How to save for short-term goals and retirement together?

i want to buy a suitable house 1.5 crore more in the next two years by taking loans and using savings and investments Buy a car in the next 7 years. I want to retire by the age of 50 6 crores.

How should I allocate my monthly salary in various investment plans to achieve my goals?

, Name withheld on request

Given that you have a short-term requirement of funds to buy a home through a combination of savings, investments and loans, you can start reducing your equity exposure gradually and invest your money over the next few years in arbitrage funds. Can invest savings. and short-term debt funds to support the down payment for the home. Assuming an interest rate of 8.5% per annum on the principal 1.15 crore and a loan tenure of 20 years, you should pay approx 1 lakh per month as EMI. We are assuming that your salary will grow at 8% p.a. and expenses will grow at 6% p.a. over a long period, along with the fact that you will continue to invest your savings over and above your expenses and EMIs.

We would recommend allocating the savings you make after home purchase to a combination of passively diversified equity mutual funds, both domestic and international, to help fund retirement and car goals. You have mentioned that you want to buy a car after seven years, which should be possible, and at the age of 50, your retirement can be financed through the corpus created by PPF, MF and fixed deposits.

I am currently doing my post graduation and working with one of the top broking firms. my annual ctc is 10 lakhs. I have zero knowledge about share market or mutual funds etc. I want to know the best way to invest and get good returns.

Name withheld on request

As a general rule, 20%-30% of salary should be allocated to savings and investments as you start earning. It is important that you start investing in mutual funds as they are a suitable vehicle for new investors who want to invest in the equity market. Build a portfolio that has a mix of passive and active schemes. Invest through a combination of Index Funds, Mid Cap and Small Cap Funds. This will help you cover all the market caps in the listed equity space. Link your investments to your goals and select funds based on the time frame of your goals. If the goals are for a short time period, then one should opt for debt funds such as liquid funds or short duration funds. If the goals are long term then one can opt for equity-oriented funds as they should be able to beat inflation. Also make sure that you have adequate life insurance and health insurance as this will help protect you against medical emergencies and will not put a strain on your savings

Vishal Dhawan is a Certified Financial Planner and Founder of Plan Ahead Wealth Advisors.