I am 47, working in the private sector. My wife is a home maker. My daughter is 15 and son is 11. I am planning to retire at 55. All my investments are in fixed deposits do suggest me better investments.
Senthil
Solutions: A proper asset allocation will help you get optimum returns. You can adopt the asset allocation of 50:40:10 in equity mutual fund, debt and gold respectively. This can get you 11 per cent return.
Education: Your daughter’s education being a short-term goal, earmark ₹10 lakh from deposits. If you invest a sum of ₹22,070 for the next eight years and if the portfolio earns 11 per cent, it will account for ₹ 33.7 lakh. If you redeploy the same at 7 per cent for the next two years, it will be ₹39.3 lakh.
In the next seven years, you will need ₹16 lakh for your son’s education. To meet the target, if you invest monthly a sum of ₹12,800 in the advised asset class you can reach it.
For his marriage in the next eight years, if you invest monthly a sum of ₹17,400 and earn 11 per cent, it will account for ₹26.5 lakh. If you redeploy the same at 11 per cent return, in 2031, you will have a corpus of ₹55 lakh. Allocate ₹60 lakh of the fixed deposits in a portfolio that delivers a return of 11 per cent. After eight years, it will account for ₹1.38 crore. If the EPF balance grows at the rate of 8.75 per cent, it will account for ₹9.8 lakh. With your rental income and this accumulation, you can maintain the same standard of living till 85. Keep ₹10 lakh as emergency fund in FDs. EPF contribution and monthly surplus of ₹17,000, if invested, will cushion your portfolio.
The writer is financial planner and founder myassetsconsolidation.com.Send your queries to blinefp@gmail.com
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.