I am 26. I will be joining a public sector bank soon. My father, a State government teacher, is 58. My mother is a home-maker. My brother is in college. My father will have a pension of ₹30,000 and my parents will be independent. I wish to utilise my surplus better to reach my goals. Do let me know the insurance policies I need to buy.

Biswajit Sahoo

It is heartening to see a youngster planning so early at the start of his career with clear short- and long-term goals.

There is no short cut for wealth creation, but with a plan it is easy to achieve one’s goals without taking undue risk.

If you are game for aggressive play, I suggest you experience what it is like to invest over a period/cycle. Since an individual’s traits are generally reflected in his/her investments, you’ll get to understand your way of going about it.

To meet all your goals you need to have a monthly surplus of ₹29,400 as against your current surplus of ₹20,000. As your salary increases, you can save comfortably.

If you are eligible for loan at lower interest than the education loan from your employer, take it, and pre-close the education loan.

After marriage, instead of buying a car with your own savings, check out auto loans from banks and plan accordingly.

Buy term insurance for ₹1 crore and health insurance based on company benefits. Follow asset allocation of 65:30:5 in equity mutual fund, debt and gold.

The writer is a SEBI-registered investment advisor and founder, myassetsconsolidation.com

Send your queries to blinefp@gmail.com

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