{"id":538,"date":"2016-08-17T10:45:16","date_gmt":"2016-08-17T10:45:16","guid":{"rendered":"http:\/\/www.myassetsconsolidation.com\/investment-advisory\/?p=538"},"modified":"2016-08-17T10:45:16","modified_gmt":"2016-08-17T10:45:16","slug":"if-you-are-in-transferable-job-buy-land-and-construct-latter","status":"publish","type":"post","link":"https:\/\/myassetsconsolidation.com\/blog\/if-you-are-in-transferable-job-buy-land-and-construct-latter\/","title":{"rendered":"If you are in transferable job buy land and construct latter."},"content":{"rendered":"<p><img alt=\"\" src=\"http:\/\/www.thehindubusinessline.com\/multimedia\/dynamic\/02063\/PO18_YFP_eps_2063773f.jpg\" \/><\/p>\n<div>August 17, 2014:<\/div>\n<p>&nbsp;<\/p>\n<p><b>I am 31 and work for a public sector bank. My wife is a homemaker and my daughter is two.<\/b><\/p>\n<p><b>The job is transferable and my bank provides me with leased accommodation at the place of posting. I am eligible for a housing loan of ?20 lakh at simple interest rate of 7 per cent, and a car loan of ?7 lakh at the same interest.<\/b><\/p>\n<p><b>Since I get leased accommodation, should I buy a house at all? Will it be advisable to buy a car?<\/b><\/p>\n<p><b>I wish to save for my daughter\u2019s education and her marriage too. In addition, I will need adequate funds when I retire. Please suggest a suitable plan to enable me to attain all these goals.<\/b><\/p>\n<p><i>Deepak Khandelwal<\/i><\/p>\n<p>Taking a decision on buying house isn\u2019t easy. Besides, you will, of course, need accommodation after retirement as well.<\/p>\n<p>The best way to tackle the situation is to buy a land parcel and hold it till retirement, preferably in a gated community. Gated communities would protect your plot from any possible encroachment.<\/p>\n<p>Car: You may be better off not buying a car as you have to constantly keep moving to different places of posting.<\/p>\n<div data-attr=\"not-done\"><\/div>\n<p>Daughter\u2019s education: The present cost of ?7 lakh will be ?20.6 lakh by the time she is ready for higher education, if inflation is factored in.<\/p>\n<p>To reach the target, save ?3,600 every month for the next 16 years. If you build a portfolio in the ratio 60:40 in equity and debt respectively, you can reach the target with a portfolio return of 12 per cent (same assumed for other goals).<\/p>\n<p>Daughter\u2019s marriage: Her marriage, presumed to be about ?20 lakh currently, will amount to cost you ?88 lakh after 22 years, if inflation is 7 per cent (the same rate of inflation has been assumed for all goals). Save ?6,900 every month for the next 22 years.<\/p>\n<p>Retirement: You will need ?14.9 lakh annually for your expenses from the age of 58. To derive such an income, you should have a corpus of ?3.5 crore.<\/p>\n<p>Invest ?8,800 (including your investments in the pension fund) every month for the next 27 years.<\/p>\n<p>In the pension fund, go for the \u2018life cycle\u2019 option or make an asset allocation of 60:40 in equity and debt respectively, till you reach the age of 45.<\/p>\n<p><i>The writer is a financial planner and founder, myassetsconsolidation.com<\/i><\/p>\n<p>&nbsp;<\/p>\n<div>(This article was published on August 17, 2014)<\/div>\n","protected":false},"excerpt":{"rendered":"<p>August 17, 2014: &nbsp; I am 31 and work for a public sector bank. My wife is a homemaker and<span class=\"excerpt-hellip\"> [\u2026]<\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"yst_prominent_words":[],"_links":{"self":[{"href":"https:\/\/myassetsconsolidation.com\/blog\/wp-json\/wp\/v2\/posts\/538"}],"collection":[{"href":"https:\/\/myassetsconsolidation.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/myassetsconsolidation.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/myassetsconsolidation.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/myassetsconsolidation.com\/blog\/wp-json\/wp\/v2\/comments?post=538"}],"version-history":[{"count":0,"href":"https:\/\/myassetsconsolidation.com\/blog\/wp-json\/wp\/v2\/posts\/538\/revisions"}],"wp:attachment":[{"href":"https:\/\/myassetsconsolidation.com\/blog\/wp-json\/wp\/v2\/media?parent=538"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/myassetsconsolidation.com\/blog\/wp-json\/wp\/v2\/categories?post=538"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/myassetsconsolidation.com\/blog\/wp-json\/wp\/v2\/tags?post=538"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/myassetsconsolidation.com\/blog\/wp-json\/wp\/v2\/yst_prominent_words?post=538"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}