I am 52 and work in an engineering industry. My wife is a home maker. My son is in class 6. I may get a job and my salary will be ₹20,000. I had modified my home loan recently.
How should I manage my funds to lead a comfortable life?
Solutions: Unscheduled retirement will have an impact on retirement corpus. Since your son is very young, education expenses will continue till you turn 62.
Your home loan outstanding will also impact your retirement kitty. So, it is better to work at least till 60 to protect your capital.
Since your earnings and interest income are going to be around ₹6.2 lakh, continue the EMI for a few more years and once the tax benefits are negligible, close the home loan. From the monthly surplus, if you invest ₹8,000 for six years, it will account for ₹8.4 lakh.
The short fall will be minimal and you can manage education expenses. After 62, you will encounter shortfall in meeting monthly expenses.
So, sell the plot and deploy the money in financial investments to meet the expenses. If you understand mutual funds, invest 30 per cent of the fixed deposits in balanced mutual funds to earn better returns.
The writer is Investment advisor and founder myassetsconsolidation.com