Goals to Secure your present and Invest into Your Future

“The philosophy of the rich and the poor is this: the rich invest their money and spend what is left. The poor spend their money and invest what is left” – Robert Kiyosaki

Lakshmi Narayanan - Financial Planner

Everyone should have some Goals towards savings in their life. Latha Shubhakar, a Financial Planner and Insurance Advisor pens down these goals into two formats. One for himself/herself which is identified as Personal Goals and the other for spouses, kids, education, retirements, etc., which is categorised as Family Goals.

Personal Goals

Since we have no social security system in india it’s advisable to start the habit saving and investing as soon as one starts earning never mind even if the amount saved is very minimal in the beginning, get into the habit of saving.

It’s advisable to take a term plan and a health plan when one is young because the premium is very cheap and since health is good getting the policy is easy. Experts say 5% of one’s income must be set aside for these two goals. This also gives one the tax benefit from section 80C and 80D. The 3rd and 4th important pillar is to take Critical illness cover equivalent to one years income and setting aside 6 months salary as Emergency money.These four are called the defensive planning no matter what happens to one his family is already protected.

Family Goals

Now is the turn to make plans for all your other life goals, like children’s graduation, post graduation, wedding , right up to your Retirement. Kids graduation and post graduation costs a lot of money, planning judiciously for these makes sure the children get admission into the right colleges and parents don’t have to take loans at that age to fund college fees,Investment into debt funds like PPF, Sunkanya samvridhi , some guaranteed child plans, and SIP in mutual funds can be used to grow the money. A combination of these would mean diversification .Daughter’s wedding is a very important event where huge money is spent. Planning this goal also give one tension free life.

Each of these goals first figure how much it would cost you today and calculate future cost adding inflation and start off by investing in Mutual funds and make that a SIP.  After doing a risk analysis one can figure out how money should go into debt instruments and how much in equity.

For example, If one is 30 years old and invest Rs 10,000/ every month as SIP for the next thirty years, take a guess how much it grows to? 5.6 crores !!!! This is called the power of compounding. Einstein called the power of compounding as the eighth wonder of the world.

There are only two risks in life, the risk of dying too soon for which one should have sufficient Pure term risk insurance and for the risk of living too long which is the bigger risk because you retire at 60years and you live till the age of 75 , with inflation the sustainability money required is huge . Especially because we have no government pension. Also one has to plan for self and spouse who outlive men by a decade. A combination of debt and equity plans are suggested to grow the corpus money with careful planning.

Finally choosing the right instrument may not be that important , but choosing the right financial advisor makes all the difference.

About Latha Shubhakar

Latha started her journey of being a financial planner in 2001 as an Agent Advisor from Max life insurance company. In her 17 years of experience, she has had a great honour of being a Life Member of the international premier association of Million Dollar Round Table. Only 1% of agents worldwide become a Member of MDRT.  She is also a founder member of Max Bupa health insurance company and have been a PAN INDIA no 1 agent in the very first year of her joining.

She and her partner Mr Praveen who is CFP now help individuals do reach their goals which is comprehensive end to end planning right from Income protection to Retirement. They also prepare and share Fund statements on a monthly basis and annual reviews done to make sure that your money is growing according to the plan.

For more information you can contact Latha Shubhakar on 9844005521


Lakshmi Narayanan - Financial Planner

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