Your 20s are all about struggle, career growth and working towards overall stability, especially financial stability. You have just started your professional career and are working towards building a life, a life that will eventually be shared with your loved ones.
The 20s are also about building a financial portfolio . Young investors are generally characterised by long-term goals, apt-risk appetites, diversified portfolios and fast investments. They invest aggressively, are willing to take good saving risks and build a decent portfolio before they start a family.
As important as investing is to benefit from the market movements and build wealth fast, it is equally important to put your money into stable and lesser-risk saving plans for young adults to build an assured corpus. Similarly, it is necessary to plan a long-term investment plan, and at the same time, it is equally important to maintain smart savings for short-term goals.
Market-linked investments are great for long-term wealth creation. Markets are volatile in the short term; however, long-term investments allow for rupee cost averaging and balancing out of any major lows with an equal number of high Thus, investing is perfect for long-term financial planning. However, for short-term goals, such as marriage in the next 2-3 years, building an emergency fund, saving up for a sabbatical for upskilling, etc., you need a money savings plan with assured returns.
Thus, young investors should also put effort into building a savings corpus. Let us look at a few reasons why savings are more important than investments for young investors.
Now that we have discussed the importance of savings for a young investor, it is important to look at some popular savings avenues. Fixed deposits (FDs), recurring deposits (RDs), and savings accounts are conventionally popular and most opt for products for hassle-free and stress-free savings. Similarly, government schemes, such as Public Provident Fund (PPF), National Savings Certificates (NSCs), Post Office Savings Schemes, etc., are also used extensively for building a savings corpus.
One more important product that allows no-risk savings is an insurance savings plan from life insurance companies.
As a young professional, you may have some loved ones who are financially dependent on you - elderly parents, siblings, spouses, children, etc. Even if you build a large savings and investment portfolio, you need to ensure that they are taken care of in your absence as well.
Life is uncertain . Will your family be able to sustain the lifestyle in your absence? What about your parent's medical expenses and other needs? Will your unfortunate demise leave your family riddled with debt? The best way to quell all these fears is to get yourself adequately insured with a life insurance plan .
Life insurance savings plans combine the benefits of life cover and guaranteed 1 returns on the money invested. The premium you pay for a money savings plan is put in non-market-linked avenues, thereby assuring you of guaranteed 1 returns.
At Tata AIA, we offer a wide range of specially curated life insurance savings policies. With our wide range of online calculators , you can find the best saving plan for young adults to not only secure their families but also save for their dreams and financial goals.
With Tata AIA savings plans, you get guaranteed 1 returns plans, monthly income plans, regular income plans, money-back plans and so on. Choose the one that matches your savings goal and financial requirements.
For more information on Tata AIA life insurance savings plans, you can get in touch with our insurance experts today.
L&C/Advt/2022/Sep/2261