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Milind

Milind Vadjikar

Insurance, Stocks, MF, PF Expert 

1145 Answers | 56 Followers

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more

Answered on Apr 02, 2025

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Nearing Retirement But Fearful of Finances? Making the Right Choices for Your Golden Years
Ans: Hello;

Retirement is the one of the most important financial goal and the key is you won't get loan to meet that requirement.

Typically people neglect it in early part of their career and then get a rude shock when hardly 10-15 years are left for retirement and they can't meet target corpus amount despite heavy investments.

NPS is a great retirement product for every Indian.

In fact since it's costs are so low that you won't find people promoting it or advertising about it.

NPS is similar to workplace pension but is available for businessmen and self employed people too.

Except for a minimum 1000 per year in Tier 1 account there is no compulsion to invest and also their is no upper limit to investment. However you may automate your investment in NPS using D-remit feature.

Limited withdrawals are allowed subject to terms and limits.

You can change your fund manager if you are not satisfied with its performance and also you can have different fund managers for different asset classes.

EPS is a add-on to other sources of retirement income and can't be the the only source since the maximum pension amount is limited to Rs. 7500 per month.

Unit linked pension plans are like private pensions but are a poor and inefficient copy of NPS.

In India only Govt employees are eligible for state pension.

PPF/EPF are also avenues for building retirement corpus but interest on EPF contribution above Rs. 2.5 L in a financial year invokes tax and PPF has lower interest rate.

Best strategy to make financially secure retirement is to begin with a small amount from your first salary and later stepping up with increased income.

Most retirement products are eligible for tax benefits.

Best wishes;
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Answered on Mar 24, 2025

Answered on Mar 08, 2025

Asked by Anonymous - Mar 06, 2025Hindi
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Can I retire comfortably at 50? Rs 70 Cr assets with Rs 8 Lakh monthly expenses
Ans: Hello;

Just summarizing your assets available for generating retirement income:

1. Domestic FD: 2 Cr
2. Gold(3 Kg) valued at~:2.64 Cr
3. Jewellery valued at~:2 Cr
4. Flat1: 3 Cr
5. Flat2: 1.5 Cr
6. Land: 1.5 Cr
7. Overseas House: 6 Cr
8. Overseas FD: 12 Cr
9. Self occupied property: 18 Cr
10. Stock & AIF: 1.8 Cr
Total: 50.44 Cr
(Gold price considered: 88 K per 10 gm)
However we can subtract assets at serial no. 3, 7 and 9 from this and we get a corpus of 24.44 Cr. The 44 L may be kept aside for transaction costs, taxes etc.

It is advisable that you sell the flats in India offering low rental yield and also physical gold and the land property.

Now the corpus of 24 Cr may be split into two parts:
20 Cr may be invested in MFs for SWP at 5% yielding post tax income of around 7.3 L per month.

4 Cr may be used to buy immediate annuity from a life insurance company. Assuming 6% annuity rate you may expect a post tax monthly income of 1.4 L.

So your post tax monthly income may be:
7.3+1.4+2*=10.7 L as desired.
*Rental from overseas House

Since the kid's higher education is not finding place here I suggest you work for few more years, while putting this retirement income plan in place, for funding their higher education.

Best wishes;
X: @mars_invest
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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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