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I am 42 and have lost job. Have a fully paid 3cr flat with 45k rent and my wife earns 80k monthly. I have a 12year class 7th kid. I have approx 30L in PPF and expecting pf of 20L from previous organization. I have approx 12L fd or account balances and approx 30L invested in stocks directly. I need to pay 40k to my parents monthly, 12k school fees, 10k monthly to maid and other monthly expenses of 25k, 40k of sip which i am planning to stop and 30k of rd which i am planning to discontinue. How do I plan these monthly expenses, 25L for kids graduation in 2030, and 50L for his marriage in 2037 and our next 35yrs of life. 24k emi Pending for 28months and 24k emi Pending for 36 months. Also, my father owns a 350ghaz plot, but we need 3cr to build it. Shall we sell the flat and build this considering 4 built floors would generate approx 2.40L monthly rent. Cost of building is inclusive of 10% last minute overheads. Also there is no legal issue within the family, my father / brother. So 2 floors for myself and 2 for brother. We both presently stay in another parental owned house only and thats sufficient for the next 30- 40 years
Ans: Appreciating your openness in sharing key numbers.
This shows maturity and readiness to plan deeply.
Losing a job at 42 is challenging.
But your rental income, wife’s earnings and investments offer a strong base.
With proper steps, you can manage expenses, child goals and future stability.
Let us craft a full 360?degree plan covering every angle.
? Assessing your current financial position
– You have a flat worth Rs.?3 crore fully paid
– Monthly rent is Rs.?45,000
– Wife earns Rs.?80,000 monthly
– Child is class 7, aged around 12
– PPF holds Rs.?30 lakh
– PF pending about Rs.?20 lakh
– FD or savings balance is Rs.?12 lakh
– Stock portfolio value is Rs.?30 lakh
– You pay Rs.?40,000 monthly to parents
– School fees are Rs.?12,000 monthly
– Maid costs Rs.?10,000 monthly
– Other expenses Rs.?25,000 monthly
– EMI 1: Rs.?24,000 for 28 months left
– EMI 2: Rs.?24,000 for 36 months left
– SIP of Rs.?40,000 and RD of Rs.?30,000 you plan to stop
– Raw monthly inflow currently is Rs.?1.25 lakh (rent + wife income)
– Your liabilities and support outflow consume most of it
– The job loss means your active contribution is zero currently
– Yet your capital assets offer room to rebuild
? Immediate cash flow management
– First build emergency buffer of Rs.?3–4 lakh in liquid fund
– Stop SIP of Rs.?40,000 and RD of Rs.?30,000 now
– This recovers Rs.?70,000 monthly cash flow
– Combined with rent and wife salary, total inflow becomes Rs.?1.95 lakh
– Now liabilities/outflow are:
Parent support Rs.?40,000
School fees Rs.?12,000
Maid Rs.?10,000
Other expenses Rs.?25,000
EMI1 Rs.?24,000
EMI2 Rs.?24,000
– Total fixed outgo = Rs.?1.35 lakh
– Leaving Rs.?60,000 as monthly surplus
– Use surplus prudently: build buffer, reduce debt, plan investments
? Priority 1: Emergency fund and cash cushion
– Put Rs.?3–4 lakh into a liquid mutual fund
– This covers at least three months of expenses
– Avoid locking this in fixed deposits or RDs
– Liquidity is key in job loss phase
– Once job is regained or stable income resumes, raise emergency fund to cover 6–9 months of household and support expenses
? Priority 2: Loan payments and prepayment
– EMI1 ends in 28 months and EMI2 in 36 months
– Keep paying both EMIs as scheduled
– Don’t prepay aggressively from capital now
– Use monthly surplus to cover EMIs and support
– Invest remaining part after every due to build future corpus
– After your job returns, consider prepaying personal loan earlier
? Priority 3: Child’s goals – graduation and marriage
– Graduation need by 2030: Rs.?25 lakh in eight years
– Marriage need by 2037: Rs.?50 lakh in fifteen years
– Stop SIP now to free up cash
– After job stabilises, restart child-specific SIPs
– For graduation goal: start SIP of Rs.?20,000 per month into actively managed mutual funds now or soon
– For marriage goal: start SIP of Rs.?10,000 per month in hybrid or balanced funds
– These two separate buckets help discipline and tracking
– No mixing with general investments
– Review these goals with your Certified Financial Planner yearly
– Shift parts toward safer hybrid funds as goal date nears
? Investment strategy with your current corpus
– Assets: PPF Rs.?30 lakh, PF Rs.?20 lakh, FD Rs.?12 lakh, stocks Rs.?30 lakh
– PPF and PF should be left intact until retirement or emergency
– FD Rs.?12 lakh can be split:
Rs.?4 lakh to emergency liquid fund
Rs.?8 lakh can be used later to seed SIPs
– Stocks Rs.?30 lakh: high risk but good long-term growth potential
– Evaluate if diversification is good
– Some can be shifted into mutual funds gradually
– Move any ULIP or LIC policies if low returns to mutual funds
– They decrease flexibility and growth potential
– Do not use index funds or direct funds
– Index funds lack active risk control
– Direct plans lack professional guidance, rebalance and review
– Instead use regular actively managed mutual funds via MFD with CFP support
– That offers fund selection, risk alignment, tax optimisation and goal planning
? Income creation through flat redevelopment — is it viable?
– Redeveloping flat into 4 built floors cost is Rs.?3 crore
– Would yield rental inflow of Rs.?2.40 lakh monthly (approx)
– But requires huge capital, construction risk, and delays
– Given current income gap and job uncertainty, delaying this big decision is wise
– Building immediately may trigger liquidity stress
– Construction may take time, and rental accrual delays can strain cash flow
– Instead, hold flat as rented asset now
– Re-assess redevelopment when income stabilises and surplus becomes consistent
– If redevelopment is still desired later, consider joint funding with brother or investors
– Do it when risk appetite and cash flow are stronger
? Insurance and protection layer
– You support parents with Rs.?40,000 monthly
– Better to have term insurance for self and spouse
– Cover should be at least Rs.?1.5 crore to Rs.?2 crore each
– This ensures your daughter’s future is protected if anything happens
– Also get health insurance floater of Rs.?15 lakh including top-up
– If you have LIC or savings plans, review them
– If returns are poor, surrender and invest in mutual funds instead
? Expense discipline and control measures
– Monthly outflow components: parental support, school fees, maid, home, food, maintenance
– Review actual expenses each month
– Find areas to cut: subscriptions, utilities, discretionary spends
– Any small saving adds to stability
– Do not start any new expenses now
– Keep lifestyle minimal until income returns
? Job return and income rebuilding plan
– Join job search actively
– Use network, online platforms, skill upgrade to re-enter workforce quickly
– Even interim part-time earnings help maintain cash flow
– Once income returns, resume SIPs gradually: target child goals and rebuild investments
– Ideally restart SIPs at Rs.?30,000 per month post income recovery
– Raise this amount every year by 10–15% once stable
? Long-term retirement planning beyond 15 years
– Retirement likely at age 60 or later
– You currently have PPF + PF Rs.?50 lakh and potential future investments
– Long-term portfolio must be anchored in actively managed mutual funds
– Equity mutual funds should drive growth
– Hybrid funds provide downside buffering later
– Gradually shift to hybrid around age 55
– Avoid annuity products—they lock capital and give poor returns
– Use SWP post retirement to generate income from corpus
– Plan withdrawals tax-efficiently to minimize LTCG or STCG issues
? Tax efficiency in mutual fund investments
– For equity mutual funds: LTCG above Rs.?1.25 lakh taxed at 12.5%
– STCG taxed at 20%
– For debt funds: taxed per your income slab
– Strategise SIP and SWP to optimise tax on exit
– Avoid frequent switching and chasing returns purely based on short-term gains
– Certified Financial Planner can advise yearly to minimise tax hits
? Periodic review and professional guidance
– Review budget, goal progress and investments every 6–12 months
– Make minor shifts if needed (not big overhauls)
– Use help of a Certified Financial Planner to track multiple goals
– CFP helps with asset alignment, tax planning, risk management and emotional discipline
– Avoid reacting to short-term market dips or news
– Stick to goals and plans
? Final Insights
– Losing job was tough, but your rental income and spouse’s salary help
– Immediate steps: build emergency fund, stop SIPs and RD, manage EMIs, cut expenses
– Medium-term: regain income, resume SIPs for child goals and general corpus
– Long-term: retirement planning through actively managed mutual funds and SWP income
– Avoid mixing insurance and investments, ULIPs, LIC savings or guaranteed schemes
– Avoid index or direct mutual funds
– Maintain insurance cover, especially term and health insurance
– Plan for child’s education and marriage in goal buckets with disciplined SIPs
– Delay redevelopment of flat until cash flow is stable
– Prioritise building financial base first
– You still have assets, intent and capability
– With discipline and guidance you can meet child goals and secure your family’s future
– Stay consistent. Review yearly. Let your capital work wisely.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment