(Source: BloombergQuint)

BQPortfolio: Raveendra Reddy Is All Set To Make Rs 15 Crore, But He Hasn’t Saved For His Kids

BQPortfolio speaks to citizens from across India about their financial goals and helps them access expert advice on how to achieve them.

Raveendra Reddy, a doctor in Ongole, Andhra Pradesh anticipates that he will need to save Rs 15 crore in 26 years to take care of his expenses after he retires.

So far, he has invested around Rs 12 lakh in mutual funds and another Rs 13 lakh in equities. He continues to invest in mutual funds every month to the extent of Rs 41,500. His goal is to save an amount that will give him a monthly income of Rs 5 lakh when he retires. He wants this amount to increase by Rs 25,000 a month every year for 20 years.

Kartik Jhaveri, director at Transcend Consulting, said Reddy should comfortably reach his target over the next 26 years, and in fact is likely to overshoot his goal of Rs 15 crore by at least Rs 5 crore.

But there’s one thing Reddy has not accounted for. He has a child and another one is on the way. Jhaveri said it is prudent for Reddy to allocate Rs 10,000 per child every month to build a fund that will take care of their future expenses.

Watch the full episode here to see what Jhaveri advises Reddy: