Your Financial Plan

I am 38. I quit my job abroad and have come back to India. My wife, 35, is a home-maker. My son is eight years old and daughter, six. I plan to look for a new job after a few months. I may receive a salary of ₹60,000. My aged father lives with me. Please review my investments and suggest best options.


Asset allocation plays a big role in wealth creation and it is always wise to diversify investments. As long as you are unemployed the tax outgo on fixed deposits will not matter. But the moment you go back to work, the tax on deposits will kick in since most of your deposits are in rupee. Bulk of your deposits mature in 2017 and this will impact the return on your investments.

To meet all your goals upon maturity of deposits, do change the asset allocation to 50:40:10 in equity mutual fund, debt and gold and look for portfolio return of 10.5 per cent. After allocation for goals, you will have deposits of ₹13.6 lakh, use it for any shortfall with regard to future goals. Close the car and home loan using your bank balance. Once you get a new job and even with moderate savings of ₹11,000 per month, you can reach most of your goals. Since your retirement corpus seems inadequate, earmark the mutual fund investment for this goal.

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

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