I am 41, working in a chemical company and my wife is a home maker. My daughter is six years and my parents are my dependents. I work in North India and my family lives in Erode.
I plan to start plastic business in my native town. Do let me know how to plan for my family and business.
Kalimuthu
Solutions: Since you are having a good surplus, try and accumulate for all the goals before starting the business. Invest for the next six years for goals such as education and marriage and redeploy the same till the respective goal is reached, without making any further investments.
This will ease your financial pressure during the early part of the business. After meeting all the goals, you will have a surplus of ₹7,500, and if you invest the same, after six years, it will account for ₹7.6 lakh.
With this, meet the family expenses for the next three years. To meet the business capital, utilise the chit fund maturity and invest ₹20,000 for the next four years to build the capital.
Earmark the existing fixed deposits as an emergency fund for family as well as for business. At maturity during the latter part of this year, invest in an asset class of equity and debt in 60:40 ratio.
Once your business stabilises, start investing for retirement. Buy a health policy for ₹5 lakh each for you and your parents.
The writer is Investment advisor and founder myassetconsolidation.com