I am 50 yrs old. My monthly salary is 80k in hand. My expenses are 20k I live with my wife and 17 years old daughter. My own 1 flats and one plot. flat is self occupied and other is vacant plot. I live in anantapur Andhra Pradesh I have 22 lacs sum assured lic polacy till now yearly one lac premium I will pay. My daughter studying B tech first year. Yearly 1.5 lac collage fee.and house loan emi 40 k. How should I invest my money to live without any financial burden? I have done 1 cr health insurance. Yearly 35 k premium I' ll pay. Please help me build solid financial foundation for my upcoming days
Ans: You have a monthly salary of Rs. 80,000. Your expenses are Rs. 20,000, and your home loan EMI is Rs. 40,000. Your daughter’s college fees are Rs. 1.5 lakh per year. You have one self-occupied flat and a vacant plot.
You also have a sum assured LIC policy of Rs. 22 lakhs with a yearly premium of Rs. 1 lakh. Your health insurance is Rs. 1 crore with a yearly premium of Rs. 35,000.
Income and Expenses Analysis
Monthly Income: Rs. 80,000
Monthly Expenses: Rs. 20,000
Monthly EMI: Rs. 40,000
Surplus Income: Rs. 20,000
Investment Recommendations
Emergency Fund
Maintain an emergency fund. It should cover 6-12 months of expenses. This provides a safety net for unexpected situations.
Health and Life Insurance
You have adequate health insurance. Ensure the premium is paid on time. Reassess your life insurance needs. The current sum assured seems low. Consider increasing it for better security.
Daughter’s Education
Open a separate investment account for your daughter's education. Consider using a mix of equity mutual funds and debt instruments. This ensures a balance of growth and safety.
Mutual Fund Investments
Invest your surplus income in diversified mutual funds. Avoid direct funds; they lack professional management. Regular funds, managed by a Certified Financial Planner, offer expert guidance and better fund selection.
Focus on actively managed funds. These funds have the potential to outperform index funds due to professional management.
Debt Management
Prioritize repaying your home loan. This reduces financial burden and frees up cash flow.
LIC Policy
Evaluate your LIC policy. The premium is high for the sum assured. Consider surrendering it and reinvesting in mutual funds. Mutual funds can offer better returns over the long term.
Retirement Planning
Start a retirement fund. Invest in a mix of equity and debt mutual funds. This ensures growth and stability for your post-retirement years.
Additional Tips
Review your investments periodically. Adjust your portfolio based on market conditions and personal goals.
Maintain proper documentation for all investments. This simplifies future financial planning and legal processes.
Final Insights
A solid financial plan involves balancing current expenses, loan repayments, and future goals. Regular investments in diversified mutual funds can ensure growth and security. Professional guidance from a Certified Financial Planner can further enhance your financial health.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
