It is not advisable for Ramesh to retire at the age of 56 years if he wants to build a corpus comfortably, but he can consider the decision later when he approaches the goal. To build this corpus, he will have to deploy several of his existing resources, including the EPF/PPF funds, stocks, mutual funds as well as property. Together, these will amount to Rs 2.67 crore, and to make up for the shortfall, he will have to start an SIP of Rs 50,089 in an equity fund. He can do this once he has built the emergency corpus in five months.
Finally, Ramesh wants a corpus of Rs 10 lakh for his parents' medical needs. To achieve this objective, he is advised to allocate his existing recurring deposit, mutual funds and the value of his surrendered insurance policies. These funds should be parked in a liquid option that is easily accessible.



(Financial planning by Fincart)

No comments:

Post a Comment