1. Most millenials are confident about their career, earning ability, changing vocations and dreams.
2. As saving and investing is not the natural behaviour for this optimistic generation, while spending is, they should save and invest as per their needs, hence flexible investments are better than complicated ones.
3. Locking into an online term plan, at a lower premium when they are hale and hearty, should top their list for safeguarding needs of dependents in case of untimely early demise.
4. Next should be an adequate health and accident plan suiting family's needs.
5. Setting up a 6-month living expenses contingency fund, either through a liquid or ultra-short term debt fund or a flexi-deposit bank account, is also needed for emergencies.
6. "Bad" debts and loans – credit card, car loan – should be promptly paid through automated payments without rollovers.
7. A very heavy home loan, at the expense of other goals, should also be avoided.
8. A simple equity-oriented retirement solution is ideally suited for millenials:-
a) Invest just 10% of monthly income for 30 years in a portfolio of ELSS-Multicap-Hybrid Aggressive funds through SIPs, as per desired asset allocation, in earning years.
b) Switch accumulated corpus of ELSS and Multicap funds to the "safer" Hybrid Aggressive fund thereafter.
c) Easily withdraw 20 times of monthly investment from this Hybrid Aggressive fund corpus through SWPs for meeting retirement needs.
d) The entire retirement corpus will still remain intact during entire lifetime for bequeathal to the next generation.
9. Other short, medium and long term goals can be met by saving and investing at least 25% of take-home income in a financial plan with "100 minus age" equity asset allocation during the earning years.
10. Monitoring finances with an expense tracker website will suit millenials towards payments and overspending alerts.
2. As saving and investing is not the natural behaviour for this optimistic generation, while spending is, they should save and invest as per their needs, hence flexible investments are better than complicated ones.
3. Locking into an online term plan, at a lower premium when they are hale and hearty, should top their list for safeguarding needs of dependents in case of untimely early demise.
4. Next should be an adequate health and accident plan suiting family's needs.
5. Setting up a 6-month living expenses contingency fund, either through a liquid or ultra-short term debt fund or a flexi-deposit bank account, is also needed for emergencies.
6. "Bad" debts and loans – credit card, car loan – should be promptly paid through automated payments without rollovers.
7. A very heavy home loan, at the expense of other goals, should also be avoided.
8. A simple equity-oriented retirement solution is ideally suited for millenials:-
a) Invest just 10% of monthly income for 30 years in a portfolio of ELSS-Multicap-Hybrid Aggressive funds through SIPs, as per desired asset allocation, in earning years.
b) Switch accumulated corpus of ELSS and Multicap funds to the "safer" Hybrid Aggressive fund thereafter.
c) Easily withdraw 20 times of monthly investment from this Hybrid Aggressive fund corpus through SWPs for meeting retirement needs.
d) The entire retirement corpus will still remain intact during entire lifetime for bequeathal to the next generation.
9. Other short, medium and long term goals can be met by saving and investing at least 25% of take-home income in a financial plan with "100 minus age" equity asset allocation during the earning years.
10. Monitoring finances with an expense tracker website will suit millenials towards payments and overspending alerts.