I'm 32, bank exec: How can I build serious wealth?

Ans: You have clearly planned early for your daughter’s education.

That itself is a strong foundation for future wealth creation.

Opening a PPF account in her name in 2009 shows your forward-thinking attitude.

You maintained discipline and built a sizeable corpus of Rs. 40 lakhs.

You avoided claiming tax benefits on her account, which shows your integrity and clarity.

Now, you want to use this fund for her higher education.

There are concerns about withdrawal and having two PPF accounts.

Let’s explore all your questions from a rule-based, practical and legal angle.

Are You Really Violating PPF Rules?
You have one PPF account in your name.

Another one in your daughter’s name, with you as guardian.

As per the PPF rules, an individual can hold only one account in his or her own name.

However, opening one account for a minor child is permitted.

You are not violating any rule by being a guardian for your daughter’s account.

The government allows a parent or guardian to open and operate the child’s account.

Even if the source of contribution is the parent, the ownership is with the minor.

So, there is no breach by having one for yourself and one for your child.

Can You Withdraw From Her Account as Guardian?
You are permitted to withdraw as guardian under certain situations.

A minor’s PPF account can be partially withdrawn after 7 years.

Premature closure is allowed after 5 years in special cases like education or illness.

If your daughter is now 17.4 years old, the account is over 15 years old.

That means it has completed maturity.

Hence, withdrawal is completely permitted.

You must fill Form C and give the required proofs.

You must state clearly that funds will be used for her education.

You must also declare the account is for her benefit.

There should be no legal trouble if the procedure is followed properly.

Common Fear Around Dual PPF Accounts
Many fear that having two PPF accounts will attract penalty.

This is true only if both accounts are in the same name.

Here, one is in your name, one in daughter’s name.

So this situation is fully allowed under the PPF scheme.

Fear of penalty or disqualification is not relevant in your case.

People often confuse dual accounts of one person with guardian accounts.

Your setup is legally compliant.

So do not panic because of others’ advice.

Should You Wait Until She Turns 18?
Waiting until she turns 18 has some benefits.

She can become account holder herself.

You can get her PAN card and bank account opened.

Then you can transfer the PPF corpus directly to her account.

This keeps your hands completely clean in the system’s view.

It reduces any perception of conflict.

But it is not compulsory.

If you need the funds urgently, you can withdraw now.

You will still be within the allowed limits of the PPF scheme.

Things to Ensure Before Withdrawal
Fill Form C correctly with complete guardian details.

Provide education admission proof and fee structure.

Show that funds will be used only for her studies.

Get your daughter’s PAN card, if possible, even now.

Link her savings account or open one for the fund deposit.

Don’t mix the withdrawn money with your personal spending.

Maintain a clear money trail in case of future scrutiny.

Keep all PPF statements, fee receipts, and documents safely.

Assessing the Bigger Picture of Your Finances
You have already taken many good steps in overall wealth planning.

You are using long-term savings tools like PPF, SSY, and SIPs.

Your investment in digital gold is also consistent.

Monthly gold investment is goal-linked, which is positive.

You give money to both sets of parents. That shows values and responsibility.

Your life is well-insured with family health coverage.

You bought a home and rented it out for income.

You also own land in your hometown. That diversifies your asset base.

You are not over-leveraged, which is a very good sign.

What You Should Do Next for Financial Efficiency
Try to reduce emotional dependence on physical gold.

Gold in India is culturally strong but returns are modest.

Buying physical gold every month is not ideal.

Instead, continue with digital or gold savings schemes if needed.

Do not increase gold exposure beyond 10–15% of total assets.

Avoid investing more in real estate unless you fully analyse cash flow.

Prioritise flexible, liquid, tax-efficient investment options.

Mutual Fund Planning for Long-Term Wealth
You are currently investing Rs. 10,000 monthly in mutual funds.

That is a good start but needs to be increased gradually.

Based on your income of Rs. 2.8 lakhs, you can aim for 20–25% SIP.

That comes to Rs. 50,000 to Rs. 60,000 monthly.

Mutual funds give better returns than gold or real estate.

Equity funds are good for long-term goals like child’s education and your retirement.

Prefer actively managed mutual funds with strong track record.

Avoid index funds as they follow the market passively.

Index funds lack downside protection and do not outperform in volatile times.

Actively managed funds adapt to changing markets.

A Certified Financial Planner or MFD with CFP credentials can guide better.

Avoid direct mutual funds unless you have advanced experience.

Regular mutual funds via an MFD give you handholding and monitoring.

Increase Discipline with Goal-Based Buckets
Allocate SIPs to specific goals like:

Child’s higher education

Your retirement

Family vacations

Emergency reserve

This gives clarity and motivation to stay consistent.

Use separate folios or fund tags for each goal.

Review Your Emergency Corpus
With a high home EMI and parental support, emergency planning is critical.

Build at least 6 months of monthly expenses as emergency fund.

That includes EMIs, rent outflow (if any), and living expenses.

Keep this fund in liquid mutual funds or sweep-in FDs.

Don’t mix emergency funds with regular investments.

Retirement Planning Needs Strengthening
You are still young, but retirement needs early planning.

Right now, most of your assets are long-locked (PPF, real estate).

Increase your equity mutual fund exposure with long-term view.

Use step-up SIPs as your income grows annually.

Create separate SIPs for your and your wife’s retirement corpus.

Regular monitoring and rebalancing is required every year.

For Your Daughter’s Future Needs
SSY and gold investment is a solid start.

SSY maturity will happen when she turns 21.

Use this for marriage or higher education.

Continue Rs. 8,500 monthly in SSY without break.

Consider adding mutual fund SIPs in her name also.

This gives better flexibility and returns than gold.

Debt Management
Your only debt is the home loan of Rs. 1.2 crore.

The EMI is Rs. 1.06 lakh. Rental income covers Rs. 60,000.

That is manageable for now.

As salary increases, keep part-prepaying home loan.

Aim to finish the loan in 12–15 years if possible.

That will free up cash flow for wealth creation.

Insurance and Health Cover
You already have a Rs. 25 lakh family floater.

That is a good base, especially with ageing parents.

Also check if you have separate term insurance.

Term insurance of Rs. 1 to 2 crore is needed at your life stage.

Avoid ULIPs and endowment policies.

If you have any LIC or investment-linked policies, review them.

If they are not giving good returns, surrender and invest in mutual funds.

Tax Efficiency Tips
Your PPF, SSY and mutual fund SIPs are tax-friendly.

Avoid selling equity mutual funds within 12 months to avoid STCG tax of 20%.

For long-term equity gains, Rs. 1.25 lakh is tax-free annually.

Balance asset allocation to optimise tax liability each year.

Your PPF and SSY give EEE benefits (exempt-exempt-exempt).

Try to claim full deduction under 80C each year (PPF, SSY, tuition fees).

Don’t ignore 80D for health insurance premium.

Finally
You are managing your finances with maturity and clear goals.

With a few adjustments, you can optimise your wealth journey.

Avoid panic due to half-baked advice on PPF withdrawals.

Either withdraw with full documentation or wait until she turns 18.

Prioritise mutual funds over real estate and gold going forward.

Use MFD or Certified Financial Planner to plan goals efficiently.

Create financial discipline across savings, investing, insurance, and expenses.

Stay consistent, review annually, and adjust based on life events.

Wealth creation is a journey. You have started right.

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