BuddhiBase

I was talking with an LIC Officer about Tax savings investments and insurance

Below is the dialogue..

LIC Officer:I Will suggest you a good plan, before that can you tell me your net salary ?
Me:I take home Rs.10000 (Don't you think i am worth more ... ? LOL - Rs.10000 is just an example)

LIC Officer:Good, Let say that you live for another 40 years and would earn for the next 20 years !
Me: Let it be, What is your point ?

LIC Officer: If this being the case - you should have Rs.2400000 (Rs.10000 * 12 months * 20 years ) after 20 years from now to live your life atleast with the basic necessities (since cost of living would go up).
Me: OK

LIC Officer: You should take a up an investment/insurance plan which will yield you 2400000 after 20 years and would save tax on your current income.
Me: OK, Suggest me the investment per year that i need to do ?

LIC Officer: Big figure !!!
Me: OK, Thanks, Bye Bye - (Kept thinking...!)

After this conversation, i was strongly thinking about different investments - that could yield more...! (who want less ?) - There are problems with these recurring investment plan.

We can look at one time investment plans too - like PPF, NSC or Mutual funds which will benefit us on tax but would have very poor returns. If you have any fear of losing your job ! - this type of investment choice would be great. If you just want tax savings and less returns - this would be a good option.

One more point i observed is, that the "LIC Officer" was much traditional in his thinking - means -

1) Thinking about fixed salaries and
2) Normal growth rate in career (10%) etc.,

Anyway, i have a big picture of a this useless thing (useless thing ?).

Yes, Soon i would be moving to a tax free country !

Any thoughts on this ?

Note: Rs Means INR (Indian Rupee)

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