Hi, I am a government employee with approx income of 2.4 lakhs per month, income tax deduction of 40k, ppf 40k, SIPs 32k, Sukanya for daughter 10k, EMI of 38k per month. Me and my wife share two properties of nearly 3cr worth, inheritance property...

Hi, I am a government employee with approx income of 2.4 lakhs per month, income tax deduction of 40k, ppf 40k, SIPs 32k, Sukanya for daughter 10k, EMI of 38k per month. Me and my wife share two properties of nearly 3cr worth, inheritance property of approx 1cr. Do I need to think of any further saving for my son and daughter . I still have 5-10k balance over and above.

Ans: You are earning well, saving regularly, and have already built solid assets. Let’s now assess everything step by step from a 360-degree perspective, especially around your children’s future planning and surplus utilisation.

Income and Expense Stability
You earn Rs. 2.4 lakhs monthly. This is a strong income level.

Income tax deduction is Rs. 40,000. This is expected at this income range.

EMI of Rs. 38,000 is reasonable. Your debt level is under control.

You still manage to save over Rs. 90,000 per month. This is excellent.

That means your monthly lifestyle is simple and well-managed.

Keeping 5-10k surplus even after all expenses shows healthy budgeting.

Your income stability as a government employee is a big plus.

Review of Current Savings Pattern
You contribute Rs. 40,000 in PPF. This adds a long-term debt base.

Rs. 32,000 goes into SIPs. This is your wealth-building engine.

Rs. 10,000 for Sukanya Samriddhi helps with your daughter’s education.

These numbers show your savings mix is both long-term and growth-focused.

You have covered equity and debt exposure. This is a strong habit.

EMI is not eating away too much from income. That is very good.

Real Estate Holdings
You and your wife co-own properties worth Rs. 3 crore.

You also have an inherited property of around Rs. 1 crore.

These are big assets. But they are illiquid.

They can support you later but can’t be used for monthly needs.

Don’t increase real estate further. Focus more on financial assets.

Rental income, if any, is a bonus. Don’t count on it for planning.

Maintenance and taxes will reduce returns from real estate.

Instead, continue with flexible and growth-focused investment vehicles.

Children’s Future Planning
You are saving Rs. 10,000 monthly in Sukanya. This is for your daughter.

You have not mentioned any investment for your son separately.

Try to match his future needs as well. Start a goal-specific SIP.

Even Rs. 5,000 to Rs. 10,000 monthly is fine for now.

This can build into a strong corpus over 10-15 years.

Use well-managed diversified mutual funds for this.

Equity funds are best for long-term goals like education or marriage.

Avoid locking into traditional insurance plans for children.

They give low returns and little flexibility.

Protection Review
You did not mention life insurance coverage.

A term plan is essential to protect your family.

It should be at least 10-12 times your annual income.

Avoid endowment or ULIP or moneyback policies.

They mix investment and insurance, giving poor returns.

If you already hold any such policies, consider surrendering them.

Reinvest the proceeds into mutual funds for better growth.

Also take health insurance for family, even if government offers coverage.

Additional personal cover is safer for future needs.

Surplus of Rs. 5-10K Monthly
You are left with Rs. 5-10k after all your current investments.

This amount should not be left idle in bank savings account.

Use this to start another SIP for your son’s future.

Or increase your existing SIPs step by step every year.

This habit will compound well over long periods.

You can also use this to top up your emergency fund.

Ensure you have 6-9 months’ expenses in liquid or overnight funds.

Don’t over-invest and ignore liquidity. Balance is the key.

Portfolio Structuring Suggestions
Keep three clear goals: Retirement, Daughter’s needs, Son’s needs.

Allocate different funds to each of these goals.

Don’t mix short-term and long-term goals in one investment.

For your retirement, let PPF and SIPs continue.

For kids, do not depend on real estate or inheritance alone.

Use equity mutual funds for long-term education goals.

For short-term goals, prefer debt or balanced hybrid funds.

Don’t invest directly in mutual funds using online platforms.

Direct funds offer no behavioural guidance or portfolio strategy.

Invest through a Certified Financial Planner or MFD with CFP credential.

Regular plan charges are small, but advice value is huge.

It helps during market corrections and goal prioritisation.

Taxation Understanding
Your tax deduction of Rs. 40,000 per month equals Rs. 4.8 lakhs yearly.

You are likely in the 30% tax slab. Plan investments accordingly.

