Family Finance: This Mumbai-based couple can easily achieve their financial goals

Family Finance: This Mumbai-based couple can easily achieve their financial goals

For retirement in 17 years, the couple will need Rs 11 crore, and can assign their stocks, equity mutual funds, and EPF corpus to the goal. They will also have to start an SIP of Rs 1 lakh in a diversified equity fund to achieve the goal. They would also like to buy a car after five years, which will cost Rs 30 lakh. Due to lack of surplus, they can either lower the value of car or buy a second-hand car.

Financial Planner Pankaaj Maalde suggests that the couple first reduce the balance tenure of their home loan to 17 years and end the loan before they reach retirement. Assuming the interest rate to be 6.7%, their EMI will increase to Rs 1.35 lakh from the current Rs 1.3 lakh. Next, the couple needs an emergency corpus of Rs 18.78 lakh, which is equal to their six months’ household expenses. For this, they can start an SIP of Rs 45,000 in liquid or money market fund till the target is achieved.


  • For health insurance, the couple has a family floater plan worth Rs 10 lakh and Maalde suggests that they increase this cover to Rs 20 lakh, which will cost them Rs 2,500 a month in premium. Besides, Maalde advises both of them to buy Rs 50 lakh accidental disability plans, which will cost them Rs 1,333 a month in premium.

  • For life insurance, the couple has two term plans worth Rs 1.25 crore, with a Rs 50 lakh plan for Antariksh and Rs 75 lakh plan for Ankita. For these, they are paying a premium of Rs 2,687 a month. They are also covered by their employers, with a Rs 2.5 crore cover for Antariksh and Rs 50 lakh cover for Ankita. Maalde suggests they continue with these and don’t need any more cover.

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Financial plan by Pankaaj Maalde Certified Financial Planner