Earning to achieve your dreams is one part of financial planning but saving and investing in diversified instruments is the other part and a crucial one at that. Be it for buying a car or home, further education of your children, their marriage, your parents’ medical needs or a retirement nest egg, funds is what you need.
While you can plan your finances in the present using an investment calculator, it is also vital to invest in various investment plans to start planning for your future needs and those of your family, so you do not have to face any financial distress in your later years of life.
There are many types of investment plans that you can select from, based on your current needs and the future financial security and stability of your family. Some of the most popular plans are Endowment plans, Public Provident Funds, National Pension Scheme, National Saving Certificate, Mutual Funds, Fixed Deposits, ELSS, and ULIPs, to name a few.
Let us check out the need for these investment plans and what factors must you keep in mind while using an investment calculator, including ULIP calculator and insurance calculators for selecting the right plans:
- Wealth Creation With Insurance Cover
You can opt for the ULIP scheme if you are looking to get both these benefits – insurance cover and wealth creation. When you start paying premiums towards your ULIP plan, a part is deducted from a basic insurance cover offered to the investor. With these plans, your funds can be invested in various instruments like Equity or Hybrid Funds, bonds, Debt Funds, etc.
According to the death benefit in this plan, the nominee gets the sum assured. So, if you want to have primary life cover while investing in long-term wealth accumulation, you can use the ULIP calculator to decide your instalments and start investing accordingly.
- Tax -Saving Instruments
There are many investment plans for income tax, which can help you save on your taxable income every year. You can use an investment calculator to chalk out your taxable income for the year and then select investment plans that offer tax-saving benefits accordingly.
With the help of an investment calculator, you can also plan your finances and create a budget in advance, which can help you be financially secure and more organised in terms of your savings and investments.
- Insurance Policies
While it is vital to save towards your future goals and invest in suitable wealth-creating instruments, it is just as important to add an insurance policy to your portfolio mix.
- Health Insurance: The rising rates of hospitalisation and medical expenses coupled with inflation are undeniable, and the older you get, the higher these costs will be. In such scenarios, having a health policy comes in handy as your policy will cover various healthcare and medicare costs and allow you to focus on getting the best treatment for yourself and your family.
- Life Insurance: A term life insurance policy, for example, can offer the policyholder a life cover to mitigate risk and look after their family even in their absence. If you are a significant earning member or the only breadwinner, then this insurance policy is very crucial for your family and must be a part of your portfolio.
You can also decide to have a life insurance policy under the name of a dependent parent and pay the premiums towards their policy, where you can even claim certain tax benefits on the premium payments.
- Retirement Corpus
You can select from ample pension plans and retirement plans that not only offer you handsome interest on your investment but also allow you to take tax advantages on your current payments and the maturity amount.
Moreover, having a retirement corpus could come in handy as it could look after your medical expenses and needs post-retirement and allow you to live worry-free second innings.
Bottom-Line- Making The Right Investment Decisions Is Vital
Try to inculcate an investing discipline at an early age, wherein a significant chunk of your earnings goes towards investment, as that will not only help you earn returns and build wealth but also offer you a nest egg for when you want to retire.
Choosing the right investment plans is all about knowing what you and your family will need in the future, planning for your children, looking after your retirement needs and ensuring that you are financially covered no matter what.
Not only can you live a stress-free and relaxed life once you retire, but you can also save a lot on tax planning every year with some of the investment plans. Money saved is also money earned, and in this case, the income tax calculator can help you calculate how much you can be saving every year and choose plans accordingly. Take this step to start planning for your retirement right from an early age and ensure you are financially equipped to do so.