Goal-Based Investing with SISO: Planning for Education, Marriage, or Retirement

Why Goal-Based Investing Matters

Random investing might not create the desired corpus for your financial goals, as you might not be inclined to save regularly or you may stop investing suddenly. To achieve specific milestones of life, you need to have a goal set with a clear idea about these points:

• How much to invest
• How long to stay invested
• What return is needed to achieve the goal

When you know your goals, how much is needed to fulfil them and how you can create the corpus, you can save in a systematic and disciplined manner.

The SISO strategy of investment can further enhance your financial planning through its structured approach, not only while paying premiums but also at the time of receiving payouts.

 

How SISO Supports Different Life Goals

Goal 1: Children’s Education

The rising costs of education make it imperative to plan in advance for your child’s higher education. You can follow the Systematic In approach, i.e., regular monthly premium payments when your child is young, to build a corpus steadily. The Systematic Out mode ensures that you receive timely payouts to handle expenses like tuition fees, hostel accommodation etc.

 

Goal 2: Marriage Planning

You’ll again require a considerable corpus for your child’s marriage. However, the money is needed at various stages like advance booking of wedding venue, purchase of gifts, and final bill settlements. With the SISO planning technique, you can invest in a disciplined manner and then take advantage of the phased withdrawals to settle these expenses without denting your savings.

 

Goal 3: Retirement

Just like the above milestones, SISO can help with retirement planning too. You can buy an annuity ULIP during your working years and pay premiums in a disciplined manner to create a retirement corpus over the policy tenure. Thereafter, the Systematic Out can provide a steady monthly income to manage day-to-day living expenses. By not withdrawing the entire maturity benefit at once, you also avoid the risk of overspending and the corpus can stay invested in the financial market for a longer tenure.

 

Benefits of Using SISO for Goal-Based Investing

Given below are a few perks of using SISO for goal-based investing:

• You can receive a predictable monthly income that can help you fulfil specific goals.
• In market-linked avenues, like ULIPs, you do not have to worry about entering or exiting the financial market on time, since your investments and withdrawals are spread over a period of time.
• SISO inculcates the habit of disciplined savings, thus helping to create a good corpus with the power of compounding. Plus, monthly savings might prove more affordable too.
• With SISO you can create a corpus for different financial goals, such as, kid’s education, marriage, or retirement. Periodic redemptions can be aligned with different timelines, helping to fulfil every goal.

 

Example Scenario

Let us take the scenario of Mr. and Mrs. Agarwal. They started planning for their son’s higher education and bought a child ULIP with the SISO method. They started paying monthly premiums over the policy tenure of 15 years. With time, their fund value grew steadily. When their son entered college, they used systematic withdrawals to pay for the admission procedure and the fees, while the remaining amount continued to grow. They used their remaining fund value to create a retirement corpus.

 

How to Get Started with SISO for Goals (Step-by-Step)

Here is a step-by-step guideline to start your investment with SISO:

 

Step 1: Identify your life goals and timelines

Decide on the purpose of your investment, whether you’re planning for your kid’s higher education, marriage, or retirement. Know when you’ll need funds for each goal.

 

Step 2: Calculate the future value needed

Estimate how much is needed for each goal while keeping inflation and rising costs in mind. You can use online calculators, like retirement planning calculator, to find the corpus needed for your goals.

 

Step 3: Choose the right product

Pick a suitable Bajaj life insurance plan that matches your financial needs and choose the SISO facility.

 

Step 4: Set up Systematic In for accumulation

Start paying the premium monthly by setting up an auto-debit mandate on your bank account. This would automate your investments.

 

Step 5: Activate Systematic Out for the payout phase

You can then start taking out a regular cash flow instead of a lump sum to fulfil specific milestones of your life.

 

Conclusion

Planning for various life goals can become easy with SISO’s structured investments and withdrawals. The disciplined habit of saving regularly helps to build a steady corpus in an affordable manner and you can create a corpus to fulfil your needs. Plus, with market-linked plans, like ULIPs, you can use SISO to get the benefit rupee-cost averaging so that you don’t have to time the financial market. So, assess your goals and pick suitable life insurance plans with SISO to build a systematic corpus for their fulfilment.