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9-Point Investment Plan + 209 words Financial Plan

Dev Ashish

Short Financial Plan

Do you want a simple investment plan?

Here is a rock solid 9-point plan suggested by Scott Adams, the creator of Dilbert comic series (source). It’s written for US investors. But it’s still good to read.

Inspired by this, I will share my own’ short plan’ later in this post.So read this one first:

So read this one first:

Now let me get inspired… 🙂

Here is a 209-word financial plan that is more relevant in the Indian context.

209 Word Financial Plan

  1. Buy term insurance. Never buy endowment / moneyback policies.
  2. Buy health insurance for you & family; even if employer-provided. Or atleast get a top-up cover.
  3. Build up an emergency fund equal to 3-6 months’ expenses. Use savings account, liquid funds and FDs.
  4. Buy a house if staying for long and affordable. Don’t go overboard with loan. Keep regular EMIs below 30% of your income.
  5. Prepay the loan as soon as you can.
  6. Make a will.
  7. Don’t delay retirement savings. Divide your periodic investments 70% equity and 30% debt.
  8. If mandatory debt investment like EPF doesn’t amount to 30%, use PPF and debt funds.
  9. Rebalance annually to keep allocation at 70-30 (Equity-Debt).
  10. Use major chunk of annual incentives to prepay loans.
  11. Increase investments with salary hikes.
  12. Keep a credit card. Pay it on time and in full. If you can’t, then dump it.
  13. Teach your dependents about money and how insurance works and who to contact if need be.
  14. If you have special goals (retirement, children’s education planning, etc.) or all this confuses you, hire a trustworthy + competent financial advisor. Few important pieces of financial advice can offset many years of fee charged by advisors.

That’s not as concise as Scott Adams’ plan but I think it covers most of the important aspects.

Hopefully, it was helpful. 🙂

And here are links to other articles that address few of the above-mentioned points:

Life Insurance:

Health insurance:

House Buying:

Home Loans:

Retirement Savings:

Finance Advice:

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