Dear Sir, i have 15 years service Balance, 3 daughters 1 son, Daughters ages 17, 15, 8 respectively. My earnings is per month 1.5 L, loan Balance is 7L, it will be closed with in 12 months. Gold is 20L , PPF & SSY 35L, other asset 125L (House and land), Kindly advice my future plans.
Ans: You are in a good position. Your income, assets and upcoming loan closure all show stability. You are supporting a family with three daughters and one son. Planning ahead now will make your future more peaceful.
Let’s break your plan under major heads. We will keep the language simple and to the point.
Family & Responsibilities Ahead
You have 15 years of service remaining. That gives a good earning window.
Your daughters are 17, 15, and 8. Educational goals will come soon.
The son’s age is not mentioned. But he will also need financial support later.
You have four children. Their needs will grow. Structured planning is key.
2. Present Earnings and Cash Flow
Monthly income is Rs. 1.5 lakh. That gives strong monthly cash flow.
Your EMI on Rs. 7 lakh loan will end in 12 months. That gives Rs. 30,000–40,000 free each month soon.
You should plan how to invest that EMI amount after loan closure.
Don’t let that amount get absorbed into unplanned expenses.
3. Assets and Investments – Review & Assessment
You have gold worth Rs. 20 lakh. Please don’t increase gold further.
Gold is not income generating. It is only a backup for emergencies.
PPF and Sukanya Samriddhi Yojana (SSY) together are Rs. 35 lakh. That’s a good base.
You also own house and land worth Rs. 125 lakh. That gives asset strength.
These are good for family security. But they won’t give monthly income.
You need liquid, income-generating investments for future years.
4. Immediate Actions Post Loan Closure
Once the loan closes, divert that EMI into monthly investments.
Use mutual funds for this. They give inflation-beating returns.
Choose actively managed regular mutual funds through a Certified Financial Planner.
Avoid direct funds. They lack professional monitoring and behavioural support.
Regular funds through a CFP help with discipline and guidance.
This is more important with a large family and many future goals.
5. Educational Goals – Urgent Planning Needed
Your eldest daughter is 17. Higher education may come in 1–2 years.
Second daughter is 15. Education cost may come in 3–4 years.
You need to build separate goal funds for them starting now.
Don’t use SSY or PPF for immediate needs. They are long term.
Begin mutual fund SIPs in conservative hybrid or multi-asset funds.
These give better return than FDs or gold. They also have lower risk than pure equity.
6. Marriage Goals – Start Early Planning
You have 3 daughters. Marriage funding is a major responsibility.
Begin allocating for this now. Even Rs. 10,000 per month helps a lot over 10–12 years.
Use balanced advantage or flexi-cap mutual funds. They manage risk better.
Avoid traditional insurance plans for this. They give poor returns and low liquidity.
7. Retirement Planning – Don’t Delay This
You have 15 years left in service. That’s a short horizon for retirement corpus.
At present, you have house, land, and some savings. But that won’t be enough for retirement.
Start SIPs focused only on retirement. Don’t mix this with education or marriage planning.
Use equity-oriented hybrid or flexi-cap mutual funds for retirement building.
Allocate at least Rs. 20,000–25,000 monthly for retirement corpus.
Increase this amount every year. Even 5% increase helps a lot over time.
8. Emergency Fund – Needed Immediately
You need to keep Rs. 5–6 lakh in an emergency fund.
Use liquid mutual funds or sweep-in FD for this.
Emergency funds give mental peace. They also avoid sudden loans.
Don’t use gold or real estate during emergencies. They are illiquid.
9. Insurance Review – Must Be Strong
You are the only earning member. Risk protection is very important.
You must have term insurance of minimum Rs. 1 crore.
Check if you already have it. If not, take it immediately.
Avoid ULIPs or endowment plans. They are poor on returns and costly.
Also, take family health insurance. Cover your wife and all children.
Hospital costs are rising fast. You must be ready.
10. Review of PPF and SSY – Maintain Discipline
PPF is a good long-term saving tool. You may continue yearly contribution.
SSY for daughters is excellent. Keep contributing till 15 years are over.
Don’t withdraw from them early. Let compounding work for 15 years.
11. Use of Gold – Passive Holding Only
You have Rs. 20 lakh in gold. That’s enough.
Don’t add more to gold. It doesn’t give regular income or growth.
It is better to shift some gold into mutual funds gradually.
This will make your portfolio more productive.
12. Tax Planning – Do with Purpose
Continue SSY and PPF for 80C benefits. Add ELSS funds if needed.
Don’t invest only for saving tax. Invest for long term growth.
Use equity funds to benefit from lower tax on long-term gains.
New capital gains rule applies:
LTCG above Rs. 1.25 lakh is taxed at 12.5%.
STCG is taxed at 20%.
For debt mutual funds, gains are taxed as per income slab.
Keep proper records of your investments for future tax use.
13. Avoid These Mistakes
Don’t keep all money in savings or FDs.
Don’t buy policies with insurance and investment combined.
Don’t postpone retirement planning. It needs time to grow.
Don’t depend on gold or land for retirement income.
Don’t invest directly in mutual funds without support. Mistakes are costly.
14. Children’s Financial Education – Very Important
Start educating your elder daughters about money.
Teach them budgeting, saving, and basics of investing.
They should grow into responsible money managers.
Involve them in simple discussions about goals and plans.
15. Wills and Nomination – Prepare in Advance
You have assets across gold, land, PPF, SSY, and bank.
Make sure all have nominations in place.
Prepare a simple will. It avoids family confusion later.
It also helps your children handle wealth better in future.
16. Portfolio Monitoring – Do It Monthly
Monitor your SIPs and goals each month.
Use help of a Certified Financial Planner for review.
Adjust investments based on market and personal changes.
Financial planning is not one-time. It needs regular checking.
17. Planning for Son – Keep Separate Allocation
You haven’t mentioned son’s age. But he needs future support too.
Allocate a separate fund for his education and other needs.
Keep it apart from your daughters’ goals.
18. Future Liquidity – Must Be Prepared
House and land are assets. But they are not easily sold.
Mutual funds and liquid savings give faster access.
Keep 30–40% of future savings in flexible instruments.
19. Mental Peace – Comes from Clarity
You already have strong base of assets and income.
Just bring more structure and purpose into savings.
With 15 years of service left, this is the best time to plan.
Finally
You are in a very positive position already. Your income and asset base is strong.
Just shift focus from passive assets to active financial planning.
Keep separate investments for each goal.
Track and review your plan every year.
Work with a Certified Financial Planner regularly. It will improve results.
Avoid shortcuts or high-risk products. Consistency is the key.
Keep your family involved. Their support will make the plan stronger.
Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Question by Antony on Feb 19, 2025
