I am 65. How do I provide financial assistance to my wife, daughter, 34, and six-year old grandson? My daughter soon starts a job that pays ₹25,000 a month. I have diabetes and no health insurance.
Raju
There is no fixed formula for asset allocation. In your case since your monthly needs are protected by fixed deposits, take exposure to equity. However, considering your life expectancy, restrict equity exposure to 30 per cent of the assets. Such a portfolio will help you earn post-tax return of 8 per cent.
Daughter’s marriage : Once your daughter starts earning, save all her salary to meet marriage expenses. I presume it will be a simple marriage at a cost of ₹8-10 lakh, since she has adequate jewels. Earmark ₹3 lakh receivable for this purpose.
Retirement: Although your current monthly expense is ₹60,000, it may moderate once your daughter marries. Assuming status quo, you need a corpus of ₹1.03 crore. It should earn 1 per cent more than inflation to sustain you till you reach 80. In the initial years, when you rebalance your equity mutual fund portfolio, set aside some funds for medical emergency.
The writer is a financial planner and founder, myassetsconsolidation.com
Send your queries to blinefp@gmail.com
The writer is a financial planner and founder, myassetsconsolidation.com Send your queries to blinefp@gmail.com