PLAN OF ACTION

Since health insurance is taken care off by employer, the disposable surplus of `10 lakh every year can be invested in the following manner for the next 15 years:

Term assurance of `100 lakh may be taken for about 20 years which will cost about `25,000 per year.

Invest `1.5 lakh a year in PPF in the names of his two children for the next 15 years. It will be valued at `44.37 lakh growing at 8.10 per cent a year at maturity.

Invest `1.05 lakh per year in Ulip over 15 years. It will yield a future value of `30.79 lakh.

Invest `1 lakh per month in gold ETFs for 15 years which can be used to fund marriage expenses.

Invest `75,000 per month in a systematic investment plan of balanced (equity and debt) aggregating to `9 lakh over the next 15 years. This will help create a corpus of `135 lakh at cost (`263..91 lakhs) in value terms. This will help him to build up the retirement corpus fully. This fund can be placed in a safe debt fund to earn monthly dividends at retirement.

The contributions into PPF and pension plan can be used to buy an immediate pension policy at retirement.

Convert 25 per cent bank deposits into a tax-free bond upto an extent of `50 lakh immediately, maturing 12 years from date. Create a WILL in favour of his spouse and ensure that all financial holdings have a nomination.