Getting Married

Client's Case

Rashmi Khanna, 30 years, getting married later this year but wants financial independence, works at a consumer goods company in marketing, Rs 6 Lakh income, parents are retired but she supports them, no experience of investing, savings are in bank.

Our Recommendations

• Life insurance: Because you are supporting your parents, we would suggest that you ensure you have adequate life insurance. So, if something happens to you, they can still be financially secure. Look at what the monthly living expenses of your parents are. Assuming a life expectancy of 80 years, then see for how many years you need to spend this monthly amount on them. Then buy insurance with a sum assured amount that covers this amount.

• Health insurance: You should also get health insurance coverage if you do not already have it. Post- marriage you can get a joint plan with your husband. If your parents are not covered under health insurance or a mediclaim policy, then if they are below 65 years, they should also get a health insurance plan.

• Investment planning: Assuming your husband has also got stable income, you should have a long-term investment plan. Decision for you is whether you want to keep your finances combined or different from your husband.

• Identify your goals: Apart from taking care of your parents, after marriage you and your husband should identify what your short and long-term goals are. Then make a plan to achieve them. For instance, you might want to think about when you want to buy a house, when you will have children. Accordingly, you can then decide the amount of money that you can afford to pay as EMI for the home loan and how much money you can spend on a monthly basis for your household and discretionary expenses

• Retirement: Because you want financial independence, you must have a retirement plan in place. Please invest a monthly amount to save for your retirement. Once again, because this is a long-term goal, you can invest in equities, but in a conservative way

(A complete financial plan involves more detailed analysis and recommendations. The Financial Planning page has two free sample financial plans, financial plan1 and financial plan 2  for you to download. Names and other personal details have been changed in above story and sample plans to maintain confidentiality of our clients)

Isha said : 27/08/2010	Great tips to start with... thanx .. geeting married early next year.. Need more advice ..... please contact
Garima said : 12/10/2009	Nice article on Finances. I am getting married in a year. It will help me a lot