Your Financial Plan

Suresh Parthasarathy | Updated on January 19, 2018 Published on February 14, 2016

I am 42. I was working outside India for the last five years. I returned recently for setting up a business. Till my business stabilises, I am looking for monthly income of ₹30,000 without investing in equity. With this money I want to meet goals with regard to my daughter’s future.


When starting a business, it is better to plan for 3 to 5 years’ family expenses including any goal. This will allow you to concentrate more on business. So, to meet monthly household expenses for the next 3 years, invest ₹10 lakh in fixed deposits maturing at different intervals, say, 3 months to 2 .5 years. Although these investments will not beat inflation, you can be free of worries for three years.

Invest the rest of the money in balanced mutual funds and allow it to grow for three years. In the intervening period, if the market delivers abnormal return, take out 85 per cent of the profits and shift it to fixed deposits. This will be useful to meet any business-related expenses.

Daughter’s education: Since you have insurance policies maturing every year from 2018, earmark the maturity proceeds for this goal. You will still face a shortfall of ₹7.6 lakh. Assume you have invested ₹40 lakh and if it grows at 12 per cent (after taking out profits) it will be ₹79 lakh in 2021. Withdraw 5 per cent of the investments every year to meet the education cost.

Marriage: After withdrawal, if your corpus grows at 7 per cent till the marriage, your investment value will be ₹1.1 crore. After meeting the expenses, earmark the rest for your retirement. For retirement, earmark policies maturing in 2027 and 2029. Once the business stabilises, contribute for the retirement corpus.

The writer is financial planner and founder

Send your queries to

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