Do you cash in ur investments often?
I see most of the people have over 60% of their net-worth in some kind of a financial instrument. So do you plan to just take out the investment after some milestone to use it? Like how do u rotate from investment to liquid - on what condition or how often? Like people advice to keep emergency funds worth in bank account but what about sudden big purchases, bills or so? Do u then just sell off the investment and wait for the money to hit ur bank and then proceed with the thing ?
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I keep a sweep in account where if balance goes over a particular threshold amount, it automatically adds into small FDs.
This gives me better returns than just keeping money in savings account. And it also reduces uncertainty which come while cashing out investment.
Apart from this I have a long term corpus (around 1.2 cr as of now) which is invested in low risk instruments like PPF, Index funds, FDs, Blue-chip stocks, GSecs which I would not touch for next 15 years.
The only investment I cash out is the ones which I invest in small/micro cap stocks or futures/crypto trading. I don't keep big amount (at max 15-20 lakhs) in these investments.
What you described is almost near how it works.
< 5 year time horizon to spend - move to debt
5 year time horizon to spend - keep in equity
Liquidating debt to spend is a T+1 activity.