Hi, i am 24 years old and currently my salary is 15k, and i wanted to retire at the age of 45 and at that time i wanted to have at least saving of 8cr. So could ypu please suggest that how much should i have to earn monthly and where to invest money and how much money should i have to invest so that i can get the desired result.

Ans: You need a corpus of approx 2.5 crores to get 1.25 Lakh monthly. To create 2.5 crores you need to invest 1.41 crores today or SIP of 2.55 lakh in an equity fund

Ans: To calculate how much money you need to retire with a monthly income of Rs. 70,000, we need to know the following:

Your current age
Your desired retirement age
Your expected rate of return on your investments
Your desired lifestyle in retirement

Assuming that you are currently 51 years old, plan to retire at age 54, have a life expectancy of 20 years after retirement, and expect a 6% rate of return on your investments, you would need to have a retirement corpus of Rs. 75 lacs approx as of now which become approx. 1 Cr. after the 3 years at the time of your retirement to generate a monthly income of Rs. 70,000 for 20 years after retirement upto the age of 74 years.

As for where to invest your money, there are a number of options available, depending on your risk tolerance and investment goals. Some popular options include:

• Senior citizen savings scheme (SCSS): This is a government-sponsored savings scheme that offers a guaranteed interest rate of 8.2% per annum.
• Post office monthly income scheme (POMIS): This is another government-sponsored savings scheme that offers a monthly income to investors. The current interest rate is 7.40% per annum.
•Annuity plans: Annuity plans provide investors with a guaranteed income stream for a set period of time or for life.
• Debt mutual funds: Debt mutual funds invest in a variety of fixed-income securities, such as government bonds and corporate bonds. They offer relatively low risk and stable returns.

Ans: Embarking on the journey towards a comfortable retirement at 41 reflects foresight and responsibility. To achieve a monthly income of 1 lakh post-retirement, one needs to plan meticulously, akin to nurturing a tree from a sapling to a robust entity.

Considering the compounding magic of investments, starting with a significant monthly contribution is crucial. It's like planting a tree with strong roots to bear ample fruit later. Aim to invest a substantial portion of your income, balancing between equity for growth and fixed income for stability.

Diversifying across various investment avenues is akin to planting different types of crops. Some may yield quicker returns, while others require patience. Real estate, equities, mutual funds, and bonds each play a role in shaping a balanced portfolio.

Lastly, remember that investing is not just about numbers but also about aligning your life's goals and aspirations. With consistent efforts and guidance, you're not just building wealth but crafting a future filled with security and peace of mind.

Ans: Evaluating Your Retirement Goal
Your goal to retire at 60 with a monthly income of Rs 2.5 lakhs is ambitious and achievable with proper planning. Let's break down the steps to achieve this goal.

Current Financial Position
Gross Income: Rs 2.5 lakhs per month.

Take Home Salary: Rs 1.70 lakhs per month.

You have 15 years until retirement. Time is your biggest asset in building a substantial retirement corpus.

Estimating Retirement Corpus
Desired Monthly Income Post-Retirement: Rs 2.5 lakhs.

Annual Requirement: Rs 2.5 lakhs * 12 = Rs 30 lakhs.

Inflation Adjustment: Assuming an average inflation rate of 6%, the future value of Rs 30 lakhs in 15 years would be approximately Rs 72 lakhs annually.

Retirement Corpus Calculation: To generate Rs 72 lakhs annually, assuming a safe withdrawal rate of 4%, you will need a corpus of approximately Rs 18 crores.

Investment Strategy
1. Determine Monthly Savings:

Based on your current income and expenses, determine how much you can save and invest each month. Ideally, aim to save and invest at least 30-40% of your take-home salary.

2. Diversified Portfolio:

Invest in a diversified portfolio of mutual funds, stocks, and fixed income instruments. This balances risk and growth.

