I am 50 + yr Engg Graduate and working in Pvt sector in NCR and having approx 10 yrs to retirement.
# The Combined Family income (Including Dividend & Interest) : Rs. 22 Lac / Annum.
# Yearly Expenditure : Rs.13.1 Lac / Annum (Includes Insurance Premium , fee , Rent etc);
# I am Staying in Rent ; I am Have a old parental Flat at Lucknow (Vacant) which will be sold off inleu of a new Flat in next 4-5 years time (Present Value of Flat is approx Rs. 75 Lac ; )
# Term Insurance till age 62 yrs: Sum Insured : Rs. 1.70 Cr ;
# Health Insurance Floater : Covered till Rs. 50 Lacs.
Portfolio :
* MF-SIP : 1.80 Cr.; Monthly investment in SIP: ~ 65000/-. [MF SIP Selection is self]
* Combined PPF : Rs.40 Lac
* Sukanya Samriddhi Yojana : Rs. 6.0 Lac
* Share Value: Rs.50 Lacs
* FD with Pvt Financial institutions : Rs. 43 Lac.
* Cash in Hand : Rs. 4-5 Lacs
Major Expenditure to be done:
(a) Higher Studies of Daughter: Going for PG - 1st yr & maybe later Phd.
(b) Marriage of Daughter.
(c) Higher Studies of Son : Presently in Class IX.
(d) Marriage of Son .
(e) Buying a new House.
Pls advise :
1. How much Corpus will I have in next 10 yrs.?
2. How much should be the minimum corpus I should have at the time of my retirement so that it can last maybe for 25 + years post retirement?
3. Will I be able to achieve the reqd corpus?
4. What is the Likely monthly expenditure post my retirement ?
5. Can I share my List of SIP Portfolio with you so that same can be restructured by you ?
6. Should I go for a Professional Financial Planner ?
regards
Ans: You have already done a lot of planning. Your awareness and discipline are strong. This gives you a great advantage for your retirement and children’s future.
Understanding Your Present Financial Snapshot
You are above 50 years of age and have around 10 years to retire.
Your yearly family income is Rs.22 lakh. Expenses are around Rs.13.1 lakh.
That means you are saving close to Rs.8.9 lakh yearly. That’s a strong surplus.
Monthly SIP is Rs.65,000. You have a solid SIP discipline in place.
Current MF SIP corpus is Rs.1.8 crore. That’s a significant base.
PPF corpus is Rs.40 lakh. That’s a good stable portion of your savings.
Shares are worth Rs.50 lakh. FD value is Rs.43 lakh.
You have Rs.4–5 lakh in liquid cash. Sukanya balance is Rs.6 lakh.
You are staying on rent. You have an old flat in Lucknow worth Rs.75 lakh.
You want to sell the flat in 4–5 years. Use funds for buying a new flat.
Health insurance floater of Rs.50 lakh is excellent.
Term insurance of Rs.1.7 crore till age 62 is also strong.
Likely Corpus in Next 10 Years
Your existing investments are already close to Rs.3.7 crore.
With SIPs and expected growth, this corpus will rise steadily.
Assuming consistent investment, the corpus could cross Rs.6 crore in 10 years.
This figure depends on SIP continuation, market returns, and investment review.
If you sell the flat in 5 years, you may get Rs.80–85 lakh or more.
That can also be redirected to another house purchase.
But remember, house is not an investment. It’s a utility asset.
It will not support retirement income unless sold or rented.
How Much Corpus Is Needed at Retirement?
Your current annual spending is Rs.13.1 lakh.
Post-retirement, this may reduce slightly. But not by much.
Assume 80% of current expenses will continue. That’s around Rs.10.5 lakh yearly.
Over 25+ years, this amount will rise due to inflation.
A safe minimum retirement corpus can be around Rs.5.5–6 crore.
This should cover lifestyle, healthcare, and emergency spending.
It also assumes a balanced investment portfolio post-retirement.
PPF, FDs, and some debt funds can give regular income.
Equity mutual funds should be continued partially for growth.
Can You Achieve the Required Corpus?
Yes, based on your present investments and habits, you are on track.
You must keep SIPs running without breaks for the next 10 years.
Increase your SIPs by 8–10% every year.
