Your Financial Plan

I am 41, a spinster working in the private sector. My parents, 70 and 64, are my financial dependents. We live in our own house in Chennai. I have the employer medical cover. For my parents I have taken a health cover for ₹3 lakh. I may not be able to monitor the plots alone after my parents. I am keen to pursue a spiritual path. Advise me to plan my finances.


If you are inclined towards a spiritual pursuit it is better to hold financial assets rather than immovable assets such as land. Creating and managing a portfolio with a combination of debt investments and equity mutual fund will be easy. In case you wish to reverse the decision later, this combination of assets can create wealth and also deliver inflation beating returns

Since you have not said whether you will quit your job and take up a spiritual path, I presume that till retirement you will continue both. But, if you wish to quit immediately, your current financial situation will not support such a decision.

To meet the current monthly expenses of ₹30,000 till your dependents turns 85, and you turn the same age, you need to have a corpus of ₹1.16 crore. It should earn one per cent over and above inflation.

If you sell your land, it will account for ₹35 lakh and your financial assets, including insurance, amount to another ₹36 lakh and leave you witha shortfall of ₹45 lakh. You cannot sell your house so you have to work longer. Invest ₹10,000 per month in mutual funds; if it delivers 12 per cent return in 10 years, it will account for ₹23 lakh. To bridge the gap, look for reverse mortgage when you turn 65. Parents’ health cover is inadequate. Increase it to ₹5 lakh. If you decide to quit your job, buy a separate cover for yourself.

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

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