Financial Planning for Every Ambitious 35-Year-Old in India

In this policy, the investment risks in the investment portfolio is borne by the policyholder

When you cross the threshold from your 20s to your 30s, you may suddenly be faced with a host of financial obligations. You may be married and ready to have children, which means that you will have to start planning for their future. You may want to check off life goals like buying a family home and purchasing a car. You may also have to start thinking about how to protect your loved ones in your absence.

So, by the time you reach the prime age of 35, what are the goals that you should be planning for? And what investment options can help? Let’s find out.

Financial Planning for the Regular 35-Year-Old: Which Goals to Save Up For?

Depending on your family’s goals and your own financial targets, you may typically have to save up for the following objectives and milestones around the time you reach 35 years of age.

• Buying a House

  If you and your family dream of owning a home, your financial plan must prioritise saving up for the down payment. Your budget also needs to account for the home loan EMIs that you will have to pay if you avail of a housing loan to meet this goal.

• Children’s Education

  Your children’s educational expenses will undoubtedly rise year after year. To meet these costs without any hassle, your annual or monthly investment plan must include ways and means to save for these recurring expenses.

• Unexpected Emergencies

  There are some expenses that you cannot plan for with certainty, like a sudden illness in your family or an unexpected home repair. To meet these expenses, you can build an emergency fund that is equivalent to at least six times your monthly income.

• Financial Security for Your Family

  Another goal that you need to take care of at this age is financial protection for your loved ones. If your family relies on your income for their regular needs and their life goals, you need to protect their future by investing in a life insurance plan.

• Retirement

  Lastly, although your 30s may seem quite a bit early to think of retirement, it is important to start planning for this milestone sooner than later. This will allow you to get a headstart on how much you can save up to build your retirement fund.

Investment Options for the 35-Year-Old’s Portfolio

To meet your financial goals as well as any other milestones you may want to achieve, you will have to draw up a monthly investment plan and choose the right investment options for your portfolio. If you’re unsure of where to invest as you approach the prime age of 35 years, here are some options you can consider.

• Direct Equity

  You can still afford to take on some investment risks in your 30s, which is why investing in direct equity may be a good option if you wish to create wealth.

• Mutual Funds

  Mutual funds can help you diversify your portfolio without making too much of an effort. You can choose from equity, debt, hybrid or even gold funds.

• Life Insurance

  Life insurance is necessary to ensure that your family is financially secure, even in your absence. You can choose from different types of life covers like term insurance, savings plans, ULIPs etc.

• Tax-Saving Schemes

  Lastly, as your income rises in your 30s, your tax liabilities will also increase. To counter the effect of increasing taxes, you can invest in tax-saving options like PPF, ULIPs, bank fixed deposits and more.

Conclusion

If you’re in your early 30s and are concerned about where you should be financially as a 35-year-old Indian, the above pointers may help you set your finances right and plan well for the future. Keep in mind that you need to have a monthly investment plan as well as a broad annual investment guideline to achieve your short-term and long-term goals without any trouble.

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ARN - ED/05/23/2060