Dear Sir, i am query that i have given my saving money of 3.5cr to my own brother and he is good and well caring on my personnel life and giving every month interest of 10% (3.5L), and i am also doing a bit ok on equity stock also 1 year which is anyway bull market now and saving in MF, my question is right handle my money by him as he already got business to handle and i am also have some personnel problems (now and then use drink) which i am really not giving peace to him, i want move out since my family already some what away from me. but all i want make sure this saving grows steadily for my kids for next 5 to 7 years, house wise i have land/apartment but still staying with my parents which also happen next to my brother house. Basically i am back from oversea to india (22 years) spend outside India. Now if really i have to handle what is best way to plan this money as i no longer able to make that kind of money on this age onwards even though i working minimum for my brother company

Ans: Please do not take such decision immediately. It is a good thing that you want to secure your children's future. But as of now, i dont see any such need to sell off your flat. your children may not need this much of money for their education or they may need more. Both the other houses can be rented out and the rentals can be invested in mfs. These funds may be tagged only to their education. Any additional requirements can be funded through education loans.

Ans: Current Financial Situation
You are 50 years old with a salary of Rs 47,000 per month.

Your husband earns Rs 1.5 lakhs per month, but you are in the process of getting a divorce.

Your daughter’s educational expenses are covered by her father.

You currently receive full medical coverage from your husband’s company.

You are unsure if you will retain these medical benefits post-divorce.

Investments and Savings
You have a SIP of Rs 4,000 in a flexi-cap mutual fund.

You have Rs 1,30,000 invested in a multi-cap fund.

You have SIPs in contra and large & mid-cap funds.

You hold Rs 40,000 in a multi-cap fund and a Sensex fund.

You have a recurring deposit (RD) of Rs 15,000 per month, maturing in April 2025.

You have a fixed deposit (FD) worth Rs 2,50,000.

You invested Rs 1,50,000 in DBS Stock Broker Agency, receiving Rs 12,000 monthly interest.

You own gold worth Rs 8 lakhs.

Expenses
Your average monthly lawyer fee is Rs 3,000.

Your job travel costs Rs 5,000 per month.

Goals
You aim for a comfortable retirement with the ability to travel.
Evaluation and Analysis
Diversified Investment Strategy
Your investment portfolio is diversified. You have SIPs in multiple funds, fixed deposits, and gold. This helps mitigate risks and ensures stability.

Mutual Fund Investments
Actively managed funds can outperform index funds due to professional management. Avoid direct funds, which might seem cheaper but lack expert guidance. Invest through a certified financial planner to maximize returns.

Fixed Deposits and Recurring Deposits
Fixed deposits and recurring deposits provide stability but offer lower returns compared to equity funds. Diversify further into equity to balance growth and security.

Stock Broker Investment
The Rs 1,50,000 investment yielding Rs 12,000 monthly interest is beneficial. However, ensure you understand the risks and sustainability of this return.

Gold Investment
Gold is a good hedge against inflation and adds to your diversified portfolio. Keep this investment as it provides liquidity in emergencies.

Recommendations
Emergency Fund
Maintain an emergency fund covering at least 6 months of expenses. Your FD and gold investments can act as a buffer, but consider keeping some liquid cash.

Health Insurance
Post-divorce, you might lose medical coverage. Secure a comprehensive health insurance plan for yourself. This will prevent financial strain due to medical emergencies.

Retirement Planning
Continue SIPs in actively managed funds for higher returns.

Increase SIP contributions if possible, especially in equity funds.

Consider diversifying into debt mutual funds for stability.

Evaluate the performance of your current funds annually and make necessary adjustments.

Travel Goals
Plan for travel expenses by setting aside a portion of your investments. Use the interest from your stock broker investment for travel, ensuring it doesn't impact your retirement corpus.

Legal Expenses
Manage legal expenses efficiently. Use part of your monthly income or interest from investments to cover these costs.

Final Insights
Your diversified investment strategy is commendable. Maintain this approach for balanced growth and stability.

Secure a health insurance plan post-divorce to safeguard against medical emergencies.

Continue and increase SIPs in actively managed mutual funds for higher returns.

Reevaluate your portfolio annually with a certified financial planner to stay aligned with your financial goals.

Set aside funds specifically for travel to enjoy a comfortable retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Hello;

Following is the sum of investments you currently hold:

1. FDs: 1.5 Cr
2. Direct stocks: 2.75 Cr
3. MF corpus: 0.8 Cr
4. Land property: 0.6 Cr
5. PF corpus: 0.35 Cr
6. NPS corpus: 0.2 Cr
Grand TOTAL: 6.20 Cr

You should apply for premature withdrawal of NPS. Since this being premature withdrawal your corpus of 1 Cr will get divided into two components 0.8 Cr worth annuity you will have to buy while rest 0.2 Cr comes to you which is indicated above.

The gold asset worth 50 L is purposely not considered here. It may be used as a emergency safe reserve.

You may invest 6.2 Cr corpus in ICICI Pru equity savings fund (low to moderate risk) and do an SWP at 3% which may yield you a monthly income of ~1.4 L (post tax).

The 0.8 Cr of NPS used to buy annuity will yield you a monthly income of around 40 K (6% annuity rate considered), therefore your total monthly income will be 1.4+0.4=1.8 L.

The average returns of ICICI Pru equity savings fund are 8-9% but it is relatively less risky and this is more important.

To fund overseas education of your son, you may have to partially deplete the corpus apart from emergency gold reserves.

Hence it makes sound practical sense to have term life cover of ~ 2 Cr with riders for critical care and accident benefit for 15-20 years, apart from the health care cover which you have already.

This will ensure son's education and income for regular household expenses remain more or less unaffected in the unfortunate situation of your demise.

Also please keep searching for assignments, if not possible full time, maybe part time or on consultation basis.

This will keep you focused and busy.

Feel free to revert.

Happy Investing;