Financial Planning – Future, Savings and Tax savings

POSTED BY Lijesh Kumar ON October 1, 2012 1:59 pm COMMENTS (3)

Dear Manish

Very recently and unexpectedly I saw your site and really happy and impressed with the way the forum creates and the discussion with practical solutions provide by your experts. I believe because of the simplest way of answering and a live-in touch makes the hope in asking questions which comes always a sword to a common person like me. The articles and the forum are very informative. It`s simply awesome tool.

About me, I was NRI for couple of years and currently been transferred to Mumbai with the same company which was recently started their operations in India. The offer letter with CTC at India which I have received are not really interesting for me compared with my previous packages due to the non tax and other benefits. I haven’t signed the contract yet and started searching for some options to save tax as well as to find out the way to save money for to achieve my financial needs and goals. Since there are still some discussions ongoing for to finalize the CTC, there might be some positive variations/changes in the package which I am still expecting.

At the moment the offer is as below,
Basic salary – INR 95K / month
HRA – INR 47.5K / month
Flexible Allowance (medical, telephone, transportation, etc) – INR 47.5K / month

As part of Indian employment Act/Rule, I am new and I need to tackle all my expenses in a very positive manner for my family better future and considering expenses not by just paying taxes.

I am looking for a real financial management here, and the below are my views/thoughts for future.

1. Own a house/flat by the year of 2017
2. To save 50 Lakh INR by year 2025 (as for retirement)
3. Term policy for self to give support to family (30 years or life time) – 1 Crore
4. Looking for some mutual fund investments or so, but no idea about those
5. Some sort of planning for my 1 year kid (career and future)
6. Health insurance policy (Myself 34, spouse 26, kid 1 year, my parents- father 65, mother 58, spouse parents- father 58, mother 50)
7. Insurance policies or other sort of savings

Due to my inexperience in the financial set up compared with you guys , it may look awkward, guess it should be but looking forward for your real expertise to tackle these with options and suggestions included with benefits.
Also looking for some great options to save tax on my income.

Looking for your specific thoughts and suggestions.

Thanks in Advance
Lijesh Kumar

3 replies on this article “Financial Planning – Future, Savings and Tax savings”

  1. Ramesh says:

    I understand that.

    Saving tax should not be the priority of your investment planning. Making the best use out of the investment for the betterment, in addition to convenience, peace of mind and taxation should be.

  2. Ramesh says:

    Why not go for a proper paid service, besides getting information and updating your knowledge about these things?

    This is because you need a comprehensive setup and your initial knowledge is ‘zero for all practical purposes’. Plus, you can afford it easily.

    Manish does have a paid service, which you can ask for.

    Learning the things yourself, is not an optional thing anyways, whether you go with a paid service or not.

    1. Lijesh Kumar says:

      Dear Ramesh,

      Appreciate your suggestion, but the whole main point i mentioned above to tackle the tax on the current income.
      Also it doesnt meant that i havent done anything in the past or no investments.
      Presently looking to start with some new goals and moreover the query been posted in the forum because of seeing you experts advises to hundrends of peoples.
      Do not take it as a testing, but want to make sure the experts thoughts behind is suits to my thoughts and purpose.

      Thanks & Regards
      Lijesh Kumar

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