Hi, I am 52 and working in a Central Government job. My gross salary is around 2.5lacs. My husband is 53 yrs old and working in a pvt company. His take home is 4.2l per month. We have two flats worth 1.7cr each which are currently in use. We have another flat worth 2.5cr. Apart from this we have a farmhouse land worth 80l and some ancestral property worth 50l. We have two children, elder daughter in final year of degree and wants to pursue higher education abroad. Son is 18 and has taken admission in Btech this year. His monthly expenditure including everything will be around 60 thousand. Apart from this we have a monthly expenditure of 1L and due to husband ongoing health issues considerable expenditure on treatment around 1l we both have around 1.5 cr in epf, 30l in stocks and 8l on sip. Also 6vl each in ppf
Due to health issues, husband want to able to continue his job long and has to take premature retirement. What should be our future investment plans. Kindly guide
Ans: You have worked hard and saved well. Your current asset base is strong. Your financial situation now needs a clear, future-ready plan. Let’s assess, realign, and plan forward with clarity and balance.
Here is a detailed 360-degree solution designed just for your needs.
1. Understand the New Phase
You are entering a key transition stage in life.
Your family income may reduce soon.
Medical costs are rising steadily.
Children’s higher education will need big money.
Retirement is also nearing.
Hence, your money must now work smarter.
2. Current Income and Expenses
Monthly family income is around Rs. 6.7 lakhs.
Household and son’s expenses are Rs. 1.6 lakhs monthly.
Medical treatment adds Rs. 1 lakh per month.
So total regular outflow is Rs. 2.6 lakhs monthly.
This leaves you a surplus of Rs. 4.1 lakhs now.
However, post-retirement, husband’s income may stop.
Then surplus may drop to Rs. 0.9 lakhs per month.
This calls for adjusting investments wisely.
3. Children’s Higher Education Planning
Your daughter wants to study abroad soon.
Expenses may go beyond Rs. 40–50 lakhs easily.
Please don’t redeem retirement corpus for this.
Instead, plan to liquidate from equity-based assets.
Start a step-by-step Systematic Withdrawal Plan (SWP).
You may also liquidate part of your flat worth Rs. 2.5 crore.
If needed, consider an education loan partially.
This keeps your retirement fund safe.
4. Husband’s Premature Retirement
This needs realignment of your financial plan.
Ensure a minimum of 5 years expenses are protected.
This means Rs. 1.6 lakhs x 60 months = Rs. 96 lakhs.
Keep this amount in low-risk debt mutual funds.
Avoid taking this from EPF or PPF.
Use proceeds from one flat if necessary.
SIPs must continue, but evaluate rebalancing based on income drop.
5. Medical Contingency Planning
Your husband’s treatment cost is high.
Medical inflation is rising rapidly.
Ensure both of you have health insurance.
Prefer a Rs. 25–50 lakh family floater with super top-up.
Do not depend only on employer health cover.
Keep an emergency fund of Rs. 10–15 lakhs separate.
This can be in liquid or ultra-short debt mutual funds.
6. Retirement Planning for Both
You are 52 and still employed.
Retirement age may be around 58–60 years.
That gives you 6–8 years of active income.
Use this period to build a strong retirement fund.
Don’t withdraw EPF or PPF till maturity.
Consider contributing more in mutual funds through SIPs.
Keep retirement corpus in low-cost, diversified active funds.
Don't shift funds into annuity options.
Post-retirement, plan a SWP from mutual funds for income.
Try to build a retirement corpus of Rs. 3–4 crores.
This will give Rs. 1–1.25 lakhs income monthly.
Include spouse’s expenses, inflation, and medical needs.
7. Existing Real Estate Assets
You have three flats. Two are for your use.
The third one is worth Rs. 2.5 crores.
Avoid holding it just for value appreciation.
Use it strategically for daughter’s education and corpus building.
Avoid further real estate purchases now.
Real estate is not liquid.
It doesn’t give regular income.
It has high maintenance and poor tax efficiency.
Your real estate exposure is already high.
8. Existing Investments Analysis
EPF and PPF total is around Rs. 1.62 crores.
Stocks worth Rs. 30 lakhs add moderate risk.
SIPs are Rs. 8 lakhs value currently.
Continue SIPs in well-diversified active mutual funds.
Prefer regular plan with guidance from MFD with CFP credential.
Direct plans don’t suit every investor.
Regular plans offer rebalancing, review, and advice.
Stocks are fine, but not for short-term needs.
Try not to add more unless you have time to review.
Mutual funds offer better diversification and control.
Ensure debt-equity mix is rebalanced annually.
9. Tax Planning and Investment Efficiency
EPF, PPF are tax-free on maturity.
Mutual fund gains are taxable.
LTCG on equity funds above Rs. 1.25 lakh is taxed at 12.5%.
STCG is taxed at 20%.
Debt fund gains are taxed as per your slab.
Plan redemptions smartly to reduce tax burden.
Avoid too many redemptions at once.
Spread them across financial years.
Get Form 26AS checked every year.
Don’t buy insurance for tax saving.
10. Cash Flow Planning Post-Retirement
Husband’s income may stop soon.
Your income will continue till 58 or 60.
Use your salary to fund most expenses till then.
From age 60, use SWP from mutual funds.
Add rental income if any in future.
Avoid bank FDs for monthly income.
They have low returns and poor taxation.
Instead, use a ladder of debt funds for short-term needs.
Equity mutual funds for long-term growth.
11. Insurance Cover Check
Check your term insurance if still active.
If not, you may not need one now.
Your asset base is strong.
Focus more on health insurance.
Take a separate critical illness cover too.
Medical costs can deplete savings quickly.
Review nominee details in every policy.
12. Estate and Will Planning
You have significant real estate and investments.
Children will inherit eventually.
Prepare a registered Will soon.
Mention who gets what clearly.
Include mutual funds, EPF, PPF, stocks, property.
Assign separate nominees for each asset class.
This avoids future disputes and confusion.
Discuss openly with your children.
13. Investment Behaviour Going Forward
Keep emotions out of investment decisions.
Don’t redeem when markets fall.
Follow asset allocation method strictly.
Every year review the plan.
Rebalance mutual funds once a year.
Reinvest redemptions wisely.
Don’t increase real estate holding further.
Don’t fall for hot stock tips.
Avoid policies combining insurance and investment.
Finally
Your current position is strong.
Your focus should be on protection and preservation.
Avoid risky investments now.
Plan each goal with a dedicated fund.
Keep enough liquidity for health and education.
Create predictable income sources post-retirement.
Work with a Certified Financial Planner yearly.
Review goals, returns, risks and expenses every year.
Stay disciplined and goal-oriented.
Your family’s financial future will remain safe.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Question by Dr on May 05, 2025
