Like all of us, Rajesh also wants to get rich quickly and buy his dream home. Unlike us, however, he lacks the basic know-how of getting rich through investment and those results in he doing silly things.
What happens, however, when persistent Rajesh comes across an antique looking lamp that reminds him of the magic lamp from Arabian Nights?
What’s wrong Rajesh? Ajay one of his friends asked him.
I have been rubbing this antique lamp since morning. I am sure if I rub it more, a genie will appear and make me rich and then I will buy my dream home. Rajesh replied.
That’s silly Rajesh. Becoming rich involves careful planning and intelligent investing. Start by deciding on your future financial goals and investing for it today. Ajay said.
There is no magic formula to become rich. Building wealth involves careful consideration of one’s goals and investing in the right product, for the right duration, at the right time and with the right amount to ensure that one’s goals are met. Financial planning helps the goals of your life.
Buying your own house is amongst the most satisfying Life Goals. Some may call it a dream, while others may call it a need. Either way, it is on everyone’s mind, but only a few systematically plan for it.
Herein comes the concept of goal-based investing which works on two basic principles target time-frame and the ability to differentiate between needs and wants. Broadly they are classified into short term, medium term, and long-term goals. For example, buying a house can be a short-term goal, a child’s education can be a medium term, whereas retirement can be a long-term goal.
Once you have identified the goal of buying your dream home, you need to give timelines to it. Say you want to purchase your first home by the time you turn 30. Give time to your goal by investing early because longer the time you give, the higher your investments will grow and you will have the required corpus at the time you want to achieve the goal.
Once you have defined the goal, it’s time to commit money. This means investing regularly and religiously in instruments that give high returns over long-term and also minimize tax burden. Although you may believe investing regularly should be enough to achieve the goal, unfortunately, that is not true. Long-term goals are not planned in auto-pilot mode. The money you invest must be monitored regularly to ensure your finances are on track vis-à-vis the goal and the time frame. This is the only way to engineer a course correction if something is not going according to plan.
If the goal planning process seems daunting as this is the case with many individuals, approaching a financial advisor is a good option.
Achieving life goals can be tough, but there is always a way. It’s easier and even tempting to enlist help from parents and friends, but there is a certain pride in paying for your property with your own money.
There are flexible investment plans like ULIP policy that help individuals plan for their big life goals with relative ease. Edelweiss Tokio Life Wealth Plus has been designed with special focus on the needs of the young investors in India and their risk appetite. They provide an investor with the flexibility to invest in individual funds ranging from debt to equity funds.
The new age ULIP like Edelweiss Tokio Life Wealth Plus lets you switch between funds free of charge. It has high rated individual funds that can help you gain maximum benefits from the market’s performance. Edelweiss Tokio Life Wealth Plus has no policy and administration charge which means 100% of the premium amount is allocated to the fund value. It is the only plan where the company also invests with the policyholder in the form of additional allocations which increases at regular intervals. The additional allocation increases every 5 years for the first five years it is 1% p.a. of the premium paid, from the sixth to the tenth year it is 3% p.a., followed by 5% p.a. from the eleventh to the fifteenth year and lastly 7% p.a. from the sixteenth till the twentieth year. The genie of ULIP helps your money compound at a rate which can offer you maximum returns.
With these combined benefits, Edelweiss Tokio life helps you accomplish your goals without any worries.
So when you set your eyes on that under construction building go ahead and start planning with our new-age ULIP and make your dream come true.