R. Singh has retired at the age of 60 and lives in Delhi with his 56-year-old wife. Apart from his self-occupied house, Singh has two other properties, which have a total value of Rs 5.5 crore. his total revenue 1.25 lakh per month from rent and other sources. Apart from immovable assets, his portfolio includes Rs 6 lakh in cash, in the form of equity shares And mutual funds Loans in the form of Rs 30.6 lakhs, and Rs 88.9 lakhs as fixed deposits, PPF, bonds and insurance value. His goals include building an emergency fund, saving for a vacation, buying a car and creating wealth over the next few years.

According to Fincart, all these goals can be achieved with a current retirement fund as there are no debts, liabilities and the couple lives in their own home. Singh can start by creating an emergency corpus of Rs 5.6 lakh, which is equivalent to his six months’ household expenses. He can allocate his cash holding of Rs.6 lakh to meet this target. this amount should be Investment In short duration funds.

After this, Singh wants to go on leave with his wife in two years, for which he needs Rs 7.86 lakh. it can be obtained from them Fixed deposit Rs 42 lakh and Rs 6.9 lakh should be reallocated to bond funds to grow to the required amount in two years. He also wants to buy a car worth Rs 16.6 lakh in three years’ time and this goal can also be achieved by dipping into fixed deposits. To increase the specified amount in three years to an income fund of Rs. 13.2 lakh should be invested. In the end, Singh wants his wealth to grow to Rs 2.68 crore in 10 years. For this, he can allocate his stocks, mutual funds, fixed deposits, bonds, PPF and insurance value to the target, rebalancing the fixed deposit and insurance value to a mix of balanced, flexi-cap and short duration funds. can allocate.

For life insurance, Singh does not need a term plan as he has enough money to secure his dependent wife. They have one traditional plan and three ULIPs for which they are paying a hefty premium of Rs 58,543 per month. Fincart suggests to continue with the traditional plan and discontinue the expensive ULIPs. For health insurance, Singh has a medical cover of Rs 10 lakh for himself and Rs 10 lakh for his wife. Apart from this, he has a top-up plan of Rs 20 lakh. These covers should be enough for now, but Singh can keep a buffer amount of Rs 5 lakh for emergency medical needs, if he so desires.

Write to us for expert advice

Looking for a professional to analyze your investment portfolio? Write to us at etw57ealth@timesgroup.com with ‘Family Finance’ as the subject. Our experts will study your portfolio and give you objective advice on where and how much you need to invest to reach your goals.