Good evening.
Me and my wife ate both 42 years old.
Both are working professionals.
We have combined income around 4 to 4.5 lakhs per month.
Average total monthly expenses for family around 85k(total 5 members).
Investment-
Shares- 1.45 Cr(present value)
MF- 82 lakhs(present value)
Monthly Sip- 22 k running(small cap,multicap,flexicap)
Health insurance- 25 lakh floater woth 1 Cr super top up.
Term plan- 2 crore for each
Apartment cost - 90 lakhs(loan closed)
Own home price- around 65 lakhs
10 years old daughter i have.
Planning for future studies after 6 years- around 60 lakhs(inflation not calculated).
Would like to retire at 58 to 60 years of age.
Considering moderate lifestyles, how should I plan further?
Thanks
Ans: You and your spouse have built a strong base. Your discipline is truly helpful for long-term wealth creation. Now, let us assess everything from a 360-degree angle. We'll look at all goals, risks, and gaps step-by-step.
Income and Expenses Stability Check
Your monthly income is around Rs. 4 to 4.5 lakh.
Your total monthly spending is Rs. 85,000 only.
This gives a healthy monthly surplus of around Rs. 3.2 to 3.7 lakh.
That shows high savings potential. This is a big strength.
Your expense-to-income ratio is low. That gives long-term flexibility.
Maintain this ratio even after your child’s education expenses increase.
Emergency Fund and Liquidity Planning
You did not mention emergency fund or cash reserve separately.
Please keep at least 6 months’ expenses in a savings-linked liquid fund.
That is around Rs. 5 to 6 lakh minimum.
You may also keep 1 month expenses in bank for quick use.
Do not mix this with equity, shares, or SIPs.
This fund should not have lock-in, and must be easy to redeem.
Health and Life Insurance Coverage
You have Rs. 25 lakh floater health insurance.
Plus Rs. 1 crore super top-up. That is very good coverage.
You and spouse also have Rs. 2 crore term plans each.
That is adequate for your income level and future goals.
Review term plan once every 3 to 4 years.
No need to buy any insurance-investment products like ULIPs or endowments.
Current Investments Assessment
Rs. 1.45 crore in shares is a large direct equity holding.
Rs. 82 lakh is in mutual funds. SIP of Rs. 22,000 per month is ongoing.
Your equity portion is close to Rs. 2.25 crore.
You have clearly taken good risk and built strong growth assets.
However, direct shares bring concentration risk.
Mutual funds, especially regular ones, offer better diversification.
It is safer to slowly shift more into mutual funds over time.
Use guidance from a CFP to build a proper large, mid, small-cap balance.
SIP Evaluation and Adjustments Needed
Monthly SIP of Rs. 22,000 seems low for your savings potential.
With a surplus of Rs. 3 lakh+ per month, SIP can be increased.
Ideal monthly SIP should be Rs. 1.25 to 1.5 lakh or more.
Diversify across multi-cap, flexi-cap, and sectoral opportunities.
Focus more on regular mutual funds through a Certified Financial Planner.
Avoid direct funds as they lack proper goal tracking.
Direct funds also offer no ongoing rebalancing or reviews.
Child’s Education Planning (after 6 years)
Target education cost is Rs. 60 lakh after 6 years.
This is a short-term goal with inflation sensitivity.
A pure equity portfolio may carry high risk here.
Allocate funds to hybrid mutual funds and debt-oriented categories.
Use STP from equity to safer funds 3 years before goal year.
Your daughter’s goal must be planned with zero compromise approach.
Do not wait till last 1 year to move funds to low-risk options.
Retirement Planning – Age 58 to 60
Retirement is about 16 to 18 years away.
You already have Rs. 2.25 crore in financial assets.
Plus, monthly surplus allows compounding with increased SIPs.
Retirement corpus should ideally reach Rs. 6 to 7 crore by age 58.
Based on moderate lifestyle, this should be enough for 85+ age.
Keep a part of retirement funds in stable hybrid mutual funds.
Avoid real estate as a post-retirement asset unless self-used.
Property is hard to sell and not liquid during emergencies.
Mutual Fund Taxation Awareness
All mutual fund sales after 1 year are taxed at 12.5% if gains cross Rs. 1.25 lakh.
Short-term mutual fund gains (under 1 year) are taxed at 20%.
Debt mutual funds are taxed as per your income slab.
So, plan redemptions wisely using long-term horizon.
Do not redeem large amounts in one go unless for a goal.
Use systematic withdrawal post-retirement to control tax.
Real Estate in Your Portfolio
You have an apartment worth Rs. 90 lakh (loan closed).
Plus own home worth Rs. 65 lakh.
Keep only one for personal living. Other is illiquid.
Try not to depend on property for retirement corpus.
Real estate lacks regular income and takes time to sell.
Rental returns are also low compared to mutual funds.
Estate Planning and Will Writing
You are parents of one child. Future must be protected.
Please write a registered Will for all major assets.
Include mutual funds, shares, properties, term plans, and bank accounts.
Also update nominees in each investment.
Will is not just for old age. It protects your child’s future.
Ideal Asset Allocation Strategy
Reduce direct share holding to under 50% over 5 years.
Increase mutual fund portion gradually through lumpsum + SIPs.
Add hybrid mutual funds for safety in medium-term goals.
Equity mutual funds for long-term goals like retirement.
Keep 10-15% in short-term debt funds for emergencies.
Do annual rebalancing with help from Certified Financial Planner.
What You Can Do from Today
Increase SIP amount to minimum Rs. 1 lakh per month.
Set separate SIPs for daughter’s education and retirement.
Stop fresh direct share investments unless backed by analysis.
Use lumpsum investments into mutual funds when markets correct.
Shift to regular funds via Certified Financial Planner for reviews and guidance.
Set up automatic asset review once every 6 months.
Create a digital record of all your investments with passwords.
Review health cover and term plan once in 3 years.
Plan to become debt-free for life, which you already are.
Review of Risk Factors
Direct equity concentration is a risk if unmanaged.
Underinvestment in mutual funds may lower growth.
Daughter’s education is a near-term goal, needs safe path.
Real estate is non-liquid. Cannot be used for emergencies.
Retirement needs inflation-adjusted planning till age 85+.
Your lifestyle may change after retirement, so plan for flexibility.
Family Support Planning
You have 5 family members. Elder care needs may come up.
Keep a separate emergency fund for medical needs of parents.
Review health insurance annually. Upgrade if hospitalization trends increase.
Talk to spouse and involve in financial planning discussions.
Keep family members informed of investments and nominations.
Finally
You have created an excellent foundation already.
Increase SIPs based on your strong savings surplus.
Shift more from shares to mutual funds with proper planning.
Give your daughter’s education goal a dedicated low-risk strategy.
Plan your retirement using diversified mutual funds, not real estate.
Work with a CFP who will guide you across all life stages.
Regular funds through an expert ensure goal matching, rebalancing, and reviews.
This protects your future wealth and gives peace of mind.
Keep updating your plan every year. Keep it goal-based, not return-based.
Retirement success depends on balance between growth and safety.
Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment