DELHI: Lt Col Jit Bahadur Chettri, a 39-year-old Indian Army officer, is posted in a remote area in North-East India. His wife Ritu is also an officer in the Army Education Corps. They have two sons, Sparsh (9) and Utkarsh (7). Chettri represents that rare breed of officers who are financially well-aware of the need to meet their financial goals comfortably. When Lt Col Chettri approached us for financial planning this year, his family already had a well-diversified investment portfolio. With a gross monthly pay of around Rs 1.8 lakh and the family spread over two locations, the couple had kept monthly expenses well under control at Rs 48,000, including a Rs 15,000-sup-port to their parents.
Since they had already accumulated more than Rs 10 lakh combined in their DSOPF (Defence Services Officers' Provident Fund), they had sensibly pared their further monthly contributions to Rs 12,000.
They had Rs 8,000 of monthly SIPs in equity mutual funds where they had accumulated Rs 5 lakh. They had a good real-es-tate portfolio worth Rs 1.80 crore, consisting of four residential houses and land, including a house where they finally wish to settle down. For this, they had home loans totalling Rs 68 lakh, with EMIs of Rs 66,000, which were being comfortably paid. We found their net worth to be a healthy Rs 1.30 crore after considering all the assets and li-abilities. However, they had a multitude of insurance policies where they were paying premium of Rs 60,000 per year. There were some policies taken by their parents for them over a period of time of which they had no details. In their SWOT analysis, we found their balanced exposure to debt, maintenance of some (though less) contingency funds, high net worth and investing in real estate at an early age, to be their strengths.