Express Clinic

Name:Robin Sharma (32) & Reena sharma (31)

Resident of Shimla

Profession: Plant Head in a FMCG Company

Net annual income

(Rs 10.80 lakh)

Status & goals

Robin and Reena are from Bangalore but have moved to Shimla due to Robin's job. The two are expecting their first child soon. Currently, they stay in a rented accommodation but they like the hills, so they would like to purchase a house there. Robin also wants to study further and would like to make provisions for the same. Robin's parents stay in Bangalore and are financially independent. Robin wants a systematic financial plan to avoid any pitfalls in the future. Robin expects 10% p.a increase in his annual after tax income.

Needed

A financial roadmap which can help Robin and Reena maintain a smooth married life and a secure retirement.

Net monthly surplus

Rs 63,000

Current Investments:

Savings Account : Rs 2 Lakh

Bank FD : Rs 1 lakh

Findings

Emergency fund: No investment has started yet, so sufficient liquidity is there in saving account which can be used in an emergency.

Life insurance: Robin doesn't have any life insurance policy

Health Insurance: He has health insurance coverage of Rs 3 lakh from employer

Investments: No investment. Whatever he has saved is in bank deposits

Provident fund: Due to new job, very less accumulation in Provident fund

Recommendations

Emergency fund: Robin needs to keep Rs 80,000 in his saving account and maintain it as an emergency fund.

Express TIP: Emergency fund carries utmost importance and helps in managing contingencies like health problems or job loss.

Life Insurance: Robin does not have any life insurance coverage. As per needs based analysis he should be having Insurance coverage of at least Rs 1.50 crore. It is advisable to buy this through online term plans which would cost around Rs 21,000 p.a

... contd.

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