I am going to turn 34 years old this year. Me and my wife earn 3.7 Lakh Per Month In Hand (Post all deductions: Tax, EPF), above included salary and rental. 3 Lakh per month i can invest. How do you suggest i should invest for achieving my goals.
In my family i have my Wife, Son 4 YO and my parents. Live with my parents in my own house so i do not plan to buy house.
My wife and my own current savings:
- 80 lakhs in Equity (PMS and Mutual Funds).
- 45 Lakh in Crypto Currency (Invested 5 lakh very early and i want to stay invested).
- Commercial Real Estate Office Worth 1 Cr. yielding rental of 47 thousand per month.
- 15 Lakh Provident Fund
- 20 Lakh Bank FD & Arbitrage Fund (Emergency Fund)
- 5 Lakh Savings Account (Day today expenses)
Expenses:
- 70k per Month including everything (Daily expense, Vacation, mobile etc).
- Our monthly expense is low as my father is also working and many other expenses (around 50k) are taken care by him only.
I have health insurance cover from my company of 6.5 lakh. Personal medical insurance of 10 lakh. Term insurance from my company of around 1.7 crore. Personal Term Insurance of 4 crore. Zero loans.
Goals:
- 1.5 crore in today's terms 10-12 years later to reconstruct the house.
- 40 lakh, 6 years later for new car.
- 3-4 crore at age of around 55 (For my personal goal).
- 2 crore for my son higher education.
- 30 crore for my retirement.
Ans: Thanks for candidly sharing your goals, current income and savings/investments.
You have adequate term life cover but recommend to cover family and parents with healthcare cover of 50 L as a minimum considering increasing cost of medical treatments and rise in illnesses with age.
Your existing investments are considered as 95 L (Ignoring Emergency fund and saving account balance)
Crypto holdings are considered 0 since they are highly volatile, unregulated and not backed by any tangible asset.
1.5 Cr house reconstruction expenses 12 years hence translates into around 3 Cr considering 6% inflation.
So start a SIP of 90K for 12 years into Nippon India Multicap Fund & HDFC top 100 Fund(50:50)which may yield a corpus of 3.12 Cr(Considering modest return of 13%)
Next goal is car purchase after 6 years so initiate a SIP of 40K in HDFC balanced advantage fund which will yield a corpus of 40L considering modest return of 10.5%
Next goal is a corpus of 3-5 Cr when you will be 55 so you can do a SIP of 50K in PPFAS flexicap fund which will yield a corpus of 5.73 Cr assuming conservative return of 13%
Further important goal is corpus for child education so considering timeframe of 14 years recommend to do a SIP of 50K in HDFC Children's Gift Fund which will yield a corpus of 2Cr+ assuming modest return of 12%
Finally retirement goal of 30Cr assumed to be 25 years from now so you may start a SIP of 70K in ICICI Pru Retirement Fund Pure Equity Plan which yield you a corpus of 15.9 Cr considering modest growth of 13%.
Plus your corpus of 95 L at a modest return of 9.5% will yield a value of 9.18Cr after 25 years
So your total retirement corpus is now 15.9+9.18=25.08 Cr
Further the amount getting released after achievement of all other goals apart from retirement can be redeployed in a value based BAF(HDFC; 10% return) for residual span towards retirement goal.
i.e. 90K for 13 years --2.89 Cr
40K for 19 years--2.73 Cr
50K for 5 years----0.39 Cr
50K for 11 years---1.2 Cr
Total_-----------------------7.21 Cr
Adding this to our earlier calculated retirement corpus gives us comprehensive retirement corpus of 7.21+25.08= 32.21 Cr
Anything you get from Crypto is bonus!!
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