Sir, I have a land around 75000 sqft having frontage of 400 feet in a 4 lane highway connecting Bhopal to Indore . Land is approx.35 kms from Bhopal behind our land is a village and opposite is a Dhaba . I am going to retire in next 2 years and wish to develop that land with a investment of around 1.00 Cr and start a business , business with less complications . Only options comes in my mind is of developing & running a Food joint or a Resort there . Your valuable guidance in this regard will be appreciated . Thanks .

Ans: Gas Station/Convenience Store: Setting up a gas station with an attached convenience store is a lucrative option, especially if there is limited competition in the area. Highway travelers often need to refuel and purchase snacks or necessities.
Truck Stop or Rest Area: If the location is near a major trucking route, consider creating a rest area or truck stop with amenities like parking, food, showers, and restrooms for truck drivers and long-haul travelers.

Fast Food or Drive-Thru Restaurant: Establish a fast-food restaurant or drive-thru with a focus on quick service. This can attract both travelers and locals looking for a convenient meal option.

Hotel/Motel: If there is a demand for lodging in the area, consider building a hotel or motel. Tourists and long-distance travelers often seek comfortable places to stay.

Auto Repair Shop: Set up an auto repair shop or service station. With the highway proximity, you can attract travelers in need of vehicle maintenance or repair services.

Farmers' Market: If the land is suitable for farming, consider starting a farmers' market. You can grow and sell fresh produce, attracting locals and tourists passing through.

Recreational Vehicle (RV) Park: Develop an RV park or campground for travelers looking to spend the night. Offer amenities like hookups, showers, and a common area.

Warehousing/Storage Facility: Depending on the location's zoning regulations, you could build a warehouse or storage facility for businesses in need of storage space.

Outdoor Adventure/Recreation Center: If the area has scenic or natural attractions, consider starting an adventure or recreation center, offering activities like hiking, biking, or guided tours.

Auto Dealership: If you have the capital and market demand, you can consider opening an auto dealership, specializing in used or niche vehicles.

Retail Plaza: Build a small retail plaza with multiple shops for various businesses like a grocery store, pharmacy, coffee shop, and other convenience stores.

Car Wash: A car wash facility can be profitable, as many travelers like to keep their vehicles clean while on the road.

Truck Rental/Leasing: Offer truck rental or leasing services for businesses and individuals needing commercial vehicles for transportation or moving purposes.

Billboard Advertising: If the land is close to a high-traffic area, consider leasing space for billboard advertising. Advertisers often pay for prominent billboard locations.

Solar Farm: If the land is not suitable for other businesses, you could lease it for a solar farm, generating renewable energy and earning income through power generation.

Before starting any business, conduct a thorough market analysis, assess the local competition, and consider the specific needs and preferences of the target audience in your area. Additionally, check local zoning regulations and obtain any necessary permits or approvals before proceeding with your business idea.

Ans: Evaluating Current Situation

You and your father run a food and beverage shop.

You own the property, which is 2200 sqft in a prime location.

You plan to sell the property for Rs. 6 crores or renovate it for rental income.

Renovation cost is around Rs. 50 lakhs, and rental income can be Rs. 1.2 lakhs per month.

Manpower issues are prompting you to consider winding up the business.

Your goal is to invest the proceeds wisely and save on taxes.

Option 1: Selling the Property

Selling the property can provide a lump sum of Rs. 6 crores.

This option can simplify your financial management.

You can invest the proceeds in diversified sectors.

Option 2: Renovating for Rental Income

Renovating can cost Rs. 50 lakhs.

It can generate Rs. 1.2 lakhs per month in rental income.

This provides a steady income stream but requires management.

Tax Considerations

Selling the property will attract capital gains tax.

Investing in specified bonds can save on capital gains tax.

You can also reinvest in another property to save on taxes.

Diversified Investment Plan

Mutual Funds

Invest in mutual funds for growth and income.

Consider equity mutual funds for long-term growth.

Hybrid funds can provide a balance of growth and stability.

Systematic Withdrawal Plan (SWP)

Use SWPs for regular income from mutual funds.

SWPs offer tax-efficient regular withdrawals.

Fixed Deposits

Invest in FDs for secure returns.

