Im 49 years old i worked as a teacher in a private unaided school in Telangana Medchal Mandal for the past 24 years.I started my career in teaching in this school since 1998 -2024 March 15. I was asked to quit the school since the new management wanted to have teachers according to their whims and fancies. I worked for her parents when the parents died the property was divided among her daughters finally the elder one cornered it she didn't want the old staff to work and wanted to appoint new staff. When my old correspondent (her mother) when we asked for PF she assured i can't insure right now because i should have done right at the inception of the school so i promise to pay good will when you leave the school for the service rendered towards the school unfortunately she too died in 2021 then her daughter present correspondent didn't even do any favour Unfortunate thing i worked for such an institution there i had not facilities of PF . I served so loyally for this institution as a token of gratitude to my service.they didn't pay anything. Finding a job in other institution they doubt over long standing experience in one school and owing my age they are hesitant to offer a job i have attended few interviews in school . I'm running pillar to post to find a job to support myself. Im helpless and desperate don't know what to do. Please help mem

Ans: Please consult a lawyer

Ans: First, let me extend my heartfelt sympathies for the challenges you have faced. Losing your wife to COVID-19 and dealing with job termination without proper communication is deeply distressing. Additionally, supporting your children through their education and career is commendable. Now, let’s focus on managing your PF amount of approximately Rs. 1 crore and how to ensure your financial security moving forward.

1. Securing Education for Your Children
Prioritise Education: Your children’s education should be your top priority. Ensure that you allocate sufficient funds from your PF amount to cover their educational expenses, including fees, books, and living expenses.

Invest in Education Plans: Consider investing in education-specific mutual funds or child education plans. These plans are designed to provide growth and safety, helping you meet the financial requirements of your children’s education.

2. Building a Long-Term Corpus
Diversified Investment Portfolio: With Rs. 1 crore at your disposal, you have the opportunity to build a diversified investment portfolio. Consider a mix of equity mutual funds, debt funds, and fixed-income instruments. This will help you balance growth and safety.

Regular SIP Investments: Start a systematic investment plan (SIP) in mutual funds. SIPs offer the benefit of rupee-cost averaging and the power of compounding over time.

Avoid Real Estate: Given the uncertainty in the real estate market, it may not be the best investment option at this stage. Focus on more liquid and growth-oriented investments like mutual funds.

3. Creating an Emergency Fund
Emergency Fund Setup: Allocate a portion of your PF amount to create an emergency fund. This fund should cover 6-12 months of living expenses. Keeping this in a liquid fund or fixed deposit ensures that you can access it quickly if needed.

Health Insurance: Ensure that you and your children have adequate health insurance. With the loss of your wife, securing health coverage for your family is critical to avoid financial strain due to medical emergencies.

Planning for Your Future
1. Retirement Planning
Long-Term Investments: Invest a portion of the PF amount in long-term equity mutual funds. These funds provide growth potential, which is essential for building a retirement corpus.

Systematic Withdrawal Plan (SWP): As you approach retirement, consider setting up an SWP from your mutual fund investments. This will provide a steady income stream while keeping your capital invested.

2. Insurance Coverage
Life Insurance: With the loss of your spouse, you are the primary financial support for your children. Ensure you have adequate life insurance coverage to secure their future in case of any unforeseen events.

Health Insurance: Ensure that your health insurance coverage is sufficient for you and your children. Opt for a family floater plan with a top-up for added protection.

3. Estate Planning
Will and Nomination: Ensure that you have a will in place, clearly outlining how your assets should be distributed. Also, update nominations for all your investments and insurance policies.

Trusts and Guardianship: Consider setting up a trust or appointing a guardian for your children if something happens to you. This will ensure their financial security and well-being.

Final Insights
Sir, your dedication to supporting your children through their education while facing personal and professional challenges is admirable. The PF amount you have accumulated can be the foundation for a secure financial future. Focus on securing your children’s education first, then invest in diversified mutual funds for long-term growth. Legal recourse may be possible for your job termination, but it’s essential to consult a legal expert to explore your options. Prioritise your financial security and ensure that your investments align with your future goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in