Reached 7L networth (all cash, need suggestions)
I am a 23 grad who has managed to save close to 7 L all cash till now. Plan was to enjoy the first 6 months of job and then start with the financial hustle. Seems, I am ready. Need suggestions to allocate ~5L across equity, gold, FDs and other investment instruments. I have an education loan, so tips on that will also be highly appreciated. Targeting 25 L net-worth (excluding the loan) by the end of ‘24 Thanks!
ChopinInterlude
Student
9 months ago
Education Loan is a good thing in your case. Don't be in a hurry to pay it off really soon. Get taxation benefits.
See if you can pay down the principal rather than the interest, read up on this and negotiate with bank if necessary)
Got a nice sum. Always keep 5L in your bank acc.
Anything else goes into the stock market and FDs.
Rest you will figure out kid.
FruitfulHit
Stealth
9 months ago
Why keep 5L in bank account?
FruitfulHit
Stealth
9 months ago
How do you plan to get to 25L by end of ‘24? Saving almost 1.5L a month?
corporateCheesecake
Stealth
9 months ago
More savings, a realistic 10% compounding on equities and a bit of increment in my salary. Again, this is a target, might not happen but pushing will not hurt.
FruitfulHit
Stealth
9 months ago
Got it, makes sense
See more comments
kansen
Stealth
9 months ago
This is counter-intuitive but take more risks at this age. Do not park it in gold or FDs. Do not repay the loan more than you need to.
80-85% equities + 10% bitcoin + 5% liquid would be my allocation if i was 23 again.
It’s good to have a 1 yr goal on net worth but make investing decisions to optimize for your 30th birthday than 24th.
Ps. I am a 34yr CA, FIRE achieved but in hindsight I wish I had taken a lot more risk earlier
FruitfulHit
Stealth
9 months ago
Hi, would you recommend this even in the current market situation?
kansen
Stealth
9 months ago
what is the current market situation acc to you?
See more comments
steppenwolf
Stealth
9 months ago
Start with Actively Trading into the Equities market. Stay the hell away from options and futures and you will be good.
I'm in the same boat as you. Have close to 7L. I've put 2 in an FD for emergencies. Have started an SIP in 3 MFs and also invested in SGBs and an ETF.
The only thing is I'm really scared of investing more than 10k in one thing.
Following.
If you want to invest in gold, SGBs are the best option. Only consideration is your money will be locked for 5/8 years if you want tax free gains. If you do not want to optimise the gains, sgbs can be sold in secondary market anyways
you
Stealth
8 months ago
Gg
Discover More
Curated from across