Case study

Business Standard analyses one family's finances and suggests a way forward

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Status & Goals

Henry is an assistant manager (digital media) with a small advertising firm in Mumbai. He is single and stays with his parents. His father is still working and mother is a housewife. Henry wants to plan for his marriage funding and retirement.

Findings

Emergency fund: Contingency fund not maintained, since his parents maintain a good amount in their savings account and fixed deposits. He is depending on them for contingency.

Life insurance: Henry is covered for Rs 85 lakh through various traditional and term insurance policies. Almost 50 per cent of his income goes towards insurance premiums, which is very high.

Health Insurance: Henry and his parents are covered for Rs 3 lakh each through an individual health insurance policy. His employer also covers him for Rs 2 lakh.

Investments: Majority of his investments are in debt, with a very high allocation to insurance products, which his parents consider as investment.  

Liabilities: No liabilities.