Can your investment plan help you buy your dream home?
The saying, ‘Home is where your heart is’ implies your home will always be the place for which you feel the deepest affection, no matter where you are.
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 few systematically plan for it.
Herein comes the concept of goal based investing which works on two basic principles – target time-frame and 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, child’s education can be medium term, whereas retirement can be a long term goal.
Life goals are achievable provided you attach the goal to your investment. It boils down to getting four things in order:
1. Identify the goal and dive in at the earliest: 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.
2. Identify the property: Finalize a locality (city, suburb) and the area (1BHK, 2BHK). This will help to determine the budget for your dream property. Even a small one is pretty much an accomplishment regardless of the locality.
3. Invest as much as possible: 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.
4. Monitor progress keenly: 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 options like ULIP policy that help individuals plan for their big life goals with relative ease. However when it comes to selecting one value packed investment option, we have limited alternatives in the market.
Bajaj Allianz Life Goal Assure, a newly launched ULIP has been designed with special focus on the needs of the young investors in India and their risk appetite.
Unique features of this value-packed goal-based ULIP are, Return of life cover charges which guarantees that a policyholder will get back the mortality charges, thus enhancing the value of their corpus on maturity. The Return Enhancer also functions in a similar fashion, ensuring that a customer who opts to receive the maturity benefit in instalments over a period of five years will receive an addition of 0.5% of each due instalment. Besides, it provides a Fund Booster, which is an amount, added to the fund value on the date of maturity of the policy. You also get Loyalty Additions for paying the premium regularly and staying invested in the policy. The product also provides flexibility to choose from 4 investment strategies that allow one to invest as per their risk tolerance and also offers unlimited switches between funds (8 funds available) to help maximise fund value. The policy holders can also avail tax benefits under section 80C &Section 10 (10D) of the Income Tax Act.
With these combined benefits, Bajaj Allianz Life Goal Assure 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 get your #LifeGoalsDone.
Also, secure your life goals with a term insurance plan from Bajaj Allianz Life.