SIPs in equity funds get taxed based on holding time.

LTCG above Rs. 1.25 lakh per year is taxed at 12.5%.

STCG is taxed at 20%.

Debt fund gains are taxed as per your slab.

PPF and Sukanya are tax-free. They balance your taxable products.

Tax-saving should not be the only reason to invest.

Focus on return, liquidity, and goal matching.

Long-Term Wealth Planning
Your existing assets are worth Rs. 4 crores (property + inheritance).

SIPs and PPF will keep adding wealth every month.

Over the next 15-20 years, this will grow into a strong retirement corpus.

Plan to use mutual fund redemptions, not real estate, for children’s needs.

Inheritance property can be considered as legacy or support post-retirement.

Keep your property documents updated and nominate properly.

Estate planning is important when property is jointly owned.

Goal Specific Advice
For daughter: Continue Sukanya. Add an equity fund for post-education goals.

For son: Start a new SIP for his education or career.

For retirement: SIPs and PPF will build base. NPS can be considered later.

Emergency fund: Keep this liquid. Use ultra-short term funds or sweep FDs.

No new real estate: Avoid buying new property for children’s names.

Role of Behaviour and Planning
Don’t pause SIPs during market corrections.

Maintain consistency in monthly savings habit.

Review goals and investments once every year.

Align each product to one specific goal.

Avoid following online trends or popular fund lists.

Don’t chase high returns without understanding the risk.

Work with a Certified Financial Planner for long-term accountability.

Behavioural coaching matters more than products or returns.

A planner will keep your goals in the centre and adjust portfolio.

Finally
You are already on the right track. Your income is high and savings are consistent. You own property assets and have inheritance in place. You are investing in a mix of equity and debt. You have started Sukanya for your daughter. Now, begin a small SIP for your son too. Do not increase real estate further. Focus more on liquid, flexible, and growth-oriented mutual funds. Avoid ULIPs or traditional policies. If you hold any such plans, surrender and reinvest wisely. Build each goal separately. Increase SIPs yearly. Maintain term insurance and health cover. Keep reviewing every year with a Certified Financial Planner. This will ensure your children’s future and your own retirement stay secure and stress-free.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Asked on - Jun 12, 2025 | Answered on Jun 13, 2025

Dear Sir I had posted a follow up question did you get it pls

Ans: Sorry. I didn't get any follow up Qs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: At age 41, with a steady government job and thoughtful investments, you have built a strong foundation. Still, some areas need refining to make your children's future and your own retirement journey smoother.

Let’s go deeper into your present structure and shape a complete, long-term approach.

Income, Expenses, and Surplus Analysis
You earn Rs 2.4 lakhs monthly. After deductions, you have some savings margin left.

Rs 40,000 tax deducted monthly is expected at your income level.

Rs 32,000 goes into mutual fund SIPs, which is a healthy saving habit.

Rs 40,000 into PPF is very good for long-term debt stability.

Rs 10,000 towards Sukanya Samriddhi is appropriate for your daughter.

EMI of Rs 38,000 takes a decent portion, but not excessive.

You are left with Rs 5,000–10,000 monthly. That margin should be carefully optimised.

Keep your household spending under control so that SIPs can continue for 15–20 years uninterrupted.

Look at annual irregular expenses like insurance premiums, school fees, repairs, and medical that could stress your liquidity.

Build an annual contingency plan to avoid using credit cards or loans when emergencies arise.

Education Planning for Son and Daughter
You have two children. You are already saving through Sukanya Samriddhi for your daughter. Let’s expand further.

Sukanya covers only one child. You must plan separately for your son.

Sukanya gives fixed returns, tax-free. But it won’t be enough for higher education needs.

Use a balanced approach: equity mutual funds (growth) + PPF or debt fund (stability).

Education expenses for both children will likely peak between age 17–25.

Break this down into two parts: Graduation (India) and Post-graduation (India or Abroad).

You are already saving Rs 32,000 in mutual funds. Tag at least Rs 10,000 specifically for your son’s future.

Allocate Rs 10,000 SIP for education of each child, if possible, for 10–12 years.

Choose actively managed flexi-cap and mid-cap funds, not index funds. Active funds adapt better.

Index funds do not provide downside cushioning. They just mirror the market, good or bad.

For children’s education, you need consistent compounding, not market-linked luck.

Stay with regular plans. Do not use direct funds without guidance. Regular plans offer review, rebalancing, and tax alerts.

