Your Financial Plan

I am 45, and self-employed, my wife is 35. I have a daughter aged two. Due to family commitments, I have not saved enough. Of late, my business margin has been under pressure. I may not be able to run the business after 60. Do let me know how to invest for my goals.

Aravind Kumar

In investment, procrastination is not a good strategy

Despite your family commitments, if you had thought of financial planning at least at 35, with minimum savings you could have accumulated some wealth. The only excuse for not investing in most cases is procrastination. This results in having to work beyond 60 to provide for a comfortable retired life. Since your goals for your daughter stretch beyond your retirement age, and you have limited surplus, working till 65 is the only solution.

Given that you started your family life at a relatively late age, your monthly expenses are bound to be high. Once your daughter starts school, your expenses are likely to increase further and that will reduce your monthly surplus.




It’s a question of whether you need to sacrifice now or later. If you build your business till you turn 60, you will be provided for the next five years. So, prepare yourself mentally to work till 65. Also, since your wife is younger than you by 10 years, you need to build a retirement corpus to last till the time she turns 85.

By chance, if your business picks up and your monthly surplus goes beyond ₹50,000, this will help you to retire at 60. Buy term insurance for ₹1 crore to protect your goals.

The writer is a registered investment advisor and founder, Send your queries to

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