Your Financial Plan



I am 49, working in Saudi Arabia. My son is 14, daughter is 17 and my wife is a home maker. I plan to work here till 55. My own random investments are not earning good returns. I may need ₹20,000 per month to settle in my native town. Suggest me ways to reach the goals.

Raj

Solutions: Most of your investments are not in line with your financial goals, though there is nothing wrong with the options. The mismatch is that you have invested in short-term products for long-term goals. Follow asset allocation for each goal. With adequate assets and healthy monthly surplus, you can comfortably reach all the goals.

Education: For your daughter’s education, earmark ₹40 lakh from your fixed deposits. For your son, set aside ₹25.4 lakh from the current mutual fund. Invest it inlarge, mid and small-cap and dynamic bond funds in the proportion of 40:20:10:30 respectively that would deliver 12 per cent return.

Marriage: For your daughter’s marriage, sell your short-term funds of ₹14.2 lakh and invest in the above mentioned allocation to reach the target. For your son’s marriage, sell hybrid debt oriented funds and invest ₹75,000 each in Mirae Asset Emerging Fund, DSP Micro Cap Fund and Franklin India Prima Plus.

Retirement: You need a corpus of ₹61 lakh to meet monthly expenses of ₹20,000 at 55. If your balances of ₹20 lakh in fixed deposits and ₹53 lakh in mutual fund earn 8 and 12 per cent returns respectively, the corpus at retirement will be ₹1.36 crore. It is more than your requirement.

Buy health policy for ₹5 lakh during your next visit to India.

The writer is a SEBI registered Investment Advisor and Founder myassetsconsolidation.com. Send your queries to blinefp@gmail.com



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