Your Financial Plan

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,

Send your queries to

Read the rest of this article by Signing up for Portfolio.It's completely free!

What You'll Get


This article is closed for comments.
Please Email the Editor