I am 47 and self-employed. My wife, 43, is a home-maker. My son is in his first year of engineering, daughter in class 8. After returning to India, I tried my hand at a few business ventures with my savings but they all failed. Now I am doing catering, which gives me some decent income. To clear my liability, I have sold property. How do I meet my financial goals?

Muthukumar

Work pressure spurs many to try their hand at entrepreneurship but they fail to have a business plan. Catering being a low-capital business, do concentrate and build from here. With a limited surplus, you can save only for your daughter’s marriage.

For your son’s post-graduation fees, allocate ₹15 lakh from the savings account and for the balance ask him to avail education loan. To meet your present monthly expenses at retirement you need a corpus of ₹1.91 crore and it should earn 1 per cent over and above inflation to support you till you turn 85. Allocate ₹20 lakh from your savings account for this goal.

If you earn 12 per cent return at retirement, it will be worth ₹87.3 lakh. To meet the shortfall you need to invest ₹27,900. Once your surplus increases, plan for the same. During retirement, if you still face a shortfall, sell the commercial property, it will help you bridge the shortfall.

Reduce health policy to ₹5 lakh and buy either auto restoration or top-up policy to lower premium outgo. Buy term insurance with the difference in the premium.

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

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