Sir, i m 40 yrs old, have two children 11 & 9 years old. Monthly income appx 90000/- P. M. Investing in monthly sip (5 different sector) appx 18000/- p. M. From last 4 years and RD in bank 15000/- p. M. How much i have to invest more for children...

Sir, i m 40 yrs old, have two children 11 & 9 years old. Monthly income appx 90000/- P. M. Investing in monthly sip (5 different sector) appx 18000/- p. M. From last 4 years and RD in bank 15000/- p. M. How much i have to invest more for children education and marriage expenses appx 75 lacs each Monthly expenses abt 40 to 50k. No home loan only one car loan 20 installment pending 9100/-

Ans: It sounds like you've been diligently investing in SIPs and RDs to secure your family's future, which is truly commendable.

Given your children's ages, planning for their education and marriage expenses is a prudent step forward.

To accumulate approximately 75 lakhs for each child's education and marriage, you may need to increase your monthly investments.

Considering your current commitments and expenses, allocating an additional amount towards these goals is essential.

Calculating the required monthly investment involves factoring in the time horizon, expected returns, and inflation.

A Certified Financial Planner can help tailor a plan suited to your specific needs and goals.

Adjusting your budget to accommodate higher monthly investments may be necessary to achieve your financial objectives.

Exploring options like increasing SIP contributions or diversifying your investment portfolio can accelerate wealth accumulation.

Maintaining a balance between meeting your current financial obligations and saving for future goals is crucial.

Regularly reviewing your financial plan and making necessary adjustments ensures you stay on track to achieve your objectives.

Your dedication to securing your children's future is admirable. With careful planning and perseverance, you'll undoubtedly succeed.

Keep up the excellent work, and remember that every rupee saved today is a step closer to a brighter tomorrow for your family.

Ans: You have already started good habits like mutual funds, LIC, SSY, and FD.
That’s a positive step towards your children’s future.

Let’s now study everything from all angles.
We will plan how to take it further in a simple and structured way.

» Start with Understanding Your Financial Picture

– Your age is 38.
– Your annual CTC is Rs. 12 lakhs.
– Your partner earns Rs. 55,000 per month.
– This gives your family a strong income base.
– You already have investments across different options.
– You are concerned mainly about children’s education goals.
– That focus is absolutely right at this stage.

» Look at Existing Investments First

– One-time Mutual Fund: Rs. 1 lakh in 2023.
– Monthly SIP: Rs. 3,000 started in 2021.
– LIC Policy: Rs. 2,200 monthly started in 2023.
– Fixed Deposit: Rs. 50,000 in 2025.
– SSY: Rs. 2,500 monthly for daughter in 2025.

– These are a good start but not enough yet.
– They won’t fully cover higher education costs.
– But you already have a strong base to build on.

» Age and Education Timeline of Your Children

– Son: In 8th Std now.
– He will go to college in 4–5 years.
– Post-graduation may happen 7–8 years from now.

– Daughter: Now 2 years and 11 months old.
– Her college will begin in about 14 years.
– Post-graduation would be 18 years from now.

– These time frames help us plan your SIP amount.

» Current SIP in Mutual Funds

– You are doing Rs. 3,000 monthly since 2021.
– That is a good discipline.
– But this amount alone is not enough.
– The power of SIP works best with goal planning.
– We need to increase monthly saving with clear targets.

» LIC Policy Should Not Be Treated as Investment

– You are paying Rs. 2,200 monthly for LIC.
– LIC traditional plans give low return.
– They mix insurance with investment.
– It is better to keep them separate.

– If this policy is a ULIP or Endowment, consider surrender.
– Check the surrender value.
– Reinvest it in mutual funds through a CFP via MFD.
– This gives better growth and flexibility.

» FD Amount Is Too Small for Future Goals

– FD gives safety, but low returns.
– It may not beat education inflation.
– Don’t rely on FD for college expenses.
– Instead, move this to mutual funds for long-term goals.

– Use a debt fund if goal is within 2–3 years.
– For longer goals, use balanced or hybrid mutual funds.

