I am 50 and work in the private sector. My wife, 42, is a homemaker. We have a nine-year-old son. After retirement, I will receive a monthly pension of about ₹2,000. I want to save ₹13 lakh for my son’s marriage after setting money aside for his education and our international vacation. Suggest a saving option so that I will be able to lead a similar lifestyle even after retirement.

Prabhu ShankarEducation: You need to save monthly a sum of ₹8,600 for next eight years to meet your son’s education expense of ₹3 lakh annually. Follow asset allocation of 50: 50 towards equity and debt, to earn a portfolio return of 9 per cent.

Two international vacations entailing ₹28 lakh within a span of two years (2017 and 2019) is a luxury at this juncture. If this can be postponed till retirement, your money-back policy maturity proceeds (₹10.5 lakh) can be used towards this goal. After your first vacation, save₹37,000 a month to meet the shortfall needed for your second vacation.

Marriage: Save ₹5,400 for next eight years to have ₹7.59 lakh by 2022 for your son’s marriage, assuming 9 per cent annual return.

Invest the proceeds in instruments fetching post-tax return of 8 per cent for the next seven years, to have ₹13 lakh corpus by 2029.

Retirement: Post retirement, until your son is employed, at an inflation of 7 per cent, you will need a corpus of ₹17.8 lakh to meet your monthly expenses; utilise your gratuity proceeds for this.

Once he becomes independent, earmark assets such as gold, equity and EPF accumulation, totalling ₹90 lakh, for your monthly outgo.

With rental income of ₹31,200 and ₹48,000 monthly post-tax from the above mentioned assets, you may be left with surplus of about ₹10,000 every month, which can be used to meet medical emergencies. Buy a super top-up health insurance plan now and convert it into regular plan at retirement.

The writer is a financial planner and founder of myassetsconsolidation.com. Send your queries to blinefp@gmail.com

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