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36-Year-Old with 90 Lakhs Land, 30 Lakhs Gold: How to Retire Early?

Milind

Milind Vadjikar  |1120 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Jan 26, 2025

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
Asked by Anonymous - Jan 24, 2025Hindi
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Sir I'm 36 yrs old. I have lands worth of 90 lakhs. Gold of 30 lakhs. PF 10 lakhs and mutual funds 2 lakhs. I have a loan running of 37Lakhs for the home I stay. My monthly expense is 40 K. Im the only person earning in my family and I'm salaried with 1.6L p.m. please advice a plan for my early retirement.

Ans: Hello;

Your current monthly expenses of 40 K will be around 90 K in 14 years.

Hence I recommend you to start a monthly sip of 60 K into a combination of equity mutual funds
(25% each in flexicap , multicap, large and midcap, and large cap/elss fund)

Assuming modest return of 12% this may grow into a corpus of 2.62 Cr in 14 years.

If you buy an immediate annuity for this corpus you may expect a post tax monthly income of around 1 L.

In 14 years, when you reach age 50, hopefully major part of home loan may have been repaid.

You may withdraw pf at the age of 58 and add it to your annuity corpus to boost your monthly income in line with inflation.

The gold and land assets may be utilised later.

Happy Investing;
X: @mars_invest
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |8128 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 2024

Asked by Anonymous - Jun 22, 2024Hindi
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Hello sir,i am 36 yr old with an in hand salary of 2.3l/ mnth,i have 80 lacs saving in fd and ppf,and hav just started mf 25k per month,i an loan free,no property,and want early retirement, kindly suggest a plan for me Thanks
Ans: You've made impressive strides with your finances, and it's great to see your commitment to securing an early retirement. With an in-hand salary of Rs 2.3 lakhs per month, Rs 80 lakhs saved in fixed deposits (FDs) and PPF, and a recent start in mutual funds with Rs 25,000 per month, you're on a promising path. Let’s discuss a comprehensive plan to achieve your early retirement goal.

Understanding Your Current Financial Situation
Income and Savings:

In-Hand Salary: Rs 2.3 lakhs per month.
Savings: Rs 80 lakhs in FD and PPF.
Mutual Fund SIP: Rs 25,000 per month, recently started.
You are debt-free, have no property investments, and aim for early retirement.

Assessing Your Financial Goals
Early Retirement:

Retiring early requires a solid financial plan to ensure you can sustain your lifestyle without regular income. We'll focus on increasing your investment portfolio, ensuring you have enough to support you through retirement.

Enhancing Your Investment Strategy
1. Increase SIP Contributions:

Starting with Rs 25,000 per month in mutual funds is great, but to achieve early retirement, consider increasing your SIP contributions. Higher monthly investments can significantly boost your corpus.

2. Focus on Actively Managed Funds:

Actively managed funds, with experienced fund managers, can potentially offer higher returns compared to index funds. This can help you achieve your goals faster.

3. Diversify Your Portfolio:

Diversification reduces risk and increases potential returns. Spread your investments across different sectors and asset classes within mutual funds.

4. Regular Review and Rebalancing:

Periodically review and rebalance your portfolio to align with market conditions and your financial goals. This ensures optimal performance of your investments.

Strategic Allocation for Savings
1. Maximize Returns on Fixed Deposits:

While FDs offer safety, their returns are lower. Consider investing a portion of your FD savings into higher-yielding instruments like mutual funds.

2. Utilize PPF for Tax Benefits:

PPF offers decent returns with tax benefits. Continue contributing to PPF for a secure and tax-efficient investment option.

3. Maintain an Emergency Fund:

Ensure you have an emergency fund to cover at least six months of expenses. This provides a financial safety net for unforeseen circumstances.

Building a Robust Financial Plan
1. Set Clear Financial Milestones:

Break down your retirement goal into smaller, achievable milestones. Track your progress and adjust your strategy as needed.

2. Budget and Save Aggressively:

Maintain a disciplined approach to budgeting and saving. Allocate a significant portion of your income towards investments to accelerate wealth accumulation.

3. Maximize Tax-Advantaged Investments:

Utilize tax-advantaged accounts like PPF and NPS to enhance returns and save on taxes. These are excellent for long-term savings with added tax benefits.

Insurance and Risk Management
1. Adequate Life Insurance:

Ensure you have adequate life insurance to cover your financial liabilities and support your dependents. Review your coverage periodically.

2. Comprehensive Health Insurance:

Maintain comprehensive health insurance to cover medical emergencies. This prevents erosion of your savings due to unexpected medical expenses.

Equity Investments for Growth
1. Regular Monitoring:

Keep a close eye on your equity investments. Regularly review company performance and market trends to make informed decisions.

2. Diversification in Equities:

Spread your investments across various sectors and market caps to reduce risk and enhance potential returns.

3. Professional Guidance:

Consider consulting a Certified Financial Planner for tailored advice. They can help optimize your equity investments and overall financial strategy.

Tax Planning and Efficiency
1. Efficient Tax Filing:

Ensure efficient tax filing to maximize deductions and reduce liabilities. Consider professional help if needed to navigate complex tax situations.

2. Utilize All Available Deductions:

Take advantage of all available tax deductions and exemptions. This helps in reducing your taxable income and increasing your savings.

Lifestyle and Budgeting
1. Controlled Expenses:

Maintain a disciplined approach to spending. Ensure a significant portion of your income is allocated towards investments.

2. Budget for Future Needs:

Account for future expenses like healthcare, lifestyle changes, and any other financial goals. Plan and save accordingly.

Building a Sustainable Retirement Plan
1. Estimate Retirement Expenses:

Estimate your monthly expenses during retirement. Consider inflation and potential lifestyle changes to ensure you have a realistic figure.

2. Plan for Longevity:

With early retirement, you need to plan for a longer retirement period. Ensure your investments can support you through your expected lifespan.

3. Consider Health and Medical Costs:

Healthcare costs tend to rise with age. Ensure you have adequate savings and insurance to cover medical expenses during retirement.

Final Insights
You’ve built a solid foundation with your savings and investments. To achieve early retirement, increase your SIP contributions, focus on high-growth and actively managed funds, and regularly review your portfolio. Maintain a diversified approach and ensure you have adequate insurance coverage. With disciplined budgeting and strategic planning, reaching your goal is within reach.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8128 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 29, 2025

Asked by Anonymous - Jan 27, 2025Hindi
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Money
Sir I'm 34 yrs old. I have stock portfolio 5 lakhs. PPF 4lakhs and mutual funds 6 lakhs. I have a loan running of 45Lakhs for the home I will get possession next year(15 year). Car loan 11Lacks for 5 year... My monthly expense is 30 K including rent. Im the only person earning in my family and I'm salaried with 1.8L p.m. please advice a plan for my early retirement.
Ans: I will create a detailed early retirement plan covering all aspects. Since your goal is financial freedom, we must focus on debt management, savings, investments, and risk protection.

Understanding Your Current Financial Position
You have a stable income of Rs 1.8 lakhs per month.
Your stock portfolio is Rs 5 lakhs.
Mutual funds total Rs 6 lakhs.
PPF has Rs 4 lakhs.
Home loan of Rs 45 lakhs for 15 years.
Car loan of Rs 11 lakhs for 5 years.
Monthly expenses are Rs 30,000, including rent.
You are the sole earner in your family.
This means you have responsibilities and need a structured plan for financial security.

Debt Management Plan
The car loan is a short-term liability.
Prioritise closing it early to reduce interest costs.
The home loan is a long-term commitment.
Keep paying EMIs while focusing on investments.
Prepaying the home loan should not affect retirement savings.
Emergency Fund Planning
You need an emergency fund of at least 6 months’ expenses.
This should cover EMIs, household expenses, and unexpected costs.
Keep this amount in a liquid, low-risk investment.
Investment Strategy for Early Retirement
You need high-growth investments to build wealth faster.
Balanced allocation between stocks, mutual funds, and debt investments is key.
Invest aggressively for at least the next 10 years.
Stock Market Investments
Your current stock portfolio is Rs 5 lakhs.
Invest in fundamentally strong companies with good growth potential.
Avoid frequent trading; focus on long-term wealth creation.
Mutual Funds for Wealth Creation
Your existing Rs 6 lakh mutual fund portfolio needs review.
Increase SIP investments for consistent wealth accumulation.
Invest in actively managed funds across categories.
PPF as a Safe Component
Your Rs 4 lakh PPF balance is a long-term asset.
Continue yearly contributions for tax-free growth.
This will provide stability to your portfolio.
Retirement Corpus Calculation
You need to estimate your future expenses.
Inflation will increase costs significantly.
Aim for a retirement corpus that provides regular income.
Continue investing aggressively until corpus is achieved.
Tax Planning for Maximum Savings
Utilise Section 80C for tax deductions.
Optimise investments for tax efficiency.
Avoid tax-heavy instruments like traditional insurance plans.
Risk Protection with Insurance
Get term life insurance to protect your family.
Health insurance is a must to avoid medical expenses burden.
Avoid ULIPs and endowment policies for investment purposes.
Finally
Early retirement is possible with disciplined investments.
Focus on debt reduction while maintaining investments.
Increase your SIPs and invest for long-term growth.
Secure your financial future with proper risk management.
Review and rebalance your portfolio regularly.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

Latest Questions
Pushpa

Pushpa R  |58 Answers  |Ask -

Yoga, Mindfulness Expert - Answered on Mar 24, 2025

Asked by Anonymous - Mar 23, 2025Hindi
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Hi mam, I am 43 yrs old. I don't feel hungry at all for past 10 yrs. I am doing kapalapathi, anulom vilom, bramri and yoga poses. I drink more than 3 litres of water every day. I have gastric problems. Can you please help me?
Ans: It looks like your digestion is weak, which is why you don’t feel hungry. Even though you are drinking enough water and practicing yoga, your gastric issues are still there. This means your body needs extra care.

First, check if you are overeating at one time or eating without real hunger. Try eating small meals at regular intervals. Include warm, home-cooked food that is easy to digest. Avoid raw vegetables, cold drinks, and spicy or oily food, as these can increase gastric problems.

Since you are already practicing kapalabhati and anulom vilom, reduce kapalabhati if you feel bloated. Instead, do Agnisar Kriya and Uddiyana Bandha under the guidance of a yoga expert. These techniques help strengthen digestion and improve appetite. Also, Vajrasana after meals will support digestion.

Daily morning walks in sunlight can help balance your digestion and improve natural hunger. Practicing mindfulness while eating, chewing food properly, and eating in a peaceful environment will also help.

It’s best to consult a yoga or meditation coach to get a personalized routine based on your body type. A guided approach will help you heal naturally and safely.

R. Pushpa, M.Sc (Yoga)
Online Yoga & Meditation Coach
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https://www.instagram.com/pushpa_radiantyogavibes/

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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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