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Ramalingam Kalirajan |8614 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 24, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Asked by Anonymous - Apr 24, 2024Hindi

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I'm 33 yo technologist, working at a reputed firm. I earn about 3L pm in hand. My wife, 33yo technologist, working at a reputed product company, gets about 2L in hand pm. We have loan of about 50L & we get about 50k pm in rent. Illiquid funds (SGB, silver bar, bonds) of about 30L & properties worth of about 1.5cr. PF & PPF of about 40L. Jobs are highly insecure - we might find another job soon, but we might not get this high salary. We both have dream of buying a site & constructing a home, which will easily cost 3-3.5cr in Bangalore. We should also think of retirement corpus, children education & factor in our old-age health expenses. We have a 6mo daughter, Also we want to have another kid. With this setup, is it wise to chase our dream? Or is it best to start investing/saving, as risk mitigation of our insecure jobs/early retirement.

Ans: Navigating the intricate tapestry of financial planning, especially with dreams as grand as yours, requires a blend of optimism, pragmatism, and foresight. Given your combined monthly income and assets, you're in a solid position, but the uncertainty of job stability adds a layer of complexity.

Let's begin with the dream of owning a home in Bangalore, a city where property prices can be quite steep. While the desire to build your dream home is admirable, it's crucial to strike a balance between your aspirations and financial security. With a loan of 50L and dreams of a 3-3.5cr home, taking on additional debt might strain your finances, especially if your incomes were to fluctuate.

Considering your illiquid assets, properties, PF, and PPF, you have a strong foundation. However, prioritizing risk mitigation and building a safety net is paramount, especially given the insecurity of your jobs. A Certified Financial Planner would likely advise you to create an emergency fund, diversify investments, and consider income protection plans to safeguard against unforeseen challenges.

Moreover, planning for your children's education, retirement, and old-age health expenses is essential. Starting early with systematic investments tailored to these goals can make a significant difference over time.

In essence, while the allure of building your dream home is compelling, it might be prudent to focus initially on strengthening your financial foundation and mitigating risks. With strategic planning and disciplined saving, you can work towards both securing your future and realizing your dreams, ensuring that each step you take is a step towards financial well-being and fulfillment.

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