I am an NRI, aged 47. Due to personal reasons I am planning to settle down in India. If I am unable to get a job, will I be able to sustain myself for the rest of my life with my savings? How do I need to rejig my portfolio to meet my goals?

Ganesh Subramanian

Over the years you have built up tidy savings but your portfolio could be better. Despite that, you can meet all your goals and live comfortably for your lifetime without taking up a job. Considering your expense as ₹3 lakh per annum, to meet your expenses, you need to earmark ₹95.66 lakh and the portfolio should earn returns at least 1 per cent above inflation. Of the fixed deposits, earmark ₹1 crore for your retirement.

To meet unexpected emergencies and to provide for annual vacations, earmark another ₹21.1 lakh from your deposits. The rental income and pension from insurance will be a cushion later in your life.

Children’s future : If you invest ₹23.31 lakh from fixed deposits and the portfolio earns 11.4 per cent return, it will account for ₹40 lakh. Follow the asset allocation of 55:35:10 in equity, debt and gold.

If you wish to send your daughter abroad for education, earmark ULIP for this purpose. Allocate ₹10 lakh from FDs for marriage. Invest 60 per cent of the assets in equity mutual fund. At a later date, if you wish to spend more for the marriage, allocate a portion from PPF to meet the shortfall.

If your stocks and mutual fund deliver 15 per cent return, by the time you turn 60, it will account for ₹84.2 lakh. Since you have adequate assets, do not buy term insurance.

The writer is a financial planner and founder, myassetsconsolidation.com

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