I am 57 years old person. I was working as a Warehouse Manager. Got layoff in the year 2020 during COVID. Since then I am actively looking for a job but unable to get any due to age. I was having a savings of Rs 30 Lacs when I left the job. Spend...

I am 57 years old person. I was working as a Warehouse Manager. Got layoff in the year 2020 during COVID. Since then I am actively looking for a job but unable to get any due to age. I was having a savings of Rs 30 Lacs when I left the job. Spend on needs approx 10 lacs in 5 years.I have two daughter one in 12th and one in 9th std. I have left with only 20 lakhs as of now.vpls guide me how to go forward incase I am unable to get a job. My elder daughter is going to appear for Neet in 2026. Need your guidance in managing my funds for my daughters long term goal.

Ans: – You have shown courage in handling job loss.
– You managed family needs for five years with savings.
– Your focus on daughters’ education is inspiring.
– Even with challenges, you still have Rs 20 lakh left.
– This shows discipline and responsibility.

» Present financial position
– Age is 57 and no active job currently.
– Dependents are two school-going daughters.
– Elder daughter will attempt NEET in 2026.
– Current available savings are Rs 20 lakh.
– No mention of PF, PPF, NPS or other retirement corpus.
– No mention of health insurance or term insurance cover.
– Future needs are mainly education and household expenses.

» Emergency planning
– First step is to secure emergency funds.
– Keep at least Rs 3 to 4 lakh liquid.
– This money should stay in savings or liquid mutual funds.
– This prevents you from breaking long-term investments for small needs.

» Household expenses control
– With no income, expense control becomes very critical.
– Identify non-essential costs and reduce them.
– Focus spending on education, food, health and utilities.
– Avoid lifestyle inflation and unnecessary purchases.
– Every rupee saved extends your fund life.

» Insurance protection
– Check if you already have health insurance.
– If not, buy a basic family floater health plan.
– Medical expenses can drain savings quickly without cover.
– At this age, term insurance may not be viable.
– Focus on health cover to safeguard corpus.

» Education planning for elder daughter
– Medical education is expensive, especially private colleges.
– You may need to plan for loans in future.
– Keep part of corpus safe in debt funds for entrance expenses.
– Do not risk all funds in equity.
– Bank education loans can cover tuition if needed.
– Your role will be to provide partial funding and guidance.

» Education planning for younger daughter
– She is in 9th standard, so timeline is longer.
– For her, partial exposure to equity may be considered.
– But only limited amount, as your time horizon is 7–8 years.
– Allocate small part to equity mutual funds through SIP.
– Rest should remain in hybrid and debt for safety.

» Why not index funds
– Index funds only copy market movement.
– They cannot protect you from downturns.
– In your situation, stability is more important.
– Actively managed funds allow experts to handle risk.
– Active management gives better protection in volatile times.

» Why not direct funds
– Direct funds appear cheaper due to lower charges.
– But they give no professional guidance.
– Wrong allocation can be very risky at this stage.
– With regular funds through Certified Financial Planner, you get handholding.
– This improves chances of reaching goals safely.

» Mutual fund strategy
– Do not put entire Rs 20 lakh in equity.
– Keep majority in safer debt and hybrid funds.
– Use equity only in small portion for younger daughter’s future.
– Choose funds with proven long-term consistency.
– Start small SIP from your monthly savings, if any.

» Alternative income sources
– Explore small part-time jobs or freelance work.
– Even Rs 10,000–15,000 monthly can reduce stress.
– Consider tutoring, warehouse consultancy, or local services.
– Passive income can protect your savings from getting depleted.

» Loan planning
– Do not take personal loans for education expenses.
– Only education loan should be considered if needed.
– Education loans also give tax benefits.
– Avoid loans for lifestyle or property.

» Children’s involvement
– Talk openly with your daughters about finances.
– Involve them in planning and cost decisions.
– They will learn responsibility early.
– This also prepares them to take scholarships seriously.

» Tax awareness
– Keep in mind the taxation on mutual funds.
– Equity LTCG above Rs 1.25 lakh taxed at 12.5%.
– STCG taxed at 20%.
– Debt fund gains taxed as per your income slab.
– Redeem funds wisely to reduce tax burden.

» Psychological balance
– Do not feel low due to lack of job.
– You have shown strength already.
– Stay positive for your daughters.
– Focus on building a financial cushion slowly.
– Peace of mind is also part of financial planning.

