Your Financial Plan

Suresh Parthasarathy | Updated on March 10, 2018 Published on December 10, 2017

I am 55, I have taken VRS from government service. My wife is a home-maker. My son, 23, works in a private company. His aspiration is to enter the cine field. I am planning to start automobile spare parts manufacturing with my friend. I have no experience in the field. Is it a good idea to invest my retirement proceeds?


Your intention to support your son till he establishes himself in the cine industry is understandable. But we know that it is a highly competitive industry and it takes time to get a breakthrough. Since he is young and single, most of his needs are day-to-day expenses that may be in the ₹15,000-20,000 range, per month.

To support this expense, you are taking the big risk of starting a business in unfamiliar terrain. Also, investing your entire savings on this is totally unwarranted. Not only that, in case your business needs more capital, you will have to borrow, or sell your plot. This will further reduce your asset. Moreover, as inflation keeps growing, your monthly requirement will almost double after 10 years. So, preserve the capital to lead a peaceful life.

Since you have the appetite for business, go for asset allocation and invest 50 per cent of the investments in balanced funds. This will help you earn a better portfolio return than your current interest of 7.25 per cent. A piece of advice, if the market gives abnormal returns, say 25-30 per cent, please rebalance the portfolio.

Withdraw 8 per cent every month to meet family expenses. This will help your investments grow. Drop the idea of starting a business.

The writer is a registered investment advisor and founder, Send your queries to

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Published on December 10, 2017
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