41-year-old V. Deshmukh lives in Mumbai with his housewife wife and six-year-old son. In private service, he brings in a salary of Rs 3.3 lakh per month. Though he has a house worth Rs 1.6 crore, but he lives in a rented house, he has to pay Rs 51,000 per month. Apart from immovable assets, his portfolio includes cash worth Rs 1.5 lakh, equity In form of shares And mutual funds 1.6 crore, and as a loan PPFgold and Insurance 7.9 Lakhs amounting to Rs. He has a car loan of Rs 13 lakh, for which he is paying an EMI of Rs 23,000. His goals include building an emergency corpus, buying a house, saving for his child’s education and marriage, and his retirement.

Anoop Bansal, financial planner at Scripbox, suggests that Deshmukh start by creating an emergency corpus of Rs 5.4 lakh, which is equivalent to his three months’ household expenses. For this, he can allocate his cash and a part of his equity funds, which should be invested in liquid funds. Next, he wants to buy a house worth Rs 3.2 crore, for which he has already made a down payment of Rs 50 lakh. For this, he can allocate his house of Rs 1.6 crore and equity fund of Rs 30 lakh. For the remaining Rs 80 lakh, he can take a loan, the EMI for which will come to Rs 76,452 and can be paid from the surplus.

Deshmukh needs Rs 1 crore for the child’s education in 12 years and this goal can be fully funded from a portion of his stock holding. For the marriage of the child in 23 years, she will need Rs 95.4 lakh and this can also be done from her stock portfolio. Finally, for retirement in 19 years, he will need a corpus of Rs 7.1 crore and can allocate his PPF, gold, insurance maturity value, equity funds and stocks for the target.

Apart from this, he will have to start an SIP of Rs 74,690 in an equity fund. Though he already has an SIP of Rs 79,000 in equity funds, he will have to stop a SIP of Rs 6,000 for a year as the house loan EMI will start soon. For shortfall of Rs 1,690 in retirement SIP, he can either cut his discretionary expenses for one year and use it for SIP or wait for the income to increase next year. For life insurance, Deshmukh has five term plans worth Rs 4.4 crore and one ULIP. Bansal suggests that he surrender the ULIP and continue with the term plan. For health insurance, he has a cover of Rs 7.5 lakh for himself and a floater plan of Rs 35 lakh for his family. He can continue with these and buy a critical illness plan of Rs 10 lakh, which will cost Rs 2,917 per month.

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