» Final Insights
– Secure emergency fund and buy health insurance immediately.
– Keep Rs 20 lakh safe, with majority in debt and hybrid.
– Limited equity for younger daughter’s long-term goal only.
– Use education loan for elder daughter’s MBBS if required.
– Avoid index funds and direct funds due to their limits.
– Explore small income sources to reduce withdrawal pressure.
– Keep yearly review of portfolio with a Certified Financial Planner.
– This way you protect family stability and education dreams together.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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

Ans: Firstly, let's appreciate your disciplined approach to savings and investments. You are already investing in various financial instruments like Sukanya Samriddhi Accounts, SIPs, stocks, NPS, and insurance. This diversified approach is a great start. You have no loans, which is commendable and gives you more room to save and invest for future needs.

Evaluating Your Insurance Needs

You mentioned having a ULIP with a premium of Rs 10,000 per month and a LIC policy costing Rs 16,000 per year. While insurance is crucial, combining investment and insurance might not be the best strategy. ULIPs often come with high charges that can eat into your returns. Similarly, traditional LIC policies may offer lower returns compared to other investment options. It might be beneficial to consider surrendering these policies and reinvesting the proceeds into more efficient investment avenues.

Pure term insurance is often recommended. It provides high coverage at a low cost. Consider evaluating your insurance needs based on your current financial responsibilities and future goals. A Certified Financial Planner can help you determine the right amount of coverage required.

Enhancing Your Investment Strategy

You are already investing Rs 12,500 each per month in Sukanya Samriddhi Accounts for your daughters. This is a great choice for securing their education and marriage needs, given its attractive interest rate and tax benefits.

Your Rs 15,000 monthly investment in SIPs is also commendable. SIPs in equity mutual funds can provide good returns over the long term due to the power of compounding and rupee cost averaging. However, ensure you are investing in funds with a strong track record and managed by experienced fund managers.

Considering Education and Marriage Goals

Education and marriage are two significant financial goals for your children. Planning early for these goals can reduce financial stress in the future.

Child Education Plan: Consider investing in child education plans which are specifically designed to cater to future educational expenses. These plans often provide a combination of savings and insurance benefits.

Dedicated Mutual Fund Portfolio: Create a dedicated mutual fund portfolio for your children’s education and marriage. Choose funds that align with the timeline and risk profile of these goals. Equity funds can be considered for long-term goals, while debt funds can be chosen as the time horizon decreases.

Systematic Transfer Plans (STPs): As you approach the goal timelines, systematically transfer your investments from equity to debt to reduce risk. STPs help in gradually moving your money to safer avenues, ensuring capital protection.

Building an Emergency Fund

An emergency fund is crucial to cover unforeseen expenses without disrupting your financial plan. Typically, an emergency fund should cover 6-12 months of living expenses. Since you have no loans and a stable income, this fund can provide additional security.

Liquid Funds or Bank Savings Account: An emergency fund should be easily accessible. Consider keeping it in a high-interest bank savings account or liquid mutual funds.

Replenish Regularly: If you dip into your emergency fund, make it a priority to replenish it as soon as possible.

Tax Planning and Benefits

Maximizing tax benefits can help you save more. Currently, you are utilizing tax-saving instruments like NPS, Sukanya Samriddhi Accounts, and insurance policies.

Section 80C Investments: Continue investing in instruments that qualify for deductions under Section 80C, such as PPF, EPF, ELSS, etc.

National Pension Scheme (NPS): Contributions to NPS are eligible for additional deductions under Section 80CCD(1B). It’s a tax-efficient way to save for retirement.

Retirement Planning

Retirement planning should be a priority. You have Rs 21 lakhs in your NPS account, which is excellent. Ensure you regularly monitor and rebalance your NPS investments to align with your risk appetite and market conditions.

Diversified Portfolio: Maintain a diversified portfolio that includes a mix of equity, debt, and other asset classes. This helps in balancing risk and returns.

Regular Reviews: Periodically review your retirement plan to ensure it’s on track to meet your goals. Adjust your contributions and asset allocation as necessary.

Health Insurance

Adequate health insurance is crucial to protect against medical emergencies. Ensure you have a comprehensive health insurance plan that covers your entire family.

Adequate Coverage: Evaluate your current health insurance to ensure it provides adequate coverage for major illnesses and hospitalization expenses.

Top-Up Plans: Consider top-up or super top-up plans to enhance your existing coverage at a lower cost.

Estate Planning

Estate planning ensures that your assets are distributed according to your wishes and provides financial security for your family.

Writing a Will: Draft a will to clearly outline the distribution of your assets. This helps in avoiding disputes and ensuring your children’s future is secure.

Nomination and Beneficiaries: Ensure all your financial accounts and insurance policies have updated nominations. This ensures a smooth transfer of assets.

