Investments as here under - per year ( this is for me alone, similar numbers for wife as well )
Mutual Funds 750k, EPF 576k, NPS 290000, Insurance premium including Term insurance 90k, Shares and Golds around 10 lakh, Sukanya Smriddhi 1 lakh, PPF 1 lakh.
Assets
Mutual Funds and Stocks - 1.5 crores ( both wife and I )
2 Houses - valued at around 5 crores ( jointly owned )
Liabilities
Principal Outstanding for both the houses - 1.4 crores
EMI of around Rs 1.8 lakhs per month , which wife and I service jointly.
Total take home for both is about 5.5 lakhs per month. We have one daughter who is 6. Focus is to pay off the loans asap and retire with liquid investments of around 7 crores. We are both 38 at the moment.
Please guide.
Ans: Thank you for sharing your financial details. It's great to see that you're actively managing your investments and planning for the future. Here are some suggestions based on your situation:
Loan Repayment Strategy: Since your focus is to pay off the loans as soon as possible, consider allocating a significant portion of your surplus income towards loan repayment. You can also explore options like increasing your EMI amount or making lump-sum payments whenever possible to accelerate the repayment process.
Asset Allocation: Review your asset allocation to ensure it aligns with your financial goals and risk tolerance. Since you have substantial investments in mutual funds, stocks, and real estate, ensure diversification across asset classes to minimize risk.
Retirement Planning: Aim to achieve your target of liquid investments worth 7 crores for retirement. Consider increasing your contributions to EPF, NPS, and mutual funds to accelerate wealth accumulation. Regularly review your retirement portfolio's performance and make necessary adjustments to stay on track.
Emergency Fund: Ensure you have an adequate emergency fund equivalent to at least 6-12 months' worth of expenses. This fund should be easily accessible and kept in liquid assets like savings accounts or short-term fixed deposits.
Insurance Coverage: It's great that you have term insurance in place. Review your insurance coverage periodically to ensure it meets your family's needs, especially considering your daughter's future education and other expenses.
Estate Planning: Given your significant assets, consider consulting with a legal advisor to draft a comprehensive estate plan that includes wills, trusts, and other arrangements to protect your assets and ensure they are distributed according to your wishes.
Regular Review: Periodically review your financial plan, taking into account any changes in your income, expenses, goals, or market conditions. Make adjustments as needed to stay on track towards achieving your objectives.
Remember, financial planning is a journey, and it's essential to stay disciplined and patient. By following a well-thought-out plan and making informed decisions, you can work towards achieving your financial goals and securing a comfortable future for your family.
