I am 38 years old, self and spouse both earning, 1.50 lakhs in hand. I have created a corpus as below as of Jun-24 and planning to retire at the age of 52 years. Existing portfolios: 1.Mutual funds through CFP invested 30 lakhs current value 42 Lakhs, monthly SIP around 50K and yearly incremental in sip about 10% and avg CAGR is 20% 2.PF savings: 6.5 lakhs and monthly 10K contribution 3.NPS: 3 lakhs, monthly 5K Debts: a.30 Lakhs Home Loan with monthly emi of 26K b.30 Lakhs gold Loan(gold about 800 to 900 grams) at 9% rate paying only interest portion c.10 Lakhs personal Loan with emi of 11K d. Car loan with 7lkahs outstanding emi of 15000 And both are having Medical insurance for 50 Lakhs and corporate insurance for 10 Lakhs and term life for 2.75 Cr and emergency fund of 2-3 months salary always in bank accounts. Goals: 1.Daughter graduation by 2028 - 35 lakhs 2.Daughter graduation by 2033 - 56 Lakhs 3.Daughter marriage by 2033- 45 lakhs 4.Daughter marriage by 2038 -75 lakhs 5.Dream car by 2034- 50 Lakhs 6.Retirement goal by 2038 with corpus of 3 cr and monthly running expenses would be 2.5 Lakhs by the time. What should I alter to achieve this goals without any compromise. Regards, Chandra

Ans: Chandra, you have done an excellent job in building your financial portfolio and planning for your future. At 38, both you and your spouse have a combined monthly income of Rs 1.50 lakhs. Your investments are diversified, and you have clear goals for your daughter’s education, her marriage, and your retirement. Let's break down your current financial status and provide a comprehensive plan to achieve your goals without compromising.

Existing Portfolios and Contributions
Mutual Funds:

Current Value: Rs 42 lakhs
Monthly SIP: Rs 50,000
Yearly Incremental SIP: 10%
Average CAGR: 20%
PF Savings:

Current Value: Rs 6.5 lakhs
Monthly Contribution: Rs 10,000
NPS:

Current Value: Rs 3 lakhs
Monthly Contribution: Rs 5,000
Debts
Home Loan:

Principal: Rs 30 lakhs
Monthly EMI: Rs 26,000
Gold Loan:

Principal: Rs 30 lakhs
Interest Rate: 9%
Paying Interest Only
Personal Loan:

Principal: Rs 10 lakhs
Monthly EMI: Rs 11,000
Car Loan:

Principal: Rs 7 lakhs
Monthly EMI: Rs 15,000
Insurance and Emergency Fund
Medical Insurance: Rs 50 lakhs
Corporate Insurance: Rs 10 lakhs
Term Life Insurance: Rs 2.75 crores
Emergency Fund: 2-3 months' salary
Financial Goals
Daughter’s Graduation:

2028: Rs 35 lakhs
2033: Rs 56 lakhs
Daughter’s Marriage:

2033: Rs 45 lakhs
2038: Rs 75 lakhs
Dream Car:

2034: Rs 50 lakhs
Retirement:

2038: Corpus of Rs 3 crores
Monthly Expenses: Rs 2.5 lakhs
Analysis and Recommendations
Mutual Fund Investments
Your mutual fund investments are performing well with a 20% CAGR. Continue your SIPs with an annual 10% increment. This compounding growth is crucial for achieving your long-term goals. Diversifying within mutual funds, including large-cap, mid-cap, and hybrid funds, can balance risk and return.

Provident Fund (PF)
Your monthly PF contribution of Rs 10,000 is a stable, long-term investment. PF provides security and assured returns. Continue with this contribution to build a substantial retirement corpus.

National Pension System (NPS)
NPS is a good option for retirement savings due to its tax benefits and market-linked returns. Your monthly contribution of Rs 5,000 is beneficial. Consider increasing this amount slightly if possible.

Debt Management
You have significant debts. Prioritizing debt repayment will free up resources for your goals.

Home Loan: The EMI of Rs 26,000 is manageable. Ensure timely payments to avoid penalties.

Gold Loan: Paying only interest on a Rs 30 lakh loan at 9% is costly. Consider repaying the principal gradually to reduce interest burden.

Personal Loan: The EMI of Rs 11,000 should be cleared as soon as possible. Personal loans typically have higher interest rates.

Car Loan: With an EMI of Rs 15,000, focus on repaying this loan to free up cash flow.

Insurance and Emergency Fund
Your insurance coverage is adequate. A term life insurance of Rs 2.75 crores and medical insurance of Rs 50 lakhs offer good protection. Maintaining an emergency fund of 2-3 months’ salary is wise. Ensure this fund is easily accessible.

Daughter’s Education and Marriage
For your daughter’s education and marriage, start dedicated savings. Investing in mutual funds with a mix of equity and debt will ensure growth while managing risk. Use SIPs to build these funds over time.

Retirement Planning
To achieve a corpus of Rs 3 crores by 2038, continue with your current investments and increase contributions wherever possible. Your mutual fund investments, PF, and NPS will play a crucial role. Regularly review your portfolio with a Certified Financial Planner to stay on track.

Dream Car
Plan for your dream car in 2034 by setting aside a specific amount each month in a dedicated fund. Consider a combination of debt and equity investments to balance growth and stability.

Detailed Plan for Achieving Goals
Step 1: Debt Repayment Strategy
Focus on clearing high-interest debts first. Prioritize personal and car loans.
Gradually repay the gold loan principal to reduce the interest burden.
Maintain regular payments on your home loan.
Step 2: Increase Savings and Investments
Incrementally increase your SIPs by 10% annually.
Consider slightly increasing your NPS contributions.
Allocate any surplus income towards your emergency fund and debt repayment.
Step 3: Goal-Specific Investments
Daughter’s Education: Use mutual funds with a mix of equity and debt. Start SIPs dedicated to education.
Daughter’s Marriage: Similar strategy as education funds. Use long-term mutual funds.
Dream Car: Start a dedicated fund for this goal. Use a combination of savings and low-risk investments.
Step 4: Regular Review and Adjustment
Regularly review your financial plan with a Certified Financial Planner.
Adjust your investments based on market conditions and personal financial changes.
Benefits of Actively Managed Funds
Avoid index funds for your goals. Actively managed funds, guided by financial experts, can outperform the market and provide better returns. They offer:

Professional Management: Expertise in selecting investments.
Flexibility: Adjustments based on market conditions.
Potential for Higher Returns: Better performance than index funds over time.
Importance of Certified Financial Planner
A Certified Financial Planner (CFP) can provide personalized advice, ensuring your investments align with your goals. They help in creating a comprehensive plan, monitoring progress, and making necessary adjustments.

Final Insights
Chandra, you have a solid foundation and clear goals. With strategic planning and disciplined investments, you can achieve your financial objectives. Focus on debt repayment, increase savings, and invest wisely. Regular reviews with a CFP will ensure you stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in