Thanks for visiting Capital Advisor. I frequently update this blog to cover various topics on personal finance such as investment strategies, financial products that you should buy and ones that you really should stay away from, financial calculators, emerging themes such as early retirement and financial independence, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.
A reader asks,
I work for a multinational and my wife works for the Government. We normally use my salary for day to day expenses while my wife’s salary remains almost untouched. Where can we save/invest her income while keeping our peace of mind (not keen on the equity markets).
Here’s what I read from your situation: A steady and fixed monthly cash surplus that you’d like to save in non-equity instruments.
Now, what are your options?
I’d strongly recommend the 5-year Post Office Recurring Deposit scheme. Given the stability of Government employment, the lock-in period plus the requirement to make a deposit each month shouldn’t be a concern for you. At the end of 5 years, should you be in a position to do so, you can extend the account for a further block of 5 years.
I’d also recommend that you split your savings into multiple deposit accounts. For example: Suppose you plan to save Rs 20,000 each month, open 2 deposit accounts, each for Rs 10,000. Provides a degree of financial flexibility.
What do you think?
Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.