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Financial Planning

- Anil Chopra

Q. Dear Sir. My 40th birthday is approaching soon. My current salary package is around Rs.40 lakhs. However, in the name of investments, I only have accumulated some amount in my provident fund. Besides, I have acquired an apartment for which I am paying an EMI for last 7 years and still have to pay for eight more years. I have two young daughters and my wife is a house maker. Please suggest how can I secure my future. -Arun Singh, Mumbai

A. Dear Arun, “Better late than never”. First you need to ensure that you save at least 30% of your annual salary i.e. Rs. 12 lakhs in the whole year or Rs. 1 lakh per month. This amount of Rs. 12 lakhs should be prudently invested in a variety of schemes to ensure that your future is well secured and you are able to achieve all your important financial goals as well as take care of your retirement planning also.

We are suggesting you to split your savings of Rs. 12 lakhs in following investment/insurance schemes.

Please note that as you are approaching your 40th birthday, you must allocate 60% of your total savings in equity schemes by following the fundamental principle of financial planning that is 100 minus your age into equity. You should start five Sips of Rs 12000 each in different fund categories like large cap, mid cap, flexi cap and thematic fund etc. 10% of your total savings should be invested in Gold and that is why we are recommending you to invest Rs. 1.20 lakhs in Sovereign Gold bonds. We are confident that by taking these simple steps you will be able to secure a golden future for yourself. For more details, please contact the nearest Bajaj Capital branch and get your financial plan prepared.