How much to invest for future?
There is always this question which baffles most of us, how much should we save for our future and where and all do we make investment?
Well to start with, according to general statistics you should save the % of your salary equivalent to your age, which means if you are 20 years old then save 20% of your income, if you are 30 years of age then save 30% of your income as so forth. So the younger you are the less you need to save. That's the basic idea and you also have to be consistent if you want a future where you are self dependent.
Also if you have a figure in your mind like “I wish to have a bank balance of 1-crore post retirement” then it becomes easier to save, as now you have a target to achieve. Setup your mindset to achieve the goal you have in mind and work towards it. Here is the another piece of information, if you target to have 1-crore then you definitely need to target for more than that as almost always you have other obligations like children’s education, their marriage, unforeseen circumstance etc.
It’s best to assume that you earn at least 30% less than your actual income and religiously invest that for your future. Divide the investment that you have allotted every month and invest 60% in safe investment like
1. PPF (Personal Provident Fund)
2. Fixed Deposit
3. KVP (Kishan Vikas Patra) KVP are measured as one of the most safe investment tool. It has the backing of the Government of India, although there is no tax benefit. In KVP the money is doubled in 8.7 years)
4. LIC
5. Health Insurance if you need to
Other 40% you might invest in MF, ELSS, shares etc.
Make sure you have covered your tax limit for the year by investing where it gives tax benefit before invest where it does not give any tax benefit like KVP etc.
There is also a buzz, which is going around “Highest NAV guaranteed”. The fund management company always gives a rosy picture but they don’t explain the flip of the coin. Below are two articles, which explain the fine lines. So if you are investing then be sure what you are getting into, no point complaining later.
Best to stay away from guaranteed nav plans
NAV based Insurance plans
Hope this article was of use to you. Please do share with us if you are aware of any better investment opportunity.
Well to start with, according to general statistics you should save the % of your salary equivalent to your age, which means if you are 20 years old then save 20% of your income, if you are 30 years of age then save 30% of your income as so forth. So the younger you are the less you need to save. That's the basic idea and you also have to be consistent if you want a future where you are self dependent.
Also if you have a figure in your mind like “I wish to have a bank balance of 1-crore post retirement” then it becomes easier to save, as now you have a target to achieve. Setup your mindset to achieve the goal you have in mind and work towards it. Here is the another piece of information, if you target to have 1-crore then you definitely need to target for more than that as almost always you have other obligations like children’s education, their marriage, unforeseen circumstance etc.
It’s best to assume that you earn at least 30% less than your actual income and religiously invest that for your future. Divide the investment that you have allotted every month and invest 60% in safe investment like
1. PPF (Personal Provident Fund)
2. Fixed Deposit
3. KVP (Kishan Vikas Patra) KVP are measured as one of the most safe investment tool. It has the backing of the Government of India, although there is no tax benefit. In KVP the money is doubled in 8.7 years)
4. LIC
5. Health Insurance if you need to
Other 40% you might invest in MF, ELSS, shares etc.
Make sure you have covered your tax limit for the year by investing where it gives tax benefit before invest where it does not give any tax benefit like KVP etc.
There is also a buzz, which is going around “Highest NAV guaranteed”. The fund management company always gives a rosy picture but they don’t explain the flip of the coin. Below are two articles, which explain the fine lines. So if you are investing then be sure what you are getting into, no point complaining later.
Best to stay away from guaranteed nav plans
NAV based Insurance plans
Hope this article was of use to you. Please do share with us if you are aware of any better investment opportunity.
Labels: Highest NAV, How much to save for future, Investment
posted by mahboob at 12:40 PM
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