Hello Sir, I am 49 Yrs of Age and working in Private Firm in Mid Management. Today my monthly expenditure is around 40000 and wants to retire at the age of 59-60. But my daughter is of 4 yrs only . As on date I invest on SIP - Monthly 40K and Equity - 1.5 Lks.. Portfolio of around 19 Lks. I have purchased two Flats -01 is free debt and on another Housing Loan of 21lks is upto 2032. FD is of around 35Lkhs. PF balance is of now- 22lkhs and PPF of Rs 6 lkh . Mediclaim for family of 50lkhs per year. Under 80 C - monthly premium of around 25 K along with terms plan of 50Lkhs. I want to purchase open plot in Nagpur for investment and future planning, Funds i will use from FD of around 25 Lks..is this wise decision? Also I have 35 lks parental Property but it will transfer to me after 10 Yrs .....Pls advise how to secure my daughter future and his education and also post retirement my expenditure.
Ans: You have a well-structured portfolio with SIPs, equity investments, FDs, and real estate. Your focus on retirement at 59-60 and securing your daughter’s future is crucial. Let’s assess your financial standing and guide you towards a more structured approach.
Current Financial Overview
Investments
SIP: Rs 40,000 per month
Equity: Rs 1.5 lakh lump sum investment
Total Portfolio: Rs 19 lakh
Real Estate
One flat is debt-free
Second flat has a Rs 21 lakh home loan till 2032
Fixed Deposits
Rs 35 lakh in FD
Provident Fund & PPF
PF Balance: Rs 22 lakh
PPF: Rs 6 lakh
Insurance & Tax Savings
Mediclaim: Rs 50 lakh per year
Life Insurance: Rs 50 lakh term plan
Monthly insurance premium under 80C: Rs 25,000
Future Real Estate Plan
Planning to invest Rs 25 lakh in an open plot in Nagpur
Parental Property
Rs 35 lakh property expected to be transferred in 10 years
Key Financial Considerations
1. Should You Invest Rs 25 Lakh in an Open Plot?
Real estate is not liquid, making it difficult to use in emergencies.
Selling at the right price may take years.
Property maintenance and legal issues can add costs.
Instead, consider investing in equity or mutual funds for higher flexibility.
It’s better to keep Rs 25 lakh diversified in liquid investments rather than real estate.
2. Retirement Planning – Securing Post-Retirement Expenses
Your current monthly expense is Rs 40,000. This will rise due to inflation. You need a solid retirement corpus.
Continue SIPs and Increase Contribution Yearly
Rs 40,000 SIPs are good, but increase them by 10% yearly.
This ensures long-term wealth creation.
Allocate FD Funds Wisely
FD returns are low and taxable.
Shift a portion to equity and hybrid funds for better growth.
Utilise PF and PPF Efficiently
PF will grow by retirement but won’t be enough alone.
Continue PPF for stable, tax-free returns.
Debt Fund Investments for Stability
Gradually move funds to debt funds five years before retirement.
This protects against market volatility.
Health Insurance is Well-Planned
Rs 50 lakh mediclaim is a strong financial shield.
Ensure coverage continues post-retirement.
3. Planning for Your Daughter’s Future
Your daughter is just four years old. You need a structured education and marriage fund.
Start a Separate SIP for Her Education
Allocate at least Rs 15,000 per month in equity funds.
Increase by 10% annually to cover rising education costs.
Use Debt Funds for Short-Term Needs
For school fees or immediate expenses, use debt funds.
These are safer than FDs and provide better returns.
Avoid Child ULIPs or Traditional Insurance Plans
These give low returns with high charges.
Instead, use mutual funds for higher growth.
Consider a Sukanya Samriddhi Account
This provides tax-free returns and stability for long-term goals.
Invest a small portion to diversify savings.
Final Insights
Avoid investing Rs 25 lakh in an open plot.
Increase SIPs yearly and allocate part of FD funds to mutual funds.
Start a dedicated education fund for your daughter.
Focus on equity growth while gradually securing assets in debt before retirement.
With structured planning, you can achieve financial security for yourself and your daughter.
Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment