Your Financial Plan

My son, 39, works for a software company. His wife is 37.They have a four-year old daughter. Although they earn well, my son shows no interest in deploying the surplus. His SB account balance is around ₹50 lakh. Since he is keen to send his daughter to the US for graduation studies, he may need more money. How do I get him to invest surplus income?


The concern you show is warranted. Given that you are 70 and appear to be managing the family expenses and other issues, it could be that your son has become complacent. Part of the problem could be of your making, unwittingly.

To set right the situation, if you make him share monthly expenses and get him involved in routine family affairs, he will understand the importance of money. Being your only son, he will inherit all of what you and your wife leave behind, so there is nothing wrong in his sharing expenses.

To meet your grand-daughter’s graduation cost of ₹ 2 crore and another ₹ 1 crore for post-graduation, start a SIP from son’s monthly surplus and keep him updated on the investment growth. Over a period, he will understand the importance of investments.

If you invest ₹40 lakh in a portfolio with asset allocation of 50:50 in debt and equity and if the portfolio delivers a return of 10 per cent, in 2031 it will account for ₹1.51 crore. To meet the shortfall you ought to invest monthly a sum of ₹11,500 and it should earn 12 per cent return.

Similarly, for her post-graduation, to reach the target of ₹ 1 crore you need to invest monthly a sum of ₹13,200.

If a sum of money gets debited from his account every month, over time he will show interest. At that point remind him of the importance of saving for retirement and his daughter’s marriage. He will surely start taking care of his investments then and you can relax.Persuade him to buy term insurance for ₹1 crore for his wife and for himself.

The writer is a Registered investment advisor and founder,

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