34M/F: ₹5.6 Cr net worth - full breakdown & advice needed

[Divya]

34M/F - crossed ₹5.6 Cr net worth. Sharing full breakdown + looking for advice on what we can do better

My wife and I recently did a proper consolidation of everything we own and owe. We don't usually track net worth obsessively.

We're both 34, working professionals, no business income - just salaries, disciplined investing.

For context, our current annual compensation is ~₹60 L each (fixed + variable + equity).

As of now, our combined net worth is ~₹5.65 Cr.

Portfolio

Financial Assets (~₹3.25 Cr)

- Mutual Funds – ₹90 L (mostly SIP‑driven, core of our portfolio)
- Stocks / Equity Investments (mainly RSU) – ₹55 L (had ₹1.2 Cr but sold most of it pre‑pay home loan of current home). These RSU we will continue to sell over time.
- EPF – ₹59.7 L combined
- PPF – ₹42.1 L combined
- NPS – ₹9.3 L combined
- Gold (physical) – ₹52 L combined
- Cash / Liquid Funds – ₹15 L combined
- FDs – ₹6 L combined

Real Estate (~₹2.45 Cr)

Primary home – ₹2.3 Cr (current value)
- Bought for ₹1.03 Cr + ~₹35 L (registration + interiors)
- Outstanding loan: ~₹99.6 L (closing this year)
- EMI: ~₹75 K/month

Second property (under construction)
- Cost: ₹2.28 Cr + ~₹15 L registration
- Invested so far: ~₹23 L

Plan
- Continue SIPs as‑is (not planning to stop equity investing)
- Fund part through salary over next ~4 years
- Take a home loan (~₹1.2 Cr planned, but flexible)

Liabilities
- Home loan: ~₹99.6 L (short term)
- Personal/family loan: ~₹31 L
- Future home loan for new house: estimated around ₹1.2 Cr

Net Worth: ~₹5.65 Cr

Where we're unsure / need advice
We'd really appreciate inputs:
- Are we over‑allocated to real estate + gold vs equities?
- For the second home, since we'll continue SIPs – how should we think about loan vs self‑funding?
  - Take higher loan if yes, how much and stay invested?
  - Or reduce loan and use more salary/cash flow?
- Anything we're missing on tax efficiency or portfolio structure?

[Chitra]

Firstly, congratulations on a great personal net worth – you're doing fantastic.

The advice you're seeking will depend on your personal preference and risk tolerance. You need to answer why you need the second home, whether you plan for kids, and note that about ~20% of your net worth is tied in retirement accounts. There's no right or wrong – it's completely up to you.

Gold is about ~10%, which is fine.

Overall this is fantastic, and it's a good sign that you're trying to optimise it.

[Rahul]

I'm worried that most of your net worth is in real estate.

[Akbar]

I feel there's nothing you need to change right now; you're already very well placed in terms of wealth.

If you're comfortable with real estate, the only thing I'd suggest is creating passive income by renting it out – maybe a commercial building or a standalone property.

Alternatively, a plot of land that can be leased. If you end up with two houses, consider selling one to free up cash and generate passive income.

[Payal]

What's your monthly income?

[Arif]

That M/F tag is really confusing!

[Ayaan]

I'm leaving this sub; I'm not the right audience.

[Gopal]

This no longer belongs in the personal finances sub – it feels like a brag post.

[Khushi]

There's little point in a second home – you're already over‑allocated to real estate. If you really want a second home, you could consider selling the first; one house is enough.

[Rakesh]

Another fake post.

[Arjun]

You didn't mention anything about kids or your monthly savings.

Assuming we don't have that data, here are my thoughts.

You're doing great with the information you've shared.

When your current home loan is paid off, redirect that EMI amount towards the loan for the second home.

Also, apply for the second home loan only after the first one is cleared. That usually gives a better weightage in the lender's assessment.

This approach won't create a big impact on your cash flow.

Make sure you have adequate life and health insurance.

Keep a decent buffer in FDs or liquid funds for emergencies.