Topic Details

https://freefincal.com/feed/gn

Last successful fetch

Sun, 14 Dec 2025 09:41:58 +0000

Last ping

Sun, 14 Dec 2025 09:41:58 +0000

Last fetch error

Wed, 21 Jun 2023 20:09:11 +0000 (HTTP 504)

Aggregate statistics

0 fetch request(s) per second to freefincal.com, 0% errors, based on latest 300 seconds

Last item retrieved

Content received

Sun, 14 Dec 2025 09:42:01 +0000

<item>
				<title>Avadhoot Joshi&#8217;s Personal Finance Audit 2025</title>
				<link>https://freefincal.com/avadhoot-joshis-personal-finance-audit-2025/</link>
				<pubDate>Sun, 14 Dec 2025 00:30:43 +0000</pubDate>
								<dc:creator><![CDATA[M. Pattabiraman]]></dc:creator>				<guid isPermaLink="false">https://freefincal.com/?p=327853</guid>
					<description><![CDATA[Hello friends! This is Avadhoot Joshi. I took my first Personal Finance Audit for the...]]></description>

				<content:encoded><![CDATA[<figure><img src="https://freefincal.com/wp-content/uploads/2025/12/Asset-allocation-history-of-Avadhoot-Joshis-retirement-portfolio.jpg" class="type:primaryImage" /></figure><p><span >Hello friends! This is Avadhoot Joshi. I <a href="https://freefincal.com/how-avadhoot-joshi-evaluates-his-investment-portfolio/">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: <a href="https://freefincal.com/why-i-redeemed-from-epf-to-invest-in-equity-mfs/">Why I redeemed from EPF to invest in Equity MFs</a>. And this is my 2023 audit: <a href="https://freefincal.com/i-start-this-year-debt-free-with-a-6-5x-retirement-corpus/">I start this year debt-free with a 6.5X retirement corpus</a>. I did not share my 2022 and 2024 audits with freefincal readers.</span></p>
<p>Inspired by Pattabiraman Sir, here is my year-end (December 2025) Personal Finance review with a lot of gratitude to Pattabiraman Sir &amp; Ashal Jauhari Sir and the AIFW community for shaping my financial journey.</p>
<p><b>EMERGENCY/BUFFER FUND – </b><span >Current emergency fund is equal to 4 months’ expenses. </span></p>
<ul>
<li>54% <span >PPCHF – Parag Parikh Conservative Hybrid Fund Direct Growth </span></li>
<li>Rest in a savings account</li>
</ul>
<p><b>FINANCIAL</b> <b>GOALS</b><span > – Here comes the next and most important part of the review. </span></p>
<p><b>1) Retirement (Officially 22 years away) – </b><span >Currently, 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 – in 2018, i.e. after almost six years of employment.</span></p>
<p>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>
<p><span >The current asset allocation for the retirement portfolio is as follows.</span></p>
<ul>
<li>EPF: 72%</li>
<li><span >UTI Nifty Index Fund (Direct Growth) – manual SIP every month </span>28%</li>
</ul>
<p>EPFO offered the opportunity to redeem EPF during this COVID Period for 2 years (2020 &amp; 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>
<figure id="attachment_327860" aria-describedby="caption-attachment-327860"  class="wp-caption alignnone"><a href="https://freefincal.com/wp-content/uploads/2025/12/Asset-allocation-history-of-Avadhoot-Joshis-retirement-portfolio.jpg"><img fetchpriority="high" decoding="async" class="size-full wp-image-327860" title="Asset allocation history of Avadhoot Joshi's retirement portfolio" src="https://freefincal.com/wp-content/uploads/2025/12/Asset-allocation-history-of-Avadhoot-Joshis-retirement-portfolio.jpg" alt="Asset allocation history of Avadhoot Joshi's retirement portfolio" width="1280" height="720" srcset="https://freefincal.com/wp-content/uploads/2025/12/Asset-allocation-history-of-Avadhoot-Joshis-retirement-portfolio.jpg 