How to create a 5-7 Lacs p.m. income for wife on 10-15 Lacs business income and 4 Crore house?

Ans: You and your wife are in a very stable financial position. Your combined home salary is Rs 6.5 lakh per month, which is a strong base. Additionally, you have significant real estate assets worth Rs 6 crores, alongside other investments such as provident funds, mutual funds, shares, and gold. Having no loans or EMIs gives you financial flexibility, and your monthly expenses of Rs 1.5 lakh allow for substantial monthly investments.

You already have:

Real estate worth Rs 6 crore (two flats and two plots)
Rental income of Rs 20,000 per month
Provident fund (PF) – Rs 1 crore
Public Provident Fund (PPF) – Rs 20 lakh
National Pension System (NPS) – Rs 20 lakh
Sukanya Samriddhi Yojana (SSY) – Rs 10 lakh
Mutual funds – Rs 50 lakh
Bank fixed deposits (FDs) – Rs 50 lakh
Shares, options, and RSUs – Rs 60 lakh
Gold – Rs 1.5 crore
Ancestral inheritance – Approximately Rs 8 crore
Monthly SIPs in mutual funds – Rs 1.5 lakh
Bank recurring deposits (RDs) – Rs 1.2 lakh
Provident fund (PF) – Rs 1 lakh
Public Provident Fund (PPF) – Rs 25,000
National Pension System (NPS) – Rs 25,000
Sukanya Samriddhi Yojana (SSY) – Rs 12,500
Financial Independence and Investment Strategy
Evaluate Asset Allocation
Your current investment portfolio is quite diversified. However, it’s heavily skewed toward real estate and gold. While these are valuable, both asset classes are typically illiquid, and they don’t provide regular income or substantial growth over time.

Real estate can be difficult to liquidate in emergencies or during downturns, and gold doesn’t generate regular income either.

Recommendations:
Increase Allocation to Financial Assets: You should focus on shifting a part of your real estate and gold assets into more liquid, growth-oriented financial assets such as mutual funds and stocks. This will provide better returns over the long term and more flexibility.

Diversify Further into Equity Mutual Funds: Consider increasing your SIPs in mutual funds. Equity-based mutual funds, especially actively managed ones, can offer higher returns compared to fixed deposits or RDs over the long term.

Reduce Dependence on Fixed Income Instruments: You have significant investments in fixed deposits and recurring deposits. These offer safety but at lower returns. Reducing your exposure to fixed-income instruments and increasing exposure to equity will balance growth and safety. The PPF, SSY, and NPS already provide sufficient debt exposure.

Liquidity Management
Increase Emergency Fund: While your savings and investments are robust, ensure you have an emergency fund equivalent to 6-12 months of expenses in a liquid, easily accessible account, such as a savings account or a liquid mutual fund. This ensures liquidity for unforeseen expenses.
Long-term Wealth Creation
Actively Managed Mutual Funds
Consider Regular Fund Investments via a Certified Financial Planner: Regular funds, guided by a certified financial planner, give you the benefit of professional management and fund recommendations. While direct funds may offer lower expense ratios, regular funds offer insights and advice that often lead to better long-term gains.

Avoid Index Funds and ETFs: While they offer low-cost exposure to the market, index funds and ETFs generally lack the dynamic approach that actively managed funds provide. In the uncertain corporate environment you mentioned, actively managed funds can adjust to market conditions better, potentially safeguarding your capital.

Tax Efficiency
Maximize Tax-advantaged Investments
Utilize Tax-efficient Investment Strategies: Continue contributing to tax-saving schemes such as PPF, NPS, and Sukanya Samriddhi Yojana. Additionally, tax-efficient equity funds (such as ELSS) can help you save on taxes while offering better long-term returns than debt instruments.

Review Gold Holdings: Consider selling a portion of your gold investments and reallocating them into financial assets. Gold doesn’t generate any income, and capital gains are taxed when sold. By reallocating to mutual funds or equities, you can create a more tax-efficient growth strategy.

Planning for Your Daughter’s Future
You are already investing in the Sukanya Samriddhi Yojana, which is a good step. However, you may want to consider adding child-specific mutual fund plans to ensure her education and marriage expenses are met without any shortfall.

Increase SIPs with a Goal-based Strategy: You can allocate additional SIPs in mutual funds with the goal of your daughter’s education and marriage. This will allow you to benefit from compounding returns, and you can adjust the risk level based on the time horizon.
International Vacations and Lifestyle
You have mentioned that you take international vacations regularly. Given that lifestyle is important to you, it’s crucial to balance financial independence with your desire for experiences.

