Please Guide me How much and where to invest per month or Annually to become financially independent?

Question

Hi, I am married working in a Software Company in NCR region. I have a 3 months old kid. My and my wife's age is 25yr. Our combined income per month (take home) is around Rs. 50K.

After deducting all expenses rite now i am able to save only Rs. 25K per month.

I have LIC of 4Lac (Premium: 16K); Wife LIC of 3Lac(Prem. 12K) annually.

Apart from this please guide me where shud i invest either Mutual Funds or NSC's or LIC or FD's ....

So that my investments should take care of Child's education, Me & my wife's after Retirement Period. I want to be financially independent after retiring. May be at the age of 55 or 50.

I am pretty much confused how much of worth LIC should i take for me & wife. Is it worth to invest in LIC or shud i go for NSC's or Mutual Funds. What abt taxes on the interest which i'll get from these investments.

What abt investing in pension scheme?

How much i shud invest per month according to increasing inflation rate of India?

Please advice gud schemes.

Thanks

Answer 1

You're saving 50% of what you make?  Do I have that right?  If so, that's fantastic.

Of the choices you've indicated, I like mutual funds, but that's only because I don't understand your other choices, I'm sorry to say.  Is LIC life insurance?  If so, that's generally not a good investment.  You're better off with stocks, but you'll have to learn how to invest.

You're wise to learn this now: most people wait too long.

Answer 2

Firstly, What's Rs 50k? In what currency?

What's LIC, 4Lac, NSC stand for?

My comment is always remember, Life Ins is for Protection purpose. U should see whether the life ins coverage is sufficient for your family or not.

Then go into to get a Medical (H&S) or called Hospital & Surgical Ins coverage for your whole family.

Mutual Fund is ONE of the Tools to achieve your Financial Goal. You can choose the fund type according to your Personal Risk Profile.

For your case, u r only age 25. To retire at age 50 or 55. U have at least 25 years Time Horizon to proceed it. So, U can go for some Aggressive Funds, such as Equity Funds with Diversify to several Regions espeacially Asia Pac.

Simple Steps Invest In Mutual Fund.

1) Kick Start Your Investment

2) Invest Regularly ( a fixed amount every month )

3) Invest When Opportunity Arrive ( Market Correction )

4) Review or Restructure Your Whole Portfolio Every 6 Months according to market situation & your risk profile.

Sorry, I'm not sure about the inflation in your country.

NOTE: U r now in the Wealth Accumulation Stage.

Regards

Adrian

Answer 3

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