Investment Options and Allocation
Equity Mutual Funds:

Growth Potential: High returns over the long term.
Risk: High volatility, but suitable for a 15-year horizon.
Allocation: Allocate around 60-70% of your savings here.
Debt Mutual Funds:

Stability: Lower risk and stable returns.
Purpose: Balances the portfolio and provides safety.
Allocation: Allocate around 20-30% here.
Public Provident Fund (PPF):

Safety: Government-backed and risk-free.
Tax Benefits: Offers tax-free returns.
Allocation: Consider contributing up to the maximum limit.
Systematic Investment Plan (SIP):

Regular Investment: Invest a fixed amount monthly in mutual funds.
Rupee Cost Averaging: Reduces the impact of market volatility.
Calculating Monthly Investment
Future Value Calculation:

To reach Rs 18 crores in 15 years, calculate the monthly investment required. Assuming an average annual return of 12% from your investments:
FV = Future Value (Rs 18 crores)
PV = Present Value (monthly investment)
r = monthly return (1% for 12% annual)
n = number of months (180 months for 15 years)
Using financial formulas or a retirement calculator can provide precise figures. However, a rough estimate suggests investing approximately Rs 1 lakh per month.

Steps to Implement the Plan
1. Automate Savings:

Set up automatic transfers to your investment accounts. This ensures disciplined saving and investing.

2. Regular Review:

Review and adjust your investment portfolio annually. Ensure it aligns with your goals and risk tolerance.

3. Emergency Fund:

Maintain an emergency fund covering at least 6-12 months of expenses. This ensures you don't dip into your retirement savings for emergencies.

4. Health Insurance:

Ensure adequate health insurance coverage. Medical expenses can be a significant burden in retirement.

Benefits of Investing through MFD
Professional Guidance:

Certified financial planners and MFDs provide expert advice on fund selection and investment strategies.

Regular Monitoring:

MFDs regularly monitor and review your portfolio, ensuring it remains aligned with your goals.

Tax Efficiency:

Professionals help in structuring your investments to maximize tax benefits.

Conclusion
With a disciplined investment strategy and regular review, achieving your retirement goal is feasible.

Invest in a diversified portfolio, automate savings, and consult with a certified financial planner for personalized advice.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: You are showing honesty and courage by sharing your financial situation. That is the first and most important step. Many people ignore reality, but you have started asking the right question. That deserves appreciation.

Let us build your retirement plan with a simple and clear 360-degree view.

» Current financial standing

– Age 42 with retirement target at 55 gives you 13 years.
– Current income is Rs. 74,000 monthly.
– Outstanding loan of Rs. 1.5 lakh is small and manageable.
– Surplus savings at present is only Rs. 5,000 monthly.
– No significant savings built so far.

Your present situation looks challenging. But with consistent efforts, you can still create a respectable retirement corpus.

» Loan management

– First step is to clear your Rs. 1.5 lakh loan quickly.
– Prioritise this before heavy investments.
– Redirect your Rs. 5,000 monthly surplus fully to this loan.
– Try to reduce lifestyle expenses or generate extra side income.
– Closing this loan in the next 2 to 3 years is possible.

Becoming debt-free will give mental freedom and more surplus to invest for retirement.

» Expense restructuring

– Your income is good, but your savings rate is low.
– Retirement planning needs higher savings than Rs. 5,000.
– Review household expenses and cut avoidable spending.
– Keep monthly budget discipline and track cash outflow.
– Target minimum Rs. 15,000 to Rs. 20,000 monthly savings.

Increasing savings is the only way to achieve your retirement goal in 13 years.

» Building emergency fund

– Once the loan is closed, start building emergency savings.
– Keep 3 to 6 months’ expenses in a bank account or liquid mutual fund.
– This will protect you from unexpected medical or job-related shocks.
– Without emergency fund, you may break retirement investments early.

An emergency fund is a shield that will save your long-term plan.

» Retirement corpus assessment

– You are 42 and want to retire at 55.
– You will need at least 25 years of retirement income post 55.
– Considering inflation and rising medical costs, the corpus target should be big.
– Based on your lifestyle, a ballpark figure of Rs. 2 crore will be safe.
– The exact number depends on your future expenses and inflation.