Get this routed through a Certified Financial Planner with MFD license. It will bring goal focus.

Risk Cover and Insurance Protection
You have a personal term cover of Rs 1 crore and a government-provided cover of Rs 1.25 crore.

Total term cover of Rs 2.25 crore is fair for your age and dependents.

Ensure your wife is also insured adequately if she has no term cover yet.

Government cover should not be your main backup. It may not stay if job situation changes.

Check nominee details in all policies. Keep physical and digital records accessible.

Medical coverage from the government is a strong shield. But still consider a small personal floater.

A Rs 10 lakh family floater with Rs 90 lakh top-up is affordable and useful.

Buy only pure term and health insurance. If you hold LIC, ULIP, or endowment policies, surrender them.

Reinvest those amounts into equity mutual funds. These give better returns and liquidity.

PPF, Sukanya, and Other Debt Instruments
PPF and Sukanya are both excellent for safe, long-term, tax-free returns.

PPF will mature around your retirement. It builds fixed-return base. Keep contributing.

Sukanya matures at age 21 of daughter. Can be used for PG education or marriage.

Don't over-rely on fixed-return plans. Inflation will erode their real power.

Always blend fixed-return schemes with equity mutual funds to beat inflation.

Avoid NSC, FDs, or senior citizen savings schemes as long-term tools at this stage.

Your Properties and Inheritance
You and your wife co-own properties worth Rs 3 crore. You also expect Rs 1 crore inheritance.

Let’s be careful in how we think about it.

Property is not liquid. Avoid using it for child’s education or retirement goals.

Do not buy more real estate for investment. It adds stress, not value.

Use rental income, if any, as income supplement. Do not assume future price appreciation.

Instead of buying a third property, consider increasing SIPs and investing in hybrid funds.

Inherited property must be handled with legal clarity. Ensure proper nomination or WILL.

If parents are alive, do a clear succession document now. Avoid family disputes later.

Retirement and Corpus Building
You are a government employee. Your pension may or may not be inflation-linked. Build your own pool.

Your PPF will give a retirement cushion, but not full inflation protection.

Mutual fund SIPs must continue for 15–20 more years for a large retirement corpus.

Rs 32,000 SIP is good. Increase it by Rs 2,000 every year to beat inflation.

Allocate 60% of mutual fund SIP to retirement. Tag it clearly. Never mix this with other goals.

Avoid redemptions for vacations or gadgets. Retirement SIP must remain untouched.

You can also start an NPS account. It adds tax benefit and builds a long-term pension base.

However, mutual funds are more flexible than NPS. Use both as needed.

What To Do With Rs 5,000–10,000 Surplus?
This surplus is valuable. It can become a powerful driver if used wisely.

Start a SIP of Rs 5,000 for your son immediately in a hybrid or balanced fund.

If you have already done that, route the balance into an international fund for PG abroad.

Or, create an “Opportunity Fund” for one-time needs — school laptop, course fees, coaching.

Park the money in a liquid fund if not using immediately. Don't leave in savings account.

Avoid putting this into more life insurance or fixed deposits.

Emergency Fund and Liquidity
Emergency fund is not mentioned. This is a major gap.

Keep 6 months of total family expenses in a liquid mutual fund or sweep-in FD.

Don’t park this in savings account. It earns low interest.

Emergency fund should cover EMI, school fees, and household expenses.

Keep it separate from regular investments. Don’t mix it with SIPs or long-term funds.

Tax Planning Strategy
You already invest in PPF and mutual funds. This brings tax efficiency.

SIPs in ELSS schemes give Section 80C benefit. PPF also does.

Sukanya also qualifies under 80C. But limit of 80C is Rs 1.5 lakh only.

Avoid investing extra into 80C if limit already reached. Use funds for better growth elsewhere.

Do not use ULIPs or endowment policies for tax saving. They underperform in the long run.

Be aware: Equity fund gains above Rs 1.25 lakh per year are taxed at 12.5% (LTCG).

STCG is taxed at 20%. So plan redemptions wisely. Hold funds for more than one year.

No tax on PPF and Sukanya returns. Use them fully for long-term stability.

Monitoring and Review
You are financially organised. But review and goal-mapping is still missing.

Tag all investments to specific goals — education, marriage, retirement, emergency.

Review each goal every year. Adjust SIPs based on inflation and income growth.

Meet a Certified Financial Planner once in 12 months to recheck allocation.

Keep life and health insurance documents accessible. Update nominee details yearly.