This single habit increases your total retirement corpus sharply.
Don’t withdraw from MF portfolio for house or other large expenses.
Use surplus from share sale or FD maturity for daughter’s or son’s needs.
Maintain separate goals. Don’t mix retirement and child-related funds.
Likely Monthly Expenses After Retirement
Your monthly spending may reduce, but not disappear.
House rent may go if you buy a flat. But other costs may rise.
Healthcare costs will rise as you age. So will travel and daily needs.
Monthly spending may be around Rs.80,000 to Rs.90,000 after retirement.
This will keep increasing due to inflation.
Plan for this by keeping a rising income source post-retirement.
Part of your MF portfolio must remain in equity to beat inflation.
Should You Restructure Your SIP Portfolio?
Yes. You can share your SIP portfolio. It should be reviewed in detail.
Fund selection must suit your goals, risk, and retirement timeline.
If SIPs are selected by self, mistakes may remain unnoticed.
Self-managed portfolios often carry duplication and poor diversification.
Review will ensure you hold right funds in correct proportion.
Regular rebalancing and fund replacement are also needed.
Avoid index funds. They copy the index. No expert decision-making involved.
Actively managed funds give better chances of outperformance.
A fund manager takes timely calls based on market data.
Direct Plans vs Regular Plans
Many people choose direct funds thinking returns will be more.
But direct plans give no advice, no monitoring, no fund review.
Wrong choices can erode gains, which you may not notice.
Investing through MFD with CFP support gives many advantages.
You get continuous guidance, strategy correction, and emotional discipline.
A small extra cost is worth it for safer long-term performance.
Use regular plans under a Certified Financial Planner to avoid mistakes.
Should You Hire a Certified Financial Planner?
Yes, it is the right time to do so.
You are close to retirement. No room for errors now.
One bad year or wrong withdrawal can hurt long-term stability.
A planner prepares a full retirement roadmap. Step-by-step.
Helps manage retirement income, investment allocation, and cashflow.
Plans for children’s education, marriage, and tax-saving.
Also prepares a Will, estate plan, and contingency system.
You have built wealth. A planner helps protect and grow it safely.
Other Action Points You Must Consider
Keep 6 months’ expenses in liquid mutual funds. That’s your emergency fund.
Keep track of new MF capital gains tax rules.
If equity MF gains exceed Rs.1.25 lakh in a year, excess is taxed at 12.5%.
If sold within one year, tax is 20% on profits.
For debt funds, all gains are taxed as per your income slab.
File taxes properly. Use Form 26AS and AIS to avoid mismatch.
Make a written Will. Register it if possible.
Update nominations in all mutual funds, FDs, and insurance.
Involve your spouse in all investment decisions. Keep them informed.
Retirement Income Management Strategy
Break your retirement portfolio into three buckets.
First: Emergency and liquidity. Use FDs and liquid funds here.
Second: Stable monthly income. Use PPF, debt mutual funds, and bonds.
Third: Long-term growth. Keep some mutual funds in equity.
Withdraw only what is needed. Keep rest invested.
Review once a year with your planner.
Children’s Education and Marriage Planning
PG for daughter is immediate. Use FD interest or surplus cash.
Don’t disturb mutual funds meant for retirement.
PhD is long-term. Plan SIPs separately for that.
Son’s education is 4–5 years away. Start new SIPs today.
Marriage cost is hard to predict. But start a separate investment for that now.
Keep gifts, bonuses, or land sale proceeds for such events.
Don’t allow such costs to delay or reduce your retirement corpus.
Final Insights
You are in a strong financial position. That itself is an advantage.
But with multiple goals ahead, clear planning becomes important.
Don’t self-manage complex portfolios at this stage.
Avoid real estate dependence. Use it only for living, not investing.
Stay away from index and direct funds. They don’t give personal strategy.
Increase SIPs each year. Tag each goal separately.
Use a Certified Financial Planner to guide your retirement strategy.
Update nominations, Will, and insurance coverage.
Monitor your retirement portfolio closely, but don’t panic with market ups and downs.
Stay invested. Think long-term. Follow a guided, reviewed plan.
You can retire comfortably and fulfil all family goals with peace of mind.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Question by Amit on Nov 03, 2022English
