Financial Planner Pankaaj Maalde suggests they start by rescheduling their debt because of expensive personal and car loans. They can do this by reworking their home loan or taking a top-up loan of Rs 30 lakh. At 9% interest, it will result in an EMI of Rs 25,200, and they can repay the personal and car loans with the additional loan amount. This will free up Rs 31,980 which can be used to meet goals.
How to invest for goals
They can do this by starting SIPs of Rs 15,500 and Rs 11,000 in diversified equity funds. For their kids’ weddings in 18 and 22 years, they will need Rs 34 lakh and Rs 44 lakh, respectively, but will have to wait for a rise in income to start investing for these. For retirement, they will need Rs 4.2 crore in 25 years, and can assign their EPF, PPF, NPS and mutual fund corpuses. In addition, they will have to start an SIP of Rs 13,000 in a diversified equity fund, and invest Rs 500 a year in the PPF.
For life insurance, Prasad has a term plan of Rs 50 lakh. Maalde suggests he continue with it and buy an additional Rs 1 crore term plan, which will cost Rs 1,250 a month. For health insurance, they have a family floater plan of Rs 5 lakh and critical illness cover of Rs 10 lakh. Prasad also has a Rs 20 lakh accident disability plan. Maalde advises he buy a Rs 15 lakh top-up family floater plan, with a deductible of Rs 5 lakh, which will cost Rs 833 a month.
Financial plan by Pankaaj Maalde Certified Financial Planner
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