Hello Sir, I'm 39,a Govt Employee drawing 52k take home after CPF of 10k as my monthly Salary, I want to accumulate 1Cr by the age of 50, and I have following expenses and investment-
1- Rs 5300 LIC 'Jeevan Anand' started on 2015 for 33 years and sum assured value is 200000. Don't know how much ill get after 33 years some online platform says maturity amount 86L. What to do with this LIC someone suggest to surrender and invest elsewhere..
2- SIP 2k UTI Nifty 50, 1k sbi contra, 1k sbi small cap and 2k sbi psu. Total accumulation around 50K till date
3- 6.5L loan, Monthly premium 14k, still 6L left for repayment.
4- CPF- 10k monthly
5- PPF bal till dat RS 6L
6- SSA of my girl child is 3k monthly
7- My monthly expenses 20k
9- no health insurance. However, I have a facility of reimburse if hospitalized but in CGHS rate.
10- no term plan as Im in a believe that LIC may help.
11- Emergency fund bal 1L
PLEASE SUGGEST ME TO MANAGE MY FINANCE.
Ans: You are 39, a government employee, and take home Rs. 52,000 monthly.
You have financial discipline, which is a big strength.
You wish to build Rs. 1 crore by age 50.
That gives you 11 years.
This goal is achievable with a structured plan.
Let’s evaluate your current position first.
Then we will build a 360-degree financial strategy.
Your Current Cash Flow and Expenses
Monthly take-home: Rs. 52,000
Loan EMI: Rs. 14,000
LIC premium: Rs. 5,300
SIPs: Rs. 6,000
SSA: Rs. 3,000
Expenses: Rs. 20,000
Total outgoing = Rs. 48,300
Surplus left = Around Rs. 3,700
Your monthly flow is tight.
Surplus is very low.
Still, your savings habit is good.
But we need to reduce pressure on cash flow.
And make your money work better.
LIC Jeevan Anand Policy – The Hidden Problem
This is your biggest cash-flow drain now.
You pay Rs. 5,300 monthly (Rs. 63,600 yearly).
Policy term is 33 years. Sum assured is Rs. 2 lakh.
You mentioned some platform shows maturity value as Rs. 86 lakh.
That is not realistic. These are misleading assumptions.
Let’s understand the issue:
Actual guaranteed benefit is very low
Most return comes from non-guaranteed bonuses
These bonuses are not fixed or promised
Real return is often just 4% to 5%
Very poor return over 33 years
Life cover is only Rs. 2 lakh – too low
Not enough for your family protection
Action Plan:
Surrender this policy now
Take paid-up value if surrender is costly
Reinvest this Rs. 5,300 into better SIPs
This shift will build higher wealth
You will also free up cash flow for other needs
SIP Portfolio Review – Unbalanced Allocation
You invest Rs. 6,000 monthly as SIP.
Break-up is:
Rs. 2,000 in index fund
Rs. 1,000 in contra fund
Rs. 1,000 in small cap
Rs. 2,000 in PSU fund
Problems in current portfolio:
Overlap in themes
Too much passive index exposure
Small-cap and PSU sectors are high-risk
No diversification into balanced or flexi-cap
No large-cap active exposure
Index funds have big drawbacks:
No human judgement
Just copy market blindly
Keep bad stocks also
No chance to outperform
Only average return
Solution:
Stop index fund SIP
Shift to active large-cap or flexi-cap
Retain contra fund as it is a diversified style
Keep small-cap only if you can stay invested for 10+ years
Avoid sector-based PSU fund – very cyclical and risky
Choose funds through CFP and MFD only
Do not invest in direct plans – they give no guidance
Use regular plans for expert handholding
Loan EMI – Too High for Your Salary
You pay Rs. 14,000 EMI monthly.
Loan balance is Rs. 6 lakh.
That eats 27% of your income.
It is putting pressure on savings.
Suggestions:
Try to prepay small amounts yearly
Use any bonus, arrears, or gifts
Clear loan within 3–4 years
After loan closure, shift EMI to SIP
Reducing EMI will increase monthly surplus.
That surplus can fund your Rs. 1 crore goal.
CPF and PPF – Safe Long-Term Instruments
You contribute Rs. 10,000 to CPF.
PPF balance is Rs. 6 lakh.
These are good for long-term savings.
PPF is tax-free and secure.
CPF also builds retirement corpus.
But returns are moderate.
So, these alone can’t meet your Rs. 1 crore goal.
You need equity SIPs for growth.
Action Plan:
Continue PPF every year
Contribute at least Rs. 1 lakh yearly
Continue CPF as per government norms
Sukanya Samriddhi Account – Keep Going
You invest Rs. 3,000 monthly in SSA.
This is a good long-term choice.
Your daughter’s future is protected.
Keep in mind:
Use only for daughter’s education or marriage
This is not for your retirement or wealth-building
SSA gives fixed interest
Use SIPs for your own goals
No Health Insurance – Very Risky
You don’t have personal health insurance.
You depend on CGHS rate reimbursements.
This is dangerous.
CGHS hospitals may not be enough in serious cases.
One medical emergency can:
Drain your savings
Break your SIPs
Increase debt
Delay your goals
Action Plan:
Buy personal health cover of Rs. 5–10 lakh
Add top-up plan for higher coverage
Premium is low if taken early
Buy individual or floater policy
Claim CGHS first, then use policy if required
No Term Insurance – Big Mistake
You don’t have term insurance.
You believe LIC will help.
But your LIC policy only gives Rs. 2 lakh.
That is too low.
If anything happens, your family will struggle.
Term insurance is pure life cover.
It gives large sum assured at very low cost.
Action Plan:
Take term insurance for Rs. 50–75 lakh
Premium will be very affordable
Take policy till age 60 or 65
This gives your family protection
Do not delay this step.
It is as important as health cover.
Emergency Fund – Needs Boosting
You have Rs. 1 lakh emergency fund now.
Your monthly expense is Rs. 20,000
So, you have 5 months’ buffer.
That is good start.
Next Steps:
Build this to Rs. 1.5–2 lakh over next year
Keep in sweep-in FD or liquid account
Never use it for regular expenses
Use only for job loss, medical, urgent repairs
Goal: Rs. 1 Crore in 11 Years
You want Rs. 1 crore by age 50.
You are 39 now.
Only 11 years left.
To reach this, you need:
Higher monthly SIP
Disciplined savings
Better fund selection
Avoiding LIC-type products
Ending loan quickly
Having term and health cover
Step-by-step path:
Surrender LIC policy
Stop index and PSU funds
Choose balanced portfolio with help of CFP
Increase SIP from Rs. 6,000 to Rs. 12,000 gradually
Close loan early
Buy term insurance and health insurance now
Continue PPF and SSA regularly
Link each SIP to goal
Review fund performance every year
Rebalance if any SIP underperforms
Track progress of Rs. 1 crore goal every year
You will need guidance to build this plan.
So always invest in regular mutual funds through an MFD
who has CFP qualification.
They will guide portfolio review, risk level, tax planning, and more.
Avoid direct funds. They do not support long-term goals properly.
Finally
You are sincere and focused.
That itself is a big strength.
You are 39. Still have enough time.
But decisions must be smart and timely.
LIC is not the way to create wealth.
SIPs with proper fund selection will help.
Avoid index and direct plans.
Stay with active and guided mutual funds.
Don’t ignore health and term cover.
One medical crisis can ruin your goal.
Build your Rs. 1 crore target step by step.
Start with what is in your control.
Keep cash flow under control.
Keep expenses low.
Increase savings each year.
And track your goal with a clear path.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Question by Ranajeet on May 14, 2023Hindi
