Dear Sir,,
Greetings!
I am 51 years old, medical doctor working as public health expert with over 20 years of experience, residing at Bangalore, married with 2 daughters, wife is dentist but not working(house wife), elder daughter studying 1st year BE, younger one in 8th std. Currently I have taken a career break since Oct'24 for career transition while i also spent time in resolving issues around ancestral properties which was long due.
My current assets are: a)1 residential plot worth of >1.2 cr and another worth of 18 lakhs at bangalore, b) FD of 23 laks at cooperative banks @9% RoI c) MF through HDFC bank worth 3.2 laks @ 5k/month since 2020 and 10k/m at private MF distributor since Jan'25 d) lumpsum MF investment of 2 lakh in Jan'25 e) EPF of 11.5 laks accrued until Oct'24
We may get ancestral property to my father in few months (i am only child to my parents) which may provide some back up. Parents has a FD of 15 laks in Cooperative banks @ 10% annum
Liabilities: a)Home loan of 14 laks for plot purchase with emi of 14k/month b) Monthly rent of 35k d) Monthly household expenses of 50k
e) health insurance -45 k per annum d) LIC premium of 25k per annum for sum assured amount of 5 laks + bonus. Term insurance not made.e) Car and two wheeler maintainance and insurance- 30k per annum.
Children education: 1) elder daughter- 10 laks till completion of BE until year Jun'28 2) younger daughter-10 laks till 12th grade upto June' 2030 and will require atleast 15-20 laks for her professional degree post 2030.
Few concern- As i am getting older, proper investment and wealth growth couldnot happen though i tried since 10-12 years as couldn't find a genuine CFPs, whomever i met were pushing their own products to get commission, Career transition plan not happened as expected. last few months monthly expenses born out of savings as i was not working since Oct'24. We are yet to make our own home (staying in rented house since beginning)
I solicit your valuable guidance to fulfil following crucial milestones:
a) I have to either construct a house in our residential plot or buy a villa or an apartment as it is overdue (worth of 2 Cr)
b) how to invest and grow wealth to meet different milestones mentioned above
c) investment plan for creating retirement corpus by age 58 years (at least 3 crores)
d) Parents health expenses corpus of 20 laks (both are non insured)
Note: Once the convincing road map is created, I am ready to mobilize and earn required funds to invest and grow.
How to identify a genuine and objective Certified Finance Planner in Bangalore
Look forward to your genuine and valuable advice as i am in a very critical phase.
regards
Deepak
Ans: You are managing many responsibilities with calm courage. Your concern is very genuine. Many working professionals delay planning due to family and career needs. You are at the right moment now to take full control.
Let us now build a full-circle, actionable plan across your financial needs.
Family Composition and Key Responsibilities
You are 51 years old with a wife and two school/college-going daughters.
Wife is a qualified dentist but not working now. She can become a financial co-pilot later.
Elder daughter is in engineering first year. Younger one is in class 8.
You have no personal house yet. You are paying Rs 35K as monthly rent.
You are temporarily on a career break for transition and family estate matters.
Current Assets and Cash Flow Status
Residential plots in Bangalore worth about Rs 1.38 crore (not income-generating).
Rs 23 lakhs in cooperative bank FDs at 9% annual return (not entirely safe).
Rs 3.2 lakhs in mutual funds via two SIPs: Rs 5K via bank and Rs 10K via private MFD.
Rs 2 lakh lump sum invested in Jan'25.
Rs 11.5 lakh in EPF till Oct’24.
Parents have Rs 15 lakh FD (with no insurance coverage).
Current Liabilities and Expenses
Home loan of Rs 14 lakh; EMI of Rs 14K/month.
Monthly rent: Rs 35K.
Household expenses: Rs 50K/month.
LIC premium: Rs 25K/year for Rs 5 lakh cover (needs urgent review).
No term insurance yet (critical gap).
Health insurance: Rs 45K/year (you didn’t mention coverage amount).
Vehicle costs: Rs 30K/year.
Goals and Priorities Shared by You
Construct house on existing plot or buy new home (target: Rs 2 crore approx.).
Arrange Rs 10L for each daughter’s schooling + Rs 15–20L for higher education.
Build Rs 3 crore retirement corpus by age 58 (7 years left).
Build Rs 20 lakh corpus for parents’ medical needs (they are not insured).
Find a reliable Certified Financial Planner for long-term guidance.
Issues That Need Urgent Fixing
Let us first plug the financial leaks and set the base strong.
FD concentration in cooperative banks is unsafe. These banks are poorly regulated.
You are underinsured. No term plan, and LIC gives only Rs 5 lakh cover.
You are losing time on cash sitting idle. No allocation yet for wealth creation.
Current MF exposure is low. SIPs of Rs 15K/month will not meet your retirement goal.
LIC policy is a poor return product. It gives low cover, low return, and no liquidity.
You don’t have emergency fund buffer now. All expenses are from savings.
Let’s now work step-by-step to address your major goals and cash needs.
Goal A: Own House Decision – Construct or Buy?
You are paying Rs 35K/month as rent. Emotionally, owning a house feels overdue. But let us ask:
Will building a house reduce monthly cash outgo?
Will it reduce lifestyle flexibility, especially if job or career path changes again?
Will it compromise your ability to invest in daughters’ education and retirement?
You already have a plot worth Rs 1.2 crore. Construction cost will be approx. Rs 80–90 lakhs.
That is still better than buying a villa worth Rs 2 crore.
Therefore, choose to construct on your own plot.
Begin the project only after creating 6-month emergency fund first.
Construction loan can be taken after you resume stable income.
Don’t rush to use all FD and MF money for this. Leave space for other goals.
Building on own plot = cost control + emotional satisfaction + no rent + flexibility.
