Dear Sir, Greetings! I am 51 years old, medical doctor working as public health expert with over 20 years of experience, currently off the job since Oct'24 aspiring career transition, residing at Bangalore, married with 2 daughters, wife is dentist but not working(house wife), elder daughter studying 1st year BE, younger one in 8th std. Currently I have taken a career break since Oct'24 for career transition while i also spent time during this period in resolving few issues around ancestral properties which was long due. My current assets are: a)1 residential plot worth of >1.2 cr, another worth of 18 lakhs both at bangalore and 3rd at Dholera, Gujarath worth 7 laks just bought few days back b) FD of 17 laks at cooperative banks @9% RoI c) MF through HDFC bank worth 3.2 laks @ 5k/month since 2020 and 10k/m at private MF distributor since Jan'25 d) lumpsum MF investment of 2 lakh in Jan'25 e) EPF of 11.5 laks accrued until Oct'24 f) We may get ancestral property to my father in few months (i am only child to my parents) which may provide some back up (around 2crores over a period of time) f)Parents has a FD of 15 laks in Cooperative banks @ 10% annum g) Gold worth of 50 lakhs ( in the form of ornaments in excess of usage) Liabilities: a)Home loan of 14 laks for plot purchase with EMI of 14k/month b) Monthly house rent of 35k c) Monthly household expenses of 50k d) health insurance premium of 45 k per annum e) LIC premium of 25k per annum for sum assured amount of 5 laks + bonus. Term insurance not yet made. f) Car and two wheeler maintenance and insurance- 30k per annum. g)Children education: i) elder daughter- 10 laks required from now till completion of BE until year Jun'28 ii) younger daughter-10 laks till 12th grade until June' 2030 and will require at least 15-20 laks for her professional degree post 2030. Few concern- As i am getting older, proper investment and wealth growth could not happen, though i tried since 10-12 years, i couldn't find a genuine CFP who can build confidence in me for investment. Career transition plan not happened as expected. Last few months monthly expenses born out of savings as i was not working since Oct'24. We are yet to make our own home (staying in rented house since beginning). I solicit your valuable guidance to fulfil following crucial milestones: a) I have to either construct a house in our residential plot or buy a villa or an apartment as it is overdue (worth of 2 Cr) within next one year. b) how to invest and grow wealth to meet different milestones mentioned above. c) investment plan for creating retirement corpus by age 58 years (at least 3 crores). d) Parents health expenses corpus of 20 laks (both are non insured), Note: Once the convincing road map is created, I am ready to mobilize and earn required funds to invest and grow. How to identify a genuine and objective Certified Finance Planner in Bangalore. Look forward to your genuine and valuable advice as i am in a very critical phase. regards Dr Deepak
Ans: Dear Dr. Deepak,
Your openness and clarity in presenting your current situation is greatly appreciated. You're at a critical financial and personal transition stage. The assets you've built, despite life challenges, show commitment and resilience. Let us now assess your situation with a 360-degree plan and create a detailed, step-by-step guidance path to meet your goals.
Understanding Your Current Financial Landscape
You have built a strong foundation:
Real estate assets across Bangalore and Gujarat.
Gold worth Rs. 50 lakh, though not readily liquid.
FDs in cooperative banks with high interest (but with safety concerns).
Mutual fund exposure is modest but consistent.
EPF corpus and inherited property expected in future.
However, the absence of regular income post-Oct'24 is straining your liquidity. Lifestyle, rent, education, and home construction are pulling resources in multiple directions. The need is to consolidate and allocate carefully.
Immediate Steps for Stability and Control
1. Income and Expense Rebalancing
Monthly expenses are about Rs. 85k–90k including rent and EMI.
Current income is NIL. You are dipping into savings.
You must explore interim consulting, part-time public health projects, or academia. Even Rs. 40k–50k/month can ease pressure.
Consider renting out one of your plots (if possible) to generate income.
2. Emergency Fund Creation
Set aside Rs. 4–5 lakh separately in a liquid fund or sweep FD.
This covers 6 months’ expenses in case your transition takes longer.
3. Insurance Prioritisation
Your LIC plan with Rs. 5L coverage is grossly inadequate.
Take a pure term plan of at least Rs. 1 Cr till age 65.
Parents’ health is uninsured. Please take senior citizen health policies after checking pre-existing disease exclusions. Keep Rs. 15–20 lakh corpus ready in liquid or ultra-short debt funds for their needs.
Family floater health insurance for yourself, wife and daughters of at least Rs. 10–15 lakh is necessary.
