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Rediff.com  » Getahead » Where their money goes...

Where their money goes...

June 19, 2006 08:59 IST
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Here we take a look at where their money has gone (past investments) and where it currently goes (ongoing expenditure). Loan payments and insurance premiums form the bulk of their expenses.

  • Anil and Ruchira's profile and lifestyle: Have money and love to spend?
  • What they are saving for: Anil and Ruchira's goals
  • Gaurav Mashruwala advises: How to save for your goals
  • Loans

    Computer loan
    Rs 1,814 / month till December 2006
    Just few more months for the loan to get cleared.

    Plot payment
    Rs 2,250 / month till July 2008
    This will have to continue till July 2008 when the land gets registered.

    Personal loan
    Rs 2,902 / month till January 2009
    It is not worth pre-paying this loan since there will be heavy pre-payment charges.

    Home loan
    Rs 12,912 / month till 2026

    The loan was for Rs 16,00,000 and repayment started a few months ago in March. They plan to start prepayment after a few years and finish the loan in around 15-16 years.

    Personal loan
    This one is for Rs 2,80,000 and is interest free with no fixed repayment tenure. They are eager to clear this ASAP.

    Investments

    Infrastructure bonds
    What they will get: Rs 36,180
    When: August 25, 2008

    National Savings Certificate
    What they will get: Rs 16,010
    When: March 4, 2011

    Mutual fund -- Systematic Investment Plans
    This means they invest fixed amounts every single month.
    SBI Magnum MultiCap = Rs 500/ month from September 2005
    Birla Top 100 = Rs 500/ month from November 2005

    Mutual fund - One-time investment
    Reliance Growth ELSS = Rs 10,000 in August 2005.
    ELSS from HDFC Mutual Fund = Rs 5,000 in December 2004
    ELSS from SBI Mutual Funds = Rs 5,000 in December 2004.

    Property
    They are expecting Rs 75,000 from the sale of property this year.

    Fixed deposit
    Rs 25,000
    Since this total amount comprises of smaller amounts, it is difficult to state a maturity date. This is the money they plan to use for the payment of insurance policies for this financial year (April 2006- March 2007).

    Savings account
    The total available balance in their savings account at the end of May would be approximately about Rs 25,000.

    Ad-hoc
    They do have jewellery worth about Rs 1,25,000 and the current value of the car today would be around Rs 1,15,000.

    Medical insurance

    Anil's company provides a medical cover of Rs 3,00,000 for the couple.

    Life insurance

    Ruchira
    Started: 1986
    Annual premium = Rs 1,198
    Maturity = March 28, 2011
    Maturity amount = Rs 75,000

    Anil
    Started: 1999
    Half yearly premium = Rs 5,165 (10,330 annually)
    Maturity = March 28, 2024

    This will be paid till September 2023. Being a money-back policy, Rs 30,000 will be returned every fifth year of survival. Amounts are due in 2009, 2014, and 2019.

    In 2024, he will get the remaining amount plus bonus. The sum assured is Rs 2,00,000. Along with the bonus, he expects around Rs 4,00,000.

    ICICI Pru Forever Life (Pension plan)
    Started = February 2003
    Half yearly premium = Rs 5,219 (10,438 annually) till August 2026
    Maturity = February 2027
    There's an accident rider of Rs 2,70,000 and the sum assured is Rs 2,70,000. The maturity amount could be about Rs 6,80,000.

    ICICI Pru-Lifetime
    Lock-in period: July 13, 2007
    Amount invested: Rs 1,668 per month. Anil plans to continue with this for 15 years, till 2019.
    Provides an insurance cover of Rs 10 lakh (Rs 1 million).

    ICICI Pru Save n Protect (Medical)
    Started = September 2002
    Annual premium = Rs 3,548 (till September 2026)
    Maturity = September 2027
    Accident rider of Rs 1,00,000 and the sum assured is Rs 1,00,000. The maturity amount might come to about Rs 3,00,000.

    Total household expenses

    Taking into account all these loan payments, household expenses and other bill payments, their average total monthly outgoing is Rs 40,000.

    A fair amount of money goes towards annual premiums. This they pay from their fixed deposits which mature at the time when they need to cough up the money, so it is not included in their monthly expenses.

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