How to Redefine Financial/Investment Goals in the presence of COVID-19
It was in 1969 that Maya Angelou had said, “Hoping for the best, prepared for the worst, and unsurprised by anything in between.”
That saying is as relevant today as it was on the day, she said it.
The second part of the statement, “prepared for the worst”, is the one where we lack the most. If you observe humans, you will notice that we prefer to ignore uncomfortable situations until they become unavoidable.
However, the recent COVID-19 has brought out the fragility of life itself. The past few months have been filled with unexpected situations. The most important lesson these times have taught us is to hope for the best but be prepared for the worst. This applies to all aspects of life our health, career, relationships and our finances. While it’s not possible to plan for all things in life, your finances are one aspect that can be managed well with smart planning.
How should you plan your finances?
As youngsters, we tend to live in the moment and get the best of everything today. While enjoying the now, we often ignore the future. This reflects in the investment strategy of many youngsters too.
However, this approach is no longer valid. We need to start planning for our future and prepare for any uncertainty coming our way. We need to build our asset portfolio accordingly.
We can do this by putting our money into a collection of different investments known as an investment portfolio or just a portfolio for short. Ideally, it should contain a mix of the following.
An insurance policy covers the “preparing for the worst” part mentioned earlier.
In the current uncertain times, a well-rounded insurance policy that not only offers financial protection but also offers returns is like a cherry on the cake. Such plans can help you keep going without compromising on your dreams, no matter the situation.
I recently came across ICICI Pru Assured Savings Insurance Plan. This plan provides you with a guaranteed amount on maturity while securing your loved ones’ future with a life cover. With multiple payment options available, you can pay your premiums at your own comfort. The maturity amount received at the end is tax-free, which is an added bonus. Associating with a trustworthy and stable brand like ICICI Prudential Life which has been around for 20 years, makes this plan even more appealing. Such plans are hard to find, and you should check it out for your portfolio!
- Low-Risk Investment
When it comes to low-risk investments, fixed-income instruments like debt are your best choice. This is because the maturity value of fixed-income instruments is generally known in advance. A very popular low-risk option is a fixed deposit. Bonds, both government and corporate, are also good options. The return on a bond does not depend on financial market conditions, which is why such instruments offer a sense of security.
- High-Risk Investments
In high-risk investments, one invests in equity-based instruments. The returns on these instruments change frequently as they depend on market conditions. That’s why these instruments are for those who are willing to be patient and bear with the market volatility. They give you the freedom to choose which set of companies you want to invest in and for how long you want to invest.
In the end, a perfectly balanced asset portfolio with the above types of financial investments can help you fight any uncertainty and be prepared for the worst. Kyunki agar tyaari sahi ho toh jeet pakki hai!
Guaranteed Maturity Benefit (GMB): Your GMB will be set at policy inception and will depend on policy term, premium, premium payment term, age and gender. 1% additional Guaranteed Maturity Benefit (GMB) is applicable only for online sales.
Tax benefits under the policy are subject to conditions under Section 80C, 80D,10(10D), 115BAC and other provisions of the Income Tax Act,1961. Good and Service tax and Cesses, if any will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.
© ICICI Prudential Life Insurance Co. Ltd. All rights reserved. Registered with Insurance Regulatory & Development Authority of India (IRDAI) as Life Insurance Company. Regn. No. 105. CIN: L66010MH2000PLC127837.Reg. Off.: ICICI PruLife Towers, 1089 Appasaheb Marathe Marg, Prabhadevi, Mumbai 400025. Tel.: 40391600. Customer helpline number – 1860 266 7766. Timings – 10:00 A.M. to 7:00 P.M., Monday to Saturday (except national holidays). Member of the Life Insurance Council. For more details on the risk factors, term and conditions please read the product brochure carefully before concluding the sale. Trade Logo displayed above belongs to ICICI Bank Ltd & Prudential IP services Ltd and used by ICICI Prudential Life Insurance Company Ltd under license. UIN: 105N151V01