Your Financial Plan



I am 38, and a building contractor by profession. My wife, 35, works with me. I have two sons aged 8 and 10. Income from my business has been dull over the past two years. I have inherited property on the outskirts of Chennai. Is it a good idea to promote it with my savings and selling a part of the land? My current MF portfolio is at ₹50 lakh and fixed deposit and postal savings are at ₹45 lakh.

Narayanan

Every business faces a lean patch and the success of the businessman depends on how he handles such a situation.

On the one hand, you are afraid of RERA and on the other, you wish to enter flat promotion. As a contractor you don’t take a risk on your capital, but in flat promotion your capital will be at risk.

As an industry, real estate is yet to see a turnaround. You could go for plan approval since it is your land. Wait for turnaround to start construction. While chasing your dreams, make sure you protect your existing financial assets. With your existing investments, you can reach all your goals comfortably with the same asset allocation. Book profits in equity when the returns are abnormal. From your existing investments, allocate funds as per the table. Your future SIPs in mutual funds and surplus can be used to create wealth and it can be used as emergency fund for your business.

Your current health policy for ₹2 lakh is too low, increase the cover to ₹5 lakh.

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

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