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Ramalingam Kalirajan |2636 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 07, 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 - May 02, 2024Hindi

Hi Sir, I am 37 years old and currently have about 1.1 C as investments across various instruments such as MF, Shares, PF, SSY, Gold and ESOPs. My current yearly expenses work out to be 22 lacs. How much do I need to accumulate as a corpus by the age of 45 to sustain my current lifestyle as well as to fund my kid's higher education (around same time) and marriage (another 10 years from then)?

Ans: To determine the corpus you need to accumulate by the age of 45 to sustain your current lifestyle, fund your kid's higher education, and marriage, we'll need to consider several factors:

Current Expenses:
Your current yearly expenses amount to 22 lakhs. We'll use this figure as a baseline to estimate your future expenses.
Inflation:
Consider the impact of inflation on your expenses over time. Typically, education and marriage costs tend to rise at a higher rate than general inflation.
Higher Education Costs:
Estimate the future cost of your kid's higher education by factoring in the current cost, inflation rate, and the number of years until they start college.
Marriage Expenses:
Similarly, estimate the future cost of your kid's marriage by considering the current average marriage expenses, inflation rate, and the number of years until the event.
Investment Growth:
Assess the growth potential of your current investments across various instruments, including mutual funds, shares, PF, SSY, gold, and ESOPs. Consider historical returns and future growth projections.
Corpus Calculation:
Use a financial planning tool or consult with a financial advisor to calculate the required corpus based on your current expenses, future expenses, inflation, and investment growth assumptions.
Ensure that the corpus is sufficient to cover both your retirement needs and your kid's education and marriage expenses.
Regular Review:
Regularly review your financial plan to track your progress towards your goals and make necessary adjustments based on changes in your income, expenses, investment performance, and life circumstances.
Given your age and financial situation, it's essential to start planning and saving for your future goals as early as possible. By investing wisely and regularly reviewing your financial plan, you can work towards achieving your financial objectives and securing a comfortable future for yourself and your family.

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