FDs provide stability and guaranteed returns.

Avoiding Index Funds

Index funds track the market but lack active management.

Actively managed funds can outperform index funds.

A Certified Financial Planner can provide tailored advice.

Avoiding Direct Funds

Direct funds seem cheaper but need professional guidance.

Regular funds, through a Certified Financial Planner, offer expert management.

Final Insights

Selling the property can provide a large corpus for diversified investments.

Renovating for rental income provides a steady cash flow but involves management.

Diversify your investments for growth, stability, and tax efficiency.

Consult a Certified Financial Planner for a detailed, personalized plan.

Appreciate your long-term planning and proactive approach to managing your assets.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: You have shared your financial details with clarity. You have thoughtfully outlined your journey. You had career breaks. But you have still built real assets. You have solid intentions for self-employment. Your rental and resort idea is well thought out. Now let us study your financial life fully. We will guide you in a 360-degree approach.

Your Current Age and Financial Phase
You are 52 now.

You had two career breaks.

You are employed again, which is a positive sign.

You want to move to entrepreneurship by 56.

This gives us four years to prepare and transition safely. Let's build cash flows to support your future plans.

Your Real Estate Holdings and Rental Income
You own three apartments:

One for own stay (Rs. 1.7 crore)

Two rented (Rs. 1.25 crore and Rs. 65 lakhs)

Rental income is Rs. 36,500/month

Key Observations:

Your properties are valuable.

Rental yield is low (less than 2.5% on current value).

You are using this rental income to partly support your EMIs.

Though these are illiquid, they will support your retirement later. But currently, they don’t help liquidity much.

Sariska Resort Plan
You have bought land near Sariska. You want to build a 10-room resort gradually.

Plan:

Start with 3 rooms in 2026.

Add 2 rooms per year.

Restaurant and other services will be managed by developer.

You want to generate passive income.

You also want to start a corporate travel company after 56.

Key Points to Consider:

This project needs steady capital over time.

It should not block liquidity.

Construction, permissions, and marketing may cause delays.

You will need working capital for travel business later.

Hence, a clear capital and liquidity plan is needed now.

Loan Position
You have Rs. 75 lakhs of loans.

Monthly outgo is Rs. 1.4 lakhs.

Loans will end in 7 years.

That is a heavy EMI load for your age. You need to reduce EMI stress gradually. Interest cost is reducing wealth creation.

Your Financial Assets
You currently have:

PPF – Rs. 7 lakhs

NPS – Rs. 6 lakhs

FD – Rs. 10 lakhs

Shares – Rs. 8 lakhs

Mutual Funds, ETF – not clearly mentioned

Physical gold – Rs. 15 lakhs

Sovereign gold bonds – amount not clear

Let us now assess your asset quality and mix.

Physical Gold – Role in Portfolio
You have Rs. 15 lakhs of gold in locker.

Drawbacks:

No interest income

No compounding

Cannot be used in emergencies without selling

Gold should be 5–10% of total assets. You can slowly reduce gold holding over time. Use the proceeds to invest in productive assets.

ETFs in Portfolio
You have mentioned ETF in portfolio.

Disadvantages of ETF:

No active management.

No personal guidance.

Volatility can be high.

Tracking error may exist.

Timing entry and exit is hard.

You can shift from ETF to actively managed mutual funds. They are handled by professional fund managers. They aim for higher return consistency.

Direct Shares
You hold Rs. 8 lakhs in direct equity.

Do you track performance?

Are companies fundamentally strong?

Are you doing periodic reviews?

If not, consider moving this to mutual funds. Let experts manage the portfolio. You can benefit from risk diversification.

Direct Mutual Funds
You have direct mutual funds.

Drawbacks of Direct Funds:

No support from CFP

No timely fund switch advice

No tax planning support

No emotional discipline during volatility

No goal planning integration

Instead, go for regular plans with a Certified Financial Planner (CFP). They guide you on asset allocation, fund selection, withdrawal strategy, and long-term wealth building.

NPS and PPF – Debt Allocation
You have:

Rs. 6 lakhs in NPS

Rs. 7 lakhs in PPF

Both are long-term debt instruments.

NPS is locked till retirement.

PPF has fixed interest, tax-free.

