People

Your Financial Plan

Suresh Parthasarathy | Updated on August 19, 2018 Published on August 19, 2018

I am 52 and work in an engineering industry. My wife is a home maker. My son is in class 6. I may get a job and my salary will be ₹20,000. I had modified my home loan recently.

How should I manage my funds to lead a comfortable life?

Kathiravan

Solutions: Unscheduled retirement will have an impact on retirement corpus. Since your son is very young, education expenses will continue till you turn 62.

Your home loan outstanding will also impact your retirement kitty. So, it is better to work at least till 60 to protect your capital.

 

 

 

Since your earnings and interest income are going to be around ₹6.2 lakh, continue the EMI for a few more years and once the tax benefits are negligible, close the home loan. From the monthly surplus, if you invest ₹8,000 for six years, it will account for ₹8.4 lakh.

The short fall will be minimal and you can manage education expenses. After 62, you will encounter shortfall in meeting monthly expenses.

So, sell the plot and deploy the money in financial investments to meet the expenses. If you understand mutual funds, invest 30 per cent of the fixed deposits in balanced mutual funds to earn better returns.

The writer is Investment advisor and founder myassetsconsolidation.com. Send your query to blinefp@gmail.com

Read further by subscribing to

The Hindu Businessline

What You'll Get

  • Web + Mobile

    Access exclusive content of the Hindu Businessline across desktops, tablet and mobile device.


  • Exclusive portfolio stories and investment advice

    Gain exclusive market insights from the Hindu Businessline's research desk.


  • Ad free experience

    Experience cleaner site with zero ads and faster load times.


  • Personalised dashboard

    Customize your preference and get a personalized recommendation of stories based on your intrest.

This article is closed for comments.
Please Email the Editor