I am 32 yrs old working in PSU with 95k take home salary. My current investments EPF 12L, NPS 6.5L, MF 22L (SIP 29k/month), FD 4L, emergency fund/sweep-in FD 3.2L, Post office RD 2k/month. I have 1Cr term insurance (till 52 yrs), office health cover 5L p/a for all dependents, and no liabilities. Rent 10k/month, monthly expense 40k + 5k misc. We are expecting a baby in Feb 2026.
My goals: (1) Build 1Cr corpus each after 19, 22, 25 & 28 years from mow (for child education/marriage), (2) Buy 1Cr flat in 10 years, (3) Build 25Cr corpus by 60 yrs for retirement with 7L/month income. Please suggest if my current plan is suitable or what changes I should make to meet these targets.
Ans: Understanding Your Present Financial Landscape
You are 32 years old and working in a PSU.
Take-home salary is Rs. 95,000 per month.
You are married and expecting a baby in Feb 2026.
You stay on rent and have no liabilities.
Current monthly expenses are Rs. 55,000.
Monthly savings are around Rs. 40,000.
Investments show good discipline and clarity.
Your goals are clearly defined and long-term.
You already have a strong foundation.
Breakdown of Existing Investments
EPF balance stands at Rs. 12 lakhs.
NPS balance is Rs. 6.5 lakhs.
Mutual Funds have Rs. 22 lakhs with Rs. 29,000 SIP.
Fixed Deposits worth Rs. 4 lakhs.
Emergency Fund/Sweep-in FD is Rs. 3.2 lakhs.
Post Office RD of Rs. 2,000 monthly.
These are well-allocated across different instruments. But optimisations are needed for long-term goals.
Review of Protection Cover
Term insurance of Rs. 1 crore till age 52.
Office health cover of Rs. 5 lakhs for all dependents.
Term plan is currently limited in tenure.
You need a new term plan till age 60 or 65.
Office health cover may not be enough post-retirement.
Add personal family floater health insurance now.
Opt for Rs. 10–15 lakhs base with super top-up.
This safeguards you from future medical inflation.
Emergency Fund Sufficiency
Sweep-in FD of Rs. 3.2 lakhs is a good move.
Monthly expense is around Rs. 55,000.
Emergency fund should be at least Rs. 3.5–4 lakhs.
Gradually increase it using bonuses and surplus.
Keep it in liquid funds or sweep FDs.
Don’t use mutual funds for emergency needs.
Assessing Child-Related Goals
You have 4 future corpus goals:
After 19 years – Rs. 1 crore (college education)
After 22 years – Rs. 1 crore (post-graduation)
After 25 years – Rs. 1 crore (support for career/marriage)
After 28 years – Rs. 1 crore (marriage/home support)
Points to consider:
These are long-term goals. Equity exposure is suitable.
Rs. 4 crore needed over 3 decades. Inflation must be considered.
SIPs should be increased for these goals over time.
Create separate mutual fund folios for each child goal.
Don't invest in index funds. They can’t beat inflation consistently.
Actively managed funds have better return potential.
Review them yearly with help of CFP and MFD.
Future Home Purchase Goal
Goal: Buy Rs. 1 crore flat in 10 years.
You can use FD maturity and some mutual funds.
Also, begin earmarking a separate SIP for home.
Avoid buying real estate now. Don’t block liquidity.
Build Rs. 25–30 lakhs in debt plus hybrid funds.
Avoid ULIPs or insurance-based products for this goal.
Don’t break child’s fund for home buying later.
Long-Term Retirement Target
You want Rs. 25 crore corpus at 60 years.
Target monthly income after retirement: Rs. 7 lakhs.
You have 28 years for this goal.
Strong time advantage, needs aggressive and consistent saving.
Combine NPS, EPF, and mutual funds for this goal.
Increase equity allocation in retirement funds.
Raise NPS contribution to Rs. 50,000–75,000 annually.
