My husband is earning 1.70 lacs per month after PF deductions. We are investing 22k per month in mf's. Rest of the money goes in home loan, (40k) + 50k pm for kids education and extra classes. He is 40 and so am I . We have a medical policy of 1 CR, life insurance of 7500000. We want to build a corpus of atleast 3 to 5 crore in rest of the working years. I am also looking out for jobs. How do we go about it. We have invested in dsp midcap, kotak opportunity fund, ICICI value discovery and few more.
Ans: It's admirable that you and your husband are proactively planning for your financial future, especially with the goal of building a substantial corpus for your retirement. Let's discuss a strategy to help you achieve your target of accumulating 3 to 5 crores in the remaining working years.
Assessing Your Current Situation
Income and Expenses
Income: Your combined monthly income is 1.70 lakhs after PF deductions, with 22k invested in mutual funds.
Expenses: You allocate funds towards home loan, children's education, and extra classes, ensuring financial responsibilities are managed effectively.
Insurance and Financial Protection
Medical Policy: You have a comprehensive medical policy of 1 crore, providing financial protection against healthcare expenses.
Life Insurance: Your life insurance coverage of 75 lakhs offers financial security to your family in the event of an unfortunate incident.
Building a Corpus of 3 to 5 Crores
Increase Investment Contributions
SIPs: Considering your income and expenses, explore the possibility of increasing your monthly SIP contributions gradually.
Additional Investments: Allocate any surplus income towards additional investments in mutual funds to accelerate wealth accumulation.
Review and Diversify Mutual Fund Portfolio
Existing Investments: DSP Midcap, Kotak Opportunity Fund, and ICICI Value Discovery are good choices, but periodically review their performance and consider rebalancing or diversifying your portfolio.
Diversification: Explore opportunities in different market segments such as large-cap, mid-cap, small-cap, and thematic funds to spread risk and maximize returns.
Consider Retirement Planning
Retirement Corpus: Calculate the desired corpus needed for retirement based on your lifestyle expectations and expected expenses.
Retirement Funds: Allocate a portion of your investments specifically towards retirement funds or pension plans to ensure financial security during retirement.
Explore Employment Opportunities
Additional Income: Your decision to explore job opportunities can provide an additional source of income, accelerating your wealth-building journey.
Skill Enhancement: Consider upgrading your skills or pursuing further education to enhance career prospects and earning potential.
Continuous Monitoring and Adjustments
Regular Reviews: Periodically review your financial plan, investment portfolio, and progress towards your goals.
Adjustments: Make necessary adjustments to your investment strategy and contributions based on changing circumstances, market conditions, and financial goals.
Conclusion
By optimizing your investment contributions, diversifying your portfolio, and exploring additional income opportunities, you can work towards building a corpus of 3 to 5 crores within the remaining working years. Continuous monitoring, periodic reviews, and prudent financial management will be key to achieving your financial objectives.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in