Sir, I have 300 eq.shares of "Ujjivan Small Finance Bank Ltd" @ Rs.33/-per share, would you please suggest/advise me what price can I expect after 2-years, as I am an investor and can hold for long time..

Ans: Current Financial Overview
Age: 38 years

Monthly Income: Rs. 5 lakh (combined)

Monthly Expenses: Rs. 2 lakh (including EMIs)

Assets:

Mutual Funds: Rs. 70 lakh

Stocks: Rs. 5 lakh

Fixed Deposits: Rs. 5 lakh

Other Investments: Rs. 5 lakh

Provident Fund: Rs. 45 lakh (combined)

Vehicles: Rs. 10 lakh

Liabilities:

Home Loan 1: Rs. 18 lakh (EMI: Rs. 26,500)

Home Loan 2: Rs. 50 lakh (EMI: Rs. 47,000)

Retirement Corpus Estimation
Target Monthly Expenses Post-Retirement: Rs. 1 lakh

Expected Retirement Age: 50 years

Life Expectancy: 85 years

Inflation Rate: 6%

Expected Return on Investments Post-Retirement: 8%

Based on these assumptions, you would require a retirement corpus of approximately Rs. 6 crore to maintain your desired lifestyle in a tier-2 city.

Children's Education Planning
Child 1: Currently in 5th standard

Child 2: Currently in UKG

Child 3: Currently in play school

Assuming higher education costs of Rs. 25 lakh per child in today's terms and considering an education inflation rate of 10%, the future cost for each child could be significantly higher. Therefore, it's essential to start dedicated investments for each child's education.

Action Plan
Increase Savings: Aim to save at least 40% of your combined monthly income.

Debt Reduction: Prioritize paying off high-interest debts to reduce financial burden.

Investment Strategy:

Continue investing in mutual funds with a focus on long-term growth.

Diversify your portfolio to include a mix of equity and debt instruments.

Emergency Fund: Maintain an emergency fund equivalent to 6 months of expenses.

Insurance:

Ensure adequate life insurance coverage for both you and your wife.

Obtain comprehensive health insurance for the entire family.

Final Insights
You're on a solid financial path with a strong income and investment base.

Focus on increasing your savings rate and reducing liabilities.

Plan systematically for your children's education expenses.

Regularly review and adjust your investment portfolio to align with your retirement goals.

Consider consulting a Certified Financial Planner to tailor a comprehensive financial plan for your family's needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment