From your child’s marriage to retirement, investment should be done in a way that it helps you in accomplishing life goals. In this article, we discuss a few basic life goals and how you can fulfil them financially.
Once you start earning, you look for ways to save money to secure your future. After assessing your future needs, you plan your life goals and work towards achieving them. For every individual, goals are different, but most of them are aimed at securing yourself and your family against unforeseen circumstances. It is thus extremely important to invest in different avenues that fulfil your various life goals.
In this article, we discuss a few basic life goals and how you can fulfil them financially.
Securing Family In Absence Of A Breadwinner
Usually, in nuclear families, there is only a single breadwinner on whom the monthly expenditure is dependent. If anything happens to the breadwinner, then the whole family’s well-being goes for a toss. For such people, securing family’s future is the sole aim.
Term Plan can be a good option here as it gives the dependent of the policyholder a sum assured in case of his unfortunate demise during the policy tenure. This money can be used to meet monthly expenditure, children’s education or marriage and others. The premium for term insurance is quite low and the policy can be taken for a longer duration up to the age of retirement.
Everyone likes to see their money grow once they start earning. It is important that along with a good insurance policy, you invest in products that provide high returns and multiply your money. Systematic Investment Plan (SIP) can be a good option as it is a hassle-free way of investing in Mutual Fund schemes. SIP helps you in having a disciplined approach towards investing. It also inculcates a saving habit to build a good corpus for your future. Investing in SIP doesn’t require you to time the market.
All you need to do is choose a Mutual Fund scheme and your money will get auto-debited each month. The two powerful strategies behind SIP – Compounding and Rupee Cost Averaging help in creating wealth.
Having a Health Insurance plan for yourself and your family should top your list as it can protect you from heavy expenses needed during a medical treatment. You should invest a good amount of money in buying health insurance plans to cover a range of medical issues from hospitalisation to Critical Illness. A non-insured family in terms of health can ruin the whole savings in case of any unforeseen circumstances.
Child Education Or Marriage goals
Securing your child’s future is another important goal that you should set and work towards fulfilling. With education cost rising, it is important that you take Life Insurance for your children. It not only financially secures your child’s future but also helps in financing important events like higher education, marriage etc.
The policy term of a Child Plan can be decided on the basis of your kid’s age. Additionally, a child plan also allows you partial withdrawals to meet your child’s important needs.
There are various investment options to secure your retirement. Post-retirement, you won’t get a monthly income for your daily expenses. Therefore, it is important that you invest in retirement schemes when you are young to have a steady flow of money after retirement.
You can invest in Public Provident Fund as it provides a good return and can be ideal investment fund for your retirement. Also, invest in pension schemes that will give you monthly pension once you retire. Choose the premium based on the amount of monthly pension you would like to receive after retirement.
Hence, it is important to make systematic investments to fulfil various life goals.