Financial stability is one of the most crucial aspects when it comes to starting a family. Whether you are newly married or planning a child soon, knowing where you stand financially is vital. If you already had a child or are planning to have one, you have already pondered about the expenses his or her college will bring. So, here are a few things that will help you plan a better future for yourself and your family:
New Pension Scheme (NPS)
This is one of the best reliefs that young people have, to start putting away funds for their own retirement. A New Pension Scheme is state-sanctioned, and the government makes investments on your behalf in equity and debt. It pays dividends once you are past your 60-year mark and you get a monthly pension. This is a unique scheme because it could be highly beneficial if there a few up tides in the economic market. However, due to its long hold period, usually the ups and downs even themselves out. As a couple, you could get an NPS for each of you and have a good amount of pension coming in, in your old age.
Diversify Your Portfolio
As a couple you have the added advantage of always having an objective voice in the discussion. Each one can play the role for the other person. Having an individual portfolio of both the people in the pair ensures that all your risks are not channelled in the same direction. It also has an added advantage of your investments inherently being diversified.
Two people with different sensibilities and risk-taking temperaments can benefit from the overall returns greatly. It is well known that one’s investments should never be in any one direction and all assets should be as unrelated as possible. Having two minds, not one, working towards investment accomplishes just that, keeping your investments growing safely.
Capitalize on the Yearly Budgets
It never hurts to pay close attention to the yearly budgets. Every year there are plenty of opportunities presented in it for people to invest. This year the FY18 budget declared a lot of laxative on the taxation of monthly returns on fixed deposits. In fact, some companies are giving as high interest rates on select fixed deposits such as FDs for women. Being a couple, you would have an added advantage by investing in these FDs in your wife’s name. If you plan on keeping the deposit aside till retirement, you would avail a massive tax advantage on all interest earned.
Both you and your spouse should have an insurance policy that has a good return rate and that has fixed terms as long as you make the payments on time. These policies are great assurance for your loved ones in case of an untimely demise of you or your spouse. It is a decision all couples must take in their late 20s as it is the ideal time to start investing in your future.
There are many other ways to invest in your future, but when it comes to couples in their late 20s, these are the stepping stones towards a financially secure future.