i have 2 properties worth 4 crore each and i get 150000 rupees rent every month will this be enough to retire after 15 years, i am saving 25000 every month and i have invested 25000 in insurance, plus i have stocks worth rs 2500000, how do you evaluate, if i retire after 15 years

Ans: You have built valuable assets. Owning two properties worth Rs 4 crore each is a solid base. Monthly rental income of Rs 1.5 lakh adds steady passive cash flow. Your savings and stock investments further strengthen your foundation.

Let’s assess your retirement readiness from every angle and create a structured plan for the next 15 years.

» Asset Strength and Passive Income Stream

– Two properties together valued at Rs 8 crore are your largest assets.
– Current rental income of Rs 1.5 lakh/month equals Rs 18 lakh/year.
– This rental income is a strong source of passive income.
– But it may not be fully inflation-protected.
– Rent value may rise, but maintenance and vacancy risks remain.
– Real estate also lacks liquidity during emergencies.

– Holding rental property is beneficial.
– But relying only on it for retirement may not be sufficient.
– Diversifying your income streams will give more stability later.

» Monthly Savings and Cash Flow Behaviour

– You are saving Rs 25,000 per month.
– This means Rs 3 lakh is saved annually.
– Over 15 years, this builds to Rs 45 lakh excluding returns.
– With returns, it may grow to a much higher amount.
– However, this level of saving can be increased.

– Since rental income is strong, you can consider saving more.
– Try raising your monthly saving by at least Rs 15,000.
– Channel surplus cash into diversified investments.

» Current Investment Portfolio Assessment

– You have invested Rs 25 lakh in stocks.
– Stocks offer long-term growth, but carry higher volatility.
– Pure stock investing may lead to emotional reactions during market cycles.
– You need a more structured portfolio with mutual funds.

– Diversify across equity mutual funds and debt mutual funds.
– Consider hybrid funds for stable growth.
– Stocks should not exceed 50-60% of your total investments.

– Also review your stock portfolio every year.
– Ensure sector diversification and quality holding.

» Insurance Investments – A Closer Look

– You mentioned Rs 25,000 is invested in insurance.
– These may be traditional or investment-linked insurance plans.
– If these are endowment or ULIP plans, evaluate surrender value.
– These usually give poor returns and high charges.

– If these are non-term plans, consider surrendering them.
– Reinvest proceeds in mutual funds through a Certified Financial Planner.
– Regular mutual funds give guidance and behaviour support.
– This creates more wealth than direct funds or insurance plans.

» Understanding the Role of Inflation

– You plan to retire after 15 years.
– At 6% inflation, today’s Rs 1.5 lakh will become Rs 3.6 lakh/month.
– Your passive income must meet that future need.
– Rental income may not grow at the same rate as inflation.

– Stocks and mutual funds help beat inflation over time.
– Real estate values may grow slower or stagnate.
– Diversified investment is your best inflation shield.

» Rental Income Forecasting – With Caution

– Rs 1.5 lakh monthly rental is good.
– But don’t assume it will rise every year without interruption.
– Property may lie vacant for few months occasionally.
– Maintenance costs, repairs, and property tax must be deducted.

– Future rental value also depends on location demand.
– You may get better appreciation from financial assets.

– Real estate should form a part, not whole, of retirement strategy.

» Retirement Goal Clarity – Lifestyle Cost Planning

– Decide your expected lifestyle cost 15 years from now.
– If you need Rs 3 lakh per month post-retirement, plan for that.
– This includes household, medical, travel, and contingency needs.

– Create a retirement income strategy with 3 pillars:

Rental income

Mutual fund returns

Safe withdrawal from accumulated assets

– Real estate alone cannot meet rising lifestyle cost.

» Where to Improve – Investment Behaviour

– Your savings and investment capacity is underutilised.
– Increase monthly SIPs in mutual funds.
– Target Rs 50,000 per month as combined SIP over next few years.
– This builds large, liquid retirement corpus.

– Invest in regular mutual funds through a CFP-certified MFD.
– Avoid direct mutual funds due to lack of personalised support.
– Regular plans offer advisory support during market corrections.

– Review portfolio every 6-12 months.
– Rebalance and track performance.

» Why Not Index Funds or Direct Plans?

– Index funds give average returns only.
– No downside protection or active management in volatile times.
– Cannot beat inflation consistently in India’s growth cycle.

– Actively managed funds have better flexibility.
– Experienced fund managers respond faster to opportunities.
– Suitable for Indian market’s inefficiencies and cycles.

– Direct plans lack behaviour support and correction guidance.
– Investors often make emotional mistakes in direct route.
– Regular plans with certified guidance help long-term success.

» Plan to Build a Retirement Corpus

– Target minimum Rs 3 crore retirement corpus (excluding real estate).
– This can generate monthly income via SWP or laddering.
– Mutual funds allow Systematic Withdrawal Plans post-retirement.

– Your Rs 25 lakh in stocks is a good base.
– Add Rs 50,000 monthly for next 15 years.
– You will reach your target comfortably.

– Avoid relying only on rental.
– Use real estate as a cushion, not as the main wheel.

» Emergency Fund and Medical Cover

– Keep at least Rs 10-15 lakh as liquid emergency fund.
– This covers unforeseen situations during retirement.

– Ensure you have strong health insurance.
– Medical inflation is steep in post-retirement years.

– Get a top-up health cover to protect your assets.

» Estate Planning and Future Clarity

– Two properties need proper nomination and WILL planning.
– Avoid disputes and legal complexity later.

– Retirement planning should include estate clarity.
– Plan for spouse’s future too in case of any uncertainty.

» Finally

– Your base is already solid with two properties and Rs 1.5 lakh rent.
– However, depending only on rental income may not be wise.
– Real estate is illiquid, volatile in value, and not tax-efficient.

– Increase your mutual fund investments using SIPs.
– Build a diversified portfolio with active fund managers.
– Use regular plans through a CFP-certified Mutual Fund Distributor.

– Don’t continue investment-based insurance policies.
– Replace them with pure term plans and mutual fund SIPs.

– Keep increasing savings every year with income growth.
– Revisit your plan annually with guidance from a Certified Financial Planner.

– You have 15 golden years to build financial independence.
– With disciplined steps, you can retire with comfort and dignity.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment