
I am 55 years old NRI. I looking forward my superannuation after 3 years at 58. Currently I have following investments (1) SIP MF Invested 1.4 cr, MV 2.01 cr. Montly SIP of 5.28 lakhs, can continue for 1 year more. MF Diversified into Small Cap 40%, Mid Cap 25% Large Cap 10%, Flexi Cap 15%. (2) FD for 1.0 cr @ 6.75% (3) Shares MV 40.0 lakh (4) CG Bond 19.0 lakh (5) 3 flats MV 2.25 Cr (6) Land MV 2.25 cr (7) 1 underconstruction flat Paid 50.0 laks, balance 1.5cr to be paid in next 2 years (8) 2 Sons education and marriage liability 2.5 cr in next 4 years. (9) Loan o/s of Rs 50.0 lakh (10) I am expecting monthly expenses of Rs 2.0 lakh per month. Pls advise suitability of my portfolio to generate montly income of Rs 2 lakh for next 30 years post retirement. If any additional investment or re-arrangement required, pls advise.
My SIP are (a) Parag Parekh Flexi 50K (b) Aditya Birla Frontlline 23K (c) Mirae Large & Small 15K, (d) Nippon Growth 33K, (e) Nippon Large Cap 35K, (f) DSP small 12K, (g) Nippon Small Cap 27K, (h) Quant Small 49K, (i) Quant Active 25K, (j) Quant Flexi 25K, (k) HDFC Small 30K, (l) PGIM Midcap 51K, (m) Motilal Oswal Mid Cap 93K (n) Motilal Large & Midcap 29K and (o) Motilal Momentum 50 Index 31K.
Ans: Hi,
You are on the right path towards a steady and comfortable retirement post 3 years. Let us assess the entire financial one at a time.
1. FD - 1 crore. This entire amount can be treated as your emergency fund. Although use 50% of this fund to close your personal loan.
2. Direct equity - 40 lakhs. You can consider moving this entire allocation to mutual funds as direct equity investment is quite risky if you do not much about it.
3. CG Bonds - 19 lakhs - good debt investment option.
4. Life and health insurance - can increase the covers, specially now when you have time. Post retirment would be difficult for you.
5. 3 Flats worth 3 cr - with monthly rental income of 50k.
6. Plot worth 2.25 crores and Flat which will be fully paid before retirement from salary.
7. Physical Gold - good to carry.
8. Personal loan - 50 lakhs. Consider closing it using amount from your FD.
9. Current MF corpus - 2.08 crore with ongoing monthly SIP of 3.5 lakhs. It will become 4.25 crores at your age of 58 if you continue investing.
> Current ongoing SIPs have a lot of overlapping which should be avoided to get the best return on investments. This entire allocation needs a thoughtful and careful planning.
- For retirement, your current MF corpus and stocks would be sufficient to fund your retirement in addition to your rental income. You will also get your PF and gratuity while retiring. These will fund your retirement in initial 5 years.
- For later years, post the age of 63, start SWP from your MF portfolio wrt your expenses (inflation adjusted).
- Work with a professional to reallocate the funds in your current portfolio so as to fund your retirment wrt to retirment strategy.
- Refrain from buying any policy to lock-in your funds.
- A professional can design a bucket strategy for your mutual fund corpus. This way, you will get your monthly expenses and the rest portfolio keeps on growing. This fund will never end and you will leave a great fortune for your kids.
Hence do consult a professional Certified Financial Planner - a CFP who can guide you with exact funds to invest in keeping in mind your age, requirements, financial goals and risk profile. A CFP periodically reviews your portfolio and suggest any amendments to be made, if required.
Let me know if you need more help.
Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/