Create a Separate Travel Fund: Set aside a small percentage of your monthly savings specifically for vacations. This ensures that your other financial goals, such as retirement, are not affected by discretionary spending on travel.
Retirement and Financial Independence
Retirement Planning
Given the uncertainty in the corporate sector, planning for early retirement and financial independence is wise. Your current investments, combined with the significant inheritance you expect, should provide you with a strong base for retirement.

Set a Retirement Corpus Goal: With your high monthly savings and disciplined investment strategy, aim for a retirement corpus that can sustain your lifestyle, cover medical expenses, and leave a legacy. Considering your current expenses of Rs 1.5 lakh per month, factor in inflation and aim for a corpus that generates enough passive income.

Diversify NPS Contributions: While NPS is an excellent long-term retirement instrument, ensure you select a high equity allocation for better growth. Given your current age, you can afford to take some risks for better long-term returns.

Ancestral Wealth and Estate Planning
Legacy and Inheritance Planning
With a large inheritance expected (Rs 8 crore), estate planning becomes crucial. It’s important to decide how you want to pass on your wealth to the next generation.

Draft a Will: Ensure that both you and your wife have clear wills in place to avoid any legal complications for your daughter. Also, consider consulting an estate planner to efficiently distribute your inheritance in a tax-efficient manner.

Create a Family Trust: Given the size of your estate, you may want to explore setting up a family trust. This will protect your assets and ensure a smooth transfer of wealth to your daughter.

Final Insights
Your current financial standing is solid, and your disciplined investment approach will help you reach financial independence soon. However, to improve liquidity and enhance growth, consider the following:

Increase your allocation to equity mutual funds and actively managed funds.

Reduce reliance on real estate and fixed deposits, which may limit growth potential and liquidity.

Continue focusing on tax-efficient investment strategies to maximize post-tax returns.

Plan for your daughter’s future education and marriage expenses through goal-based mutual fund investments.

Ensure your estate is well-planned through wills and a potential family trust.

By making these adjustments, you can balance financial security, long-term growth, and your lifestyle needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: You and your wife have built a strong financial foundation. Your combined monthly salaries of Rs. 6.7 lakh, along with substantial real estate holdings and financial assets, reflect good financial discipline. It’s commendable that you have no loans or EMIs and that you are investing systematically in mutual funds, PPF, NPS, Sukanya Samriddhi, and other instruments.

Your monthly expenses are around Rs. 1.7 lakh, which is manageable given your income. Additionally, you have set up term and health insurance, which protects your family in unforeseen circumstances.

Real Estate Portfolio
Your real estate portfolio of Rs. 5-6 crores is valuable, with one property generating Rs. 20,000 per month in rental income. However, real estate is not as liquid as other investments, and the returns can be inconsistent due to market fluctuations. Diversifying away from real estate into more liquid and scalable assets like mutual funds can enhance your portfolio’s flexibility and growth.

Financial Assets Review
You have accumulated an impressive range of financial assets:

Provident Fund: Rs. 1 crore is a solid, long-term foundation for your retirement.
Public Provident Fund (PPF): Rs. 20 lakh is a reliable and tax-efficient investment.
National Pension Scheme (NPS): With Rs. 20 lakh in NPS and a Rs. 30,000 monthly contribution, this will provide additional retirement security.
Sukanya Samriddhi Yojana (SSY): Rs. 10 lakh saved for your daughter’s future education or marriage is a prudent move.
Mutual Funds: Rs. 50 lakh indicates a good approach to market-based investments.
Bank Balance and Fixed Deposits (FDs): Rs. 50 lakh gives you liquidity but earns low returns. Consider reducing exposure here.
Shares, Options, RSUs: Rs. 65 lakh (approx.) in stocks and RSUs is impressive and provides equity exposure.
Gold: With Rs. 1.5 crore in gold, you have a significant portion in this asset class. While gold is a good hedge, it doesn’t generate regular income.
Unlisted Shares: Rs. 6 lakh in unlisted shares adds some diversity but carries high risk.
Crypto: Rs. 7 lakh in cryptocurrencies is highly speculative. You should carefully monitor this segment.
Income and Investment Streams
You have a total of Rs. 1.5 lakh in mutual fund SIPs, Rs. 1.2 lakh in recurring deposits, Rs. 1 lakh in PF, Rs. 25,000 in PPF, Rs. 30,000 in NPS, and Rs. 12,500 in Sukanya Samriddhi. This indicates you are systematically investing Rs. 4.07 lakh per month. Your strategy of spreading investments across different asset classes is good, but there’s room for optimization.

Insurance
Your term insurance of Rs. 1 crore is sufficient to provide financial security for your family. You also have adequate health insurance, which is critical given the rising costs of healthcare. Since you are covered with corporate insurance as well, you are in a strong position.

Monthly Expenses and Lifestyle
Your monthly expenses of Rs. 1.7 lakh include international vacations, reflecting a comfortable lifestyle. Given your substantial income, this is well within your budget. However, given the uncertainty in the corporate sector, you should focus on increasing your investment surplus and potentially adjusting your lifestyle slightly to allocate more toward long-term financial independence.

Ancestral Inheritance
You are expecting an inheritance of Rs. 8 crore, which adds further to your financial strength. While inheritance can offer significant financial security, it is important not to rely solely on this for your long-term financial planning. Planning for financial independence with the assumption that this inheritance may be delayed or used differently is wise.

Goals for Financial Independence
Given the uncertainty in the corporate sector, achieving financial independence as early as possible is a wise goal. Here are some key strategies to focus on:

Build a Corpus for Early Retirement: Financial independence means having enough passive income to cover your expenses without relying on your active income from employment. To achieve this, you should aim to build a corpus that generates sufficient returns to cover your expenses.

Review Investment Allocation: While your current investments are diversified, there is room for improvement. Mutual funds should be a bigger part of your investment strategy due to their higher potential for growth and liquidity compared to real estate and FDs. You can consider increasing your SIPs or even adding more funds to increase equity exposure.

Enhance SIP Contributions: You are currently contributing Rs. 1.5 lakh to SIPs. To fast-track your goal of financial independence, consider increasing your SIP contributions by Rs. 50,000 to Rs. 1 lakh more per month. Since you already have a comfortable income surplus, this should be feasible.

Bank Recurring Deposits (RDs): Rs. 1.2 lakh per month in RDs is a significant amount. While RDs are low risk, the returns are also limited. You may consider redirecting some of this towards higher-return options like mutual funds.

Avoid Over-Reliance on Gold: With Rs. 1.5 crore in gold, your portfolio may be too heavily tilted toward this asset. Gold does not generate regular income or dividends, and its growth potential is limited. Consider gradually reducing your gold exposure and moving funds into more productive assets like equities.

Unlisted Shares and Crypto: Rs. 7 lakh in crypto and Rs. 6 lakh in unlisted shares carry high risk. Monitor these investments carefully, and avoid increasing exposure unless you fully understand the risks. While diversification is good, high-risk assets should not form a large part of your portfolio.

Reassess LIC Policies: If your LIC policies are purely for investment purposes, they may not be the most efficient vehicles for wealth creation. You could consider surrendering these and redirecting the funds into higher-return mutual funds, where returns are generally better over the long term.

Planning for Your Daughter’s Future
You’ve already made good progress with Rs. 10 lakh in Sukanya Samriddhi. Continue contributing to this for her education and marriage. Additionally, consider earmarking a portion of your mutual fund investments specifically for her education, given the rising costs of higher education.

Early Retirement Consideration
You are in a strong financial position to aim for early retirement. Here are some recommendations to strengthen this possibility:

Calculate Required Corpus: Based on your current lifestyle and expected future expenses, estimate the corpus you need to retire comfortably. Given your monthly expenses of Rs. 1.7 lakh, your retirement corpus should be large enough to generate sufficient passive income.

Focus on Increasing Equity Exposure: Equities are a growth-oriented asset class, and with your long-term horizon, increasing your exposure to equity mutual funds can provide the growth needed to achieve financial independence sooner. This is especially important if you wish to retire early.

Increase Contributions to NPS: NPS is a great retirement-oriented product that provides both tax benefits and long-term growth potential. You can consider increasing your contributions to NPS to create a larger retirement corpus.

Final Insights
You and your wife have laid the foundation for a financially secure future with a diversified portfolio and strong income. However, to achieve financial independence and protect against corporate sector uncertainty, you should focus on optimizing your investments.

By increasing SIP contributions, reducing exposure to low-return instruments, and focusing on high-growth assets, you can fast-track your financial independence. Additionally, ensure that your investment strategy accounts for your daughter's future, early retirement goals, and potential lifestyle changes.

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

Ans: It’s commendable to see your financial success and structured investment approach, especially as both of you work in the demanding software industry. Your significant asset base, debt-free status, and disciplined investment strategy set a solid foundation for early retirement. Given the uncertainties in the IT sector, it’s crucial to structure your investments thoughtfully, focusing on capital growth, liquidity, and passive income to support a comfortable life for years to come.

Let's dive into a 360-degree solution to help you retire early with a sustained, smart investment approach that complements your current lifestyle and aspirations.

1. Income and Investment Strategy for Wealth Growth
Current Income & Cash Flow: Your combined monthly take-home of Rs 6.5 Lakh is robust. It supports your lifestyle expenses and allows significant savings towards your investment goals.

Monthly Investments: Your current monthly investment outlay of Rs 4.75 Lakh (including Mutual Funds, Bank RDs, PF, PPF, NPS, and Sukanya Samrithi Yojana) reflects strong financial discipline. This diversified investment approach is ideal for creating a balanced portfolio.

Next Steps: Given your goal of early retirement, consider redirecting your Bank Recurring Deposits (RDs) towards higher-yielding assets like mutual funds. RDs provide fixed returns but are limited in their potential to outpace inflation, making them less ideal for wealth accumulation over the long term.

2. Real Estate Holdings and Passive Income
Existing Real Estate Assets: You hold significant real estate assets, including two flats and two villa plots. With one flat rented out, you’re generating a monthly rental income of Rs 20,000.

Strategy for Real Estate: While real estate offers a stable asset base, it tends to lack liquidity. This can be a disadvantage if you need access to funds during economic downturns or other emergencies. Instead of increasing real estate investments, consider focusing on instruments that offer higher liquidity and predictable returns. Retain your current properties, but avoid new real estate purchases to maintain a well-rounded, diversified portfolio.

3. Mutual Funds for Long-Term Growth and Capital Appreciation
Current Mutual Fund Portfolio: With Rs 50 Lakh invested in mutual funds and a healthy Rs 2 Lakh monthly SIP, your mutual fund strategy provides a strong foundation for growth. Since mutual funds offer higher returns than traditional deposits and are tax-efficient, they suit your long-term goals well.

Active vs. Index Funds: Active funds are highly recommended over index funds, especially for long-term investors like yourself. Active funds are managed by expert fund managers who actively select stocks to achieve higher returns. Regular review and professional fund management make actively managed funds adaptable to changing market dynamics, offering a better return profile.

Actionable Plan: Consider diversifying within mutual funds across large-cap, mid-cap, and multi-cap categories. Large-cap funds offer stability, mid-cap funds add growth potential, and multi-cap funds provide a balanced approach. Review fund performance yearly with a Certified Financial Planner (CFP) to adjust allocations as needed. A balanced, actively managed mutual fund portfolio can be a key driver toward your financial goals.

4. Substitute Equity Exposure with Equity Mutual Funds
Transition from Direct Equity to Equity Mutual Funds: Given the volatile nature of direct stock investments, you may want to focus on equity mutual funds instead. These funds offer professional management, diversified portfolios, and ease of monitoring. Managed by experts, they balance the risks of individual stock investments, especially relevant in fluctuating markets like IT.

Alternative to RSUs and Options: For your RSUs and other stock options, you could consider transferring the proceeds gradually into diversified mutual funds when possible. This approach allows you to benefit from market exposure while reducing the risks tied to specific stocks or sectors.

Recommended Strategy: Shift from direct stocks to equity-oriented mutual funds, especially through large and flexi-cap funds. These funds offer market-linked growth without requiring you to manage individual stocks actively. This transition can improve your portfolio's resilience, particularly in times of market downturn.

5. Retirement-Oriented Investments: PF, NPS, and PPF
Provident Fund (PF) and NPS: Your Rs 1.1 Crore in PF and Rs 20 Lakh in NPS contribute significantly to your retirement stability. With monthly contributions of Rs 1 Lakh (PF) and Rs 60,000 (NPS), these funds will provide a reliable income base post-retirement.

Investment Strategy for NPS: As you approach retirement, shift a larger portion of your NPS allocation toward debt-based options to reduce market exposure. This ensures capital preservation and steady income.

PPF & Sukanya Samrithi Yojana: With approximately Rs 30.5 Lakh invested in these schemes, you benefit from tax-free returns and stable growth. Continue with your PPF and Sukanya contributions as they provide security and are especially suitable for goals like your daughter’s education.

