Should I buy a house at 64 with 80 lakhs savings?

Ans: Assessing Your Current Financial Situation
Income and Savings
Your combined monthly take-home income is Rs. 2 lakhs. Your current savings include:

Mutual Funds: Rs. 85 lakhs
Public Provident Fund (PPF): Rs. 18 lakhs
Employees’ Provident Fund (EPF): Rs. 32 lakhs
Other Investments (FD, Savings, Shares): Rs. 25 lakhs
Your monthly savings distribution is as follows:

SIP in Mutual Funds: Rs. 75,000
PPF: Rs. 18,000
EPF: Rs. 25,000
You live in a rented house with a rent of Rs. 14,000 per month.

Evaluating the Decision to Buy a New Flat
Current Housing Situation
Living in a rented house at Rs. 14,000 per month is relatively affordable, especially given your high monthly income. Renting provides flexibility and lower maintenance costs compared to owning.

Financial Impact of Buying a New Flat
Purchasing a new flat would involve a significant financial commitment, including a home loan, maintenance costs, property taxes, and other associated expenses. This would reduce your investable surplus and potentially impact your ability to meet your financial goals.

Comparative Analysis: Rent vs. Buy
Renting: Offers flexibility, lower upfront costs, and avoids long-term debt.
Buying: Provides stability and potential appreciation in property value but requires a large financial commitment and ongoing expenses.
Long-term Financial Goals
Target: Rs. 15 Crores by Age 60
To achieve your target of Rs. 15 crores by age 60, you need to focus on maximizing your investments' growth while maintaining a balanced risk profile.

Current Investments and Growth Potential
Mutual Funds: Your Rs. 85 lakhs in mutual funds can grow substantially with continued SIPs and market performance.
PPF and EPF: These provide stable, long-term growth with tax benefits, contributing to your retirement corpus.
Other Investments: FDs, savings, and shares add diversification but should be reviewed for optimal growth potential.
Investment Strategy
Enhancing SIP Contributions
Continuing and potentially increasing your SIP contributions will leverage the power of compounding. Focus on a mix of equity and debt funds to balance growth and risk.

Recommendation: Consider increasing your SIP by a percentage each year to keep pace with inflation and maximize returns.
Diversification and Rebalancing
Ensure your portfolio is diversified across various asset classes to minimize risk and optimize returns. Periodically review and rebalance your portfolio to stay aligned with your financial goals.

Recommendation: Include large-cap, mid-cap, and multi-cap funds for equity exposure. Balance with debt funds for stability.
Utilising Tax-efficient Investments
Maximize your contributions to tax-efficient instruments like PPF and EPF. These not only provide stable returns but also offer significant tax benefits.

Recommendation: Continue maximizing your PPF contributions and ensure your EPF contributions are optimized.
Emergency Fund Management
Maintaining a robust emergency fund is crucial. Your current Rs. 25 lakhs in FD and savings can be used to cover unexpected expenses.

Recommendation: Keep at least 6-12 months of living expenses in easily accessible liquid assets.
Estate Planning and Insurance
Life and Health Insurance
Ensure adequate life and health insurance coverage for your family, especially considering your elder son's needs. This will protect your family's financial stability in case of unforeseen events.

Recommendation: Opt for a comprehensive health insurance plan and term insurance for sufficient coverage.
Estate Planning
Create a comprehensive estate plan, including a will, to ensure your assets are distributed according to your wishes and your family is taken care of.

Recommendation: Consult a legal expert to draft a will and set up any necessary trusts.
Education and Future Planning for Children
Special Needs Planning
Given your elder son's Down syndrome, consider creating a financial plan that ensures his long-term care and support.

Recommendation: Look into setting up a special needs trust and explore government schemes and benefits available for children with disabilities.
Education Fund for Younger Son
Start a dedicated investment plan for your younger son's education. This can include child-specific mutual funds or education-focused investment plans.

