I am 51, working in the private sector. My wife, 47, is employed. My elder daughter is 19 and younger 15. On retirement, I need ₹40,000 a month for expenses. Can I sell the flat in my home-town for ₹35 lakh and buy a new flat at my work place for ₹60 lakh by taking a loan of ₹25 lakh?

Ramesh

To meet all your goals you must invest ₹93,000 a month against the total surplus of ₹38,000. But with the right strategy you can do it , barring buying flat at your work place.

Education : Pre-close ₹10 lakh of fixed deposits. Invest it in diversified equity fund. If the fixed deposits earns 7 per cent and diversified fund 15 per cent after four years, it will account for ₹30.6 lakh. Use ₹19.6 lakh for your elder daughter’s post-graduation.

For younger daughter’s education you need ₹24 lakh. Use ULIP, which may account for ₹13.78 lakh at an 11 per cent return. To meet the shortfall, invest ₹5,800, it should earn 12 per cent. Step up investments annually by 5 per cent till the goal is reached.

Marriage: For elder daughter’s marriage you need ₹24 lakh . Utilise the maturity of money back policy. Younger daughter’s marriage will cost ₹27.5 lakh. Use the ₹10.9 lakh surplus from the fixed deposits. If it earns 12 per cent in four years it will account for ₹17.2 lakh. To meet the shortfall, invest ₹5,400 and use a part of existing SIP.

Retirement : For monthly expenses of ₹40,000, you need ₹1.05 crore, earning 1 per cent return over and above the inflation. EPF corpus will be ₹28.15 lakh. Sell the plot after your wife’s retirement. To meet the shortfall, earmark ₹10,000 from existing SIP.

The writer is a SEBI-registered investment advisor and founder, myassetsconsolidation.com

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