Your Financial Plan



I am 45, working in the private sector. My wife, 40, is a home-maker. I have a daughter studying in Class 7 and a son in Class 4. My goal is to make my daughter a doctor but if she is not able to secure MBBS admission through merit, I want her to study abroad. I used to invest only in real estate but now I plan to diversify.

Amudan

You can reach most of your goals although your investments are overweight in real estate. One common problem with real estate is that, to adjust for tax, people tend to disclose lower rental income, which leads to unaccounted income. So your plan to diversify is right.

Since most of your goals are long-term, follow an asset allocation of 50:40:10 in mutual fund, debt and gold, respectively.

Retirement: The present monthly expenses of ₹20,000 will be ₹48,200 at retirement. To meet the monthly expenses you need to have a corpus of ₹1.49 crore. Your EPF will account for ₹55 lakh. Your rental income will take care of the shortfall. If you wish to accumulate as per the table you will have a shortfall of ₹22 lakh.

Education: If your daughter joins MBBS at Mauritius after her school education, the monthly surplus can be used for retirement shortfall or any other goal.

Write a Will for all assets.

The writer is a SEBI-registered investment advisor and founder, myassetsconsolidation.com Send your queries to blinefp@gmail.com

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