Financial Planning: Malhar Majumder

Last Updated: Thu, Sep 13, 2012 03:55 hrs

I am 30 and will get married next year. I run a business and earn Rs 70,000-80,000 per month . How should I save for the future? I have sufficient life insurance. I invest in a recurring deposit (Rs 20,000 a month). What are the other investment avenues I should look at?
You already have sufficient life cover. Just ensure the same would be enough to yield Rs 50,000 per month if anything happens to you after marriage. Also, I assume you are investing Rs 20,000 in deposits. This way you are inviting unnecessary tax liability as interest income on fixed deposits is fully taxable. I suggest you spread your investments between Public Provident Fund, New Pension Scheme and balanced mutual fund schemes, which would increase your yields and minimise taxes.

I received a text message saying, "Pay only Rs 4,000 a month and get Rs 50,000 as monthly pension for life and Rs 1 crore for your family". I am 28. Will a pension of Rs 50,000 suffice 32 years later? Do you recommend pension plans as an option for retirement planning? If not, what are the other options?
If we consider inflation of six per cent a year, for the next 32 years, the time value for a sum of Rs 50,000 would be close to Rs 8,000 (of today). It is not a very large amount and will not be sufficient. To plan your retirement, you should primarily save in provident fund (if you are salaried) and Public Provident Fund (if self-employed). Also, look at the New Pension Scheme and diversified equity mutual fund as options.

My daughter will get married next year. We need to buy jewellery. But, given the price of gold today, we wish to delay that purchase. However, we have already accumulated Rs 4 lakh for the purpose. Where should we deploy it? Will gold prices rise further?
Gold prices have significantly appreciated over the past few years. We can't be sure it will correct. If inflation is tamed a little, we might see some fall in gold prices. Under the current circumstance, you could park your idle funds in a short-term debt mutual fund, which will offer you better tax-adjusted returns than a bank fixed deposit.

Today, Malhar Majumder, Director, Gliese Consulting, answers your questions

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