I am 45, self-employed. My husband has taken VRS. Whatever settlement he got has been deposited in the bank and the entire interest earned out of it is being used to support his sister. Do let me know with my goals and investments when I can sell my business and retire from work.

Rajeetha

To ensure a better quality of life till the age of 85, one needs to work till 55. Once your son’s education commitments are completed, you can manage your life better. Since your spouse does not support the family, ensure that you have sufficient corpus before you quit or sell the business.

To meet your son’s graduation expenses of ₹10 lakh, you need to invest monthly a sum of ₹10,000 and it should earn 12 per cent return. Invest ₹6,000 in mutual funds and the balance ₹4,000 in debt schemes. For his post-graduation, if you invest monthly a sum of ₹15,000 it will be ₹35 lakh in 2027 if the portfolio earns similar return. You will have a shortfall of ₹15 lakh. You can take education loan and ask your son to repay. Alternatively, once personal loan is over, step up your savings. This will help you bridge the gap.

To meet monthly expenses after 55, you need to have a corpus of ₹1.62 crore and it should earn 1 per cent over and above inflation. Deploy the family settlement in bank, with the interest start a SIP. It will account for ₹55 lakh. Rental income from commercial property when you are 55 will help meet the shortfall. Reserve insurance maturity of ₹8 lakh for emergency fund.

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

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