विशेषज्ञ की सलाह चाहिए?हमारे गुरु मदद कर सकते हैं
Ramalingam Kalirajan |10872 Answers |Ask -Follow
Mutual Funds, Financial Planning Expert - Answered on Apr 23, 2025
Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Asked by Anonymous - Apr 04, 2025
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I am 37, working in IT industry. I want to retire at 50. I have 15L in EPF, 32L in PPF, 16L in mutual funds (50K per month SIP), 10L in FD/savings account. How should I allocate and use this money for my goals of (1)retirement, (2)travel (would like at least 4 foreign vacations in next 20 years) and (3)my 4-year old daughter's higher education (UG and PG). What category of money should be allocated and be kept for which need ? Please advise. I have an own house and no home loans. I'm covered with health insurance and 2Cr term insurance.
Ans: You are in a strong financial position. You’ve done well till now.
You are already disciplined. That gives you an edge. Let's now design a 360-degree plan for:
Retirement at 50
Foreign travel (4 trips in 20 years)
Daughter’s UG and PG education
We will divide your current and future savings into goal-based buckets.
Let’s analyse each in detail.
Retirement at Age 50
You have 13 years left for retirement.
You already have:
Rs. 15L in EPF
Rs. 32L in PPF
Rs. 16L in Mutual Funds
Rs. 10L in FD/Savings
You also invest Rs. 50,000 per month in mutual funds.
Let’s break this down.
1. EPF (Rs. 15L)
This is for retirement only.
Do not withdraw after retirement until really needed.
Let it grow till age 58 to get maximum value.
2. PPF (Rs. 32L)
This is also for long-term.
Do not use for travel or education.
Let it continue for retirement needs after 60.
3. Mutual Funds (Rs. 16L + Rs. 50K/month)
This is your flexible and growth-focused pool.
Use part of this for retirement and part for other goals.
You should increase SIP slowly every year by 10-15%.
4. FD/Savings (Rs. 10L)
Keep Rs. 3L as emergency fund.
Rest Rs. 7L should be shifted to mutual funds in 4-6 tranches.
Keep emergency money in sweep-in FD or liquid funds.
Action Plan for Retirement Corpus:
EPF and PPF to be untouched till age 58+.
Out of your MF SIP, allocate 60% for retirement.
So Rs. 30K per month is earmarked for retirement.
Review every year to increase SIP.
After Age 50 (Retirement)
Use SWP from your mutual funds.
Withdraw monthly based on income need.
After age 58, also use EPF and PPF interest.
Foreign Travel Goals (4 Trips in 20 Years)
You want to take 4 foreign trips in the next 20 years.
Let’s break it into 4 parts:
Trip 1: In 4-5 years
Trip 2: In 9-10 years
Trip 3: In 14-15 years
Trip 4: In 19-20 years
Recommended Allocation
These are not urgent. But not too long term either.
You can fund these from mutual funds (travel bucket).
Allocate 10% of your SIPs for travel. That’s Rs. 5K per month.
Execution Plan:
Use a separate goal-based mutual fund for this.
For Trip 1, move funds to arbitrage/liquid fund 1 year before.
For later trips, keep money in equity funds for growth.
Extra Strategy:
You can top-up travel fund using bonuses or yearly incentives.
Avoid using EPF, PPF, or FD for travel.
Daughter’s Higher Education
She is 4 years now. UG is due in 14 years. PG in 18-20 years.
This is a must-plan goal. And emotionally important.
You need a dedicated education corpus.
Ideal Approach
Create a dedicated mutual fund portfolio.
Allocate 30% of your current SIP for this. That’s Rs. 15K/month.
Suggested Plan
Choose funds with 14-18 year horizon.
As UG approaches, shift corpus to low-risk funds gradually.
Don’t mix this money with your retirement or travel funds.
Additional Tips:
Never fund her education using EPF or PPF.
You can use part of PPF only if essential after age 60.
Do not plan education fund through FDs. Returns are low.
Summary of SIP Allocation (Rs. 50,000 per month)
Retirement: Rs. 30,000 per month
Daughter’s Education: Rs. 15,000 per month
Foreign Travel: Rs. 5,000 per month
Suggestions to Optimise Your Wealth
Let’s now review some financial strategies.
1. Increase SIP Every Year
As income grows, increase SIP by 10-15% yearly.
Even Rs. 5,000 more each year adds up well in long term.
2. Avoid FDs Beyond Emergency Corpus
You already have Rs. 10L in FD/savings.
Only Rs. 3L should remain for emergencies.
Move balance slowly to mutual funds.
3. Use Regular Funds via MFD
Avoid direct plans.
Direct funds lack expert guidance and goal tracking.
Investing via CFP-backed MFD brings expertise and discipline.
4. Avoid Index Funds
Index funds may look low-cost.
But they follow markets blindly.
No downside protection during falls.
Actively managed mutual funds can outperform index funds.
A CFP-backed MFD can help choose quality funds.
5. Tax Efficiency
Equity fund gains over Rs. 1.25L/year are taxed at 12.5%.
Short-term gains are taxed at 20%.
Plan redemptions carefully for each goal.
Debt fund gains are taxed as per your income slab.
So avoid debt funds for long term. Use them only before goal.
6. Goal Review Every Year
Once a year, review all goals with a CFP-backed MFD.
Adjust SIPs if needed. Rebalance funds annually.
What You Don’t Need Now
No need for more insurance. You already have Rs. 2Cr cover.
No need for child plans or ULIPs.
Avoid real estate for investing. It lacks liquidity.
What More You Can Do
Create a will once your daughter turns 10.
Jointly own investments with spouse for safety.
Maintain a separate emergency fund of Rs. 3L always.
Final Insights
You’ve already taken important steps. You’ve started early and built discipline.
Now the focus should be to:
Increase SIPs steadily
Avoid mixing short-term needs with long-term goals
Use mutual funds in a goal-based way
Keep tax efficiency in mind
Review your plan every year
All three goals—retirement, education, and travel—are achievable.
If you follow this structured and flexible plan, you will reach your goals peacefully.
Keep money separated by goals. Review it yearly with a CFP-backed MFD. You will create long-term financial security.
Wishing you success and freedom ahead!
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
You are already disciplined. That gives you an edge. Let's now design a 360-degree plan for:
Retirement at 50
Foreign travel (4 trips in 20 years)
Daughter’s UG and PG education
We will divide your current and future savings into goal-based buckets.
Let’s analyse each in detail.
Retirement at Age 50
You have 13 years left for retirement.
You already have:
Rs. 15L in EPF
Rs. 32L in PPF
Rs. 16L in Mutual Funds
Rs. 10L in FD/Savings
You also invest Rs. 50,000 per month in mutual funds.
Let’s break this down.
1. EPF (Rs. 15L)
This is for retirement only.
Do not withdraw after retirement until really needed.
Let it grow till age 58 to get maximum value.
2. PPF (Rs. 32L)
This is also for long-term.
Do not use for travel or education.
Let it continue for retirement needs after 60.
3. Mutual Funds (Rs. 16L + Rs. 50K/month)
This is your flexible and growth-focused pool.
Use part of this for retirement and part for other goals.
You should increase SIP slowly every year by 10-15%.
4. FD/Savings (Rs. 10L)
Keep Rs. 3L as emergency fund.
Rest Rs. 7L should be shifted to mutual funds in 4-6 tranches.
Keep emergency money in sweep-in FD or liquid funds.
Action Plan for Retirement Corpus:
EPF and PPF to be untouched till age 58+.
Out of your MF SIP, allocate 60% for retirement.
So Rs. 30K per month is earmarked for retirement.
Review every year to increase SIP.
