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Ans: Hello;

You should invest 50-60 K per month in NPS.

Yes the lumpsum also should go into NPS.

For a 25-30 year old person the quantum of investment in NPS would be lesser since they have time to grow their corpus but if you start at 48 you have a commit a larger sums of regular and lumpsum investments.

Keep 5-6 L as emergency fund.

Happy Investing;
X: @mars_invest

Ans: Hello;

You may initiate a monthly sip of 45 K for 16 years for your retirement planning. It may grow into a sum of 2.62 Cr assuming modest return of 12%.

Also do a monthly sip of 20 K(12 years) and 10 K(17 years) for the higher education goal of your kids. Both may grow into sums of around 65 L each so as to safeguard higher education of your kids.

The retirement corpus may be used buy an immediate annuity which may provide monthly income of 1 L+ post tax.

NPS may used to boost retirement income at 60.

All sips are considered in pure equity mutual funds.

Retirement in 12 years looks difficult.

Happy Investing;
X: @mars_invest

Ans: Hello;

Once you liquidate your ancestral assets and raise funds of 7 Cr, you may deploy it as follows:

1. Buy an immediate annuity from a life insurance company for 3 Cr.

Assuming 6% annuity rate you may expect a monthly income of 1.05 L post-tax.

2. Next 3 Cr you may invest in a conservative hybrid debt fund/s which has higher exposure to debts and less exposure to equity.
Do an SWP at the rate of 4%, two years after the initial investment. This way your systematic withdrawals will be taxed at 12.5% as LTCG(only on the profit portion). Also your corpus will grow over two years.
Even at 3 Cr level it can provide post-tax income of 87.5 K per month.

Average return from these funds are generally around 7-9% although this cannot be assured.

3. The balance 1 Cr may be used to make FDs of varying maturities from 1 year to 5 years in lot size of 5 L so that even if you need some funds you may be liquidate FDs only matching your requirements.

The SWP from MF will provide you inflation adjusted returns and you may need to top-up annuity income by further investments.

Buy good healthcare insurance covering maternity expenses too.

Best wishes;
X: @mars_invest

Ans: Hello;

You use whatever is appropriate for you.

FDs typically have 5 year maturity after which they need to be renewed. However the rate of interest available at that time, for renewal, cannot be assured hence annuity for long term saves you that hassle.

Best wishes;

Ans: Hello;

So your total monthly expenses after retirement will be as given:
1. Home loan emi- 23 K
2. HH expenses - 30 K
3. Rent Paid- 22 K
Total- 75 K

Corpus available to generate monthly income in retirement:
1. Current Savings - 30 L
2. VRS benefit - 80 L
Total- 110 L

Out of this you may retain 10 L as emergency fund in liquid fund or saving account.

For the balance 100 L(1 Cr) you may buy an immediate annuity from a life insurance company.

Assuming 6% annuity, you may expect a monthly income of around 50 K.

So monthly income in retirement will be:
1. Annuity Income - 50 K
2. Pension Income- 50 K
3. Rental income - 25 K
Total - 125 K (1.25 L)

So effectively 125 -75= 50 K(pre tax)
will additional disposable income available with you a part of which you may invest in equity savings type mutual fund with low to moderate risk rating to generate corpus to boost annuity income in future.

You may retire comfortably since you are well placed from income expense standpoint.

Normally I don't recommend to carry loan in retirement but you are a bank employee and may have a lower interest rate then others so from tax point of view it makes sense in your case.

Do buy adequate healthcare cover for yourself and your family.

Happy Investing;
X: @ mars_invest