» SSY for Daughter Is a Good Step

– SSY gives attractive interest and tax benefits.
– Maturity at 21 years is perfect for daughter’s wedding.
– Keep this going without change.
– But remember, SSY is locked-in till 21 years.
– Use mutual funds for education planning separately.

» Estimate Future Education Costs for Son

– College starts in 4–5 years.
– Engineering or medicine can cost Rs. 15–25 lakhs.
– Abroad education can cost even more.
– You may need around Rs. 20 lakhs minimum.

– Start a dedicated mutual fund SIP for his goal.
– Increase SIP amount to Rs. 12,000–15,000 per month.
– Keep this fund separate for son’s education only.

– Use hybrid or multi-cap mutual funds.
– Review performance every year with a Certified Financial Planner.

» Plan for Daughter’s Education Separately

– You have 14–18 years for her education.
– This gives you power of compounding.
– Start new SIP of Rs. 6,000–7,000 monthly only for her.
– You can gradually increase this as your income grows.
– Use diversified equity mutual funds with long-term view.
– Equity helps beat inflation and grow capital.

– You can use step-up SIP option.
– Increase SIP amount by Rs. 500–1000 every year.

» Don’t Mix Both Kids’ Goals in One Investment

– Keep separate SIPs for son and daughter.
– This keeps goal planning clear.
– You can withdraw at right time without confusion.
– Also easier to track how much you have saved for each.

» Avoid Index Funds for Education Goals

– Index funds only track market, no active decisions.
– No protection during market fall.
– No fund manager to handle volatility.
– For kids’ education, you need active growth and risk control.
– Actively managed funds are better in such cases.
– These funds adjust better to market cycles.

» Avoid Direct Mutual Funds Platforms

– Direct funds may look cheaper.
– But no support or monitoring is provided.
– Wrong fund choice can delay your kids’ goals.
– Investing through regular plan via MFD + CFP is better.
– You get personalised advice and portfolio rebalancing.
– You also get updates on market and fund performance.

» Emergency Fund is Also Very Important

– Do you have emergency savings equal to 6 months’ expense?
– If not, please build that first.
– Use liquid mutual funds or sweep FDs.
– This helps you continue SIPs even during job loss or emergencies.
– Kids’ goals should never be stopped midway.

» Consider Term Insurance for Risk Protection

– Check if you have life insurance cover.
– Your LIC plan may not be enough.
– Take term insurance based on your income and liability.
– Premium is low and gives high protection.
– This keeps your kids’ future safe even if something happens to you.

» Use Annual Bonus or Hike Wisely

– Every year, you may get hike or bonus.
– Use part of it to increase SIP amount.
– Even Rs. 1,000 extra per SIP makes huge difference.
– Long-term SIP + Step-up SIP works very powerfully.

» Involve Your Spouse in Planning

– Your partner earns Rs. 55,000 per month.
– She can also start SIP in daughter’s name.
– You can divide responsibilities equally.
– One parent can handle son’s goal, other for daughter.
– This builds teamwork and better financial structure.

» Avoid Gold, Real Estate, and ULIPs for Kids’ Goals

– Gold and real estate have low liquidity.
– Real estate has high cost and risk.
– ULIPs have low return and high charges.
– Use mutual funds only, with proper asset mix.
– You need growth + flexibility, not lock-in products.

» Plan Goal-Wise and Not Just Product-Wise

– Don’t choose product first and fit goal later.
– Always define the goal first.
– Then select mutual fund based on risk and time.
– Your kids’ goals need clarity, not random investing.

» Meet Certified Financial Planner Once Every Year

– Regular reviews are very important.
– Your plan may need changes as market changes.
– Income, expenses, goals may also change.
– A CFP helps you adjust and stay on track.
– Don’t do DIY investing for long-term education goals.

» Finally

– You have started at the right age.
– You are thinking about your kids’ future well in advance.
– With proper planning, you can achieve it.
– Mutual funds offer flexibility, growth, and goal alignment.
– Start separate SIPs for both kids right now.
– Avoid LIC, ULIPs, direct funds, index funds, and real estate.
– Focus on goal-based, actively managed mutual funds.
– Review and adjust every year with a CFP.
– In 10–15 years, you will reach both targets confidently.

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