All three – Rajesh, his mother Shakuntala Sinha (75) and eldest son Divij Sinha (25) – have their own separate financial goals. They took financial advice from Shalini Dhawan and Vishal Dhawan, co-founders of Plan Ahead Wealth Advisors, a registered investment adviser with Sebi.

Interestingly, Shakuntala, which relies on pensions and fixed deposit income, maintains an aggressive portfolio with almost 70% exposure to equities, and Divij, which has a high risk-taking capacity, maintains an aggressive portfolio. balance of equity and debt instruments. .

Shakuntala’s investment goal is to grow his wealth and pass it on to his grandchildren in a few years. This long-term horizon explains its aggressive approach to asset allocation. Divij, who is hoarding funds for his graduate studies, did not abuse equity because he could not afford to let his portfolio be impacted by the vagaries of the stock market. Their two investment strategies emphasize the importance of investing according to one’s needs. Here we look at the personal financial journey of three people from different generations of the same family.

Rajesh Sinha, 53 years old

Portfolio: Moderately aggressive

Early in his investing journey, Rajesh focused on saving enough money for a rainy day. So he and his wife invested in fixed deposits, a few post office projects and an LIC policy after spending on their children’s education and meeting other expenses. “We bought a house to save on rent during the housing boom of the mid-2000s. My wife and I thought we had done a great job financially and only looked at the loan liabilities against that. asset only from a tax planning perspective,” Rajesh said.

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It wasn’t until Rajesh spoke to his financial adviser in 2011 that he realized his savings would not be enough to meet his financial goals, including the education required for his three children and retirement.

Speaking about the family’s first financial plan, Shalini of Plan Ahead said, “It seemed like a daunting task for Rajesh as it required a commitment to save around 60% of his monthly income.” saw his corpus grow, he also gradually added new milestones like his children’s post-graduation education goals and their wedding expenses.

Rajesh expressed concern about the stock market crash of 2020 amid the Covid pandemic: “I asked Vishal and Shalini if ​​I should redeem my investments. But they suggested me not to, because then there was no fund requirement. There was a 30% pay cut made by my company. I took advantage of the loan deferral option offered by the government at the time, but my investments continued.”

Shalini, in hindsight, thinks Rajesh’s portfolio would have performed better had they suggested international investments much earlier to ensure lower volatility and better geographic diversification in his portfolio.

Nonetheless, Rajesh believes the financial advice has helped him avoid making rash decisions in life. “If I were to continue investing like I have, I would have already jumped two to three jobs for a raise to generate more funds. Now I think I better stay in one place. “

Rajesh has a plan to instill the habit of saving in his youngest son, who has just landed a job: he has promised to finance his higher education if the latter saves at least 50% of his income.

Shakuntala Sinha, 75

Portfolio: Changed from conservative to aggressive

Shakuntala told Mint about the days after her wedding when the financial situation at home pushed her to take up a job, which now secures her pension. Over the years, as her financial situation improved, Shakuntala felt that she was not effectively managing her wealth (her personal savings plus retirement funds received after her husband’s death). This feeling was reinforced later when she lost the money invested in a corporate fixed deposit of Unitech Ltd. She had invested in a few income-generating fixed-income products and a few stocks at the time.

“When she started with us in 2013, we offered her a conservative portfolio based on her risk profile. But she slowly shifted to an aggressive mode with higher equity exposure (70%),” Shalini said. .

“I’m comfortable with my retirement income. I intend to pass on my fortune to my grandchildren. My two sons are doing very well financially. But still, I like to give to my grandchildren. It gives me some satisfaction,” Shakuntala said. She added that she is no longer stressed about her financial planning and that she asks her daughter-in-law, who has an MBA in finance, for help when in doubt.

Shakuntala was unable to obtain a health insurance policy due to a medical condition that makes her ineligible. Thus, maintaining a medical corpus becomes a crucial part of its financial planning. She said, “I am covered under the Delhi Government Employees Health Scheme for medical facilities. Also, I have a certain amount in my PPF account and mutual funds that can cover any emergencies.”

Divij Sinha, 25 years old

Portfolio: Balanced

Divij understood early on the importance of seeking financial advice. “Because of my decision to join a non-profit organization, I had to join my first job at a much lower salary than my friends. But, by taking financial advice from the start, I was able to save more than my friends who earned twice as much as me 2-3 years ago,” he said.

He doesn’t believe in getting too closely involved in financial planning. “It’s one thing in my life that I would like to share with someone I trust. I talk to my advisers once every few months because there are discussions about reorganizing the portfolio, where to invest my money, when I need to, etc. But I’ve never really bothered to review their decisions,” he added. “If you really don’t know what you’re doing and you don’t the energy to deal with it, let someone else deal with it, it’s worth the cost.”

Divij, who is now flying to the United States to pursue a master’s degree in computer analysis and public policy, partially funded her tuition with her savings and money lent by her parents. He wants to return to India to work, but only after earning enough money abroad to repay his parents.

Asking what his long-term financial goal is, he said: “I want to reach a certain level of comfort where if I ever decide not to work for a few years, I should be able to support myself without feeling the pressure of having to re-enter the labor market.”

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