Desperate dad of two seeks investment advice to support family without job for 20 years with 5cr and no insurance

Ans: I'm sorry to hear about your job loss, but it's commendable that you're taking proactive steps to manage your finances during this challenging time. Let's create a plan to address your immediate needs and long-term goals:

• Home Loan Repayment: Selling your other two flats to repay the home loan is a prudent decision, as it will relieve you of the burden of the EMI and reduce financial stress.

• Emergency Fund: It's essential to maintain an emergency fund to cover unexpected expenses and loss of income. Since you'll have 70 lakhs from the sale of your flats, consider keeping a portion of this amount aside as your emergency fund, ideally in a liquid and accessible form like a savings account or short-term FD.

• Children's Education: With 60 lakhs earmarked for your children's education, you can explore investment options that offer growth potential over the medium to long term. Consider a combination of equity mutual funds, balanced funds, and fixed-income instruments to achieve your education goals. Since your daughter is in 12th grade, you may need to prioritize her education expenses in the near term.

• Retirement Planning: Your goal of having 1 lakh per month from next month onwards for retirement can be achieved by structuring your existing investments wisely. With 70 lakhs in EPF, 30 lakhs in PPF (maturing in 2026), and other fixed deposits and mutual funds, you have a solid foundation. You can explore options like Senior Citizen Savings Scheme (SCSS), Post Office Monthly Income Scheme (POMIS), and systematic withdrawal plans (SWPs) from mutual funds to generate a regular income stream in retirement.

• Income Replacement: Since you'll no longer have a regular income from employment, it's crucial to plan for income replacement. Your wife's income of 50,000 per month will provide some support, but you may need to supplement it with income generated from your investments.

• Expense Management: Given your monthly expenses of 75,000, it's essential to budget carefully and prioritize your spending. Look for areas where you can cut costs without compromising on essentials.

• Professional Advice: Consider consulting with a Certified Financial Planner who can help you develop a comprehensive financial plan tailored to your specific circumstances and goals. They can provide valuable guidance on investment strategies, tax planning, and retirement planning.

In conclusion, while losing your job is undoubtedly challenging, with careful planning and prudent financial management, you can navigate this period of transition successfully. By leveraging your existing assets and making strategic investment decisions, you can work towards achieving your children's education goals and securing a comfortable retirement for yourself. Stay focused, stay positive, and remember that you're not alone in this journey.

Ans: I understand your situation and am here to guide you on how to wisely invest your income as a housewife, balancing your family's needs and securing your financial future.


Managing household expenses while handling a part-time job shows your dedication and commitment towards your family's financial stability. Your willingness to invest for the future is commendable.

Understanding Your Financial Goals
Current Situation:

Age 40, housewife.
Husband is a businessman.
Two children: Son in college (1st year) and daughter in 11th grade.
Monthly tent income of Rs 12,000 from two houses, covering household expenses.
Part-time job income of Rs 5,000 per month recently started.
Bank balance is zero.
Financial Goals:

Secure financial future for yourself and your family.
Invest wisely to build savings and generate additional income.
Budgeting and Investment Strategy
Monthly Income and Expenses Analysis:

Monthly income: Rs 17,000 (tent income + part-time job).
Expenses covered by tent income: Household expenses.
Investment Potential:

Focus on saving and investing a portion of your income for future needs and emergencies.
Types of Investments
Investing wisely involves understanding different options and their benefits:

1. Systematic Investment Plan (SIP)
Overview:

SIPs allow you to invest regularly in mutual funds.
They help in disciplined savings and benefit from rupee cost averaging.
Advantages:

Systematic approach to investing.
Suitable for long-term wealth creation.
Risks:

Market fluctuations can impact short-term returns.
Need for patience and staying invested for long-term benefits.
2. Debt Mutual Funds
Overview:

Debt funds invest in fixed-income securities like bonds and treasury bills.
They offer stable returns with lower risk compared to equity funds.
Advantages:

Capital preservation.
Regular income through interest payouts.
Risks:

Interest rate risk: Values of existing bonds may decrease with rising interest rates.
Credit risk: Possibility of default by bond issuers.
3. Recurring Deposits (RD)
Overview:

RDs are fixed-income instruments offered by banks.
Regular monthly deposits for a fixed tenure with predetermined interest rates.
Advantages:

Safe investment option.
Fixed returns and disciplined savings.
Risks:

Lower returns compared to equity investments.
Interest rate fluctuations affecting future returns.
Power of Compounding
Understanding compounding can help you make informed investment decisions:

Overview:

Compounding is reinvesting your earnings to generate additional earnings over time.
Helps in growing your wealth exponentially with long-term investments.
Advantages:

Maximizes returns through reinvestment.
Accelerates wealth accumulation over time.
Example:

Investing regularly in SIPs or RDs allows you to benefit from compounding and build a substantial corpus for future needs.
Managing Risk
Risk Appetite:

As a conservative investor, focus on low to moderate risk investments like debt funds and RDs.
Avoid high-risk investments like direct equity or speculative instruments.
Diversification:

Spread investments across different asset classes to reduce overall risk.
Balance between fixed-income investments (like RDs and debt funds) and equity-oriented investments (like SIPs) for growth potential.
Financial Planning for Children's Education
Education Planning:

Plan for your children's higher education expenses systematically.
Estimate future costs and start investing early to meet these goals.
Investment Allocation:

Allocate a portion of your savings towards education funds through SIPs or targeted investment plans.
Building an Emergency Fund
Emergency Fund Importance:

Maintain an emergency fund equivalent to at least 6-12 months of expenses.
Helps in covering unexpected financial needs without disturbing long-term investments.
Liquid Investments:

Utilize liquid funds or keep a portion of savings in easily accessible instruments for emergency needs.
Final Insights
By adopting a disciplined approach to savings and investing, you can achieve financial security and meet your future goals effectively. Here’s a summary of the key steps:

Budgeting and Income Analysis: Understand your monthly income and expenses.
Investment Strategy: Focus on SIPs, debt funds, and recurring deposits for stable returns.
Power of Compounding: Reinvest earnings to benefit from long-term wealth creation.
Risk Management: Opt for low to moderate risk investments aligned with your risk tolerance.
Education Planning: Start investing early for your children's education expenses.
Emergency Fund: Maintain liquidity for unforeseen expenses without affecting long-term investments.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Current Financial Overview
Your income is Rs. 1,50,000 per month.

Your monthly expenses are approximately Rs. 1,00,000.

You are investing Rs. 17,500 per month in mutual funds, Rs. 12,500 per month in PPF, Rs. 50,000 annually in insurance, and Rs. 50,000 annually in NPS.

Assessing Your Investments
Mutual Funds

Investing in seven different mutual funds is good for diversification.

PPF

PPF is a safe investment with tax benefits.

Insurance

Ensure you have adequate term insurance coverage.

NPS

NPS is good for retirement planning with tax benefits.

Financial Goals and Strategies
Goal: Buying a House
You previously faced a loss in property investment.

Saving for a house should be a priority.

Consider saving separately in a high-interest account.

Goal: Children’s Education
Plan for your children’s education expenses.

Start SIPs in education-focused mutual funds.

Goal: Retirement Planning
You are already investing in NPS and PPF.

Consider increasing contributions to NPS.

Monthly Savings Allocation
Increase Savings

Try to save more from your monthly income.

Aim for saving 25-30% of your income.

Investment Diversification
Equity Mutual Funds

Allocate more to large-cap and mid-cap funds.

These funds offer balanced growth and stability.

Debt Funds

Invest in debt funds for stability and regular income.

Balanced Funds

Consider balanced advantage funds.

These funds provide a mix of equity and debt.

Insurance Review
Term Insurance

Ensure you have adequate term insurance coverage.

A cover of Rs. 1 crore is recommended.

Health Insurance

Ensure comprehensive health coverage for your family.

Emergency Fund
Maintain an emergency fund.

Keep at least 6 months of expenses in a liquid fund.

Professional Guidance
Consult a Certified Financial Planner.

They can provide personalized advice and regular reviews.

Action Plan
1. Increase SIPs

Gradually increase SIP contributions.

Focus on large-cap, mid-cap, and balanced funds.

2. Save for House

Save separately in a high-interest account for buying a house.

3. Plan for Education

Start SIPs in education-focused mutual funds.

4. Review Insurance

Ensure adequate term and health insurance coverage.

5. Maintain Emergency Fund

Keep an emergency fund for at least 6 months of expenses.

Final Insights
Your financial plan should focus on increasing savings, diversifying investments, and planning for future goals.

Regularly review and adjust your investments to stay on track.

Seek professional guidance to ensure a comprehensive financial strategy.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

Ans: Hello;

Your current corpus of 1.28 Cr will not be sufficient to cover 50% of your monthly expenses.

Do you have any EPF/NPS corpus available?

Please confirm so that based on that input we could offer you some solution.

Best wishes;