Your Financial Plan



I am 56, I returned to India recently. My spouse is a homemaker.

I would rather not work if I can live life off my savings. I can restrict my expenses to ₹50,000.

If my savings cannot last for my lifetime, I will look for a new job. I have adequate health policy but no life insurance.

DKM

Asset allocation plays an important role in wealth creation. You have invested in excess in gold and fixed deposits.

From here on, to meet all your goals, you need a corpus of ₹2.32 crore. Your gold and financial assets account for ₹1.89 crore. Unless you sell your plot, you cannot meet your monthly expenses till you turn 85.

To meet your monthly expenses for the next four years, you need ₹23.75 lakh.

Once your children get married, your monthly expense will drop by more than 40 per cent.

So from 60 to 85, you will need ₹1.04 crore provided you earn at least 1 per cent over and above inflation.

I suggest you hold gold worth ₹15 lakh for your children’s marriage and ₹10 lakh for your wife’s utilisation. Do sell the rest and invest in financial assets.

This will help you earn better return and to meet other expenses beyond living expenses. If there is a shortfall at a later date, sell the plots.

Your health insurance is adequate. If you still wish to increase the cover, buy only top-up plan for better protection.

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

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