1280w, https://freefincal.com/wp-content/uploads/2025/12/Asset-allocation-history-of-Avadhoot-Joshis-retirement-portfolio-300x169.jpg 300w, https://freefincal.com/wp-content/uploads/2025/12/Asset-allocation-history-of-Avadhoot-Joshis-retirement-portfolio-644x362.jpg 644w, https://freefincal.com/wp-content/uploads/2025/12/Asset-allocation-history-of-Avadhoot-Joshis-retirement-portfolio-768x432.jpg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /></a><figcaption id="caption-attachment-327860" class="wp-caption-text">Asset allocation history of Avadhoot Joshi&#8217;s retirement portfolio</figcaption></figure>
<p><span >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. </span></p>
<p><span >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 “X” is not constant but changes every year depending on inflation and lifestyle upgradation.</span></p>
<p><span >Trivia – Equity portion XIRR is 14.3% (Manual SIP since Dec’2018)</span></p>
<p><b>2) Kid’s Graduation</b><span > – </span></p>
<p><span >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.</span></p>
<p><span >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.</span></p>
<p>After the birth of my second son, I have decided to combine the graduation of both kids as a single financial goal. <span >The revised Asset Allocation plan is shown below.</span></p>
<figure id="attachment_327863" aria-describedby="caption-attachment-327863"  class="wp-caption alignnone"><a href="https://freefincal.com/wp-content/uploads/2025/12/Avadhoot-Joshis-revised-Asset-Allocation-plan.jpg"><img decoding="async" class="size-full wp-image-327863" title="Avadhoot Joshi's revised Asset Allocation plan" src="https://freefincal.com/wp-content/uploads/2025/12/Avadhoot-Joshis-revised-Asset-Allocation-plan.jpg" alt="Avadhoot Joshi's revised Asset Allocation plan" width="896" height="764" srcset="https://freefincal.com/wp-content/uploads/2025/12/Avadhoot-Joshis-revised-Asset-Allocation-plan.jpg 896w, https://freefincal.com/wp-content/uploads/2025/12/Avadhoot-Joshis-revised-Asset-Allocation-plan-300x256.jpg 300w, https://freefincal.com/wp-content/uploads/2025/12/Avadhoot-Joshis-revised-Asset-Allocation-plan-644x549.jpg 644w, https://freefincal.com/wp-content/uploads/2025/12/Avadhoot-Joshis-revised-Asset-Allocation-plan-768x655.jpg 768w" sizes="(max-width: 896px) 100vw, 896px" /></a><figcaption id="caption-attachment-327863" class="wp-caption-text">Avadhoot Joshi&#8217;s revised Asset Allocation plan</figcaption></figure>
<p><span >I really don’t 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 &amp; will go on until the second son graduates.</span></p>
<p><span >Returns expectations considered for the investment plan: Equity 10% &amp; Debt 6%. The growth of the Kids’ Education Portfolio until now is as follows.</span></p>
<figure id="attachment_327865" aria-describedby="caption-attachment-327865"  class="wp-caption alignnone"><a href="https://freefincal.com/wp-content/uploads/2025/12/Growth-of-Avadhoot-Joshis-kids-future-portfolio.jpg"><img decoding="async" class="wp-image-327865 size-full" title="Growth of Avadhoot Joshi's kid's future portfolio" src="https://freefincal.com/wp-content/uploads/2025/12/Growth-of-Avadhoot-Joshis-kids-future-portfolio.jpg" alt="Growth of Avadhoot Joshi's kids' future portfolio" width="885" height="527" srcset="https://freefincal.com/wp-content/uploads/2025/12/Growth-of-Avadhoot-Joshis-kids-future-portfolio.jpg 