Carried Away By Emotion….docVIP

Carried Away By Emotion… Ajay and Vartika decided to part ways amicably and so opted for a mutual-consent divorce. Though they have been managing finances on their own till now, at this stage, they decided to approach a financial planner for guidance. A HOUSE WITH A MORTGAGE ISSUE: The house is in Vartika?s name with a joint home loan. She has been paying the monthly instalments but Ajay had contributed 75% for the down payment. Both refuse to let the other have sole ownership. ADVICE: Selling the house right away will be a good option as a delay will lead to complications. Vartika has advantage here as she has been servicing the loan. DECISION: They decide to sell the house and split the money after repaying the loan based on their individual shares. JOINT ACCOUNT JOINT ACCOUNT ISSUE: Should they continue their joint savings account with Rs 1 lakh deposited randomly? ADVICE: It should be closed immediately and the balance divided equally. DECISION:.The account will be closed after the money is transferred into individual accounts. INVESTMENTS ISSUE: Equity mutual funds worth Rs 15 lakh held by Ajay. Each had contributed equally. ADVICE: The funds should not be redeemed as these are still in the lock-in period. The money should be divided equally after the lockin period. DECISION:.To meet their requirements, they have decided to liquidate the funds immediately. CHILDREN?S FUTURE ISSUE: Investments for children?s future have to be started. ADVICE: They should invest in long-term products. Ajay should contribute more as he earns more. Investment products should be decided after understanding the risk profile and the current asset allocation. DECISION:. Both agree to share the responsibility, as suggested by their planner. INSURANCE ISSUE: An endowment plan with a 20-year tenure was funded by the couple randomly. ADVICE: Surrendering the policy will result in a loss as it will fetch them less than 30% of the pr