Key Takeaways
|
It's a regular Monday morning. You wake up in a hurry, get dressed, and step outside. Only to realise that today isn't your daily day of struggle to get to work. Today is different; you're not glued to your desk, for one thing. You're facing the endless turquoise seas and admiring the gorgeous sky as you soak in the refreshing sea breeze.
"Sahil? Sahil? Sahil??? Could you please take the team through last quarter's numbers?"
There you go! It's not the first time your boss has interrupted your beautiful daydream during an office meeting.
If you, too, have spent more hours dreaming about sailing in the Bahamas than living in the present, here's how you can make your dream come true.
For many, travelling is a retirement plan. But why wait that long when you can live your dreams in the prime of your life? If you think planning your travel before retirement can only happen if you win the lottery, you're mistaken.
You can easily go sailing in the Bahamas very soon if you plan right. By saving and investing smartly, you can build the corpus required to make your dream come true.
An OTP has been sent to your mobile number
Sorry ! No records Found
Thank You for submitting the response, will get back with you.
Realistically speaking, it's always wiser to know how much money you'll need for a certain goal before you start planning for it. By being oblivious to the required sum, it's almost impossible even to draft a practical financial plan. Once you know this, you can start by selecting the most suitable investment avenue and calculating the amount you need to spare each month.
They say the early bird gets the worm, and with good reason. The key is to start as soon as possible so you can dream big and achieve early. Start saving (and, later, investing) a part of your salary from the day you start earning. This not only gives your money more time to grow, but also helps you leverage the power of compounding.
To understand how compounding works, consider this:
Akash and Ayush were best buds in college. Akash began investing Rs. 2000 every month from the age of 25 while Ayush began investing Rs. 5000 a month when he hit 35. Today they are both 45. Going with a 12% interest rate, Akash's savings now amount to Rs. 20 lakh while Ayush's savings amount to Rs. 9.03 lakh. Even though Ayush's monthly investment was more than Akash's, his corpus today is substantially lower.
Investing in your child’s name via PPF or ULIPs offers 80C tax benefits, but income may be clubbed with yours unless it's from tax-free instruments.
Source: Economic Times
Be like Akash. Starting early can truly do wonders for your financial planning
While there are other factors you must consider (such as your risk appetite) your goals should ideally determine where you choose to invest your hard-earned money. Therefore, if you wish to holiday in the Bahamas before you retire, put your money where it can grow quickly.
Consider this,
If you have Rs. 1 lakh in your account today and you choose to keep it idle, going by a standard rate of interest of around 2.6% to 8% that most banks offer on savings account, your corpus after 5 years would be around Rs. 1,13,694 to Rs. 1,46,933.
If you invest this Rs. 1 lakh in a fixed deposit, assuming a rate of interest of around 2.5% to 9% offered by most banks for a 5-year FD, your corpus would grow to around Rs. 1,13,141 and Rs. 1,53,862.
However, ULIPs' historical performance has proven that it can give you an average interest rate of 11% to 20% . So, your corpus at the end of 5 years if you invest in ULIP could be at around ₹1,68,506 and ₹2,48,832.
What's more? ULIPs plan gives you tax-free returns as opposed to FDs where the returns are taxable.
Your dream of sailing in the Bahamas is far from impossible. With a smart financial strategy and the right investment tools, you can turn your dream into a well-planned reality. Start today, stay consistent, and let your money work for your future adventures.
Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.
We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.
