I am 36 yr old female serving in govt service from last 8 years. Current in hand salary is around 86000.
I have 44000 loan payment due for next 9 years.
I am saving in NPS as per govt rules of deductions.
Can u suggest how I can build good corpus for family as I am the only earning member with 2 young boys ageing 5 and 1n half.
I started saving 15000 in MF sip from last 2 months.
How much corpus will be required.
I have my own house in Delhi and 1 small flat in Gurgaon.
How can grow all this in this future planning and investments..
I want to. Buy a big flat in Gurgaon but right now I don't have savings.
Plz suggest how can I make it possible.
Ans: Current Financial Status
Age: 36 years
Occupation: Government service (8 years)
Monthly Salary: Rs 86,000 (in-hand)
Monthly Loan Payment: Rs 44,000 (for next 9 years)
Savings in NPS: Mandatory government deductions
Mutual Fund SIP: Rs 15,000 (started 2 months ago)
Real Estate: Own house in Delhi and a small flat in Gurgaon
Family: Single earner with two young boys (ages 5 and 1.5 years)
You have a stable job and a clear focus on future planning. Your current investments and real estate assets are good starting points.
Assessing Your Goals
Goal 1: Build a Good Corpus for Family
Time Frame: Long-term (15-20 years)
Primary Need: Financial security for your children’s future
Action: Systematic and disciplined investment in mutual funds and NPS
Goal 2: Buy a Bigger Flat in Gurgaon
Time Frame: Medium-term (5-10 years)
Primary Need: Larger living space in a desirable location
Action: Save aggressively for down payment and plan for a home loan
Recommendations for Investment Strategy
Increase SIP Contributions
Current SIP: Rs 15,000 per month
Suggested Action: Gradually increase SIP contributions as income grows
Fund Selection: Focus on diversified equity mutual funds for long-term growth
Utilise NPS Benefits
Current Savings: NPS as per government rules
Action: Consider making additional voluntary contributions to NPS for higher corpus and tax benefits
Emergency Fund
Importance: Essential for unexpected expenses
Action: Build an emergency fund covering 6-12 months of expenses
Placement: Keep this in liquid funds or a high-interest savings account
Insurance Review
Life Insurance: Ensure adequate coverage for family’s security
Health Insurance: Adequate health coverage for yourself and children
Loan Management
Current Loan: Rs 44,000 per month for 9 years
Action: Continue regular payments; consider prepaying if possible to reduce interest burden
Steps to Achieve a Bigger Flat in Gurgaon
Save for Down Payment
Time Frame: 5-10 years
Action: Allocate a portion of savings specifically for down payment
Investment: Consider short-term debt funds for safety and modest returns
Plan for Home Loan
Preparation: Ensure good credit score and stable financial profile
Loan Tenure: Choose a tenure that keeps EMI affordable within your budget
Increase Savings Rate
Current Savings: Rs 15,000 in SIPs
Suggested Action: Aim to save at least 20% of your income for goals
Building a Retirement Corpus
Set Clear Goals
Target Retirement Age: Determine when you plan to retire
Required Corpus: Estimate the amount needed to sustain your lifestyle post-retirement
Regular Contributions
Increase SIPs: Aim to increase your SIP contributions annually
Consistent Savings: Ensure regular and disciplined savings for long-term growth
Automatic Investments: Set up automatic transfers to investment accounts
Final Insights
You have a solid foundation with a stable job and clear goals. Increase your SIPs, make additional contributions to NPS, and build an emergency fund. Save aggressively for the down payment of a bigger flat and manage your loan efficiently. Regularly review your financial situation and consult a certified financial planner.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
