Investing for a Planned Retirement

I am 54 year old and working for government of India. Both me and my wife draw an annual salary of ₹15 lakh each. Our kids are 21 and 19 years old. Both of them have completed their graduation this year. We live in government provided quarter. Our monthly expense is ₹40,000.
We have two flats one in Chennai and the other one in Mumbai. Market Value of each flat is ₹1.50 crores. The outstanding loan on Chennai flat is ₹16.60 lakhs. EMI on this loan gets paid out of rent earned from the same property. Loan outstanding on Mumbai property is ₹18.75 lakhs. We have purchased a car recently on which outstanding loan is ₹10.85 lakhs. All three loans will be repaid in next 5 years.
Our family medical bills get reimbursed by my employer. Apart from this, we are covered under wife's office mediclaim policy. Both of us are have insured our lives with term insurance policies. My wife will receive a monthly pension from my employer if anything unfortunate happens to me.
We have also invested into PPF, PF and bank FD. We have always been systematic investors while investing in mutual funds and stocks. We have invested into Franklin India Bluechip, IDFC Premier Equity, Quantum Long Term Equity, HDFC Equity, HDFC Prudence, Birla SL Dynamic Bond, Birla Sunlife Frontline Equity, Birla SL MIP II Savings 6, Reliance Gold Savings. Our stocks portfolio comprise of ACC, Bharat Forge, Coal India, REC, PFC, SBI, Voltas etc.
We wish to accumulate for our son's higher education and for daughter's marriage. I feel we require additional medical coverage for the time we are traveling abroad or domestic with family. My retirement is not a concern as I will get a decent pension, gratuity and other retirement benefits at age of 60. Kindly suggest any tweaks required in my portfolio to achieve my goals.
-- Raghunathan

Overview
You have used your situation well, which will make all your financial goals come true. What more, at a time when most people worry of their retirement and health, you are comfortable on both these counts, being employed with the Government of India.

All your financial goals such as son's higher education, daughter's marriage and the repayment on the two home loans close before your retire. You will comfortably manage to achieve these with your existing savings and investments.

Your investments at the moment are equally divided between equity and debt, which is commendable. Equally admirable, is the way you have gone with your home loans and the strategy to use the rent from one of them to pay its EMI. The one soar point in your investments, is a portfolio of 40 stocks and 9 mutual funds. Our suggestion; you prune the portfolio without losing on diversification and start moving some of your equity holdings to debt as your financial goal approach.

While, you have provisioned for income streams in retirement which should be comfortable, there are some areas that you may have not planned for. For instance, you mention the need for insurance when you are travelling. Assuming your children move out of India in the future, you will face with the need to travel, which is an expense that has not been factored in at the moment. Likewise, there could be expenses even with domestic travel when the time comes. Although you are approaching retirement, do not make the mistake of exiting equities when you have retired.

Do's

• You have investments in good stocks, but tracking the performance of 40 stocks will be taxing. The mutual fund route is convenient and does provide for diversification.
• As you approach your financial goals, start moving some of your equity investments to debt.
• Gradually exit your investments in stocks to bring down their numbers and consolidate the stock portfolio. Move the proceeds from stock investments to debt-oriented hybrid funds as a strategy to move to debt investments to meet the goals that are approaching.
• You have investments in gold funds and gold ETF, start encashing them to utilise for your daughter's wedding.
• After your EMIs and expenses you are left with surplus, which you can utilise to prepay your home loan or increase your investments.

Don'ts

• There is no need to take additional insurance cover for you and your spouse as you are covered by the government employee's scheme. For your concern on medical emergency during travelling, you do not need to buy a basic health insurance policy. Instead, go for a travel insurance policy which will cover you for medical and other uncertainties while on travel for the specific tenure.
• Do not continue your term insurance policy once you have repaid the home loan and met with the goals for your son and daughter.