{"id":348463,"date":"2025-12-14T16:01:22","date_gmt":"2025-12-14T16:01:22","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/348463\/"},"modified":"2025-12-14T16:01:22","modified_gmt":"2025-12-14T16:01:22","slug":"avadhoot-joshis-personal-finance-audit-2025","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/348463\/","title":{"rendered":"Avadhoot Joshi’s Personal Finance Audit 2025"},"content":{"rendered":"

Hello friends! This is Avadhoot Joshi. I took my first Personal Finance Audit for the year 2020<\/a>. After that, I review my personal finances in December each year. This is my 2021 audit:\u00a0Why I redeemed from EPF to invest in Equity MFs<\/a>. And this is my 2023 audit:\u00a0I start this year debt-free with a 6.5X retirement corpus<\/a>. I did not share my 2022 and 2024 audits with freefincal readers.<\/p>\n

Inspired by Pattabiraman Sir, here is my year-end (December 2025) Personal Finance review with a lot of gratitude to Pattabiraman Sir & Ashal Jauhari Sir and the AIFW community for shaping my financial journey.<\/p>\n

EMERGENCY\/BUFFER FUND \u2013\u00a0Current emergency fund is equal to 4 months\u2019 expenses.\u00a0<\/p>\n

54% PPCHF \u2013 Parag Parikh Conservative Hybrid Fund Direct Growth Rest in a savings account<\/p>\n

FINANCIAL GOALS\u00a0\u2013 Here comes the next and most important part of the review.\u00a0<\/p>\n

1) Retirement (Officially 22 years away) \u2013\u00a0Currently, I am 38 years old. My wife is a 33-year-old homemaker. Since the beginning, my retirement portfolio has been debt-heavy for two reasons: 1. Being in PSU, hefty PF contributions from self and employer. 2. Started investing in equity very late \u2013 in 2018, i.e. after almost six years of employment.<\/p>\n

I have to invest as much as possible into the equity portion of the portfolio to catch up, and I do not need to bother about asset allocation until my Equity portion grows to at least 50% of the total retirement corpus, which is quite a daunting task.<\/p>\n

The current asset allocation for the retirement portfolio is as follows.<\/p>\n

EPF: 72%UTI Nifty Index Fund (Direct Growth) \u2013 manual SIP every month 28%<\/p>\n

EPFO offered the opportunity to redeem EPF during this COVID Period for 2 years (2020 & 2021), and I used that opportunity to increase my manual SIP in equity to push the equity allocation north. The change in asset allocation since April 2020 is shown below.<\/p>\n

\"Asset<\/a>Asset allocation history of Avadhoot Joshi\u2019s retirement portfolio<\/p>\n

The current Retirement Corpus is equivalent to 8.5 times the current yearly expenses (expenses likely to continue after retirement are included), i.e., 8.5X.\u00a0<\/p>\n

Over the last year, a retirement corpus equivalent to 1 year of expenses was built through investments and returns. One thing to remember is that \u201cX\u201d is not constant but changes every year depending on inflation and lifestyle upgradation.<\/p>\n

Trivia \u2013 Equity portion XIRR is 14.3% (Manual SIP since Dec\u20192018)<\/p>\n

2) Kid\u2019s Graduation\u00a0\u2013\u00a0<\/p>\n

We are blessed with two boys. The first son is 8.5 years old, and the second one is 4 years old. So the investment planning is modified accordingly.<\/p>\n

I had started investing for an education corpus when the first son was 1.5 years old (November 2018) with a 100% Equity Allocation. And the plan was to reduce the equity allocation by 6.25% each year, so that by the time he was ready to graduate, the entire corpus would be in debt instruments.<\/p>\n

After the birth of my second son, I have decided to combine the graduation of both kids as a single financial goal. The revised Asset Allocation plan is shown below.<\/p>\n

\"Avadhoot<\/a>Avadhoot Joshi\u2019s revised Asset Allocation plan<\/p>\n

I really don\u2019t know how this plan will pan out in future. But since time is on our side, I am taking a leap of faith. The withdrawal will start in 2035 & will go on until the second son graduates.<\/p>\n

Returns expectations considered for the investment plan: Equity 10% & Debt 6%. The growth of the Kids\u2019 Education Portfolio until now is as follows.<\/p>\n

