I am 37, working in a private company. My wife is a homemaker and my daughter is six months old. I need to save for my financial goals. I live in a rented house in Hyderabad and own a flat in Guntur. Is it good to sell that flat and buy a new one in Hyderabad? I have term insurance for ₹1 crore and health insurance for ₹5 lakh.
Madan
Retirement: Your anticipated retirement corpus is low. In the years to come, when your salary increases, your contribution towards EPF will also improve. This will push up your retirement kitty along with other retirement benefits. The EPF and PPF will account for ₹57 lakh; the shortfall will be ₹93 lakh. When you buy property, your tax liability will come down; so stop investing in PPF. The surplus generated out of tax benefits can be used to build an emergency fund. Your current SIP mutual fund portfolio is neat; continue with the same. Earmark the investment for your child’s goals and a part for your retirement.
The writer is a SEBI-registered investment advisor and founder of MyAssetsConsolidation.com. Send your queries to blinefp@gmail.com