mayank dave 44 a doctorate in science works in the private sector he lives in bharuch gujarat with his wife jayshree 43 and two sons harsh 12 and shlok 8 what is the couple saving for they want to save rs 18 lakh and rs 22 lakh for harsh and shloks education respectively they would require these amounts after six and nine years respectively they aim to save a corpus of rs 50 lakh for their sons marriages for their own retirement they wish to continue with the same lifestyle and want to create a corpus of rs 1 crore all the costs will be revised based on inflation where are they todaycash flow the total annual inflow from all sources is rs 2355 lakh against an annual outflow of rs 870 lakh the outflow consists of routine household expenses insurance premium rent emi and tax net worth the total assets are around rs139 crore this includes cash and nearcash assets of approximately rs 191 lakh invested assets worth rs 104 crore assets for selfconsumption worth rs 34 lakh and a home loan outstanding of approximately rs 54 lakh dave has three real estate assets of which two are investmentoriented and one which will be used for personal consumption is under construction and hence the family lives in a rented house contingency fund the balance in savings bank account is rs 70000 bank fixed deposits is of rs 111 lakh approximately and rs 10000 in cash this is equivalent to about 45 months reserve health life insurance the family has a health floater policy of rs 350 lakh dave has a life cover of rs 127 crore out the total sum assured rs 27 lakh is in investmentoriented insurance policies and a rs 1 crore pure term plan savings investment the balance in savings bank account is rs 70000 rs 111 lakh in bank fds other invested assets include shares worth rs 11 lakh equity mutual funds worth rs 15 lakh bonds worth rs 151 lakh and real estate from investment perspective wroth rs 90 lakh fiscal analysis there is a decent fund inflow a savings rate of 66 is very good outstanding liability is 39 of the total assets the family must enhance health insurance though daves life cover is adequate however he should prune investmentoriented life insurance policies overall assets allocation is in favour of illiquid real estate going ahead he should ensure to invest more in assets which can be easily liquidated the way aheadcontingency fund maintain a contingency reserve of rs 12 lakh out of which rs 20000 should be held as cash in hand and the balance in fd linked to a savings bank account additional contingency funds should be utlized to pay back loan health life cover family should have health cover of rs 5 lakh each for the couple and rs 3 lakh each for sons alternatively the can buy family floater policy of rs 15 lakh planning