Personal Finance

Financial Planning

Suresh Parthasarathy | Updated on November 25, 2018 Published on November 25, 2018

I am aged 40, and work in an MNC as a manager. My dependents are my mother (65 years old), my wife (homemaker, 36 years old) and my son (seven years old). I may work till I am 60 years old. I have not invested yet in SIPs of mutual funds. Could you guide me through as to how to plan my investments and achieve my financial goals?


It is always better to have a diversified portfolio to meet your financial goals. Most investors are overweight on real estate, but still, like you, wish to increase exposure to the same.

Once you retire, if and when you need cash for your day-to-day needs, it may not be possible to sell a portion of the land and meet household expenses as real estate can be quite illiquid. So, it’s better to keep away from buying land. Since you own a house and a plot, you can leave that as an estate for your son.

You have assumed very tight monthly expenses post-retirement, but you may require more than that. You can extrapolate today’s monthly expenses of ₹25,000 and arrive at the corpus required for retirement. At retirement, you will need a corpus of ₹2.08 crore. Your existing EPF balance and future contributions towards it will account for ₹1.75 crore, if the corpus earns 8.5 per cent on average. To meet the shortfall, invest as shown in the table. Follow asset allocation of 60:40 in equity and debt for future investments.

If you remove the purchase of the plot from your goals, you will be left with a surplus of ₹1 lakh. Your home loan outstanding at 2022 will be ₹39 lakh and you can comfortably close the loan. From 2022, if you start investing the surplus, you can plan for other goals such as buying a car, going for vacations and building an emergency fund for post-retirement medical needs.

Still, if you are keen to buy the plot, utilise your savings account balance and buy in 2019. Once your PPF has matured, earmark the same if you wish to change your car in the next five years.

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

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