After Age 50 (Retirement)
Use SWP from your mutual funds.
Withdraw monthly based on income need.
After age 58, also use EPF and PPF interest.
Foreign Travel Goals (4 Trips in 20 Years)
You want to take 4 foreign trips in the next 20 years.
Let’s break it into 4 parts:
Trip 1: In 4-5 years
Trip 2: In 9-10 years
Trip 3: In 14-15 years
Trip 4: In 19-20 years
Recommended Allocation
These are not urgent. But not too long term either.
You can fund these from mutual funds (travel bucket).
Allocate 10% of your SIPs for travel. That’s Rs. 5K per month.
Execution Plan:
Use a separate goal-based mutual fund for this.
For Trip 1, move funds to arbitrage/liquid fund 1 year before.
For later trips, keep money in equity funds for growth.
Extra Strategy:
You can top-up travel fund using bonuses or yearly incentives.
Avoid using EPF, PPF, or FD for travel.
Daughter’s Higher Education
She is 4 years now. UG is due in 14 years. PG in 18-20 years.
This is a must-plan goal. And emotionally important.
You need a dedicated education corpus.
Ideal Approach
Create a dedicated mutual fund portfolio.
Allocate 30% of your current SIP for this. That’s Rs. 15K/month.
Suggested Plan
Choose funds with 14-18 year horizon.
As UG approaches, shift corpus to low-risk funds gradually.
Don’t mix this money with your retirement or travel funds.
Additional Tips:
Never fund her education using EPF or PPF.
You can use part of PPF only if essential after age 60.
Do not plan education fund through FDs. Returns are low.
Summary of SIP Allocation (Rs. 50,000 per month)
Retirement: Rs. 30,000 per month
Daughter’s Education: Rs. 15,000 per month
Foreign Travel: Rs. 5,000 per month
Suggestions to Optimise Your Wealth
Let’s now review some financial strategies.
1. Increase SIP Every Year
As income grows, increase SIP by 10-15% yearly.
Even Rs. 5,000 more each year adds up well in long term.
2. Avoid FDs Beyond Emergency Corpus
You already have Rs. 10L in FD/savings.
Only Rs. 3L should remain for emergencies.
Move balance slowly to mutual funds.
3. Use Regular Funds via MFD
Avoid direct plans.
Direct funds lack expert guidance and goal tracking.
Investing via CFP-backed MFD brings expertise and discipline.
4. Avoid Index Funds
Index funds may look low-cost.
But they follow markets blindly.
No downside protection during falls.
Actively managed mutual funds can outperform index funds.
A CFP-backed MFD can help choose quality funds.
5. Tax Efficiency
Equity fund gains over Rs. 1.25L/year are taxed at 12.5%.
Short-term gains are taxed at 20%.
Plan redemptions carefully for each goal.
Debt fund gains are taxed as per your income slab.
So avoid debt funds for long term. Use them only before goal.
6. Goal Review Every Year
Once a year, review all goals with a CFP-backed MFD.
Adjust SIPs if needed. Rebalance funds annually.
What You Don’t Need Now
No need for more insurance. You already have Rs. 2Cr cover.
No need for child plans or ULIPs.
Avoid real estate for investing. It lacks liquidity.
What More You Can Do
Create a will once your daughter turns 10.
Jointly own investments with spouse for safety.
Maintain a separate emergency fund of Rs. 3L always.
Final Insights
You’ve already taken important steps. You’ve started early and built discipline.
Now the focus should be to:
Increase SIPs steadily
Avoid mixing short-term needs with long-term goals
Use mutual funds in a goal-based way
Keep tax efficiency in mind
Review your plan every year
All three goals—retirement, education, and travel—are achievable.
If you follow this structured and flexible plan, you will reach your goals peacefully.
Keep money separated by goals. Review it yearly with a CFP-backed MFD. You will create long-term financial security.
Wishing you success and freedom ahead!
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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