Funds required to meet goals Rs 1 crore

The disposable surplus of '6 lakh can be invested every year in the following manner for the next 25 years:

Invest Rs 25,000 per month in an SIP of balanced (equity and debt) over the next 25 years. This will help in creating a corpus of Rs 75 lakh at cost (R236 lakh in value terms if growth is aimed at 8% a year). 

This will help her for her retirement in full.

Medical insurance be purchased for Rs 3 lakh which will cost a bare minimum of about Rs 7,000 per year. 

No claim bonus will help in later years.

 A sum of Rs 1.5 lakh be parked every year in a PPF yielding 7.6 per cent a year. Over 20 years this shall translate into a future value of Rs 70.6 lakh. 

This money can be used for buying an immediate annuity plan which shall fetch lifelong income.

A sum of Rs 1.5 lakh can be saved in a short term debt fund for five years growing at 7.5 per cent a year which can be withdrawn every five years to meet vacation and foreign travel.

The EPF accumulation presently with funding at same pace, earning 7.6 per cent a year and gratuity at retirement will fetch her about Rs 80 lakh at retirement.

The PPF at maturity can be used to buy an immediate pension policy at retirement or a tax free bond.

Bank deposits may be kept at bare minimum levels to meet contingency requirement  for the next 25 years. 

Create a WILL in favour of her parents and ensure that all financial holdings have a nomination to secure the assets.