Keep these as core retirement safety assets. Do not withdraw or disturb them. They will provide steady support in later years.

FD – Rs. 10 Lakhs
This is your current liquid asset.

This should be used as emergency fund.

Don't break it unless needed.

Keep minimum 6 months of expenses in liquid assets always.

Avoid reinvesting in long-term FDs. Choose short-tenure FDs or liquid mutual funds instead.

Future Monthly Investment Capacity
You can invest Rs. 2 lakhs per month for next 3 years.

Let us now plan where this should go.

Systematic Investment Strategy
Step-by-step strategy to invest Rs. 2 lakhs per month:

Rs. 70,000 in Balanced Advantage mutual funds

Rs. 50,000 in Flexi Cap mutual funds

Rs. 30,000 in Multi Asset Allocation funds

Rs. 20,000 in Debt-oriented hybrid funds

Rs. 30,000 in Liquid funds (to be used for resort later)

Use regular plans with a CFP. Avoid DIY direct plans. Invest with clear goals — resort funding, business funding, retirement funding.

Resort Building Capital Plan
Start building rooms only after corpus is ready.

Keep building fund separately in liquid funds

Don’t use your core retirement funds

Don’t take personal loans for this project

Build 3 rooms with own capital only

Add more rooms only if the first 3 are profitable

Track business profitability. Don’t fund expansion from emergency funds. Use separate accounting for resort.

Travel Business Plan
You plan to launch a corporate travel business after 56.

Keep Rs. 10–15 lakhs aside for capital

Set up professional website and marketing

Work with companies you have contacts with

Don’t invest in real estate for office

Keep business costs variable, not fixed

Start small. Build customer base slowly. Focus on cash flow, not expansion.

What To Avoid Now
Don’t invest in more property

Don’t increase loan exposure

Don’t commit to fixed return schemes

Don’t start business without backup

Don’t rely only on rental income

Retirement should be supported by:

Resort profits

Rental income

Mutual fund returns

PPF and NPS

All together, this will create stable monthly cash flow.

Emergency Fund Planning
Always keep 6–9 months of expenses aside.

Use:

FD

Liquid funds

Arbitrage funds

Don’t use this money for building resort. This buffer gives peace of mind.

Insurance and Risk Cover
You haven’t mentioned life or health cover.

Take term cover till age 65 if not taken yet

Health cover of Rs. 10–15 lakhs is must

Also take personal accident cover

Don’t skip premiums even during career breaks

One health event can disturb all plans. Protect your savings first.

Gifting to Daughter and Legacy
Your daughter has started her career.

Encourage her to invest early

Add her as nominee to your assets

Create a Will after 55

Include resort and business in Will

Explain to family about business and rental assets

Family clarity will help legacy transition.

Repayment Strategy for Loans
EMI of Rs. 1.4 lakhs is high.

Use bonus income or rental surplus for prepayment

Reduce loan tenure, not EMI

Try to close one loan early

Avoid top-up loans

Review interest rates yearly

Try to bring EMI below Rs. 1 lakh by 2027.

Tax Planning Angle
Keep an eye on mutual fund taxation:

LTCG above Rs. 1.25 lakhs taxed at 12.5%

STCG taxed at 20%

Debt fund gains taxed as per your slab

With a CFP, plan redemptions wisely. Use tax harvesting to reduce taxes.

Finally
You have property, vision, and intent.

But execution needs planning and clarity.

Do not stretch your finances for resort now. Build one room at a time. Use mutual funds to grow wealth in parallel.

Switch to regular plans through MFD with CFP support. Get holistic planning. Move from asset ownership to income generation. Create clear structure for passive income.

Take care of liquidity and risks. Keep buffer. Start small. Expand only if profitable.

You have the foundation. Now you need the structure.

Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: Hi Yashaswi, firstly I believe you are parking money in LICs above 1L per year which is ineffecient use of money, you can have better investments which will yield better returns for your kids' education. Secondly, about your plans for the land, there has to be a goal based investment plan in place to achieve the target. You will have to back calculate to come to an investment amount that you can do per month after factoring in inflation and expected returns from the asset. Visit the website www.slwealthsolutions.com and let me know if you would like to have a detailed conversation around this :)