Investment Strategies: How To Save/Invest Your Spouse’s Income?

by Vinaya HS on October 21, 2010

in Finance

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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?




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{ 1 comment… read it below or add one }

Fazal javed December 1, 2010 at 2:10 PM

As advised please let me know how much a PO Recurring deposit of 10000 rupees fetches for 5 years on maturity.

The other most important question is, my son has sent Rs. 1,15001 from Samba bank Jeddah, KSA, through their intermediatary bank citibank on Nov.4 this year. This has not so far been credited to my account in SBH, Nakkalgutta branch code 20150 Hanamkonda warangal Andhra Pradesh, Pin Code 506001. What is the reason for so much delay?

syed fazlullah.

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