Following are few steps to get started on your journey to achieve financial independence followed by frequently asked questions. For other questions please go through the blog. Please drop me a note if you still have questions and I will be happy to help you. So here it goes…
1. Create an emergency corpus.
2. Purchase adequate term plan.
3. Purchase adequate health cover.
4. Identify your future goals like kids education, kids marriage, early retirement, etc
Some frequently asked questions around these topics –
Q. Which is the best term cover plan?
Ans. All insurers are equally good or bad. Opt the one you are comfortable with. Please do remember even LIC does not has 100% claim settlement ratio so don’t base you decision on claim settlement ratio (CSR) alone.
Q. Which is the best health cover for me (my family)?
Ans. Again opt the insurer you are comfortable with. Even if you are not satisfied with your chosen insurer, you have the option to port your health policy to a different insurer at the time of RENEWAL.
Q. I want to invest for 1-2-3-5Y. Please suggest what should I do?
Ans. Such short term, please opt either bank FDs or RDs or debt MFs. If you can afford to lose all your money, you may venture out in direct equity and Equity MFs also. Check within your own stomach, how much pain you can carry, while you see your portfolio going down and down.
Q. I want to invest X amount for my Kid. Should I invest in PPF or FD or an insurance policy or something else.
Ans. Each of the above options have their own pros and cons. Please go through the articles on this blog and select your investment vehicle accordingly. Don’t get stuck in analysis paralysis. Inaction is the worst option. Make a decision and move on.
Q. I want to retire early. Where should I invest to get the desired result.
Ans. You should invest regularly in equity mutual funds. This is the best course of action but involves risks as well.
Q. I want to invest in few stocks, where should I invest?
Ans. Please do your own research and invest accordingly. Alternatively please contact a financial planner / advisor.
For questions, please contact here.