Recommendation: Allocate a portion of your monthly savings towards an education fund.
Final Insights
Given your strong financial position and disciplined saving habits, you are well on your way to achieving your long-term goals. However, buying a new flat at this stage might not be the best financial decision if it significantly impacts your investment capacity.

Focusing on growing your investment portfolio and maintaining a balanced, diversified approach will help you accumulate the desired Rs. 15 crores by age 60. Ensuring adequate insurance coverage and planning for your elder son's special needs will further secure your family's future.

Stay disciplined with your investments, periodically review your portfolio, and make adjustments as needed to stay on track. Consulting with a Certified Financial Planner can provide personalized advice and help optimize your financial strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Considering that you are already employee of a bank and can get better interest rates I recommend you go ahead and invest in the property.

Both of you are earning which is positive because even if major part of your income goes towards loan repayment you have back up for regular expenses and PPF/NPS/SSY investments.

Retain that 7 Lac as your emergency fund. Add to it so as to cover 8-10 months of expense coverage.

Surely you have group health cover but consider having a separate personal family floater cover which comes in handy during job switch and any unexpected medical need arises.

I am sure you both have adequate term life cover.

All the best!!

Ans: Let me now give you the full-length and properly formatted guidance.

Understanding Your Current Situation
Your salary is Rs. 90,000 in hand every month.

You are paying Rs. 22,000 as house rent in Pune.

You have a personal loan of Rs. 3 lakh.

You pay vehicle expenses and travel for your father's business.

Your wife is not working currently.

You have no emergency fund or monthly savings.

This is a very critical stage in your financial life.

Your responsibilities are high. Your income is fixed.

Planning must be very practical and step-by-step.

Step 1: Identify Monthly Fixed Expenses
Rent is Rs. 22,000.

Loan EMI for Rs. 3 lakh is likely around Rs. 7,000 to Rs. 9,000.

Assume Rs. 10,000 for basic home expenses.

Add Rs. 8,000 for travel and vehicle repairs.

That already makes Rs. 47,000 to Rs. 50,000 monthly.

This shows that 55% of your salary goes to fixed costs.

There is no balance left for wealth building.

Step 2: Building Emergency Fund
Right now, you don’t have emergency savings.

That is the first priority before any house purchase.

Emergency fund gives you peace in uncertain events.

Start saving Rs. 5,000 every month in a liquid fund.

Build a 6-month buffer of all expenses slowly.

Don’t use FDs. Liquid mutual funds suit better for such needs.

Step 3: Prioritise Loan Prepayment
You have a Rs. 3 lakh personal loan.

Interest rate is likely 11% to 15%.

Personal loan is very costly. No tax benefits also.

Prepay at least Rs. 10,000 extra every month.

You can close this loan in under 2 years.

Till then, do not take any new EMI like a home loan.

Closing this loan early is more urgent than buying a house.

Step 4: Stop Supporting Business Costs
Your father’s business should have its own costs covered.

You are not getting financial help from him.

Spending for someone else’s business weakens your own future.

Set clear limits on how much you can help.

Reduce business travel support step-by-step.

Helping is good. But sacrificing your future is not correct.

Your family should come first now.

Step 5: Your Wife’s Income Potential
Your wife is not working now.

Can she earn something from home?

Even Rs. 10,000 per month changes your plan positively.

She can try tuition, stitching, content, or part-time remote work.

Explore her skills and interests.

When a couple earns together, goals are faster and safer.

Step 6: Delay House Purchase
You should not buy a house now.

You don’t have savings for down payment.

You already have a loan.

Your wife is not working.

Any house purchase now will create pressure.

If you buy now, EMI can be Rs. 30,000+ for a basic house.

You will lose all flexibility in monthly cash flow.

No buffer, no investment, and no emergency planning.

Step 7: Ideal Time to Buy a House
Once you clear personal loan completely.

After you have an emergency fund for 6 months.

When wife starts contributing some income.

When you can invest monthly even after EMI.

When you have 20% of house cost as savings.

Only then a house purchase becomes sensible.

Step 8: How Much House to Afford
Take house cost as maximum 3 times your annual income.