Financial Education for Children

Teaching your children about financial literacy can prepare them for managing money responsibly in the future.

Simple Financial Concepts: Start with basic concepts like saving, budgeting, and the importance of investing.

Involve in Financial Planning: Involve your children in family financial discussions to give them practical exposure.

Reviewing and Adjusting the Plan

Financial planning is not a one-time activity. Regularly review your financial plan to ensure it aligns with your changing goals and life circumstances.

Annual Reviews: Conduct a thorough review of your financial plan at least once a year. Assess the performance of your investments and make necessary adjustments.

Life Changes: Adjust your financial plan to accommodate significant life changes such as job changes, additional income sources, or changes in family structure.

Consulting with a Certified Financial Planner

While you have a robust financial plan, consulting with a Certified Financial Planner can provide expert insights and personalized advice. They can help you optimize your investments, ensure adequate insurance coverage, and plan effectively for your children’s future.

Tailored Advice: A Certified Financial Planner can provide advice tailored to your specific financial situation and goals.

Comprehensive Planning: They can help create a comprehensive financial plan that covers all aspects of your financial life, ensuring a secure future for your family.

Final Insights

Your proactive approach to saving and investing is commendable. By fine-tuning your investment strategy, ensuring adequate insurance coverage, and planning for future goals, you can secure your children’s future needs effectively. Regular reviews and adjustments to your financial plan, coupled with expert advice from a Certified Financial Planner, will keep you on track to achieve your goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: You have been managing many things at once, and that's not easy. Let us look at your situation step by step from a 360-degree perspective and create a plan that gives you clarity, relief, and future security.

? Current Financial Position

– You are 38 years old, married, with one daughter aged 3 years.
– Your wife is currently not working but looking for a job.
– You have Rs.2 lakh in hand right now.
– You are paying Rs.63,000 as total EMI every month.
– You invest Rs.40,000 through SIPs monthly.
– You contribute Rs.45,000 in chits every month.
– You live almost paycheck to paycheck after EMI, SIPs, and chits.

Let us assess your assets next.

? Assets Owned Till Now

– Residential flat worth Rs.70 lakh.
– Three plots worth Rs.22 lakh, Rs.28 lakh, and Rs.7 lakh.
– Mutual fund investments of Rs.11 lakh in your name.
– Stock portfolio of Rs.13 lakh.
– EPF corpus of Rs.27 lakh in your name.
– PPF of Rs.1.2 lakh.
– NPS of Rs.65,000.
– Daughter’s NPS (Vatsalya) of Rs.50,000.
– Wife’s EPF corpus of Rs.15 lakh.
– Wife’s mutual funds worth Rs.5 lakh.
– You’ve given Rs.10 lakh to family as financial help.

These are strong asset levels. You’ve done well so far.

? Active Loans and EMI Burden

– Rs.14 lakh home loan at 7.9% interest.
– Rs.33 lakh top-up loan at 8.1% interest.
– Rs.1 lakh credit card loan at 13%. 8 months left.
– Rs.2.4 lakh loan against shares at 10.75% interest.
– Total EMIs: Rs.63,000 per month.

Your EMI outflow is high. Close to 30–35% of take-home pay.
With job uncertainty, this puts pressure.
Some loans are high cost and need urgent attention.

? Immediate Actions to Reduce Financial Stress

– First, close the credit card loan in 8 months as planned.
– Second, aim to clear loan against shares next.
– Sell part of stocks if needed.
– Interest of 10.75% on stock loans eats into equity return.
– Avoid pledging stocks or mutual funds again.

If still short, temporarily pause chit contributions.
Chits are informal, less liquid, and carry group risk.

– Consider pausing SIPs for 6 months if needed.
– Use this freed-up cash to finish high-interest loans.
– Resume SIPs after clearing credit and stock loans.

This improves monthly surplus and gives peace of mind.

? Home and Top-Up Loans Strategy

– Together, these loans are Rs.47 lakh.
– Interest is under control for now.
– Don’t prepay aggressively while other goals are pending.
– Keep paying regular EMI.
– Try one extra EMI per year if possible.

Avoid top-up loans for other needs. They increase burden long term.

? Evaluate Real Estate Holdings

– Flat and plots total to Rs.127 lakh in value.
– That’s nearly 50% of your net worth.
– Real estate is illiquid and doesn’t give regular income.
– Don’t consider buying more.
– Avoid holding too many unused plots.
– If income is tight, consider selling one plot.
– Use the money to reduce loan or boost daughter’s fund.

Property doesn't generate cash flow. It's not helpful during job loss.

