Hello Sir, I lost my job in layoff . I am 46 year old . I had a home loan of 1.18 cr with EMI of 1.07L per month . I have 2 kids, Daughter is in 12th and Son is in 9th . I am selling my other 2 flats so that i can repay the loan and left money i will put in FD. I have to plan my children education 60 L and Retirement planning ( Next Month onwards i require 1 L ). After paying home loan I left with 70 L which i will put in FD . I have 70 L in EPF, 30 L in PPF maturity in 2026, 19 L FD, 3.3 L NSC ( Maturity at 2032/ 6.6L), 14 L Mutual Fund. My wife earns 50 K per month . Monthy expenses are 75K . My goals of havinng 1 L from next month and kids education can be achieved with these investment .

Ans: You have done very well. Starting with a small loan and building assets of crores is not easy. You have cared for your family, built savings, and kept your lifestyle under control. You have also kept insurance in place, which is very wise. Your focus now is children’s education and retirement. Both are achievable with a proper plan.

» Current Financial Snapshot
– Age: 46, wife 40, two sons aged 17 and 13.
– Assets: Rs. 1 crore in FD, one flat worth Rs. 75 lakh, two plots worth Rs. 4 crore and Rs. 80 lakh, Rs. 25 lakh in PPF, LIC of Rs. 30 lakh, Sovereign Gold Bonds Rs. 12 lakh.
– Income: Rs. 60,000 monthly from FD, Rs. 20,000 monthly rent, Rs. 60,000 to 90,000 business income.
– Expenses: Rs. 1.1 lakh monthly including school fees.
– Surplus: Around Rs. 50,000 monthly.
– Insurance: Family health cover Rs. 25 lakh (planned to increase to Rs. 50 lakh), LIC policies, no loans.

This shows a very strong and stable financial base.

» Children’s Education Goal
Your elder son needs Rs. 1 to 1.5 lakh monthly for 4 years from next year. Younger son will need the same after 4 years for 5 years. That means for around 9 years, you will need heavy cash flow for education. You want to sell the Rs. 80 lakh plot to manage this. This is a reasonable idea. Education is a priority. Funding it from a separate lump sum makes sense.

» Use of Rs. 80 Lakh Plot Sale
If you sell this plot, you can park the amount safely. Do not keep all in FD with monthly payout. Instead, stagger the money. Keep the first 2 to 3 years expenses in FD for liquidity. Keep the balance in safe debt options with gradual redemption. This way you earn better growth than normal FD. You will have predictable flow for both children’s studies. Selling this plot for education is a practical decision.

» Retirement Corpus Planning
Your retirement expenses will be around Rs. 1 to 1.5 lakh per month after children settle. You already have Rs. 1 crore in FD, Rs. 25 lakh in PPF, Rs. 12 lakh in gold, and rental income of Rs. 20,000. LIC maturity of Rs. 30 lakh will also add. In addition, you have a Rs. 4 crore plot. When you sell this in future, you expect Rs. 5 to 6 crore. This can give either large FD interest or rental from commercial property. That is the main driver for your retirement.

» FD and Interest Dependency
You like FD as your safe choice. FD gives fixed return and regular income. But it has two issues. First, interest is fully taxable. Second, it may not beat inflation over 20 to 30 years. You may feel comfortable today, but value of money reduces over time. With Rs. 1.5 lakh monthly need, you must ensure FD corpus is very large to support rising costs. Keep this in mind.

» Role of Gold and PPF
Gold is a hedge. You already have Rs. 12 lakh in Sovereign Gold Bonds. That is fine. Do not increase more. PPF of Rs. 25 lakh is safe and tax free. It adds to your retirement pool. Continue extension till 15 years if possible. It is a stable support.

» LIC Policies
Your LIC maturity of Rs. 30 lakh is not very large compared to your total wealth. LIC policies give safety but lower growth. After maturity, do not reinvest again in LIC. Shift the maturity proceeds to better instruments like FD or safe debt for income flow.

» Business Income Consideration
Your business is giving Rs. 60,000 to 90,000 monthly now. But you already sense pressure from recession. Do not depend on this as permanent. You must plan retirement income without including business income. If business gives profit, it will be extra cushion.

» Real Estate Considerations
You plan to sell the Rs. 4 crore plot later when it touches Rs. 5 to 6 crore. You also plan to buy a commercial property for rental of Rs. 2.5 lakh monthly. You must be cautious here. Real estate deals involve risks like tenant issues, delay in renting, maintenance, and liquidity. FD with 6 to 7% interest is safe but taxable. Rental income is also taxable and not always guaranteed. You should not depend only on this. Diversify your wealth so that you have multiple income sources, not just rent or FD.

