Financial Planning

I am 35 years old and work in an MNC. My wife works in the IT sector. I have a five-year-old daughter, and we are expecting our second child. My wife may quit her job after that. I live with my parents. I have bought a flat from my savings. I will receive a one-time settlement from my father. How can I deploy my funds to meet my goals?


Your wife quitting the job could have a financial impact. But thanks to the one-time settlement, you could meet most of your financial goals.

For your daughter’s education, set aside ₹4.3 lakh. If the portfolio earns 10 per cent return, it should grow to about 15 lakh. For your second child’s education, set aside ₹3.6 lakh. This should grow to more than ₹20 lakh at 10 per cent annual return.

For your daughter’s wedding, invest ₹10 lakh. If it earns 10 per cent return, it will grow to about ₹70 lakh. For retirement, assume you presently need a monthly sum of ₹30,000. At age 55, you will need a monthly sum of ₹1.16 lakh if the inflation is 7 per cent. To have this income at retirement, you need a corpus of about ₹4 crore, and it should earn at least one per cent over and above inflation, to sustain till you turn 85.

If you earmark ₹40 lakh and it earns 12 per cent annual return (given the longer time horizon, you can take somewhat higher risk for higher return), it will account for ₹3.86 crore. Your EPF accumulation will be helpful in meeting the shortfall. After meeting all the goals, you will have ₹11 lakh; use this partially to close the home loan. Make all your endowments policies paid-up to avoid future premium payments.

The writer is an investment advisor and founder of Send your queries to

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