6. Debt Instruments and Bonds for Stability
Current Debt Portfolio: With Rs 25 Lakh in bonds and structured products, you have a stable, lower-risk segment in your portfolio. Bonds offer security, especially valuable during market downturns.

Recommended Approach: Continue holding these bonds but limit further investments in low-yield bonds. Diversified bond mutual funds may provide similar stability with better tax efficiency. Bonds offer the advantage of capital preservation, so they are well-suited for lower-risk, short-term goals.

7. Gold as a Wealth Preservation Tool
Current Holding: With Rs 1.5 Crore in physical and digital gold, you have a substantial allocation in this asset class.

Recommendation: Avoid increasing gold holdings further. While gold provides a hedge against inflation, it lacks regular income or growth potential. Retain your existing holdings, but prioritize mutual funds and debt instruments for future investments to keep a balanced asset mix.

8. Insurance Policies and Legacy Planning
Review of Existing LIC Policies: Your Rs 6 Lakh in LIC policies likely combines insurance with low returns. Consider surrendering or restructuring any low-return policies and reallocating the funds into mutual funds for better growth.

Estate Planning and Inheritance: Given your approximate inheritance value of Rs 7-8 Crore, work with a CFP to set up an estate plan, which could include a trust or will. This structure will ensure your assets are transferred smoothly and in a tax-efficient manner.

9. International Vacations and Lifestyle Expenditures
Annual Travel and Lifestyle Budgeting: Your yearly international vacations are part of your lifestyle enjoyment. Budget a fixed sum for travel and luxury expenses. By having a travel fund, you can enjoy vacations without impacting long-term financial goals.

Emergency Fund: Allocate enough for an emergency fund, preferably covering 12-15 months of expenses. Liquid mutual funds or fixed deposits are ideal for this fund due to their safety and easy accessibility.

10. Taxation Strategy and Exit Plan
Capital Gains on Mutual Funds: For equity mutual funds, long-term capital gains above Rs 1.25 Lakh are taxed at 12.5%, while short-term gains are taxed at 20%. Debt funds are taxed as per your income slab. Consider holding equity investments for the long term to minimize tax impact.

Equity Mutual Fund Withdrawals: As you near retirement, withdraw gradually from equity mutual funds to manage capital gains efficiently. Your CFP can help schedule withdrawals to optimize tax outcomes and maintain income flow post-retirement.

Final Insights
Your financial strategy reflects careful planning and a strong commitment to early retirement. With a few strategic adjustments—such as emphasizing actively managed mutual funds, gradually moving away from direct equity, and restructuring low-yield assets—you can further strengthen your portfolio. Regular reviews with a CFP will help you stay aligned with your goals, market conditions, and tax considerations.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: You have created a strong base at just 40 years. You already have houses, land, mutual funds, PF, gold, and large US stockholding. This shows your discipline and smart planning. With five years to retirement, the focus now is stability, growth, and protecting future goals like your son’s education and marriage.

» Present Income and Expense Balance

Monthly income is Rs.2.7 lakh.

Expenses are Rs.85,000 monthly.

This leaves you Rs.1.85 lakh savings capacity each month.

You also have PF, mutual funds, and large US stock assets.

Home loan outstanding is Rs.26 lakh only.

Your cash flow is strong and gives scope for structured investments.

» Assessment of Existing Assets

Own house in Chennai worth Rs.1.5 crore gives stability.

Another house in hometown worth Rs.15 lakh has limited value.

Two lands worth Rs.35 lakh are idle assets.

Mutual funds Rs.1.65 crore (both names) are growing well.

PF Rs.80 lakh is a strong retirement base.

PPF Rs.10.5 lakh adds safe long-term savings.

FD of Rs.25 lakh is low growth but safe.

US stocks vested Rs.2.2 crore and unvested Rs.2 crore are very large.

Term insurance total Rs.2.2 crore gives protection.

Health insurance total Rs.12 lakh coverage may be less for future.

Gold bonds 85 grams give small diversification.

LIC policies Rs.6 lakh are inefficient for wealth.

Your net worth already crosses Rs.7 crore, which is impressive.

» Risk of Concentration in US Stocks

US stocks vested Rs.2.2 crore is one-third of your wealth.

Plus, unvested Rs.2 crore adds more exposure.

Over-dependence on one asset class increases risk.

Company stock also ties your wealth to your employer’s performance.

Any market crash or company issue can hurt net worth badly.

Hence, partial diversification away from US stocks is important.

» Mutual Funds and Future Allocation

You already hold equity and hybrid mutual funds.

Actively managed funds should be preferred over index funds.

Index funds just copy market without active guidance.

They do not control downside risk.

Active mutual funds can adjust allocation to reduce volatility.

Investing through CFP backed mutual fund distributor gives right structure.

Continue mutual funds, but balance equity with debt funds for stability.

» LIC Policy Evaluation

LIC policies worth Rs.6 lakh are not wealth creators.

Insurance-cum-investment mixes usually give low return.

Pure term insurance plus mutual funds work better.

You can consider surrendering these LIC policies.

Proceeds can be shifted to equity or hybrid mutual funds.

This will improve long-term wealth creation.

» Education Planning for Son

Your son is 11 years old.

After 6–7 years he may go abroad for studies.

Education abroad can cost Rs.1–2 crore or more.

You already have US stocks and mutual funds to support this.

Create a separate education corpus.

Allocate part from vested US stocks and equity mutual funds.

Keep the money in mix of equity and debt to match timeline.

This ensures education goal is not disturbed by retirement withdrawals.

» Marriage Planning for Son

Son’s marriage is around 15 years away.

This gives long horizon for investments.

For such goals, equity allocation is most suitable.

You can earmark part of mutual funds and US stocks for this.

Long-term compounding in equity will cover rising marriage costs.

This gives clarity between retirement fund and family goals.

» Retirement Goal in 5 Years

You wish to retire by 45.

Expenses are Rs.85,000 monthly now.

With inflation, expenses will double in next 10–12 years.

Retirement will last 40+ years possibly.

Large corpus is needed for sustainability.

PF, mutual funds, and part of US stocks should become retirement fund.

Withdrawal plan from mutual funds will support monthly expenses.

So, focus on stability and tax-efficient withdrawals.

» Where to Invest Future Savings

Monthly savings of Rs.1.85 lakh is significant.

Allocate between equity mutual funds, hybrid funds, and debt funds.

Avoid locking too much in PPF or FD as liquidity is important.

Continue equity exposure for growth but balance with stability.

Invest part in wife’s name for tax efficiency.

Investing in son’s name may block liquidity till he becomes adult.

Hence, use your and your wife’s name for investments.

» Should You Sell Vested US Stocks

Yes, partial sale is advisable for diversification.

Keep some US stock for global exposure.

But reduce overall concentration risk.

Proceeds can be shifted to mutual funds in India.

Part can go to equity funds, part to debt funds.

This balances global and domestic exposure.

Sell gradually to avoid taxation spike.

» Taxation Aspects

Equity mutual fund LTCG above Rs.1.25 lakh is taxed at 12.5%.

Debt mutual fund gains are taxed as per your slab.

US stock sale is taxable in India.

Capital gains can push you to higher tax bracket.

Selling in phases helps reduce tax burden.

Plan withdrawals with CFP guidance for efficient tax saving.

» Loan Closure Decision

Home loan balance is Rs.26 lakh.

Your assets are more than sufficient to close.

Interest cost is likely higher than debt returns.

You can prepay in parts over next 2–3 years.

But do not disturb mutual funds meant for long-term goals.

Balance between early closure and liquidity safety.

» Insurance Adequacy Check

Term insurance of Rs.2.2 crore is good.

But considering wealth, you may not need more term insurance.

Health insurance Rs.12 lakh may be low for future medical costs.

You can top up health coverage for better security.

Emergency fund should also be maintained separately.

This keeps family secure against unexpected events.

» Gold Allocation

85 grams gold bonds are small portion.

Gold acts as hedge, but limit exposure.

No need to increase gold allocation further.

Focus should remain on mutual funds and equity growth.

» Role of Wife in Investments

Already Rs.45 lakh mutual funds are in her name.

Further investments in her name reduce tax liability.

Spousal diversification helps family wealth management.

Continue to allocate between you and your wife’s accounts.

Avoid investing in son’s name till he becomes adult.

» Finally

You already built strong foundation with Rs.7 crore plus net worth.

Reduce over-concentration in US stocks by gradual selling.

Diversify proceeds into mutual funds in India.

Separate funds for son’s education and marriage clearly.

Retire in 5 years with secure withdrawal plan.

Close home loan gradually without hurting growth investments.

Review insurance, especially health coverage, and keep emergency reserve.

Continue future investments mainly into equity and hybrid mutual funds.

Allocate in wife’s name also for tax efficiency.

This structured approach will secure retirement, education, and family goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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