Your income is Rs. 10.8 lakh per year.

House value should not exceed Rs. 30 to Rs. 35 lakh.

But this is possible only after loan closure.

For now, save for down payment, not EMI.

Step 9: Start SIP for Long Term
After emergency and loan part is done, begin SIP.

Even Rs. 3,000 per month is good start.

Choose regular mutual funds via MFD + Certified Financial Planner.

Don’t invest directly in direct mutual funds.

Direct funds don’t offer guidance or behavioural coaching.

Many make emotional mistakes in direct investing.

That ruins long-term compounding gains.

Step 10: Avoid Index Funds
Index funds track the market but cannot beat it.

You won’t get downside protection.

They fail during uncertain or flat markets.

Actively managed funds have better flexibility.

A good CFP-backed MFD will guide your mutual fund choice.

Step 11: Insurance Needs
Take term insurance of minimum 10 times your income.

For you, Rs. 1 crore term insurance is a must.

Avoid LIC policies, ULIPs, or return-based insurance.

If you have them already, consider surrendering.

Reinvest proceeds in mutual funds.

Step 12: Don’t Buy House Emotionally
Many buy home just to stop paying rent.

But buying with weak finances creates stress.

EMI without safety net creates mental pressure.

Rent gives flexibility. Use that wisely.

Focus on financial strength first.

Step 13: Review Monthly Expenses
Make a sheet of all monthly expenses.

Find 3 or 4 areas to reduce monthly spend.

Make Rs. 5,000 to Rs. 7,000 monthly savings.

Put that into short-term fund or RD first.

Don’t use savings for lifestyle.

Step 14: Build Wealth Step by Step
Emergency fund first.

Close personal loan next.

Build savings and start SIPs.

Only then consider home loan and house buying.

Strengthen your base before chasing big dreams.

Step 15: Talk With Family
Discuss money planning with your wife.

Let her know your goals and plans.

Involve her in decisions.

She may also come up with useful ideas.

Teamwork builds financial peace.

Step 16: Avoid Costly Habits
Avoid impulsive buying.

Avoid phone upgrades, luxury vehicle repairs.

Travel only if affordable.

Don’t mix emotions and finance.

Stick to what supports financial safety.

Step 17: Get Guidance from Certified Financial Planner
You are at a turning point in life.

A certified financial planner gives full plan.

Not just products, but proper financial structure.

Work with an MFD who has CFP background.

Regular investing through them builds discipline.

Final Insights
Don't rush to buy a house. You're not ready yet.

Focus on paying off debt and building savings.

Fix cash flow issues and reduce support to others.

Set clear family goals and involve your spouse.

Start small investments with discipline after basics are strong.

You can achieve financial peace with right steps.

Keep emotions out. Take each step practically and patiently.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Ans: You are earning Rs. 1,20,000 monthly. Your SIP investments are Rs. 40,000. Your rent is Rs. 12,000. Household and personal costs add up to Rs. 50,000. You also pay Rs. 40,000 yearly LIC premium. You are planning to buy a house worth Rs. 70 lakh. You only have Rs. 10 lakh in mutual funds as savings. You are unsure if buying is the right step now.

This is a very practical question. It’s good that you are evaluating before acting. You are already saving a solid 33% of income monthly. That is rare and very responsible. You also manage to balance kids' school fees, rent, and regular expenses. Let’s take a 360-degree view of your finances before deciding.

Cash Flow Snapshot: Where You Stand Today
Let us break down your monthly cash flow to get a complete view.

In-hand Salary: Rs. 1,20,000

SIPs: Rs. 40,000

Rent: Rs. 12,000

Household Expenses: Rs. 20,000

Children's School Fees: Rs. 10,000

Other Expenses: Rs. 20,000

Total Outgo: Rs. 1,02,000

Balance Left: Rs. 18,000 monthly

So, after expenses and SIPs, your savings buffer is only Rs. 18,000.

This remaining amount is too low to afford any EMI at this stage. A loan EMI for Rs. 60 lakh house loan will easily be Rs. 50,000+ monthly. This will create heavy strain.

