Is it too late to start a BTech degree at 28? Can I still get a good job at 32?

Ans: Retiring at 48 is an ambitious goal, especially given that your daughter will be in the later stages of her education at that time. However, it can be achievable with the right strategy, keeping in mind that both your current and future financial needs (such as your daughter's education, living expenses, and healthcare) should be carefully planned.
Key Financial Points:
1. Current Assets & Liabilities:
o Savings and investments: Rs 50 lakh corpus + Rs 40 lakh savings from your parents.
o House: Rs 1.5 crore (valuable asset, no immediate cash flow but provides stability).
o Car: An asset, though it depreciates.
o Monthly Pension: Rs 15,000 (provides additional cash flow).
2. Income:
o Your Salary: Rs 15 lakh per annum.
o Wife's Salary: Rs 8 lakh per annum.
o Total household income: Rs 23 lakh annually (pre-tax).
3. Daughter’s Education:
o You’ve already invested Rs 30 lakh for her education, which can cover part of her expenses, but you need to plan for the balance.
4. Retirement Goal:
o Retiring at 48 means you’ll need a substantial retirement corpus to cover your lifestyle expenses, especially since you plan to live without any active income.
o Estimate your monthly living expenses (post-retirement) considering inflation, healthcare, and contingencies.
Key Considerations for Retirement at 48:
1. Monthly Expenses Post-Retirement:
o Assuming your family needs Rs 60,000 per month (inflated from your current expenses) and an additional Rs 30,000 for health and emergency purposes, your annual expenses would be approximately Rs 10 lakh. This figure may rise over time due to inflation.
2. Corpus Needed:
o If you plan to live on Rs 10 lakh per year post-retirement, assuming a withdrawal rate of 4% (a standard guideline for sustainable withdrawals), you would need a retirement corpus of Rs 2.5 crore.
o If your daughter's education expenses require more funding, factor that in as well.
3. Current Assets & Future Growth:
o Savings Growth: Your Rs 50 lakh corpus can grow if invested well in equity mutual funds, stocks, or balanced funds (expected returns of around 10-12% p.a.).
o Parents’ Savings: The Rs 40 lakh savings from your parents can be used to generate returns in low-risk avenues like debt funds or fixed deposits, if they plan to support your retirement plans.
4. Planning for Future Education & Miscellaneous Expenses:
o Your daughter’s education will likely require more than Rs 30 lakh for her undergrad and possibly postgraduate education. Estimate the total requirement (say Rs 50-60 lakh for the complete course, including inflation) and plan for it.
5. Retirement Income Strategy:
o Pension or Annuity: Consider a monthly income plan or annuity products to ensure a steady stream of income during retirement. For example, a monthly annuity from your parents' corpus or part of your own corpus can provide financial stability.
6. Investment Strategy:
o Equity Mutual Funds: Start or increase SIPs in equity mutual funds (for long-term capital growth). Equity can provide high returns but also carries risk, so it’s ideal for long-term goals like retirement.
o Debt Funds: Consider shifting to debt or hybrid funds as you approach retirement to preserve capital.
o Real Estate: Your house is a valuable asset, and if you plan to sell or downsize in the future, it can be a key part of your retirement corpus.
Steps to Achieve Your Retirement Goal:
1. Increase Savings:
o Save a higher portion of your monthly salary towards retirement, even increasing your SIPs or contributions in the coming years. Aim to invest at least 30-40% of your combined income in SIPs or mutual funds.
2. Asset Allocation:
o Focus on equity funds for growth in the early years. As retirement nears, shift some of the corpus to safer instruments like debt funds or bonds.
3. Plan for Healthcare:
o Healthcare costs can significantly impact retirement. Ensure you have adequate health insurance for yourself and your family, considering long-term care as well.
4. Create a Contingency Fund:
o Have an emergency fund equivalent to 12-18 months of expenses to avoid dipping into retirement savings during emergencies.
5. Revisit Your Goal Periodically:
o Regularly check your progress and adjust your investments based on market performance, income changes, and any unexpected expenses (e.g., your daughter’s education needs).
Conclusion:
• Retiring at 48 is a feasible goal, but it will require diligent planning and a disciplined investment approach. Your savings and investments should aim to grow sufficiently over the next 10 years to generate a steady income stream, along with provisions for your daughter’s higher education.
• With careful asset allocation and savings growth, your goal of retiring by 48 and managing your family’s finances can be well within reach.