Financial Portfolios :
High risk -high returns, Low Risk-Lower returns.
- Add a Zero Risk investment product in your investment portfolio.
- Returns from investments in Equity shares, mutual funds, real estate, Gold, are subject to market risks and may go up or down at any moment. Returns are not guaranteed.
- Investments in Equity shares, mutual funds, real estate investments do have risk factors.
- Investment in bank deposits, post office schemes, insurance policies have ZERO Risk. and returns are 100% guaranteed, if the terms of contract are fulfilled till end. Returns are be lower than equity market, but are guaranteed for that period or many times guaranteed for LIFE.
1. How much Life Insurance one should have ?
Life Insurance Policy is : Income Assurance to the family. For example, a policy holder’s salary is Rs. 25,000/- per month. In case of any unfortunate event / death / disability, his income will stop. Insurance claim amount received from insurance company, will ensure that his family gets Rs. 25,000/- p.m, for LIFE-TIME, invested. That works out to be a policy of Rs. 37.50 Lakhs. i.e. about 10 to 12 times annual salary. (Investment of Rs. 37.50 L @ 8% will give Rs. 25,000/- pm). This policy is not expensive….just about Rs. 800/- pm. (age-35,25 yr, term insurance).
What is your Life Insurance Today ?
Think about it. Think about your salary, monthly expenses , and your existing policy amount. Plan your finances. Today. Plan with New Insurance Policies !
2. No Pension in Future from your Employer / Company !
YOU have to make provision NOW ! Save for Future Now ! Save Small, Save Regularly, Start Early. In old age, income stops / reduces but ….Expenses continue….or go up !
For example, if you invest Rs. 15,00,000/- in bank or in a pension policy today, you will get Rs. 1,20,000/- per year or Rs. 10,000/- per month, as interest or annuity, assuming interest / annuity rate of about 8% p.a. Think about your monthly expenses and work back-wards, amount you need to invest. Here is a simple formula : Simple Maths !
1. Decide amount to be invested x 8 / 1200. Result will be the amount you get per month, (your monthly expenses) OR
2. Your monthly expenses x 1200 / 8. Result will be the amount you need to invest.
Also think…. bank gives 8% today. Will it give 8% after 25 years ? may not be…(falling interest rates). Your returns will go down. Hence you will need to invest more today.
Also think…. about Inflation (increasing costs). If your monthly expenses today are Rs. 10,000/- You will need Rs. 25,000 after 25 years. Hence you need to invest more today or make additional investments later.
update : 19-09-2017