\"Growth<\/a>Growth of Avadhoot Joshi\u2019s kids\u2019 future portfolio<\/p>\n

Since the investment journey is in the initial stage, asset allocation is being handled through adjustments to the monthly manual SIP in the Equity\/Debt section. So until now, rebalancing has not been done as such.<\/p>\n

Debt Part of Kids Education Portfolio \u2013 Public Provident Fund (PPF) & Parag Parikh Dynamic Asset Allocation Fund (PPDAAF) \u2013 Direct Growth. Parag Parikh Dynamic Asset Allocation Fund (PPDAAF) is added for future rebalancing, given the illiquidity of PPF.<\/p>\n

Equity Part of Kids Education Portfolio \u2013 Parag Parikh Flexi Cap Fund \u2013 Direct Growth. (79%), PPF (17%)\u00a0 Parag Parikh Dynamic Asset Allocation Fund (4%)<\/p>\n

\u00a0Trivia \u2013 XIRR of Parag Parikh Flexi Cap Fund is 21.7%.<\/p>\n

ASSETS-\u00a0Since all assets are linked to a goal, it is straightforward to keep track.<\/p>\n

LIABILITIES \u2013 We had only one Loan, i.e. Home Loan, running since 2017. During the 2020 audit, I had planned to close it by 2027 with increased EMI. Due to some extra cash flow, we could prepay some amount in between, close the home loan, and become debt-free in December 2023.<\/p>\n

The Y-o-Y changes in Assets, Liabilities, and Net Worth are as follows.<\/p>\n

\"Avadhoot<\/a>Avadhoot Joshi\u2019s Y-o-Y changes in Assets, Liabilities and Net-worth<\/p>\n

PLAN FOR 2026:To increase the emergency fund from the current four months\u2019 expenses to 6 months\u2019 expenses.<\/p>\n

To improve the equity portion in the retirement portfolio to 30% from the current 28%.To add a retirement corpus equivalent to at least one year of expenses through investing alone.To continue investment in Kids\u2019 education as per the plan.<\/p>\n

Thank you.<\/p>\n

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About The Author \"Pattabiraman<\/a>Dr M. Pattabiraman<\/a> (PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras<\/a>. He has over 13 years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X)<\/a>, LinkedIn<\/a>, or YouTube<\/a>. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing<\/a> (CNBC TV18) for DIY investors. (2) Gamechanger<\/a> for young earners. (3) Chinchu Gets a Superpower!<\/a> for kids. He has also written seven other free e-books<\/a> on various money management topics. He is a patron and co-founder of \u201cFee-only India<\/a>,\u201d an organisation promoting unbiased, commission-free, AUM-independent investment advice. Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions!<\/a> \u21d0 More than 3,500 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition!! Watch the first lecture for free!\u00a0 One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence. Increase your income by getting people to pay for your skills!<\/a> \u21d0 More than 800 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner seeking more clients through online visibility, or a salaried individual looking for a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you. (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!\u00a0 \u00a0 Our book for kids: \u201cChinchu Gets a Superpower!\u201d is now available!<\/a>\"Both<\/a>Both the boy and girl-version covers of “Chinchu Gets a superpower”. Most investor problems can be traced to a lack of informed decision-making. We made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about?\u00a0As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So, in this book, we meet Chinchu, who is about to turn 10. The narrative revolves around what he wants for his birthday and how his parents plan for it, as well as teaching him several key ideas of decision-making and money management. What readers say!\"Feedback<\/a>Feedback from a young reader after reading Chinchu gets a Superpower!Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. – Arun. Buy the book: Chinchu gets a superpower for your child!<\/a> How to profit from content writing<\/a>: Our new ebook is for those interested in getting a side income via content writing. It is available at a 50% discount for Rs. 500 only! Do you want to check if the market is overvalued or undervalued? Use our market valuation tool<\/a> (it will work with any index!), or get the Tactical Buy\/Sell timing tool<\/a>! We publish monthly mutual fund screeners <\/a>and momentum, low-volatility stock screeners<\/a>. About freefincal & its content policy. Freefincal is a News Media organisation dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News<\/a>. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence\/data. Contact Information: To get in touch, please use our\u00a0contact form<\/a>. (Sponsored posts or paid collaborations will not be entertained.) Connect with us on social media Our publications<\/p>\n

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