You are in your middle years and AFRAID of old age,if so, please read on

Dear Friends,

The joint family system is breaking down. Earlier fewer needs were taken care of by just hoarding some precious metals and buying up some property. Today you live in a nuclear family. In addition, the life span has increased and we see people short of money in old age. Some families, we see, have suffered due to sudden death of income earner. There are still more families who have suffered due to investment of savings in wrong areas. Most of them also suffer due to inflation eating away their meagre savings.

There is an adage in India that ‘Lakshmi’ is ‘Chanchala’ by nature. The ‘Chanchala’ nature of ‘Lakshmi’ is more at play in modern times .Melt downs and frenzy like conditions are playing havoc with people’s money. You are at a loss to understand as to what is best for yourself.

An approach to saving and investment with an eye on SAFETY and suitable return is necessary. Precisely, to take care of all the anxieties, the following two-step approach would work well:

First Step: At the beginning of the career, a term cover along with health cover according to income should be bought. Luckily, good companies at nominal premiums are offering this.

Second Step: Transfer, pooled savings, year to year, to following pockets:

1. 25% of gross savings of the household should be kept in the form of gold and silver (ornament or bullion).
2. 25% of gross savings should be invested in landed properties(till such time the money available is not sufficient to buy property it should remain invested in the desired fund through the top up on your regular premium Unit Link Plans. When the money is accumulated is sufficient to buy property it may be withdrawn and used for buying the property)
3. 25% of the savings should be saved in pension plans ((preferably through investment in to balanced fund under Unit Linked plans)
4. 25% of saving should be going into Growth fund in a Unit Linked Endowment Plan, which will provide you the life risk cover and health risk cover too.

You may wonder why I have pressed upon the Unit Linked Plans. This is slightly intricate matter.Acually my experience has shown that these plans are most cost effective and transparent and provide perfect tax shelter under section 80 CC as also the returns on the funds invested remains tax free when received in hand upon maturity or earlier withdrawal also.

Your worries have a solution now. There are institutions, which are reliable and offer to meet the precise needs for protection, for growth etc. Since the time of launch of Unit Linked Plans in Feb 04 by HDFC Standard Life Insurance Company Ltd., I have sold only these policies and none of the traditional policy although the commission to the agent is one of the lowest in these plans. To my satisfaction, the funds have grown at over 20% p.a. for most of the holders; however, those who desired to remain invested only in interest bearing and gilt-edged securities for fear of stock markets meltdowns have far exceeded in returns compared to Bank FDs. and all without the TDS headaches.

You may rest assured that if you follow the above policy would find your self smoothly sailing through any kind of circumstances and trying times that develop in your life in future.

I am sure you would want to be enlightened about certain aspects you have in mind. You may contact me at my mobile no. 09376168780 and I would only be too happy to call or pay you a visit.

Wish you the best in your life.

Hari Om

Krishna Kumar Khandelwal