After completing MBA from a reputed college, I landed my first job in one of the best MNC. Though financial planning and making investments was always in mind, but it seemed like a visit to the dentist which gets delayed for no reason. After working for almost half a decade, I realized to take further steps and make some investments rather than putting it on tomorrow. So, ideally, I am in my early 30s and am looking for options wherein I can invest and earn great returns on investment.
One of my friend, who is an financial expert, provided me an insight as to how I can proceed with it. Let me share you the investments you can make in your 30s.
Investments depend on your long and short term goals. At the age of 30, if you are married and don’t have children, your commitments are going to be less. Even if you have children, their higher education and marriage commitments are long term goals for which you have time to save and invest. Ideally, at this age, you will have more of long term commitments and less of short/medium term goals.
Firstly, insure health and life
Before making any investments, ensure that your health and wealth are insured.
While buying a health plan, ensure that the sum assured is sufficient enough to meet the medical costs. With new multi-specialty hospitals opening in India, we can avail world-class treatment for critical illness but all this comes with as cost. The hectic lifestyle can make anyone prone to illness/ailments, which can make a big hole in your pocket.
Since you are in late 20s or early 30s, you can insure yourself with a term plan rather an endowment plan. A term plan will give you no return after the policy matures, but for the entire period of the policy, it insures you at a high sum insured with minimal premiums. So, the amount saved on premiums can be used to invest elsewhere.
Retirement plans, also known as pension plans, provide a fixed source of income after you retire. This income will be provided at frequent intervals like monthly, quarterly, half yearly or yearly. These plans have two phase, one is the accumulation phase in which you have to pay premiums at fixed intervals and other is the annuity phase. In the annuity phase, you will enjoy the benefits of investing by getting a fixed income every month.
If you have surplus funds, consider investing in real estate. You can take loan on the property after paying down payment. This is considered one of the most attractive options as it has the capability to multiply your investments immensely.
Investing in the stock market
You can directly invest in stock market by doing analysis and research. Since you can invest and hold the stock for a longer time, if selected the right stock, the profits can be three or four time the investment made.
You can trade in commodities or metals like gold/ silver. You can also, open a demat account with the bank for trading in stocks. Trading is very rewarding but it is equally risky too. A risk-taking attitude can take you long way in trading but it also depends on your financial capability. It seems to be an attractive option but remember, not everyone is lucky in trading.
The most advantageous part of being in 30s is you have immense time for your investments to grow. With the above options, you can attain your financial goals and live life with a peace of mind.
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