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Financial planner: 3 pillars for salaried professionals
Certified financial planner Vijay Maheshwari, in a LinkedIn post cited by Livemint, has outlined three non-negotiable financial foundations for salaried professionals: an emergency fund, health insurance, and systematic mutual fund investments. He…
Certified financial planner Vijay Maheshwari, in a LinkedIn post cited by Livemint, has outlined three non-negotiable financial foundations for salaried professionals: an emergency fund, health insurance, and systematic mutual fund investments. He advises maintaining an emergency corpus equal to six months of earnings in liquid funds or fixed deposits, with a target of Rs 3 lakh for someone earning Rs 50,000 monthly.
Maheshwari recommends health insurance coverage of Rs 10 lakh to Rs 25 lakh with no room-rent caps and a claim settlement ratio of 90% or higher. He warns against relying solely on corporate health plans, which can lapse or change with job switches. For long-term growth, he suggests allocating 10% to 20% of monthly income to SIPs in mutual funds, starting at Rs 5,000 for a Rs 50,000 salary, and scaling up as income grows.
Indian Opinion Analysis
Maheshwari's advice aligns with standard financial planning principles taught by the Securities and Exchange Board of India-registered investment advisers. The six-month emergency corpus rule is widely recommended because it covers the average period an Indian professional takes to find a new job after a layoff. The risk of relying on corporate health insurance became stark during the pandemic, when many workers lost both salary and coverage simultaneously. The practical next step for a reader is to calculate their own essential monthly expenses, set up an automated transfer to a liquid fund, and compare health policies on the Insurance Regulatory and Development Authority of India's website before starting a SIP.
Source: livemint.com
This brief was synthesised by AI from the source linked above.
