Hi.. My age is 39. My take home salary is Rs. 100000. I have 1 lacs in SIP every month Rs. 6000. In stocks 1 lacs and. I have cinstructed home recently with 75 lacs home loan .for that 70k EMI per month.i am getting rental income 35k'Which am paying part payment monthly. I have 2 kids elder one studying 9th and younger one 5th.Recently have taken a lic policy around 60L for that premium will ne 95kPA 15 years.I have a plan to retire by 49.So next 10 year i want finacial plan for closing my Home loan,My sons education and for my retirement corpus at least 2 Cr.kinldy guide me

Ans: You are 39 years old with two school-going children, a new home with a large home loan, and a dream to retire by 49. Your income is Rs. 1 lakh per month with Rs. 35,000 rent helping your EMI. You are on the right path. But to achieve all your goals—home loan closure, children’s education, and Rs. 2 crore retirement corpus—you need a structured, practical, and committed financial plan.

Let’s assess step-by-step and give you a full 360-degree roadmap.

Monthly Cash Flow Assessment

Your salary is Rs. 1 lakh.

Home loan EMI is Rs. 70,000.

Rental income is Rs. 35,000, used partly for EMI.

Your net cash outflow towards EMI becomes Rs. 35,000.

You invest Rs. 6,000 in mutual funds.

Annual LIC premium is Rs. 95,000. Monthly average is around Rs. 7,900.

After loan and LIC, your surplus is limited.

Review of LIC Policy and Recommendation

The LIC policy gives Rs. 60 lakh cover with Rs. 95,000 premium.

Traditional plans give low returns and lock your money.

It’s better to separate insurance and investment.

A term insurance plan is cheaper and gives higher cover.

Consider surrendering the LIC policy.

Use the surrender value and future premiums for mutual funds.

Invest through a Certified Financial Planner and MFD.

Regular plans give guidance and behavior control.

Direct plans don’t give advisory or portfolio discipline.

You need structured advice, not self-navigation.

Focus on long-term wealth creation, not bundled products.

Home Loan Repayment Strategy

The home loan EMI is your biggest monthly expense.

Full pre-closure in 10 years needs aggressive planning.

Use the Rs. 35,000 rent fully for home loan part-payment.

Make part-payments once every 6 months or yearly.

Even Rs. 1 lakh extra per year reduces total interest.

Avoid stopping EMI even if rent increases.

Home loan pre-closure before age 47 should be your target.

Once home loan closes, use the rent for investments.

Children's Education Planning

Elder child is in 9th, younger in 5th.

You need funds for graduation and post-graduation.

Focus on wealth creation over the next 8–10 years.

Begin SIPs dedicated to each child’s education.

Right now you invest Rs. 6,000 in SIP.

Increase it to Rs. 10,000 per month over 1 year.

When you stop the LIC policy, shift Rs. 8,000 to SIPs.

That will make monthly SIPs around Rs. 16,000.

Invest in diversified equity mutual funds through CFP and MFD.

Avoid index funds.

Index funds only mimic markets. They lack active return generation.

Actively managed funds offer better risk-adjusted returns.

Your goal requires alpha, not just average growth.

Also create a small emergency fund for kids’ school needs.

Keep 2–3 months of education expenses in savings.

Education inflation is rising. Stay proactive.

Retirement Corpus Planning

You want Rs. 2 crore corpus by 49.

You have only 10 years left.

Present investment is Rs. 6,000 per month.

LIC premium of Rs. 95,000 can be redirected after surrender.

That makes SIPs Rs. 14,000–16,000 per month.

When EMI reduces or stops, shift EMI amount to SIPs.

After home loan closure, invest Rs. 70,000 monthly.

Continue till age 49 in equity mutual funds.

This way, you can move closer to your Rs. 2 crore goal.

Begin retirement-specific SIPs from now.

Invest in actively managed equity funds.

Track performance yearly with your CFP.

Don’t withdraw or pause SIPs due to markets.

Follow a goal-based approach with patience.

Emergency Fund and Health Planning

Create Rs. 2 lakh emergency fund in savings or liquid funds.

This should cover 3–4 months of EMI and household needs.

Keep it separate from other investments.

Get health insurance for family of 4.

Employer cover is not enough.

Get Rs. 10 lakh floater policy separately.

Medical expenses can disturb your savings plan.

Prevent financial shocks by being prepared.

Tax Efficiency and Liquidity

Plan tax-saving using PPF, mutual funds, and insurance wisely.

Avoid locking all money in illiquid or low-yielding tools.

Avoid new endowment or traditional insurance products.

Don’t invest in real estate for now.

Property involves cost, loan, and low post-tax yield.

Liquidity is more important at this stage.

Mutual funds offer better liquidity and flexibility.

Long term capital gains in equity above Rs. 1.25 lakh are taxed at 12.5%.

Short term capital gains are taxed at 20%.

Debt fund gains are taxed as per your slab.

Tax planning must match investment goals.

Your CFP can structure tax and investment together.

Annual Strategy Review

Review your financial plan yearly with a Certified Financial Planner.

Track goals and SIP performance yearly.

Adjust SIPs based on income increase.

Avoid stopping SIPs for small reasons.

Monitor loan closure progress.

Also track LIC surrender and mutual fund use.

Stick to the plan with patience.

Ten years can build huge wealth with the right approach.

Key Actions to Take Immediately

Start tracking monthly expenses to save more.

Surrender LIC policy and consult your CFP.

Build emergency fund of Rs. 2 lakh in next 6 months.

Increase SIP to Rs. 10,000 now. Target Rs. 16,000 within 1 year.

Use rent fully for part-payment of home loan.

Get term insurance for Rs. 1 crore cover.

Review insurance for children and spouse.

Start two SIPs for child education with Rs. 8,000.

Set goal-specific SIPs in equity mutual funds.

Prepare for retirement investment once loan closes.

Build good habits and avoid panic selling.

Finally

You are working hard and managing home, children, and loan well. You are already investing and earning rent. That is a good beginning.

Now shift focus to disciplined investing. Cut underperforming insurance. Use those funds in mutual funds.

Use the rental income as a smart weapon to finish loan faster. Each extra part-payment saves interest.

Your children's education and your retirement both need focused SIPs.

Start with available surplus and increase gradually. The 10-year goal is possible.

Plan. Track. Stick to your path.

Take help from a Certified Financial Planner for consistent progress.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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