Your Financial Plan

Suresh Parthasarathy | Updated on January 12, 2018 Published on June 25, 2017

I am 40, working in an MNC. I plan to quit this job for a start-up. Even if I don’t earn from the start-up, is it possible for me to reach all my goals?

My wife is a home-maker. I have two kids aged eight and five. With my fixed deposits I wish to meet my children’s education and keep other assets for my retirement.

Please suggest how I can go about meeting my goals.


It appears easy to meet family expenses till 60. But inflation will be a major worry. Frequent rebalancing of portfolio is required till both daughters get married.

In the initial phase, interest income from fixed deposits and rental income is sufficient to meet monthly expenses but as the years go by, due to inflation, you will face a shortfall.

To meet family expenses deficit, book profits in your equity portfolio. For elder daughter’s education, withdraw 50 per cent from Sukanya Samriddhi and for the shortfall withdraw from the equity portfolio. For the second daughter’s education, utilise the tax-free bonds.

The present monthly expenses of ₹45,000 will be ₹1.24 lakh when you turn 60.To meet the expenses at 60 you need to have a corpus of ₹1.12 crore.

If your mutual fund portfolio grows at 12 per cent by the time you turn 60, it will account for ₹1.10 crore.

So, without much difficulty you can meet retirement needs.

You have not mentioned how much you require for your daughter’s marriage. Close the fixed deposits of ₹60 lakh and utilise that for the marriage. For the shortfall, sell the Jaipur plot.

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

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