885w, https://freefincal.com/wp-content/uploads/2025/12/Growth-of-Avadhoot-Joshis-kids-future-portfolio-300x179.jpg 300w, https://freefincal.com/wp-content/uploads/2025/12/Growth-of-Avadhoot-Joshis-kids-future-portfolio-644x383.jpg 644w, https://freefincal.com/wp-content/uploads/2025/12/Growth-of-Avadhoot-Joshis-kids-future-portfolio-768x457.jpg 768w" sizes="(max-width: 885px) 100vw, 885px" /></a><figcaption id="caption-attachment-327865" class="wp-caption-text">Growth of Avadhoot Joshi&#8217;s kids&#8217; future portfolio</figcaption></figure>
<p>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>
<p>Debt Part of Kids Education Portfolio – Public Provident Fund (PPF) &amp; Parag Parikh Dynamic Asset Allocation Fund (PPDAAF) – Direct Growth. Parag Parikh Dynamic Asset Allocation Fund (PPDAAF) is added for future rebalancing, given the illiquidity of PPF.</p>
<p>Equity Part of Kids Education Portfolio – Parag Parikh Flexi Cap Fund &#8211; Direct Growth. (79%), PPF (17%)  Parag Parikh Dynamic Asset Allocation Fund (4%)</p>
<p><span > Trivia – XIRR of </span><span >Parag Parikh Flexi Cap Fund is 21.7%.</span></p>
<p><b>ASSETS- </b><span >Since all assets are linked to a goal, it is straightforward to keep track.</span></p>
<ul>
<li>Debt 61%</li>
<li>Equity 39%</li>
</ul>
<p>LIABILITIES – 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>
<p>The Y-o-Y changes in Assets, Liabilities, and Net Worth are as follows.</p>
<figure id="attachment_327866" aria-describedby="caption-attachment-327866"  class="wp-caption alignnone"><a href="https://freefincal.com/wp-content/uploads/2025/12/Avadhoot-Joshis-Y-o-Y-changes-in-Assets-Liabilities-and-Net-worth.jpg"><img decoding="async" class="size-full wp-image-327866" title="Avadhoot Joshi's Y-o-Y changes in Assets, Liabilities and Net-worth" src="https://freefincal.com/wp-content/uploads/2025/12/Avadhoot-Joshis-Y-o-Y-changes-in-Assets-Liabilities-and-Net-worth.jpg" alt="Avadhoot Joshi's Y-o-Y changes in Assets, Liabilities and Net-worth" width="921" height="484" srcset="https://freefincal.com/wp-content/uploads/2025/12/Avadhoot-Joshis-Y-o-Y-changes-in-Assets-Liabilities-and-Net-worth.jpg 921w, https://freefincal.com/wp-content/uploads/2025/12/Avadhoot-Joshis-Y-o-Y-changes-in-Assets-Liabilities-and-Net-worth-300x158.jpg 300w, https://freefincal.com/wp-content/uploads/2025/12/Avadhoot-Joshis-Y-o-Y-changes-in-Assets-Liabilities-and-Net-worth-644x338.jpg 644w, https://freefincal.com/wp-content/uploads/2025/12/Avadhoot-Joshis-Y-o-Y-changes-in-Assets-Liabilities-and-Net-worth-768x404.jpg 768w" sizes="(max-width: 921px) 100vw, 921px" /></a><figcaption id="caption-attachment-327866" class="wp-caption-text">Avadhoot Joshi&#8217;s Y-o-Y changes in Assets, Liabilities and Net-worth</figcaption></figure>
<p>PLAN FOR 2026:To increase the emergency fund from the current four months’ expenses to 6 months’ expenses.</p>
<ol>
<li>To improve the equity portion in the retirement portfolio to 30% from the current 28%.</li>
<li>To add a retirement corpus equivalent to at least one year of expenses through investing alone.</li>
<li>To continue investment in Kids’ education as per the plan.</li>
</ol>
<p>Thank you.</p>
<p>The post <a href="https://freefincal.com/avadhoot-joshis-personal-finance-audit-2025/">Avadhoot Joshi&#8217;s Personal Finance Audit 2025</a> appeared first on <a href="https://freefincal.com">freefincal</a>.</p>
]]></content:encoded>
		<post-id xmlns="com-wordpress:feed-additions:1">327853</post-id>			</item>