Name: Aditi (36) and Malav Joshi (40)
Resides in Mumbai
Aditi is a Senior Manager HR in an MNC, Malav is middle management cadre in an it co
Net monthly income combine
Status & goals
The main aim for this plan is to assess whether it is feasible for Aditi to quit her job without compromising on their lifestyle or goals. Their son, Soham is studying in an international school so the expenses are on the higher side, besides they love to travel which they do not want to discontinue. They live in their ancestral house in Mumbaiís suburb with Soham (7) and Malavís mother Sneha Joshi (69).
A comprehensive financial plan securing all goals ó childís education, daughterís marriage, retirement, international vacation, investment and insurance planning.
Net monthly surplus
Property (Current Value) : R40 lakh
EPF (Aditi) : R8 lakh
EPF (Malav) : R15 lakh
PPF (Combined) : R10 lakh
Fixed Deposits : R4 lakh
Stocks : R50 lakh
Mutual Funds : R25 lakh
Savings accounts : R90,000
Emergency fund: The Joshiís have R4.90 lakh in savings account and FDís which is a substantial amount of liquidity.
Health Insurance: Aditiís employment benefit provides R5 lakh cover for her and Soham, Malavís employer benefit includes R5 lakh cover for him and his mother. For his mother a premium of R1,000 per annum is deducted by his employer from his salary. The health insurance is slightly on the lower side. With health expenses going up, the existing amount looks insufficient, especially for Malavís mother.
insurance: They have taken a very good decision to go in for bigger amounts of insurance through term plans. Though there are endowment policies which are low on returns, they have no major negative impact on any goals or the cash flow. Malav has a cover of R1.18 crore while Aditi is covered for R35 lakh.
Investments: The Joshiís have invested wisely in a variety of asset classes. They have been regular investors in equity which is showing in the sizeable corpus they have built over their earning years.
Retirement: They have a two-pronged approach towards saving for retirement. Equity will form the base and real estate will support the goal. This is a very good approach and has served them well.Their EPF also has significant balances which can play a major role in their retirement planning.
Liabilities: They have recently brought a flat in Baroda. Their home loan outstanding is R25 lakh and they are paying an EMI of R25,000 per month. The loan will get over in 2031.