Construction vs Buying a House – Evaluate Before You Spend
You want to invest around Rs. 2 Cr in your own house within a year. This is an emotional and financial goal. But timing matters.
Please consider the following:
Don’t rush into construction or purchase during an unstable career phase.
Avoid touching long-term investments or emergency funds to build or buy property.
Estimate actual construction cost, including approvals, architecture, and interiors. It may overshoot Rs. 2 Cr.
Avoid taking large new loans now. Secure job/income stream first.
Use your own plot and stagger construction in two phases if needed.
Investment Re-Design for Growth and Goals
With your daughter’s education, your own retirement, and your family’s healthcare to be funded, investments must be restructured.
Review Existing Assets
Gold (Rs. 50 lakh): Useful as last-resort asset. Avoid selling now. Don’t buy more.
FDs in Cooperative Banks (Rs. 17L + Rs. 15L parents): High interest is attractive but risk is high.
Gradually move to large commercial banks or split in tranches.
Don’t exceed Rs. 5 lakh per individual per bank including interest.
Mutual Funds (SIP + lump sum = Rs. 5.2L):
Move to goal-based allocation.
Use diversified hybrid and flexicap funds. Avoid sector-specific ones.
Don’t stop SIPs. Increase them when income resumes.
Fresh Goal-Based Portfolio Strategy (For Rs. 1.5–2 Cr in hand + expected)
Allocate funds as per goals:
a) Children’s Education (Rs. 35–40 lakh needed total)
Set aside Rs. 20 lakh now in:
Debt-oriented hybrid funds.
Short duration debt funds.
Start a 5–7 year SIP in balanced advantage or flexicap funds.
Map SIP to younger daughter's higher education need.
b) Retirement Corpus (Rs. 3 crore by age 58)
You have 7 years to reach this.
Use the following structure:
60% in diversified equity mutual funds.
20% in balanced advantage funds.
20% in conservative hybrid or debt funds.
Avoid index funds. They don’t protect in market crashes.
Actively managed regular plans offer flexibility, risk management and professional guidance.
Work through a trusted MFD associated with a Certified Financial Planner.
c) Parents' Health Corpus (Rs. 20 lakh needed)
Already mentioned above.
Keep in high liquidity products like:
Liquid funds.
Ultra-short-term bond funds.
Avoid FDs here due to lock-ins and penalties.
Clear the Home Loan and Maintain Low Debt
The current loan is manageable (Rs. 14L, EMI Rs. 14k).
Continue the EMI as long as it does not disrupt liquidity.
Do not prepay fully now. Keep the cash handy for emergencies.
Partial prepayment can be done later if job stabilises.
Consolidate and Reduce Fragmentation
You currently deal with:
Cooperative banks
HDFC Bank MFs
Private MFD
This creates tracking issues.
Here’s what you can do:
Consolidate all mutual fund investments under a Certified Financial Planner with a SEBI-registered ARN.
Maintain only 2–3 trusted banking relationships.
Track all investments in one app/platform recommended by your CFP.
Budgeting Tips for Monthly Discipline
You need to protect cash flow until income resumes:
Break down monthly costs:
Rent – Rs. 35,000
EMI – Rs. 14,000
Household – Rs. 50,000
Misc. – Rs. 5,000
Total – Rs. 1.04L/month
Use this strategy:
Use only Rs. 70–80k/month from your corpus.
The rest should be invested with long-term vision.
Track every rupee spent using a budget tool or app.
Avoid lifestyle upgrades until income stabilises.
How to Identify a Genuine Certified Financial Planner (CFP) in Bangalore
Here’s what to look for:
Ensure CFP is certified and practices full-time.
Ask if they are product sellers or fee-based.
Check if they provide goal planning, risk assessment, cash flow analysis.
Ask for references and check if they work with families like yours.
Avoid agents recommending LIC, ULIPs, annuities or real estate as the only solution.
Trust your instinct, but validate credentials.
You can also consult www.holisticinvestment.in for expert guidance.
Final Insights
You are at a major life inflection point.
You have strong assets but fragmented allocation.
With a clear roadmap and right guidance, your future can be secure.
Avoid illiquid investments, high-risk advisors, and over-exposure to real estate.
Follow goal-based planning. Align each rupee to a milestone.
Take time to re-enter your career. Meanwhile, protect your capital.
You have built enough for a second innings. Now it needs structured nurturing.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Question by Prasanna on Aug 05, 2024Hindi