Reviewing the House Buying Plan
You are planning to buy a house for Rs. 70 lakh. You have Rs. 10 lakh in mutual funds. This is your only source for down payment.

Let’s look at possible scenarios if you proceed with buying.

Minimum Down Payment
For Rs. 70 lakh house, lenders need 15-20% down

This means you need Rs. 10.5 to 14 lakh upfront

You only have Rs. 10 lakh. It is not enough.

Using your mutual fund savings will fully exhaust your reserves.
This is risky. It leaves no emergency fund. It leaves no flexibility.

Home Loan EMI Burden
Rs. 60 lakh loan means EMI of Rs. 50,000–55,000 per month

Your monthly surplus after current SIPs and expenses is only Rs. 18,000

You will need to stop SIPs and even reduce household spending

That will hurt long-term wealth building. You may also default during job loss or salary cuts.

Emergency Fund Risk
Using your entire Rs. 10 lakh mutual fund for down payment is very risky.
You will have zero backup for medical or job issues.
That is not advisable at this stage of life with kids' needs.

LIC Premium: Should You Keep or Exit?
You pay Rs. 40,000 per year to LIC. Please check if it is a traditional endowment or money-back plan. If yes, you may be earning low returns (around 4-5%).

These policies are not suitable for wealth creation

If you have held them for more than 5–6 years, check surrender value

You can consider surrendering and reinvesting the proceeds in mutual funds

Term insurance is better and cheaper for protection

But only make this switch after guidance from a Certified Financial Planner.

Staying in Rented House: Benefits at Present
Let’s compare if you continue in rent instead of buying now.

Your current rent is only Rs. 12,000. It is low and manageable.

You are able to invest Rs. 40,000 in mutual funds every month

You are building long-term wealth steadily

You are avoiding big EMI pressure and mental stress

Right now, this is more financially stable. Renting is not bad when it lets you invest and grow wealth. Owning a house is a good dream. But timing must be right.

Mutual Funds: Why You Must Continue Them
You are already investing Rs. 40,000 monthly. This shows discipline.
Please do not break these mutual funds for house buying.

Why?

These funds are working toward your long-term wealth

You get compounding benefits with time

Redeeming them early will lose growth

Using them for down payment will reduce your investment power

Your mutual funds are like a personal wealth engine. Do not break the engine for a one-time need.

Also, avoid direct funds without expert guidance. Direct funds have no help from MFDs. If market falls, you may not know what to do. Regular plans through Certified Financial Planners offer guidance. This helps protect your capital.

Actively managed funds are better than index funds. Index funds only copy the market. They can’t protect during big crashes. Active fund managers adjust portfolios. That protects your goals better.

If You Still Want to Own a House
You may still have a strong desire to own. That is understandable. But instead of rushing, follow this phased approach.

Step 1: Build Your Down Payment First
Target saving Rs. 15–20 lakh for down payment

Start a separate SIP for this purpose

Invest Rs. 20,000 per month toward this goal

Choose debt and balanced mutual funds for this

It will take 4–5 years to build this fund. This is safer than loaning now.
During this time, you continue renting and investing.

Step 2: Increase Emergency Fund
Keep 6 months' expenses as buffer

For your case, build Rs. 3–4 lakh in liquid fund or bank RD

This helps handle job loss or medical emergency

Don't proceed with big EMIs before this buffer is ready.

Step 3: Review Home Plan After 4–5 Years
By then:

Your income will likely rise

Your SIPs will grow wealth

You may have Rs. 20 lakh ready for down

You can afford smaller loan

EMI will fit within your budget

This gives more peace of mind. You don’t compromise kids’ future or your own retirement.

Retirement and Children’s Future Goals
Please remember:

Kids’ education costs grow very fast

Your retirement needs are also big and long-term

If you buy a house now, you will cut your SIPs

This weakens retirement and children’s goals

You are still young. You have time to grow wealth through SIPs. Don’t rush to buy a house by sacrificing your financial future.

