A reader asks, “I would like to go abroad on holiday once in two years. How do I plan for this without affecting my other long-term investments?”.
Our robo-advisor tool has a recurring financial goal calculator module, which you can use to plan for all such goals. This can also be used to plan annual expenses like school fees(!).
Let us consider the situation mentioned by the reader. He wants to go on a holiday every two years. That is in 2026,2028 and so on. Let us assume he will go on 20 such holidays.
Let us expect a post-tax return of about 7% (all these settings can be changed at will in the back end, but we recommend using conservative assumptions). The investment can be made via a recurring deposit for a more important goal, like school fees.
The inflation each year is assumed to be 10%. We shall also assume that the reader can increase his investments for this goal by 10% each year. We assume the current cost is Rs. 5 lakhs. This will change from destination to destination. If the maximum budget increases, the calculation should be redone.
We then get an output such as this. The investing is assumed to start in the year mentioned and stop when the sum is required for spending. Since the goal is recurring, only the investment amount changes! Essentially, you get a step-up SIP schedule that ensures you have enough corpus each time the goal recurs. A screenshot of the recurring goal calculator module is shown below.
| Year investing starts | Monthly investment required |
| 2026 | 34,016 |
| 2028 | 41,160 |
| 2030 | 49,803 |
| 2032 | 60,262 |
| 2034 | 72,917 |
| 2036 | 88,229 |
| 2038 | 1,06,757 |
| 2040 | 1,29,176 |
| 2042 | 1,56,303 |
| 2044 | 1,89,127 |
| 2046 | 2,28,844 |
| 2048 | 2,76,901 |
| 2050 | 3,35,050 |
| 2052 | 4,05,410 |
| 2054 | 4,90,547 |
| 2056 | 5,93,561 |
| 2058 | 7,18,209 |
| 2060 | 8,69,033 |
This screenshot of the recurring goal calculator module is from the freefincal robo advisory tool. Four such goals can be accommodated.
While planning for recurring financial goals, investments for other long-term goals mustn’t be disrupted. A balance between the two is essential.
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Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.
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