Why it makes sense to start investment planning early?

Sachin is a 22 year old software engineer with a good job and a handsome salary. He was recently advised by his financial advisor about the benefits of investing early in life. He wants to invest in a good plan, but at the same time he also feels that delaying it by a few years would not make a big difference as he has just started his career. Through this article let us try to understand the benefits of early investing. Investment can be defined as the action or process of investing money for profit. Advantages of investing at a young age: 1. Advantage of time on your side - This is the most important benefit. By investing at a young age, you are able to save more money to invest and for a longer time period resulting in a higher benefits. 2. Benefit of compounding returns - According to Albert Einstein, compound interest is the greatest mathematical discovery of all time. The wonder of compounding transforms your working money into a highly powerful income-generating tool. Compounding is the process of generating earnings on an asset's reinvested earnings. To work, it requires two things: the re-investment of earnings and time. The more time you give your investments, the more you are able to accelerate the income potential of your original investment, which takes the pressure off of you. 3. Better financial security - The earlier you begin investing, the better your personal financial situation will be in future. As compared to people who chose to invest later in life, you will be able to afford things that others can’t.
4. Less responsibilities – When you are young and single you have less number of responsibilities as compared to when you are married and have children. So when you start early you have more funds to invest.
5. Money for emergencies: By investing early, you would have a comfortable backup which you can use in case of emergencies.

What will happen to those dreams which you had for them?

More than 5000 people lost their lives due to severe floods and landslides in Uttrakhand.

According to media reports, life insurance companies received claims of more than 1 000 crore rupees
  Many people who died probably did not have any life insurance. Life insurance cannot replace the personal loss, but it cannot definitely ensure that your family can continue with theircurrent standard of living.

Nobody knows what will happen tomorrow. Can you imagine the situation which your family will need to face if something happens to you unexpectedly? What will happen to those dreams  which you had for them?

Are you an NRI? Why life insurance is important for you?

Working in a foreign country, whose currency has a higher exchange rate, offers the advantage of higher savings when the money earned there is remitted to India. At the same time there could be disadvantages such as uncertain economic conditions which result in recessions and job layoffs. We all know what happened in USA post 9/11. Many people lost their jobs. A similar situation was again repeated during 2007-2008, not just in USA, but across the world. Many Indians working in the Gulf were left with no option but to comeback to India.
Hence it is important to have an adequate financial plan in place to provide for long-term security and achieve financial goals for you and your dependents.
Listed below are some questions which will help you to analyze your requirements for life insurance.
Do you wish to settle in India after retirement?
Do you have dependent parents?
Do you have dependent children?
Do you have long term financial goals?
If the answers to the above questions are yes, adequate life insurance is a must for you. Besides financially securing your dependents, adequate life insurance can also create a provision for your retirement. Over a period of time, your life insurance policy will build up a substantial cash value can come in handy in case of unforeseen circumstances such as loss of job due to recession. LIC offers a variety of insurance plans which can help you to fulfill your long term financial goals. If you still do not have adequate life insurance it is just the right time to get in touch with  us and buy adequate life insurance.