This is not a small figure, but you have time if savings increase.

» Investment approach

– Avoid keeping money idle in bank or fixed deposits.
– Returns will be too low for retirement wealth creation.
– Invest mainly through mutual funds with Certified Financial Planner support.
– Use actively managed diversified funds, not index funds.
– Index funds look cheap but lack research-driven active management.
– Actively managed funds give professional judgement, better downside control and long-term growth.
– Always use regular funds through a CFP and MFD.
– Direct funds look cheaper but give no professional handholding.
– Regular funds ensure guidance, asset allocation, discipline and timely reviews.

This approach creates better risk-adjusted returns for long-term goals.

» Asset allocation

– Keep higher allocation to equity mutual funds for wealth growth.
– A mix of large-cap, flexi-cap and multi-cap funds works well.
– Add some balanced advantage funds for stability.
– Use debt mutual funds for short-term needs and rebalancing.
– Avoid real estate as it blocks liquidity.
– Avoid annuity products, they give poor returns and no inflation hedge.

Diversification across categories will help manage market ups and downs.

» Phased action plan

Step 1: Close loan of Rs. 1.5 lakh in next 2 years.
Step 2: Build emergency fund of 3-6 months’ expenses in liquid fund.
Step 3: Start SIPs in equity mutual funds after loan is cleared.
Step 4: Gradually increase SIP from Rs. 10,000 to Rs. 20,000 or more monthly.
Step 5: Review portfolio once a year with a CFP.

This sequence will create discipline and stability in your financial life.

» Importance of increasing income

– With only Rs. 5,000 savings now, goal looks difficult.
– Explore side income opportunities, freelancing, consulting, or skill upgrades.
– Even Rs. 10,000 extra monthly income can change the future picture.
– Use all increments and bonuses for investments, not lifestyle.
– The higher the savings rate, the higher the chance of early retirement success.

Income growth is as important as investment returns in your case.

» Insurance protection

– Retirement planning is not just investing. Protection is equally vital.
– Take adequate term insurance to cover family till retirement.
– Health insurance should be in place for you and dependents.
– Without insurance, one medical or life risk can destroy savings.

Insurance secures the foundation for wealth creation.

» Tax planning

– Use ELSS mutual funds for both wealth growth and tax saving.
– Avoid depending only on PPF, as returns are lower.
– Debt mutual funds can be used for short-term needs, but taxation is as per slab.
– For equity mutual funds, LTCG above Rs. 1.25 lakh is taxed at 12.5%.
– STCG is taxed at 20%.
– Plan redemption in a tax-efficient way during retirement.

Tax-efficient investing increases net returns and retirement wealth.

» Lifestyle choices

– Retirement planning is not only about money.
– Your lifestyle choices also matter.
– Control unnecessary spending on gadgets, vacations and luxuries.
– Maintain healthy habits to reduce medical costs post-retirement.
– Live below income level to create bigger savings.

Discipline today brings freedom tomorrow.

» Risk and patience

– Stock market investments move up and down.
– Short-term volatility should not scare you.
– Long-term patience is key to wealth creation.
– Review performance annually, not monthly.
– Stick to the plan even during market falls.

Retirement corpus is built on patience and consistency, not chasing returns.

» Role of Certified Financial Planner

– You should not do trial-and-error investing.
– A Certified Financial Planner will design a suitable plan for you.
– Asset allocation, fund selection, tax planning and risk control all need expertise.
– A CFP will also review and rebalance yearly.
– Regular funds via CFP ensure professional monitoring.

Professional guidance avoids costly mistakes and keeps you on track.

» Finally

Your starting point is late, but not impossible.
You must first clear the Rs. 1.5 lakh loan.
You must increase savings from Rs. 5,000 to Rs. 15,000–20,000 monthly.
You must invest through actively managed mutual funds in regular mode with CFP guidance.
You must secure yourself with term and health insurance.
You must build an emergency fund before retirement investing.
You must stay consistent and patient for the next 13 years.

If you follow these steps, you can still create a strong retirement plan and live with dignity after 55.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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