Create a financial WILL for your assets and insurance. This avoids legal stress later.

Finally
You are disciplined, forward-thinking, and balanced. But clarity on purpose is still growing.

You must not stop at saving. You must grow wealth for the long term.

Ensure your children’s education is fully funded. Never dip into retirement savings for them.

Stay focused on building your retirement, not just their future. Avoid extra property investments. Grow in equity mutual funds. Do not switch to direct plans or index funds.

This disciplined mix of SIPs, PPF, liquid funds, and goal-based allocation will serve your family well.

Stay on this path. Review regularly. Invest wisely.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: You have built a strong base. You have raised your sons well. They live independently. You and your wife now want a peaceful and enjoyable retired life. You have created wealth with discipline. You have no home loan. You live in your own house. This gives strength to your cash flow. Your savings across equity, mutual funds, and bank deposits show good clarity. I appreciate your careful preparation. You deserve a happy retired life with travel and comfort.

» Your Present Position
Your current financial position looks very steady. You hold direct equity of around Rs 2.5 Cr. You hold equity mutual funds worth Rs 50 lakh. You also have Rs 50 lakh in bank deposits and other secured savings. Your two rental properties add more comfort. You earn around Rs 40,000 per month from rent. You also live in your owned house in Delhi NCR. So you have no rent expense.

Your total net worth crosses Rs 5.5 Cr easily. This gives you a strong base for your retired life. You plan to spend around Rs 24 lakh per year for all expenses, including travel. This is reasonable for your lifestyle. Your savings can support this if planned well. You have built more than the minimum needed for a comfortable retired life.

» Your Key Strengths
You already enjoy many strengths. These strengths hold your plan together.

You have zero housing loan.

You have stable rental income.

You have children living independently.

You have a balanced mix of assets.

You have built wealth with discipline.

You have clear goals for travel and lifestyle.

You have strong liquidity with Rs 50 lakh in bank and secured savings.

These strengths reduce risk. They support a smooth retired life with less stress. They also help you handle inflation and medical costs better.

» Your Cash Flow Needs
Your yearly expense is around Rs 24 lakh. This includes travel, which is your main dream for retired life. A couple at your stage can keep this lifestyle if the cash flow is planned well. You need cash flow clarity for the next 30 years. Retirement at 56 can extend for three decades. So your wealth must support you for a long period.

Your rental income gives you around Rs 4.8 lakh per year. This covers almost 20% of your yearly spending. This reduces pressure on your investments. The rest can come from a planned withdrawal strategy from your financial assets.

You also have Rs 50 lakh in bank deposits. This acts as liquidity buffer. You can use this buffer for short-term and medium-term needs. You also have equity exposure. This can support long-term growth.

» Risk Capacity and Risk Need
Your risk capacity is moderate to high. This is because:

You own your home.

You have rental income.

Your children are financially independent.

You have large accumulated assets.

You have enough liquidity in bank deposits.

Your risk need is also moderate. You need growth because inflation will rise. Travel costs will rise. Medical costs will increase. Your lifestyle will change with age. Your equity portion helps you beat inflation. But your equity exposure must be managed well. You should avoid sudden large withdrawals from equity at the wrong time.

Your stability allows you to keep some portion in equity even during retired life. But you should avoid excessive risk through direct equity. Direct equity carries concentration risk. A balanced mix of high-quality mutual funds is safer in retired life.

» Direct Equity Risk in Retired Life
You hold around Rs 2.5 Cr in direct equity. This brings some concerns. Direct equity needs frequent tracking. It needs research. It carries single-stock risk. One mistake may reduce your capital. In retired life, you need stability, clarity, and lower volatility.

Direct funds inside mutual funds also bring challenges. Direct funds lack personalised support. Regular plans through a Mutual Fund Distributor with a Certified Financial Planner bring guidance and strategy. Regular funds also support better tracking and behaviour management in volatile markets. In retired life, proper handholding improves long-term stability.

Many people think direct funds save cost. But the value of advisory support through a CFP gives higher net gains over long periods. Direct plans also create more confusion in asset allocation for retirees.

» Mutual Funds as a Core Support
Actively managed mutual funds remain a strong pillar. They bring professional management and risk controls. They handle market cycles better than index funds. Index funds follow the market blindly. They do not help in volatile phases. They also offer no risk protection. They cannot manage quality of stocks.