» Health Insurance
You have Rs. 25 lakh cover, planning to increase to Rs. 50 lakh at 50 years. That is very important. Healthcare costs rise very fast. This step will protect your retirement corpus.

» Estate Planning
You live in ancestral home. You must write a Will clearly mentioning asset distribution. Mention how property and money should be divided between wife and sons. Do nomination in bank FDs, PPF, LIC, and bonds. This avoids future legal issues.

» Safe vs Growth Balance
You dislike equity and mutual funds. You want safety. But understand one point. FD interest may look enough today, but after 15 to 20 years, inflation will eat into your money. Rs. 1 lakh today may need Rs. 2 to 3 lakh then. FD will not grow to match this. Equity can beat inflation, but you are not comfortable. In such case, at least keep small exposure to growth-oriented safe funds managed by professionals. Otherwise, your wealth may look big but will reduce in value later.

» How to Manage Education and Retirement Together
– Sell Rs. 80 lakh plot. Park money in FD and safe debt for children’s fees.
– Keep Rs. 1 crore FD as retirement corpus. Do not touch it for education.
– LIC maturity of Rs. 30 lakh after 5 years can add to retirement fund.
– Continue PPF extension and treat it as retirement income booster.
– Sovereign Gold Bonds of Rs. 12 lakh can be kept till maturity for safety and small income.
– When sons complete studies, you will still have Rs. 4 crore plot to sell. That will be the main funding for higher retirement lifestyle.

» Risks to Watch
– Depending only on FD and real estate can reduce long-term growth.
– Tax on FD interest will reduce real income.
– Rental income may not always be steady.
– Inflation risk is real. Expenses may double in 10 to 12 years.
– Health costs may eat corpus if insurance is not high enough.

» Better Balance Suggestions
– Do not put all proceeds from Rs. 4 crore plot into commercial property. Diversify. Keep some in FD for sure. But also look at professional management funds through CFP. Active funds give better inflation protection. Avoid index funds as they only copy markets without risk control. Avoid direct funds as they need constant monitoring. Regular funds through CFP give discipline and review.
– Keep your emergency fund separate, at least Rs. 10 to 15 lakh in liquid form.
– Increase health cover to Rs. 50 lakh soon, not later.

» Finally
You have done great work till now. Your savings habit and asset creation are solid. Your plan to sell Rs. 80 lakh plot for children’s education is correct. For retirement, do not depend only on FD and rental. They are safe, but inflation and tax will hit. Use diversification for part of wealth. Keep core in FD if you like safety, but let a share grow in actively managed funds with CFP guidance. Write a Will and update nominations. Keep health cover high. With this balanced approach, you can educate both sons fully, retire peacefully, and live with dignity without fear of running out of money.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Ans: It shows your serious planning mindset.
You have already built a good corpus through disciplined saving.
Let me provide a detailed 360-degree perspective on your financial plan.

» Current financial overview
– Age: 46 years.
– Family: Wife (40 years), two sons (17 and 13 years).
– No loans or EMIs.
– Fixed Deposit corpus: Rs 1 crore, generating approx Rs 60,000 per month interest.
– Rental income from flat: Rs 20,000 per month.
– Business income: Rs 60,000 to Rs 90,000 per month (currently down due to recession).
– PPF: Rs 25 lakh, extended for another 5 years.
– LIC policy: Rs 30 lakh maturing in 5 years.
– Sovereign Gold Bond (SGB): Rs 12 lakh.
– Land plots: One valued at Rs 80 lakh, another at Rs 4 crore.
– Monthly expenses including school fees: Rs 1.1 lakh.
– Savings: Approx Rs 50,000 per month.

» Educational expense planning for your sons
– Eldest son (17 years):

Starting next year, you need Rs 1–1.5 lakh per month for 4 years.

This includes college tuition, accommodation, and other expenses.

– Younger son (13 years):

In 4 years, similar needs for the next 5–6 years.

Estimated monthly need: Rs 1–2 lakh during that time.

– Total Education need:

For 8–10 years, approx Rs 1–2 lakh per month.

Could amount to Rs 1 crore or more in total.

» Using your current assets to meet this need
– Selling the 80 lakh plot seems reasonable.

Will give immediate funds for the next 8–10 years.

Helps avoid disruption in your sons' education.

– Keep the larger 4 crore plot.

You plan to sell it after 3–4 years when value reaches 5–6 crore.

Then invest in commercial property.

Rental expected: Rs 2.5 lakh per month.

» Thoughts on the commercial property plan
– Renting to a bank is a stable option.

