Your Financial Plan

Suresh Parthasarathy | Updated on January 17, 2018 Published on August 29, 2016

I am 40, working in a PSU. My wife is a homemaker. My elder son is in class 6 and the younger one in class 1. I am expecting salary hikes from 2017. I wish to enrol my son into IIT, for which I wish to spend for coaching. Do suggest investment options to reach the goals with my new surplus.


A four-year integrated IIT coaching programme costs ₹8 lakh. The total expense, including the school fees, will not exceed ₹12 lakh for 4 years from class nine.

Education: Assume that ₹5 lakh will be the IIT coaching fee for the first two years for your elder son. To reach the target in 30 months, invest ₹15,000 a month in mutual monthly income plan which would earn a return of 8.5 per centto reach the target.

To meet the ₹7 lakh expense for the next two years, invest ₹11,400 a month for the next 48 months which should earn a 12 per cent return. For his college admission earmark the insurance proceeds of ₹5.3 lakh.

Younger son’s education: Invest ₹7,400 a month to meet his college expense of ₹20 lakh. Earmark the current mutual fund SIP and increase it by ₹4,900.

Retirement: The present monthly expenses of ₹25,000 will be ₹97,000 after 20 years at a 7 per cent average inflation. So you will need to have a retirement corpus of ₹2.55 crore. The EPF contribution will account for ₹1.11 crore. Invest ₹14,500 a month to meet the shortfall of ₹1.44 crore.

The present current balance in EPF can be utilised for any escalation in second son’s education cost or to meet your post-retirement vocation plans. Follow an asset allocation of 60:30:10, respectively, in equity, debt and gold for plans regarding the younger son and retirement goals.

The writer is a SEBI registered investment advisor 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