Is it too early to start investing for my one-year daughter’s marriage? :: Business Line

Please Share::


�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

��

-->

I am 28, married and live with my parents. I have constructed a house on my father’s land in which my younger brother has a share, estimated at ₹10 lakh. Kindly advise how to save for my retirement. Also, is it too early to start investing for my one-year daughter’s marriage?

Achuthan

The ₹10 lakh that you owe your brother is a liability that must be considered when planning your finances. Hence, start investing ₹17,200 every month for this goal. You will be able to pay it off after four years. Since you have already started investing in ULIP and SIP, continue the same. The asset allocation for your ULIP can be 60:40 in equity and debt, instead of the current 40:60, as you are young. The portfolio can generate around 10 per cent annually.

The present education cost of ₹8 lakh will be ₹25.3 lakh if inflation is at 7 per cent over the next 17 years. Designate your monthly SIP of ₹5,000 (9.5 per cent return assumed) to meet the goal. Your current estimate of ₹20 lakh for higher education will be ₹82.8 lakh, 21 years from now. You need to invest a monthly sum of ₹10,400, earning a return of 9.5 per cent to reach the target. Earmark a part of the ULIP for this goal.

It may appear too early to save for your daughter’s marriage but you are creating wealth. The present value of ₹20 lakh will be ₹1 crore in 2039. To reach the target, you ought to invest ₹9,300. Set aside your ULIP for this. Any excess returns on this investment may help meet your retirement needs. To maintain the current standard of living post-retirement, you need a corpus of ₹5.2 crore. Invest your surplus (₹8,000) towards this goal and step it up once your liability is paid off. You can follow an asset allocation of 50:40:10 in equity, debt and gold, and review it after a while.