Khare initially connected with a Mumbai-based financial planner who was also a mother to an autistic child. This introduction to full-scale financial planning was a revelation, but the distance proved impractical.
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“I needed an advisor I could meet in person when I wanted. Mumbai was not feasible,” Khare explains. In 2021, she met Jitendra Solanki, a Ghaziabad-based registered investment advisor specializing in financial planning for families with special-needs children. This partnership worked well as the couple frequently travels to Delhi-NCR, where they have relatives.
The NPS advantage
When the Khare family approached Solanki, they had no investments in mutual funds. However, their investment in the National Pension System (NPS), initiated through their employer benefits, had led to a 42% equity exposure by 2024.
Additionally, they owned three properties in Bhopal and had some fixed deposits and savings in their bank account. Solanki excluded real estate from their asset allocation, as those properties were intended for self-occupation. Their initial NPS corpus of ₹1.3 crore in 2021 grew to nearly ₹2 crore, providing a strong foundation for the substantial retirement corpus they needed. The external internal rate of return (XIRR) stood at 9.30% since the start.
Other pressing financial goals also loomed large.
One immediate goal for Khare in 2021 was to sell one of their three properties to purchase an assisted-living home in Dehradun for their son. “We learned about Project Arunima, a lifetime residential project for individuals with autism and other developmental disabilities. Each specially-abled resident above the age of 18 years lives in an individual flat but is surrounded by personalized care. We bought a flat for our son here by selling a Bhopal-based property. Apart from the flat, we also pay ₹50,000 monthly for different activities and support my son requires there,” Khare shares. These flats are co-owned by Arunima and the parents to ensure they remain within the special needs community.
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Next, the couple aimed to merge their remaining two properties in Bhopal into a duplex and renovate it. These were their self-identified key goals, executed soon after collaborating with Solanki. He also helped them identify other critical goals, such as building an emergency corpus, securing their retirement corpus, and ensuring their son’s future. Among lifestyle goals, the couple planned to upgrade their car by 2030.
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The dual challenge
Financial planning for a family with a special-needs child differs significantly from that of a typical family. The Khares faced the dual challenge of securing their financial future and their son’s.
“We suggested creating two financial plans—one for the special needs child, accounting for his lifetime expenses, and another for the rest of the family. It turned out that they needed nearly ₹5 crore by the time they retire only for the son. Add to it another ₹5 crore for their own retirement life,” says Solanki.
Solanki advised setting up a private trust for their son to ensure his financial well-being after they are gone. This required an upfront expense of ₹1.5 lakh. “We have named our relatives as trustees who will look after him after we are no more,” Khare notes.
The next step was to start investing to cover any shortfall they might face, even after allocating existing assets. These investments should ideally last their son’s lifetime. “We recommended that Rachna allocate her assets for her son’s financial planning while Ajay’s assets were reserved for their retirement,” Solanki explains.
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The couple now invests ₹25,000 monthly in mutual funds to cover the shortfall in their retirement corpus and their son’s financial needs. Their mutual fund investments began just last month. “Their MF portfolio has been designed in a way that 50% of the portfolio will be in equities, 10% in gold mutual funds and the rest in long-term debt funds,” says Solanki.
Insurance challenges and coverage
The Khare family couldn’t secure a new term insurance plan due to their age and health issues. Rachna has an old term plan with a ₹65 lakh life coverage. They also hold two traditional life insurance policies and a pension plan. The traditional policies will mature in 2028 and 2034, while the pension plan will start generating ₹1 lakh annually from 2025.
The family doesn’t have private medical insurance, but they are covered under the Central Government Health Scheme along with their son. They’ve also bought two private health plans for Rachit, one of which has been converted into a general health plan as per the company policy once the policyholder reaches 25 years of age.
Additionally, they’ve invested in two LIC Jeevan Vishwas policies for their son, with maturity dates in 2025 and 2028. This policy pays 20% of the maturity amount as a lump sum, while the remainder converts into regular payments. “This exclusive LIC plan for persons with disabilities was withdrawn in 2014 but continues for existing policyholders,” Solanki adds.
What if something happens to the parents today? Will Rachit’s financial life still be secure? “There are enough resources to meet Rachit’s goals (even) in absence of parents, thanks to their employer benefits, NPS savings, real estate and cash value of all life insurance policies they have,” Solanki assures.
The couple plans to buy a retirement home in Dehradun to live closer to their son’s assisted living community. “We will be selling our Bhopal house to buy a new home in Dehradun,” Khare says.
The family pays Solanki ₹30,000 annually for financial guidance, including investment implementation services.
“We don’t have to initiate investments ourselves. They initiate it, and we only approve the transactions…all investments are in direct mutual funds,” Khare explains. Solanki also advises them on non-financial matters such as vision planning, letters of intent, child transition phases, and residential living arrangements.
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The couple has a message for other parents of special needs children: Seek the help of a financial adviser. It’s truly worth the cost. “We started late, but the sooner you begin, the better off you’ll be,” they advise.