Thursday, 16 October 2014

http://fincart.blogspot.in/2014/10/financial-planning-how-disciplined_16.html

Besides this, Ramesh gets a salary of Rs 1.3 lakh, which brings their monthly income to Rs 1.44 lakh.
s for their financial outgo, the Chandras spend Rs 35,000 on household expenses and Rs 14,500 on house rent, while Rs 16,500 goes as home loan EMI, Rs 20,080 as insurance premium and Rs 4,500 for Meghana's education Financial Planning. They invest Rs 49,000 in various avenues and are left with a surplus of Rs 4,420 a month.
The current goals of Chandras include building funds for Meghana's education and marriage, their own retirement, creating a contingency corpus and having a buffer for Ramesh's parents' medical needs. Fincart suggests a realignment of investments and a revamp of insurance portfolio to be able to meet all the goals.
Insurance coverage
Though Ramesh has a seemingly impressive collection of insurance policies, these are all costly, traditional plans which will be unable to beat inflation and offer a low cover at a high premium of Rs 2.35 lakh a year. While he does have a term plan, it is expensive. Ramesh needs a cover of Rs 2.5 crore given his income, expenses and home loan, and the Fincart team suggests buying an online cover of this amount, which will cost him Rs 38,742 a year. Since Meenakshi is not working, she doesn't require any life insurance.




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