Gives steady rental income and long-term security.
– Alternatively, keeping the amount in Fixed Deposit is safe.

Current FD interest ~7–8%.

Good for predictable cash flow.
– My suggestion:

If long-term goal is passive income, commercial property is good.

Ensure proper due diligence before buying commercial property.

Check rental agreement terms and bank reputation.

» Your risk preference is low, preferring FDs
– It is fine to prefer safety.
– But over-relying on FD can reduce real returns.
– Inflation erodes FD’s real value.
– Diversification is important for stability and growth.

» Better safe investment alternatives
– Government-backed bonds or Sovereign Gold Bonds are good.

Provides safety and small capital appreciation.

Interest or bond value grows over time.

– PPF is safe and tax-efficient.

Continue holding and investing further.

– Avoid ULIPs and LIC policies due to high costs.

These often deliver lower returns.

– Actively managed debt mutual funds are better.

Provides better returns than FDs.

Liquidity and safety balanced well.

» Why avoid index funds and direct mutual funds?
– Index funds lack professional decision making.

They blindly track index performance.

Do not adjust during market downtrends.

– Direct funds are not well monitored.

CFP credentialed regular mutual funds give better expert support.

Regular plans have better advisory and rebalancing support.

» Retirement planning
– Current monthly expenses: Rs 1.1 lakh.
– Post-retirement, you may need similar or more due to inflation.
– Business income may reduce.
– FD interest + rental + pension may not suffice.
– Aim for Rs 2–3 lakh per month post-retirement.

– Focus on building a corpus of Rs 5–7 crore.

Fixed income from commercial property and FDs may cover future expenses.

» Emergency fund
– Maintain at least Rs 15–20 lakh as liquid emergency corpus.

In bank FDs or liquid mutual funds.

To avoid disrupting investments during urgent needs.

» Health and term insurance
– Increase family floater health cover to Rs 50 lakh as planned.
– Term life insurance is crucial, especially as your children depend on you.

At least Rs 1–2 crore cover is recommended.

Provides safety against unexpected risks.

» Cash flow management
– Current income: FD interest + rent + business = Rs 1.4–1.8 lakh.
– Monthly expenses: Rs 1.1 lakh.
– Savings capacity: Around Rs 50,000 per month.
– Use savings for top-up investments in safe bonds or debt funds.

Enhances corpus without adding risk.

» Systematic plan for next 10 years
– Year 1–3:

Sell 80 lakh plot.

Use funds for sons’ education and emergency buffer.

– Year 3–5:

Focus on growing PPF and SGB investments.

Consider actively managed debt mutual funds.

– Year 5–7:

Monitor the 4 crore plot value.

Sell when it reaches 5–6 crore.

– Year 7–10:

Purchase commercial property if rent and agreement terms are good.

Alternatively, place in high-interest debt instruments.

– Start planning to reduce dependency on business income.

Reinvest business profits into low-risk instruments.

» Final Insights
– You are on the right track by saving systematically.
– Selling the 80 lakh plot is wise for education needs.
– Avoid over-relying on FD only.
– Add safe debt mutual funds for better returns.
– Commercial property is a good plan for long-term passive income.
– Term insurance and higher health cover are essential.
– Rebalance your portfolio yearly.
– Plan to have Rs 5–7 crore corpus at retirement.

Your future looks promising with correct discipline and small corrections.
Stay consistent in your saving and investments.
Do not delay starting the term insurance.
Review investments every 6 months.

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

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

Ans: Hi,

You have done so good by building huge assets with your business that you started. It is a genuine worry around kid's education as its cost is rising a lot.
Taking your queries one by one.

1. Your foremost worry of not investing in stocks and mutual funds is very genuine. These come out to be risky. But for people who do not want to take any risk, there are funds as good as FD such as Balanced Funds or Hybrid Funds. As even a FD has risk - if a bank fails, your entire money would be gone in a blink of an eye and you will get only 5 lakhs by government.
So investing in mutual funds is a better option as these funds invest in a pool of stocks. Even if 1 stock fail, your 99% of the money is safe. So you can consider investing in these. Can consult an advisor for the same or reach out to me.

2. Selling one plot for kid's education - good decision. It will cover all cost for both kids and remaining amount (if any) will be for your future.

3. You can shift 70% of FD amount in hybrid mutual funds & start SWP. It comes with comparative tax benefits and better return.

4. PPF is good for you to hold for another 5 years. Continue it.

5. Choosing hybrid funds over FD will gurantee more return and security than any bank's FD.

Rest all is good. You can connect with a professional Certified Financial Planner - a CFP who can guide you with exact funds to invest in keeping in mind your age, requirements, financial goals and risk profile.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/