Maximise Section 80CCD(1B) benefit.
Mutual Fund Strategy for Retirement Goal:
You already invest Rs. 29,000 monthly.
Raise it to Rs. 40,000 within 2 years.
Don’t invest in direct plans without guidance.
Direct funds lack review, rebalancing, and human advice.
Regular plans via MFD with CFP ensure active tracking.
Regular plans can better align with changing life goals.
Post Office RD Assessment
Monthly contribution is Rs. 2,000.
Returns are fixed but low and taxable.
Keep this only for safe capital parking.
Not ideal for long-term wealth creation.
Consider pausing and moving that to hybrid funds.
EPF and NPS Review
EPF balance is Rs. 12 lakhs.
It compounds well and is tax-free.
Do not withdraw EPF unless urgent.
NPS at Rs. 6.5 lakhs now.
Consider manually setting 75% equity in NPS.
Auto allocation reduces equity as age increases.
Long term wealth creation needs equity focus.
NPS withdrawal is partly taxed. Plan exit carefully.
Systematic Investment Plan (SIP) Strategy
Current SIP is Rs. 29,000 monthly.
Split SIPs based on specific goals.
Allocate separate funds for each child milestone.
Create dedicated SIP for retirement corpus.
Create SIP for house down payment.
Increase SIPs every year by 10% minimum.
Align your SIPs to long-term risk appetite.
Capital Gains Tax Rules
New rules apply to mutual funds.
Equity MFs:
LTCG above Rs. 1.25 lakhs taxed at 12.5%.
STCG taxed at 20%.
Debt MFs:
Gains taxed as per income slab.
Don’t withdraw lump sum without tax planning.
Use SWP post-retirement to reduce tax hit.
Plan redemptions across years if possible.
Future Inflation and Lifestyle Planning
Baby due in 2026 will add to expenses.
Medical, education and lifestyle costs will increase.
Budget for school fees and healthcare soon.
Don’t ignore spouse’s career break post-childbirth.
Maintain a buffer to support any income gap.
Plan for family vacations, car upgrade, and insurance premiums.
Term Insurance and Coverage Suggestions
Current cover is Rs. 1 crore till age 52.
That is not enough for Rs. 25 crore retirement plan.
Buy new term plan of Rs. 2 crore till age 65.
Keep it separate from existing policy.
Do not buy return-of-premium term plans.
Pure term plans are cheaper and efficient.
Role of Certified Financial Planner
You need professional help to align all goals.
A CFP ensures asset allocation is balanced.
Helps in adjusting investments every year.
Tracks portfolio performance and rebalancing needs.
MFD with CFP certification ensures regular support.
Avoid DIY with direct plans. They cause long-term gaps.
They offer no tracking or ongoing correction.
Your Investment Habits – What’s Working
You started SIPs early. That’s great.
You’re clear on goals and timelines.
You are saving more than 40% of income.
You maintain emergency fund.
You have term cover and health cover.
You are not holding any loans or liabilities.
This gives you full freedom to build wealth.
What Needs Immediate Attention
Increase insurance cover (life and health).
Create separate SIPs for each life goal.
Increase NPS and mutual fund SIPs yearly.
Stop depending only on EPF or RDs.
Don’t consider real estate for investment.
Avoid direct mutual fund platforms.
Don’t invest in index funds.
Focus only on actively managed funds.
Stay away from endowment plans or ULIPs.
Keep long-term money only in mutual funds.
Finally
You have strong cash flows and good habits.
You are on the right path but need fine-tuning.
Create clear buckets for every future goal.
Don’t mix all investments in one SIP.
Increase SIPs every year to beat inflation.
Secure your family with insurance and emergency fund.
Avoid complicated products with low returns.
Stick to active mutual funds through CFP and MFD.
Build a Rs. 25 crore retirement corpus step by step.
With this roadmap, your goals are achievable.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Question by neetu on Jun 24, 2025Hindi
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