Stay invested. Grow your SIP. After 5 years, evaluate again with your Certified Financial Planner.

Tax View on Mutual Fund Redemptions
If you sell mutual funds now:

Equity fund gains above Rs. 1.25 lakh are taxed at 12.5% (LTCG)

Gains below 1 year are taxed at 20% (STCG)

Debt fund gains taxed as per income slab

Selling mutual funds means paying these taxes. You also lose future growth.
It is not the right time to exit.

What You Should Do Now – 360° Plan
Here is a full plan based on your goals and current stage.

Stay in rented house for next 4–5 years

Don’t use current mutual funds for house buying

Start new SIP for house goal: Rs. 20,000 monthly

Keep current SIPs for wealth creation

Build emergency fund up to Rs. 4 lakh

Review LIC plans with a Certified Financial Planner

Surrender low-return plans, if suitable, and invest better

Upgrade term and health insurance for full coverage

Review your cash flow yearly with your Certified Financial Planner

This plan balances your dreams with your responsibilities. You protect your future. You keep kids’ goals safe. You buy a house when truly ready.

Finally
Right now, avoid buying house with loan

Continue your current rent and SIPs

Start a fresh SIP for house fund

Build a buffer before big EMI decisions

Keep investing for children’s and your future

Don’t redeem mutual funds now

Revisit house goal after 4–5 years

Take support from a Certified Financial Planner regularly

You are already doing many things right. Keep this discipline. Stay patient. Your house dream will become real at the right time—without risk to your goals.

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

Ans: Your Financial Profile

Age: 55 years, unmarried, private sector job.

Dependent: 85-year-old mother.

Investments:

SIP: ?35,000/month (9 mutual funds ?3k–5k each, plus ?10k in UTI Nifty 50 Index).

LIC Jeevan Saral policies: ?11,000/month since 2016.

LIC Health Plus: ?1,000/month since 2008.

EPF: ?42,000.

Bank FD: ?11 lakh.

Own house: Mumbai suburban.

Company insurance: ?2 lakh cover.

Plan: Buy native house worth ?48 lakh, partly through loan.

Observations & Guidance

House Purchase & Retirement:

At 55, adding a new home loan will strain your cash flows before retirement.

A better approach: At age 60, when you retire, if you decide to settle in your native, you can sell the Mumbai house. The sale proceeds, after paying capital gains tax, can be used to purchase the native house debt-free, and the balance surplus can go into your retirement savings.

This way, you avoid a loan today, reduce stress, and improve liquidity.

Insurance & Protection:

Current company insurance of ?2 lakh is inadequate. Please buy an individual health insurance policy and critical illness cover as soon as possible. After retirement, new covers will be either unaffordable or unavailable.

Mutual Funds:

?35k/month spread across 9 funds is too fragmented. Consolidate into 3–4 strong funds (Large-cap index, Flexi-cap, Mid-cap, Hybrid).

Continue ?10k in UTI Nifty 50 Index Fund for stability.

LIC Policies:

Jeevan Saral and Health Plus policies usually give low returns (5–6%). Review whether to continue or redirect future savings into equity/debt mutual funds for higher efficiency.

Retirement Corpus Strategy:

At 55, focus on growing a secure retirement corpus rather than illiquid real estate.

Suggested allocation:

60% Equity MFs (index + flexi + midcap).

30% Debt/Fixed income (FDs, EPF, PPF, Debt MFs).

10% Liquidity buffer (liquid funds or savings).

Conclusion:

Buying another house now with a loan may not be ideal. Instead, plan to sell Mumbai property at retirement and buy in native if that’s your choice.

Strengthen health & critical insurance immediately.

Consolidate mutual funds and review LIC policies.

Focus on building a retirement corpus with proper asset allocation.

A QPFP (Qualified Personal Finance Professional) can help review annually and align your plan to expenses and goals.

Best regards,
Naveenn Kummar, BE, MBA, QPFP
Chief Financial Planner | AMFI Registered MFD
???? www.alenova.in
https://www.instagram.com/alenova_wealth