SISO for Goal-Based Investing: Planning with Purpose

What is Goal-Based Investing?

Goal-based investing means investing with a purpose rather than saving money randomly. Each goal you set should be SMART (S – Specific, M – Measurable , A – Achievable, R – Realistic, T – Time Bound)¹

For example, let’s say you want to buy a house in 10 years and decide to invest 2 lakhs with SISO. The goal is Specific (buying a house), Measurable (₹20 lakhs in 10 years), Achievable (You can set aside 2 lakhs every year) Realistic (the amount aligns with the expected house cost), and Time-Bound (10 years).

Goal-based investing provides a structured and predictable path, making the journey towards your desired destination smoother. This disciplined approach helps you stay focused, reduces the need for loans, and ensures that when the time comes, the money is right there for you to use.

Where Does SISO Fit in Goal-Based Investing?

SISO, or Systematic In, Systematic Out, is a monthly investment strategy that makes investing simple and disciplined. You can choose SISO with Bajaj life insurance plans and pay premiums monthly. It is a life insurance plan that also helps you build wealth with consistency over the policy tenure and offers planned withdrawals when you need the money, ensuring your financial goals stay on track and your life plans remain uninterrupted. This strategy is especially suitable for ULIPs, as it combines disciplined investing with market-linked growth and flexible payouts in the form of monthly withdrawals through SISO.

How SISO Supports Various Life Goals

Different life goals have different financial needs and timelines. It's essential to manage your finances well to be able to achieve your goals as planned. SISO (Systematic In, Systematic Out) provides that framework, helping you grow your money consistently and access it when you need it. Here’s how SISO can support some common life goals.

• For Child’s Education:

  Education inflation is increasing by 11% to 12% every year², and it’s important to create an inflation-adjusted corpus to provide your child with quality education. You can start investing in SISO when your child is born or during their early years and pay premiums monthly. When required, you can withdraw the accumulated wealth in periodic instalments to cover tuition, hostel fees, and other education-related expenses.

  
  

• For Retirement:

  During your working years, SISO enables you to build a retirement corpus steadily, with life insurance plans like ULIPs and deferred annuity endowment plans. When you retire, you can choose to withdraw systematically from the corpus that you have created to cover expenses without compromising on your lifestyle.

  
  

• For Major Life Milestones (Like Buying a House):

  For significant events like purchasing a house, SISO allows you to plan accumulation over 10–15 years. As the milestone approaches, you can withdraw money in regular fixed installments and thus manage your cash flow and meet expenses without affecting your daily needs.

  
  

Key Benefits of SISO for Goal-Based Investing

• Disciplined Saving:

  SISO encourages you to save a fixed amount regularly, making saving a consistent habit. Consistent savings can help you create a good corpus over time as compounding helps in growing your savings.

  
  

• Market Timing Advantage

  By investing systematically in ULIPs, you can spread investments over different timelines and enjoy the benefit of averaging. You can avoid timing the market and invest in the desired funds consistently.

  
  

• Predictable Income to Fulfil Different Goals:

  When it's time to withdraw the money, SISO gives you the option to choose the frequency and amount you want to withdraw. Thus, cash inflow is predictable. This ensures a steady stream of income ideal for life after retirement or recurring expenses like EMIs on a home or education loan.

  
  

• Flexibility

  You can choose how you want to receive payouts, viz, monthly, quarterly, or as a lump sum, depending on your requirements. You can also change the frequency and amount basis your as you progress into different stages of life.

  
  

• Life Insurance Cover:

  Since SISO is attached to life insurance policies, you also enjoy the life insurance coverage that such policies offer. In the case of your untimely demise during the policy term, your family can get the much-needed financial assistance from your life insurance plans.

  
  

• Tax Efficiency:

  Under the old tax regime, premiums paid for life insurance with SISO qualify for deductions under Section 80C up to ₹1.5 lakh. Maturity and death benefits also enjoy tax exemption, provided specific conditions are met. This makes SISO a tax-efficient way to grow and safeguard wealth.

  
  

Conclusion

Achieving a financial goal becomes easier when your plan balances discipline and flexibility. SISO brings that balance by helping you invest consistently, allowing you to withdraw systematically when required, and safeguarding your family’s financial needs with the life insurance coverage offered by the plan. It ensures you stay prepared and gain more clarity and control of the future. So, choose SISO and plan for your goals with suitable life insurance plans.

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