Hello Sir I am 46 years old with a single 3 year old child and my question is as i have 30 lakhs in UPS Scheme and LiC which will mature on 2027 with 7 lakhs amount.My in hand pay is 88000 per month and invested around 50 lakhs in gold ornaments my wife is a housewife and live presently with parents in their home but in future may have to work outside home.so please advise how to build a secure future for the family.thank you

Ans: You have shown foresight by saving across assets. At 46, with one young child and a dependent spouse, it is the right time to secure your future. Your financial base is present. Now the goal is to protect, grow, and prepare for future needs.

Let us address your plan step-by-step in full detail.

» Assess Your Current Financial Snapshot

– You are 46 with one 3-year-old child.
– Monthly in-hand salary is Rs. 88,000.
– You live in your parents’ house for now.
– You have Rs. 30 lakh in a UPS scheme and LIC.
– LIC will mature in 2027 with Rs. 7 lakh maturity value.
– You have Rs. 50 lakh invested in gold ornaments.
– Your wife is a homemaker.
– Expenses are not mentioned, but assumed to be moderate.
– No mention of medical or life insurance coverage.
– No mention of mutual fund or retirement investments yet.

» Address Immediate Priorities First

– Your child is 3. Long-term education and support planning is needed.
– Your wife is financially dependent. A safety net must be in place.
– You may have to move out of your parents’ home later.
– This means future housing expenses should be expected.
– So, your financial plan must consider income security and cost of living increase.

» Review and Act on Existing LIC and UPS Holdings

– You have Rs. 30 lakh in UPS and LIC.
– LIC will return only Rs. 7 lakh in 2027.
– That suggests very low return on this amount.
– LIC is likely an endowment or traditional policy.
– These give poor returns, often below inflation.
– UPS may also be low-yield with capital protection only.
– Please surrender these policies if they are investment-cum-insurance.
– Reinvest the surrender amount in mutual funds through SIPs.
– Go via a Certified Financial Planner–MFD for regular plans.
– This brings active guidance and long-term compounding.
– Avoid direct funds. They give no support or review mechanism.
– Also avoid index funds. They lack downside protection in volatile markets.
– Actively managed funds have expert fund managers.
– They shift portfolio based on market conditions to reduce risks.

» Don’t Depend on Gold for Long-Term Wealth

– You hold Rs. 50 lakh in gold ornaments.
– This is over-concentration in one asset.
– Gold is illiquid and gives no income.
– Ornaments also lose value due to making charges.
– Gold may protect value but won’t grow wealth reliably.
– Keep only 10% of your total wealth in gold.
– Liquidate excess gold. Reinvest in mutual funds.
– Use proceeds to fund your retirement and child’s education.
– Avoid depending on gold for future security.

» Set Clear Financial Goals Now

– First goal: Retirement planning for you and spouse.
– Second goal: Child education corpus for college and higher studies.
– Third goal: Monthly income for wife in your absence.
– Fourth goal: Home expenses if you move out from parents’ house.
– Fifth goal: Emergency fund for medical or sudden expenses.
– Set timelines and required corpus for each goal.

» Build Emergency and Medical Buffer

– Keep 6–12 months’ expenses aside in liquid funds.
– Avoid using FDs, they are less efficient.
– Use liquid or ultra-short debt mutual funds.
– This ensures capital safety and better returns than savings account.
– Make sure you and wife are covered under health insurance.
– A family floater of Rs. 10–15 lakh is ideal.
– Buy from a reputed insurer with good claim history.
– If not done yet, get this immediately.
– Health expenses can ruin financial stability later.

» Ensure Life Insurance Coverage

– No mention of life cover. This is a risk.
– You are the only earning member.
– In case of an unfortunate event, your family is exposed.
– Take a term insurance cover of Rs. 1.5 crore minimum.
– It should cover future expenses of spouse and child.
– Premium will be low if taken early.
– Avoid ULIPs or money-back plans.
– Term plan is pure protection. Buy from a trusted insurer.
– Ensure nominee details are correct and updated.

» Start SIPs in Mutual Funds for Long-Term Goals

– Start SIPs immediately for your retirement and child’s education.
– Divide into equity and hybrid mutual funds.
– Use large & mid-cap, flexi-cap, and balanced advantage funds.
– Invest in regular plans through an MFD with CFP credentials.
– Avoid direct plans. They do not give advice or review.
– You need guidance for fund selection, monitoring, and withdrawal.
– SIPs give discipline, power of rupee cost averaging, and long-term growth.
– Start small and increase every year by 5%.
– Continue SIPs at least till your child turns 18.

» Child Education Planning Must Start Early

– You have 15 years to build an education corpus.
– The cost of higher education is rising fast.
– Keep target of Rs. 50 lakh to Rs. 75 lakh minimum.
– Start SIPs in 2 to 3 equity funds for this.
– Invest from surrendered LIC amount or from gold sale.
– Review progress yearly. Adjust SIP amount as needed.
– Also assign a term cover to secure this goal.

» Plan for Your Retirement with a Clear Strategy

– At age 46, you have about 14 years till retirement.
– Currently, you have no mention of PF, NPS, or PPF.
– Begin building your retirement fund without delay.
– Use hybrid and equity mutual funds for long-term growth.
– Open PPF account and contribute Rs. 1 lakh per year.
– Combine PPF with mutual funds to balance safety and growth.
– Set a retirement target of Rs. 2 crore minimum.
– Your family will need Rs. 40,000 to Rs. 60,000 per month after retirement.
– Start SIPs for this now and scale it yearly.

» Include Your Spouse in Financial Planning

– Your wife is a homemaker and dependent now.
– But she should be part of financial discussions.
– You can invest some funds in her name.
– Start SIPs in her name too.
– Create a secondary income stream in her name.
– Later, she can manage day-to-day money handling.
– Also assign her as joint holder or nominee in investments.
– This avoids complications during emergencies.

» Set Up Joint Holding and Nominations

– Many families miss this simple but important step.
– Add wife as joint holder or nominee in all investments.
– Update bank accounts, insurance, and mutual funds.
– Keep one physical folder with investment proofs.
– Store nominee details, account numbers, passwords securely.
– This ensures smooth transition in future.

» Write a Will for Peace of Mind

– You hold gold, insurance, and investments.
– A registered Will ensures easy wealth transfer.
– It avoids family disputes and legal hurdles.
– Prepare a Will now and update it every 5 years.
– Mention all asset allocations clearly.
– Include physical gold, insurance, digital assets, and savings.

» Don’t Wait for 2027 Maturity to Act

– Your LIC maturity in 2027 is only Rs. 7 lakh.
– Don’t depend on it for big financial needs.
– The returns are too low for real wealth growth.
– Act now by surrendering non-performing policies.
– Use the money for SIPs and insurance premium.
– Time is more valuable than money in compounding.

» Avoid These Mistakes Going Forward

– Don’t invest more in gold.
– Don’t buy new LIC or endowment plans.
– Don’t wait till income stops to plan.
– Don’t take direct mutual fund route.
– Don’t delay health and life insurance coverage.
– Don’t keep everything in your name alone.

» Finally

– You have saved a good base in gold and insurance.
– But it lacks liquidity, income, and growth potential.
– The next 10 years are key to shape your future.
– Reduce gold and low-yield insurance holdings.
– Increase SIPs in actively managed mutual funds.
– Plan for retirement, child’s education, and emergency funds.
– Take adequate life and health insurance.
– Involve your wife and prepare proper nominations and a Will.
– A CFP can help guide and monitor your full financial roadmap.
– Stay disciplined and committed to your goals.
– With right steps now, your future will be fully secure.

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

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