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Ramalingam Kalirajan |2636 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 08, 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 21, 2024Hindi

I am 42 years of age . I have one child of 3 years old. My wife is home maker. I have my own flat 2 bhk in Mumbai. My annual salary is around 30 lakhs . I have savings of 60 lakhs at present. I will work till 60 years of age . My monthly expenses at present is 50000 Rs normal expenses. What should I do so that I have atleast 8 crores at age of 65 with my son earning by that age. I also want to have second baby after 2 years. Please guide.

Ans: It's commendable that you're proactively planning for your financial future, especially considering your long-term goals and growing family responsibilities. Here's a tailored plan to help you achieve your objectives:
1. Emergency Fund: Ensure you have an emergency fund equivalent to at least 6-12 months' worth of living expenses, stored in a liquid and easily accessible account.
2. Investment Strategy:
• Start SIPs in mutual funds with a focus on equity funds for higher returns over the long term. Aim for a diversified portfolio across large-cap, mid-cap, and small-cap funds to mitigate risks.
• Allocate a portion of your savings towards debt instruments like PPF, EPF, or debt mutual funds for stability and regular income.
• Consider investing in tax-saving instruments like ELSS funds to optimize tax benefits while building your wealth.
• Review and adjust your investment portfolio regularly based on changing market conditions and personal financial goals.
3. Real Estate: Since you already own a 2 BHK flat in Mumbai, consider it as a valuable asset. Monitor the real estate market for opportunities to leverage this property for potential rental income or capital appreciation.
4. Education Planning: Plan for your children's education expenses by investing in education-specific funds or starting SIPs in mutual funds dedicated to their future needs.
5. Health Insurance: Ensure you have adequate health insurance coverage for your family to safeguard against unforeseen medical expenses.
6. Retirement Planning: With the goal of accumulating 8 crores by the age of 65, calculate the required monthly contributions based on your expected rate of return and investment horizon. Consider consulting a Certified Financial Planner to develop a personalized retirement plan that aligns with your objectives.
7. Review and Adjust: Regularly review your financial plan to track progress towards your goals and make necessary adjustments as your circumstances evolve. Stay disciplined in your savings and investment approach to maximize long-term wealth creation.
By following this comprehensive financial strategy and remaining committed to your goals, you can work towards building a secure financial future for yourself and your family.

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