Actively managed funds deliver better selection and risk handling. A retiree benefits from such active strategy. You should avoid index funds for a long retirement plan. You should prefer strong active funds under a disciplined review with a CFP-led MFD support.

» Why Regular Plans Work Better for Retirees
Direct plans give no guidance. Retired investors often face emotional decisions. Some panic during market fall. Some withdraw heavily during market rise. This harms wealth. Regular plan under a CFP-led MFD gives a relationship. It offers disciplined rebalancing. It improves long-term returns. It protects wealth from poor behaviour.

For retirees, the difference is huge. So shifting to regular plans for the mutual fund portion will help long-term stability.

» Your Withdrawal Strategy
A planned withdrawal strategy is key for your case. You should create three layers.

Short-Term Bucket
This comes from your bank deposits. This should hold at least 18 to 24 months of expenses. You already have Rs 50 lakh. This is enough to hold your short-term cash needs. You can use this for household costs and some travel. This avoids panic selling of equity during market downturn.

Medium-Term Bucket
This bucket can stay partly in low-volatility debt funds and partly in hybrid options. This should cover your next 5 to 7 years. This helps smoothen withdrawals. It gives regular cash flow. It reduces market shocks.

Long-Term Bucket
This can stay in high-quality equity mutual funds. This bucket helps beat inflation. This bucket helps fund your travel dreams in later years. This bucket also builds buffer for medical needs.

This three-bucket strategy protects your lifestyle. It also keeps discipline and clarity.

» Handling Property and Rental Income
Your properties give Rs 40,000 monthly rental. This helps your cash flow. You should maintain the property well. You should keep some funds aside for repairs. Do not depend fully on rental growth. Rental yields remain low. But your rental income reduces pressure on your investments. So keep the rental income as a steady support, not a primary source.

You should not plan more real estate purchase. Real estate brings low returns and poor liquidity. You already own enough. Holding more can hurt flexibility in retired life.

» Planning for Medical Costs
Medical costs rise faster than inflation. You and your wife need strong health coverage. You should maintain a reliable health insurance. You should also keep a medical fund from your bank deposits. You may keep around 3 to 4 lakh per year as a buffer for medical needs. Your bank savings support this.

Health coverage reduces stress on your long-term wealth. It also avoids large withdrawals from your growth assets.

» Travel Planning
Travel is your main dream now. You can plan your travel using your short-term and medium-term buckets. You can take funds annually from your liquidity bucket. You can avoid touching long-term equity assets for travel. This approach keeps your wealth stable.

You should plan travel for the next five years with a budget. You should adjust your travel based on markets and health. Do not use entire gains of equity for travel. Keep travel budget fixed. Add small adjustments only when needed.

» Inflation and Lifestyle Stability
Inflation will impact lifestyle. At Rs 24 lakh per year today, the cost may double in 12 to 14 years. Your equity exposure helps you beat this. But you need careful rebalancing. You also need disciplined review with a CFP-led MFD. This will help you manage inflation and maintain comfort.

Your lifestyle is stable because your children live independently. So your cash flow demand stays predictable. This makes your plan sustainable.

» Longevity Risk
Retirement at 56 means you may live till 85 or 90. Your plan should cover long years. Your total net worth of around Rs 5.5 Cr to Rs 6 Cr can support this. But you need a proper drawdown strategy. Avoid high withdrawals in early years. Keep your travel budget steady.

Do not depend on one asset class. A mix of debt and equity gives comfort. Keep your bank deposits as cushion.

» Succession and Estate Planning
Since you have two sons who are settled, you can plan a clear will. Clear distribution avoids conflict. You can also assign nominees across accounts. You can also review your legal papers. This gives peace to you and your family.

» Summary of Your Retirement Readiness
Based on your assets and cash flow, you are ready to retire. You have enough wealth. You have enough liquidity. You have enough income support from rent. You also have good asset mix. With proper planning, your lifestyle is comfortable.

You can retire now. But maintain a disciplined withdrawal strategy. Shift more reliance from direct equity into professionally managed mutual funds under regular plans. Keep your liquidity strong. Review once every year with a CFP.

Your wealth can support your travel dreams for many years. You can enjoy retired life with confidence.

» Finally
Your preparation is strong. Your intentions are clear. Your lifestyle needs are reasonable. Your assets support your dreams. With a balanced plan, steady review, and mindful spending, you can enjoy a comfortable retired life with your wife. You can travel the world without fear of running out of money. You deserve this peace and joy.

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

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