Your Financial Plan

Suresh Parthasarathy | Updated on January 19, 2018 Published on January 10, 2016

I am 43 and work in a private company. My wife, 39, is a school teacher. I have a son (10) and a daughter (7). My father and mother are financially dependent on me. My savings are in EPF (balance ₹9 lakh) and mutual fund (₹3 lakh). The sum insured in my insurance policy is ₹5 lakh.


With your current surplus, you will not be able to start saving for all goals. Once your home loan is repaid, step up your savings.

Education: Earmark insurance proceeds for this goal and it will account for ₹8.65 lakh. To meet the shortfall of ₹1.35 lakh you need to save ₹1,000 every month.

To build a corpus of ₹15 lakh for your daughter’s education, invest ₹5,500 monthly, it should earn 12 per cent return per annum. Earmark the future mutual fund investment for this goal.

Marriage: Although you will retire a few years before your daughter’s marriage, the sum needed for this goal can be obtained by allocating the current mutual fund investment of ₹3 lakh to this goal. If the funds deliver 15 per cent return in 2033, it will account for ₹32.2 lakh. To meet the shortfall invest just ₹1,900 for 204 months and it should earn a return of 12 per cent.

Retirement: If future contributions to EPF increase at 5 per cent and the present balance earns interest of 8.75 per cent, your retirement corpus will be ₹56 lakh. Your monthly expenses of ₹20,000 will grow to ₹55,180 at retirement, if inflated at 7 per cent. You need a corpus of ₹1.56 crore. So, save monthly ₹20,000 at 12 per cent per annum.

The writer is a financial planner and founder

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