Although it is important to start saving early, but it’s never too late to begin as well. If you are in your late 30s or early 40s and feel you have not saved much, well you can increase your savings pattern from now.
Make sure that you do not make large lump sum payments. An initial investment of Rs.10,000 will be fine. Once you are comfortable with your assets class and are fully aware of its advantages, you can try increasing that minimum amount and save maximum from your income. If you are not into any kind of home loan or a personal loan repayment, it is good but if you are then, try prepaying a part or the whole principle amount of the loan by liquidating any assets, as it can considerably create a positive impact on your savings.
Considering the age bracket, it is best advised to start off by having a balanced exposure to debt and equity, as the retirement age is assumed to be 60 years. Once you near the retirement age, a greater exposure to debt is what is required. STP works exactly like a SIP investment, except a basic difference: in SIP, the monthly investment is debited from your bank account; in STP, the amount is transferred from an existing scheme to another. So if you want to ensure regular income post retirement as well, you can consider both options.
Having a total of 3 financial assets is what is advised where you get benefitted from tax reductions as well as you are guaranteed higher returns. Once this is sorted out, the next step will be to acquire a life insurance or heath insurance cover. This is majorly important in your case since, you will be having dependents to support in worst case scenarios, where you might lose your life. Providing for your family’s needs under such unforeseen circumstances, should be your goal so that your family can be benefitted from your wise investment decisions.