I am 45 and work as a freelance software trainer. My wife, 40, is a homemaker. My daughter is in class three and my son in class one. I have aged parents with ailments. My father has an emergency fund for medical needs. I am afraid to take risks on my investments. I have ₹2 lakh in mutual funds. I have let out my house on rent for ₹8,000 and have a plot worth ₹2 lakh. I will need ₹10 lakh for my children’s education and ₹20 lakh for my daughter’s wedding. I also need to save for retirement. Suggest a plan to reach my goals.
You will have to invest ₹54,000 every month, but your surplus is just ₹22,000. Save for your children’s goals alone now till your income and surplus increase. You should not be averse to risk and shun equity investments. Some exposure is necessary to beat inflation and reach long-term goals.
Deploy fixed deposit proceeds in the ratio 60:40 in favour of equity and debt respectively. If the portfolio earns 12 per cent returns, at 60, you will have ₹32.8 lakh. Invest ₹29,900 every month for the next 15 years to bridge the shortfall.
The writer is financial planner and founder myassetsconsolidation.com
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