Life Planning
AK Narayan
CEO, AK Narayan Associates
“Couples should ideally have one separate
bank account each. They should also
have a joint bank account with ‘either or
survivor’ as an option”
and January by cutting down on
discretionary expenses.
Investment decisions
Investment decisions made by
a couple affect both the spouses
and the future of their kids, so
it is crucial. “If money has to be
accumulated for a long-term goal,
regular and systematic investment
in equity-based products is the
best option. An advisor can design
proper asset allocation and plans
to suit individual requirements,”
says Maheshwari. The investment
contribution is based on one’s
earning capacity. Typically, 25-
30 per cent of one’s take-home
income should be allocated towards
investments for the long term.
Agrees Billimoria, “Allocations
can be more in equity; with the
compounding effect young couples
can plan for a healthy and happy
retirement, and also meet other
goals such as children’s education.
The key is to start early.”
Divya and Kaustubh have PPF as
their primary mode of investment
as it helps them to avail of tax
benefits. They have also invested
in fixed deposits, and plan to start
regular investment in mutual funds.
“We intend to consult a financial
advisor to get more insight to invest
in mutual funds as we realise that
it’s important to meet our financial
goals,” says Kaustubh.
When it comes to investments,
Shreeram takes advice from a
couple of chartered accountant
friends in office. Sabitha too takes an
active interest by reading up about
financial investments. A decision
is taken after jointly discussing the
pros and the cons. “Right now we
are saving up so that we have a lot
of liquid cash in hand for expenses.
Once our baby is born we plan
to make investments for the kid’s
future, and that would include
investing in mutual funds for long-
term goals,” says Sabitha.
Young couples will have many
goals and investment options to
choose from, so getting professional
advice is very important. “Never
do anything without discussing or
talking to an expert in the field,”
warns AK Narayan, CEO, AK
Narayan Associates.
Planning for goals
“Long-term goals for couples should
include retirement planning, buying
a house to live in, and starting a
family,” says Narayan. However,
Photo: deepak G pawar
Kaustubh Praneeth, 31, IT
professional
Divya Arathi, 29, HR manager at
MNC bank
Location: Bangalore and Pune
Goals: Starting a family, buying a
car and starting off on their own
Bank accounts: The couple
maintains separate bank accounts
Money roles: They contribute
equally to household expenses,
but after her move to Pune on work
they have had to maintain separate
households
Investment decisions: Taken
after mutual discussions
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Outlook Money April 2018 www.outlookmoney.com