Your Financial Plan

Suresh Parthasarathy | Updated on January 09, 2018 Published on August 20, 2017


I am 35, I work for a shipping company. My wife is a home-maker. I have a five-year-old son. We will be welcoming our second child shortly. When I come back home from work after four months, my incentive drops by ₹30,000. I wish to create a corpus for my children so they can be financially secure.


It is heartening that you wish to create a fund for your children and given them the flexibility to pursue their passions. If you increase the investment every year by 5 per cent for some of the goals, you can reach all the goals. Since your income drops by ₹30,000 every four months, your surplus too will fall accordingly. So, it is better to consider the monthly surplus at ₹80,000, with a new member to be added to your family.

Deploy your savings account balance in a portfolio with an asset allocation of 50:45:5 in equity-related investments, debt and gold, respectively. If this earns a return of 11 per cent, at retirement your investments will be worth of ₹1.53 crore. To maintain your current standard of living at retirement, you need a corpus of ₹3.6 crore and it should earn at least 1 per cent over and above the inflation rate to sustain you till you turn 85. To meet the shortfall of ₹2.07 crore, you need to invest a sum of ₹23,900 monthly.

Earmark the insurance maturity proceeds for medical emergencies at retirement. If you receive any bonus, keep aside as an emergency fund. During your next visit, buy a term insurance for ₹1 crore.

The writer is a SEBI-registered investment advisor and founder,

Send your queries to

Published on August 20, 2017
This article is closed for comments.
Please Email the Editor