BMS Graduate with UPSC & MBA Options: Work While Prepping or Take a Gap?

Ans: Hello;

I compliment you for managing your asset allocation in such a judicious manner.

At age 52 you have:
48% allocation to real estate(land+house)
34% allocation to equity(sip)
18% allocation to debt(FD+ pf)

Now make sure to reduce equity allocation further as you approach 60 by moving to hybrid funds like equity savings type mutual funds.

Hoping you will seek a new responsibility soon!

Best wishes!!

Ans: Hello;

It is very simple. You build a corpus in mutual funds through regular monthly sips during your work life.

And when you need fixed income in retirement you redeem units in a systematic manner so as to receive fixed monthly amount.

The fund for wealth creation during SIP and SWP during retirement need not be the same rather they can't be the same because your risk tolerance has changed with time and so should be your fund selection.

The rate of SWP shouldn't be more than 3% to avoid eating into your corpus during unforeseen long periods of market drawdowns and sideways movement.

Retirement income should be, preferably, a healthy mix of annuity income, FD interest, SCSS(after 60), POMIS, rental income and SWP.

Best wishes;

Ans: Hello;

I would recommend you to move your current MF holdings into equity savings type mutual funds (low to moderate risk) for eg. ICICI Pru and Kotak equity savings funds.

Buy an immediate annuity for the 1 Cr received after NCD maturity. At 6% annuity rate you may expect a monthly payout of 50 K.

Top up the fund corpus, if required, so that it stays above 1 Cr in both funds at the start of swp.

Do a 3.5% SWP from both funds to get a monthly income of 30 K + 30 K= 60 K

Total monthly income will be 60+50= 110 K

Please find some resource to generate additional 40 K monthly income, in a relatively less risky manner, as desired.

I do not recommend SWP beyond 3% because with higher SWP rate you may eat into your corpus during market drawdowns.(3.5% in your case suggested as an exception).

NCDs are risky hence they are able to offer higher returns but we have seen what happened in DHFL crisis so avoid it at all costs, in future.

I could have recommended to do an immediate annuity for entire corpus of ~ 3 Cr and take 1.5 L annuity income(pre-tax) but time in retirement will be high(current age 40)and corpus in annuity will not have much scope for inflation hedging.

Wish I could offer you a better plan to meet your monthly income goal with current resources.

Best wishes;

Ans: It is normal.

Ans: Get the kidney function and urine routine done to look for any kidney related issues.

Ans: Irrespective of the creatinine value, if there is strong suspicion of blockage in the heart, it is better to go ahead with the angiogram as the benefit is more than the risk of worsening of kidney injury.

Ans: It looks like severe infection induced acute kidney injury.
With the resolution of infection, kidney injury should recover.

Ans: Higher limit of the normal. Reduce the intake of diary products.