विशेषज्ञ की सलाह चाहिए?हमारे गुरु मदद कर सकते हैं

Ramalingam Kalirajan |9758 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 15, 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

Question by siddhartha on Apr 28, 2025

Sir, I am 56 year old, Govt Servant, want to take VRS. I have my own house and only son is working in TCS. I will get 48000 as monthly pension and 90L as retirement benefit. Please tell me is this enough to survive and how to safely grow my corpus. I have a 10L health insurance for family.

Ans: At 56, planning a voluntary retirement is a bold yet thoughtful move. Your situation shows financial discipline, which is deeply appreciated. You already have a home, pension, insurance cover, and a financially independent son. Let’s now look at how to manage and grow your Rs.90 lakh corpus wisely.

Assessing Monthly Cash Flow and Basic Expenses
You will get Rs.48,000 monthly as pension.

Your living expenses must stay within this pension.

If you need more, only then use your retirement corpus.

Try not to touch the corpus for regular monthly spending.

This way, your Rs.90 lakh will grow and last longer.

Track monthly budget: food, bills, healthcare, travel, personal needs.

Avoid supporting grown-up children financially now.

Emergency Corpus – Always Keep Ready Funds
First, keep Rs.3 to Rs.5 lakh aside for emergencies.

Use savings account or liquid mutual fund for this.

This will help with sudden hospital, family, or repair expenses.

Don’t keep all Rs.90 lakh invested in long-term products.

Emergency corpus brings peace of mind.

Goal Mapping – Define Purpose for Your Money
Decide your goals clearly. Short-term and long-term.

Short-term: home repairs, travel, health expenses.

Long-term: medical needs, gifting to son, lifestyle upgrades.

Every rupee should have a purpose.

This stops unwanted withdrawals and keeps money organised.

Ideal Allocation Strategy – Mix of Growth and Safety
You should not keep Rs.90 lakh in one place.

Split it smartly across different options.

Consider 3 categories: safe, moderate, and growth-oriented.

Suggested example split:

30% in low-risk options (for safety)

40% in moderate products (for balance)

30% in growth instruments (for long-term growth)

Your Certified Financial Planner (CFP) can adjust this after understanding full picture.

Don’t Use Fixed Deposits Only – Too Low Return
FDs are safe but give low post-tax returns.

FD interest is taxed as per your income slab.

Keeping all Rs.90 lakh in FDs is not smart.

Inflation will eat away the real value of returns.

Only use FDs for short-term needs, not full retirement planning.

Debt Mutual Funds – For Stability and Better Returns
These are good for 2 to 5-year goals.

They are better than FDs in taxation and flexibility.

Choose only regular plans through a Certified Financial Planner.

Regular mode offers expert help, rebalancing, and personalised support.

Direct funds may look cheaper, but they lack personalised guidance.

Wrong selection can lead to capital loss and stress.

Taxation depends on your income slab for these funds.

Equity Mutual Funds – Only for Long-Term Corpus Growth
You may live for 25-30 more years. So, growth is needed.

Keep some money in equity mutual funds for long-term.

Ideal for 7+ year goals like gifting, legacy planning, etc.

Equity funds can beat inflation and build wealth over time.

Use regular plans with a CFP's help for the right scheme.

Don’t choose index funds. They just copy the market.

Index funds don’t manage risk actively in a down market.

Active funds try to beat the market with research and strategy.

Professional fund managers guide these funds during volatility.

Over time, they perform better than passive funds in most cases.

Monthly Withdrawal Plan – Use SWP, Not Lumpsum
For extra monthly needs, use SWP from mutual funds.

SWP means Systematic Withdrawal Plan.

You get fixed monthly money while the rest continues to grow.

This is better than FD interest or account withdrawals.

Discuss SWP setup with your Certified Financial Planner.

It gives you regular income and protects your capital longer.

Medical Expenses – Prepare for Inflation in Health Costs
You already have Rs.10 lakh family health insurance. That’s good.

Check if it covers post-retirement illnesses and cashless hospitals.

Health costs rise every year. So you must also keep money for this.

Use part of your debt fund allocation for health-related savings.

Keep your health insurance policy active without break.

If possible, consider a super top-up policy.

This gives you higher cover at lower cost.

Avoid Mixing Insurance with Investment
Don’t buy ULIPs, endowment, or money-back policies now.

They give poor returns and high charges.

If you already have such plans, consider surrendering.

Reinvest that money in mutual funds with CFP guidance.

Insurance is not an investment product.

You only need term cover if dependents exist.

Else, don’t buy new life insurance policies at this age.

Avoid Fancy or Risky Products
Don’t go for PMS, crypto, forex or company FDs.

Also avoid bonds from unknown firms or friends’ business ideas.

Stick to time-tested, regulated products.

Don’t get tempted by high return promises.

If it sounds too good, it may not be safe.

Stay with products that your Certified Financial Planner supports.

Make Your Will – Plan for Family Security
Your son is settled, but legal clarity is important.

Make a proper will. Register it if needed.

Mention all investments and your wishes clearly.

Keep your son informed, but maintain financial independence.

A will avoids confusion and family conflict later.

Track and Review Investments Regularly
Once invested, review your portfolio every 6 months.

Markets change. So your plan must adapt too.

Your Certified Financial Planner can help adjust strategy.

Rebalancing keeps your growth and safety in balance.

Stay involved in your own financial planning.

Stay Disciplined – No Emotional Withdrawals
Avoid spending from corpus for lifestyle upgrades.

Don’t use this money for buying property or gifting big.

Your main goal now is peace, health, and independence.

Don’t let peer pressure or relatives influence your financial choices.

Don’t Do It Alone – Work with a Certified Financial Planner
A CFP will help structure your plan for every life stage.

They also guide behaviour, taxes, and fund choice.

A Certified Financial Planner can personalise your plan.

Regular reviews ensure your strategy stays correct.

You get peace and clarity about your financial journey.

Finally
Your financial base is strong. Rs.90 lakh is a solid retirement corpus.

Rs.48,000 monthly pension takes care of basic living.

With smart investing, you can live stress-free for many years.

Always mix growth with safety. Don't over-risk or over-protect.

Get professional help to protect your future.

You’ve done well so far. With discipline, it will only get better.

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.