Your Financial Plan

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.


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 your queries to

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