Here is another case study for you Basant sir. Someone some years back had this puzzle to solve. I shall pass your plan to her and hopefully it shall help her in someway
Her situation is as follows:
1) She is 35 years old.
2) She is non-working and housewife and is pretty busy to find time to get a job etc.
3) She has monthly expenses of around 3,500 rupees.
4) She has a lumpsum amount of 20 lac rupees.
Now, what she wants is this:
a) Manage her expenses and have some cash for urgency, something like 1-2K per month maybe. This 3500+ monthly that she would earn, should obviously grow each year with a 7% inflation rate.
b) Let us assume life expectancy of 100 years as in all our cases. She is 35 now.
c) She wants her 20 lacs to do (a) and (b), and also this 20 lac should grow over time. Since this is her only savings, she could be called a low to medium risk-taker.
Now, how does this situation feel to you(financial health) and what is a possible plan.
PS: I shall add many more such cases(find on the internet) so that we can try crunching the solutions at TED.
Edited by omshivaya - 22/Apr/2007 at 4:20am