? Managing SIPs and Investment Strategy

– Rs.40,000 SIP monthly is a strong habit.
– Mutual fund corpus has grown to Rs.11 lakh.
– Continue SIPs once loan pressure is low.
– Prefer actively managed mutual funds.
– Index funds do not offer downside protection.
– In falling markets, index funds fall sharply.
– Active funds have managers who take timely decisions.
– This improves growth and reduces risk.

Also, don't invest in direct mutual funds on your own.
Direct funds don’t come with personal advice or guidance.
Wrong choice or lack of review can cause losses.
Use regular funds through a Certified Financial Planner and MFD.
They offer fund selection, tracking, rebalancing, and handholding.

This adds long-term value over just low expense ratio.

? Emergency Fund and Protection Cover

– You haven’t mentioned emergency savings.
– With job uncertainty, this is urgent.
– Build 6–9 months of expense fund in liquid mutual funds.
– Include EMIs also in this amount.
– Don’t use real estate or PPF for emergencies.

Review your insurance also.

– Take term insurance of at least 15 times your annual salary.
– Buy family floater health insurance of at least Rs.10 lakh.
– Don’t depend on office cover only.
– Check if you have accidental cover. Add if not.

These steps give confidence during tough times.

? Cash Support Given to Family

– Rs.10 lakh given to family as support is generous.
– If it was a loan, try to recover it gradually.
– Avoid giving large sums again unless very urgent.
– In your stage, self-protection should be top priority.

? Planning for Daughter’s Future Income

– She is 3 now. You want income stream when she turns 18.
– That is 15 years from now.
– You need to build an education corpus and later income flow.

Here’s a plan to consider:

– Start a dedicated mutual fund SIP for her now.
– Keep it in your name but tagged to her goal.
– Invest in diversified, actively managed funds.
– Increase SIP yearly by 10–15%.
– Avoid ULIPs, child plans, or endowment policies.
– They offer poor returns and lack flexibility.

By age 18, shift part of corpus to monthly income funds.
This will give steady income for her use.
Also, you can open a minor PPF in her name for safety.
Use it only as a small part of her portfolio.
Don’t rely only on NPS (Vatsalya). It’s too restrictive and long-term.

This layered approach ensures she gets funds at 18, and beyond.

? Wife’s Career and EPF Planning

– Your wife has Rs.15 lakh EPF and Rs.5 lakh in mutual funds.
– If she starts earning again, that will reduce pressure.
– Encourage her to take up a job or side income options.
– Her EPF is safe. Let it grow.
– Avoid using it for current needs.
– Add her SIPs too if possible after income resumes.

Both husband and wife contributing creates double strength.

? Debt vs Investment Rebalancing

– Don’t invest when high-cost debt is pending.
– Finish credit card and stock loans first.
– Then build emergency fund.
– Resume SIPs gradually after that.
– Don’t take new loans for investing.
– Stay away from personal loans or chit borrowings.

A Certified Financial Planner can help with rebalancing.
They will guide asset mix based on goals, risk, and stage.

? Long-Term Retirement Vision

– At age 38, you still have 20 years for retirement.
– EPF and PPF are safe options already in your plan.
– NPS can be increased slowly.
– But don’t go overboard with locked-in options.
– Mutual funds offer flexibility and better return.
– Keep increasing SIPs towards retirement as EMI goes down.
– Separate your retirement and daughter’s goals clearly.
– Mixing them leads to confusion and shortfalls later.

In the last 5 years before retirement, shift to low-risk options.

? Smart Use of Surplus Funds

– Bonuses, incentives, tax refunds – use all wisely.
– Don’t spend on unnecessary lifestyle upgrades.
– First use to repay loans.
– Then build emergency fund.
– Then increase SIPs for long-term goals.

This step-by-step use of money builds strong future.

? What to Avoid Now

– Don’t buy more plots or property.
– Don’t use chits for long-term investing.
– Don’t depend on index funds for wealth creation.
– Don’t invest in direct funds without professional help.
– Don’t mix daughter’s fund with other savings.
– Don’t use ULIP, traditional LIC policies.
– If already taken, consider surrendering and reinvesting in mutual funds.

These decisions help avoid hidden losses and regrets.

? Finally

– Your commitment to savings and family is excellent.
– You are doing many things right already.
– You just need to reduce loan stress and create balance.
– Focus on daughter’s secure future and your peace of mind.
– Prioritise debt clearing, emergency fund, and protection.
– Resume investments steadily once loans reduce.
– Real estate need not be increased further.
– Mutual funds through CFP-backed advice offer better control and growth.

Stay consistent. Review plan every year.
Be prepared for the worst, but plan for the best.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment