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Naveenn Kummar |265 Answers |Ask -Follow

Financial Planner, MF, Insurance Expert - Answered on Sep 08, 2025

Naveenn Kummar has over 16 years of experience in banking and financial services.
He is an Association of Mutual Funds in India (AMFI)-registered mutual fund distributor, an Insurance Regulatory and Development Authority of India (IRDAI)-licensed insurance advisor and a qualified personal finance professional (QPFP) certified by Network FP.
An engineering graduate with an MBA in management, he leads Alenova Financial Services under Vadula Consultancy Services, offering solutions in mutual funds, insurance, retirement planning and wealth management.... more

Question by Anonymous on Aug 02, 2025

I have around 45 lakhs in bank and 20 lakhs in another bank no rental income earn 1,10,000 per month have a life insurance one fixed deposit one sukanya policy one house where we live how should I further save for my retirement I am 47. I have pf but I don't know the amount. No husband 2 daughter 1 in 4th yr trying for job , one in 4th class. Husband's PF and EDLI has not been taken out. School fee 45,000 for daughter no pension plan as yet house bills + groceries cover 30,000 approx. How should I start saving

Ans: Dear Madam,

Thank you for sharing your details so openly. You are 47, raising two daughters, and already holding savings in banks, FD, Sukanya, and PF. That shows your discipline and foresight. What you now need is to put these resources into a structured plan that secures both your retirement and your daughters’ future.

???? Your Current Position

Income: ?1,10,000/month

Expenses: ~?75,000 (?45,000 school + ?30,000 household)

Bank savings: ~?65 L across two banks

Assets: FD, Sukanya, PF (yours + husband’s not yet claimed), house (self-occupied)

Insurance: One life insurance policy (coverage unclear)

Dependents: Two daughters (elder in final year, younger in school)

???? What Needs Attention

Retirement fund missing – only PF and bank deposits so far.

Idle bank balance – too much sitting at low returns.

Insurance cover – current life policy may not be sufficient.

Children’s education – younger daughter’s future costs need to be ring-fenced.

Husband’s PF/EDLI – must be claimed.

? Recommended Actions

1. Protection comes first

Take a pure Term Insurance Plan (?50–75 L cover till age 60). This is low-cost and ensures your daughters’ financial safety.

Take a Family Floater Health Insurance policy (?10–15 L cover for you + both daughters). This protects against medical expenses.

2. Emergency Cushion

Keep ?8–10 L in FD/sweep account for emergencies.

3. Retirement Planning

Start investing ?40,000–?50,000 per month in a mix of equity and hybrid mutual funds.

Open an NPS account and contribute ?50,000–?1,00,000 per year — this will support retirement and give you tax benefits.

4. Children’s Future

Continue Sukanya Samriddhi for younger daughter.

From your bank balance, earmark at least ?15 L into safer funds/debt allocation for her higher education.

Elder daughter’s job will reduce some burden soon.

5. Husband’s PF/EDLI

Please initiate claim process immediately. Park this amount into long-term retirement or children’s education funds.

???? Summary

Madam, you are already disciplined and debt-free, which is a big strength. By taking term insurance and family health cover, and by shifting idle savings into retirement and education funds, you will create both security and growth. With these steps, your retirement and your daughters’ future can be well protected.

Best regards,
Naveenn Kummar, BE, MBA, QPFP
Chief Financial Planner | AMFI Registered MFD
www.alenova.in

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