Those individuals, who have been between the age group of 40 and above, we tell those individual’s age group to golden 40. These golden 40 is very attractive segment for financial advisers for working!
In this group’s individuals most have very closer to their life-goals, like child education, marriage and buy a house and these goals were archived through their life savings.
Thus, these golden 40 individuals have could prepare for their retirement. These individual don’t have much liability except their retirement planning. So dear financial advisers could you advise them to SIP like free advice? Or plan their finance properly through appropriate asset allocation!
Thus, our most of individuals have started their investment journey lately then choosing and our IFA (Independent Financial Adviser) also advising SIP. But why suddenly equity mutual funds look attractive for him? Because need of equity in a portfolio or for their greed! Or their neighbor and their uncle were earning too much money from equity mutual funds!
Well we started our investment journey too late like in our 40s and above. But our 25-28 to 40 years of saving where we park? Obviously in traditional instrument like, Insurance policies, PPF (Public Provident Fund), Recurring deposit and Fixed Deposits. Among the all our majority of saving is in Insurance policies and PPF by advising of my father, grand-father, neighbor and family friends. Like, did death planning.
As per our past investment experience what are the situations occurred at your 40?
At our 40 and above, our children were ready for higher studies, this is the right time to built a house for own or after 5 years my daughter may in appropriate age for marriage. But my past saving is sufficient for it?
At your 40s you have a PPF balance of 40 lacs or above and your traditional insurance policies value is 15 lacs. But it covers only one or two life expenses. If you have started a SIP in later life also than its value is 7-9 lacs now. But it’s also not enough for you. Because you have redemption of funds from SIP for buy a plot or for other expenses!
Than what’s the solution? The simple solution is with our financial adviser. If we heir a one! Or if we are simply till now accumulated all corpus invested for our post retirement. Like Rs. 40 lacs + 15 lacs + 9 lacs = 64 lacs @ 15% in next 20 years it will Rs. 5 crore 20 lacs and something. If you are follow a proper asset allocation, because there is no bonus point for blind risk.
And for your presently nearer goals going through education, house building and personal loan given its EMI in time till retirement!
Swayam Bichar Kijiye!
For any query or feedback please let us know below or mail us at: prabirsharma@gmail.com
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