The reasons to emphasise on savings and investments are many. If you manage to start saving early in life, you can manage to build a huge investment corpus, which you and your wife can enjoy post-retirement.
The options of availing a Car Loan or a home loan may not be necessary at all. Since you have funds for fulfilling all your needs. If you have a newborn at home, start saving funds on his/ her name, so that by the time your child reaches 21 years of age, you can manage to provide full support for your child’s foreign higher education needs.
To start off, make sure you have a maximum of 5 equity related funds and 1 debt asset in your portfolio. The debt assets could preferably be EPF or PPF. Though the maturity is after a long period of time, they can give you exceptional tax benefits and higher returns in future.
Your equities basket can be diversified by possessing large-cap, two diversified, mid-cap and hybrid funds can form your portfolio. Also, make sure you have adequate life and health insurance covers for you and an individual cover for your family members.
Once you managed to structure your portfolio it is important to carry out a review and a rebalance method at least once in a year. Do not react much to the market if it becomes bearish since there is a tendency for the markets to bounce back after a period of time. And since equities need to be invested for about a period of 10 years, the markets are sure to perform better.
Following the above-mentioned steps, you can manage to provide your child with a financially stable and a secure future along with your stable income flows for your post-retirement life.