Goal B: Education Planning for Two Daughters
You’ve planned Rs 10 lakh each till schooling ends, and Rs 15–20 lakh for degrees.
This needs Rs 35–40 lakh total. Let us set clear buckets:
Elder daughter: Rs 10 lakh by 2028.
Younger daughter: Rs 10 lakh by 2030, and Rs 20 lakh post 2030.
Since timelines are staggered, mix of hybrid and equity mutual funds work best.
Action Plan:
Start new SIPs in diversified active mutual funds via a Certified Financial Planner.
Avoid direct plans. They lack ongoing support and review.
SIPs in direct plans miss portfolio-level guidance, tax planning, and rebalancing.
Regular plans via Certified MFDs with CFP credentials offer hands-on support.
Build Rs 30–40K SIP bucket just for education.
For short term (2028), use balanced advantage or hybrid funds. For long term, use flexi/mid cap funds.
Review semi-annually to adjust based on academic decisions and actual costs.
Goal C: Retirement Corpus of Rs 3 Crore by Age 58
You are 51. You want Rs 3 crore in 7 years.
This will need aggressive savings + smart allocation.
Current EPF: Rs 11.5 lakhs.
MF: Rs 5.2 lakhs + SIP of Rs 15K/month.
Action Plan:
Increase SIPs in equity-oriented active funds up to Rs 50–60K/month once career resumes.
Use actively managed flexi cap and mid cap funds.
Avoid index funds—they just mimic market. No downside protection or expert selection.
Active funds give style rotation, sector allocation, and risk-adjusted growth.
Rebalance every year. Reduce midcap exposure as you near retirement.
Shift gradually to hybrid funds after age 55.
SIPs must be in regular plans via CFP/MFD for periodic review and adjustments.
Goal D: Parents’ Medical Corpus of Rs 20 Lakhs
Since your parents have no health insurance, corpus creation is the only solution.
They have Rs 15 lakh in FDs. Cooperative bank FDs are high risk.
Action Plan:
Gradually shift parents’ FD into short duration debt mutual funds (in their name).
Keep some amount in senior citizen savings scheme or post office MIS.
Do not invest in equity for this goal.
Liquid or short-term debt funds are better for tax efficiency and safety.
If possible, also build Rs 5–6 lakh in your name earmarked for their health.
Plugging Insurance Gaps (You + Family)
You are highly underinsured.
Your LIC plan gives only Rs 5 lakh. That is not enough even for a month of family expense.
Action Plan:
Immediately buy Rs 1–2 crore term insurance for yourself.
Buy through a Certified Financial Planner—not online agents. They will ensure right cover.
Premium is low and gives peace of mind.
Surrender the LIC endowment policy. It gives low return and no meaningful coverage.
Reinvest the surrender value in equity mutual fund or liquid fund based on timeline.
Also, re-check your family’s health insurance. Ensure at least Rs 10–15 lakh floater cover.
Emergency Fund Setup – Non-Negotiable
You are running household from savings.
This creates huge stress if any medical or career event happens.
Action Plan:
Build 6-month emergency fund (around Rs 4–5 lakhs minimum).
Keep in ultra-short debt funds or arbitrage funds for liquidity and tax-efficiency.
Do not keep this fund in cooperative banks.
Earning and Investing in Future – The Career Reboot
You are in a critical career transition.
You said you are ready to earn more and invest more once a roadmap is clear.
That readiness is half the victory.
Action Plan:
Once career restarts, target to save Rs 70K–80K/month for goals.
Allocate across retirement (Rs 50K), education (Rs 20K), and emergency + parent goals (Rs 10K).
Prioritise building skills, not just income.
Stay light on liabilities. Avoid large home loans unless needed.
Once steady income starts, take help from a Certified Financial Planner to run the portfolio.
Choosing a Genuine Certified Financial Planner
You had poor experiences earlier. Many were just pushing products for commission.
Today, finding the right planner is easy and fully online. No need to limit to Bangalore.
Checklist:
Look for CFP credential (Certified Financial Planner). It ensures ethics and professionalism.
Choose one registered as SEBI MFD or SEBI-registered advisor.
Many reliable planners offer online service across India. Location is no barrier now.
Avoid ULIPs. Their commission is fixed, leading to mis-selling. Very poor transparency.
SEBI-regulated mutual fund, PMS, and AIF platforms offer performance-linked commissions.
This means: if portfolio performs well, planner earns more. If it falls, commission drops.
This aligns planner's interest with your portfolio growth.
In contrast, ULIPs give agents high fixed commission—whether policy benefits you or not.
Don't go by social media fame. Ask for real-life case studies and portfolio review examples.
Regular plans via trusted MFDs with CFP credentials give strong support and goal tracking.
You may explore www.holisticinvestment.in
Final Suggestions on Cooperative Bank FDs
You have Rs 23 lakh in FDs.
Parents have Rs 15 lakh in FDs.
Cooperative banks are not safe. They don’t follow strict RBI rules.
Action Plan:
Gradually shift your FD money to hybrid debt mutual funds.
Use safe options like short-term debt, arbitrage funds, or liquid funds with SIP/STP.
Don’t break all FDs now. Exit in tranches aligned to goal timelines.
Finally
You have taken the right step by seeking a 360-degree financial plan.
You are managing emotional, career, and financial responsibilities all at once.
Now, with a Certified Financial Planner by your side, you can:
Build your house mindfully, not emotionally.
Protect your family with right insurance.
Create education corpus for your daughters confidently.
Build retirement corpus of Rs 3 crore in 7 years with discipline.
Secure parents’ medical needs without insurance dependency.
You already have strong intent. Now just align action with proper guidance.
Start with a written plan. Review it every year.
You don’t need overnight changes. You need steady progress.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
