Hi, I am at 32 years old my monthly income is 32000 I also have home loan where my EMI is 14000 how much can I save monthly so at the age of 60 I get at least 1 cr

Ans: I understand your situation and the desire to earn more and save efficiently. Here are some suggestions,

Emergency Fund: Prioritize building an emergency fund of 3-6 months' living expenses for any contingency if required.

Debt Repayment: Focus on paying off your high-interest loan to free up monthly cash flow.

Cut Expenses: Make a budget of income and expenses and then identify the unnecessary expenses which you can avoid and save more.

Start Investing: Find the amount which can be saved and start investing (monthly SIPs) of that surplus amount from your income.

Ans: It's great that you're thinking about saving for the future despite your current financial commitments. Here are some steps you can consider to maximize your savings:

Budgeting: Start by reviewing your expenses and identifying areas where you can cut back. Look for any unnecessary spending or subscriptions that you can eliminate. Creating a budget can help you track your expenses more effectively and ensure that you're making the most of your income.
Emergency Fund: Building an emergency fund should be your top priority. Aim to save at least three to six months' worth of living expenses in an easily accessible savings account. This fund will provide you with a financial safety net in case of unexpected expenses or emergencies.
Investment Opportunities: Consider exploring investment options that can help grow your wealth over the long term. Look into mutual funds, stocks, or other investment vehicles that align with your risk tolerance and financial goals. Starting with small, regular investments can gradually build up your portfolio over time.
Additional Income: Explore opportunities to increase your income outside of your regular job. This could involve freelancing, part-time work, or starting a side business based on your skills and interests. Any additional income you earn can be directed towards savings and investments.
Review Loan Options: Since a significant portion of your income is going towards your home loan, consider exploring options to refinance or renegotiate the terms of your loan to potentially lower your monthly payments. However, be sure to carefully evaluate the terms and any associated costs before making any decisions.
Financial Planning: Consider consulting with a financial advisor to help you develop a personalized financial plan. They can provide valuable insights and guidance tailored to your specific situation and goals, helping you make informed decisions about saving, investing, and achieving financial security for the future.
Remember, the key to financial stability is consistency and discipline. By taking proactive steps to manage your finances and prioritize saving, you can work towards a more secure and prosperous future.

Ans: If you do SIP of 61K in a retirement mutual fund for 10 years, you can expect achieve a corpus of 1.5 Cr after 10 years.(Modest return of 13% assumed)

You can use this corpus to buy annuity, invest in PMVVY and SCSS or do a SWP for regular payouts.

You can invest in Post Office monthly income scheme for monthly payouts(current interest rate is 7.4%; If singly held then investment limit is 9 L and for joint holding it is 15 L; 5 year tenure) at this stage.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing

Happy Investing

Ans: You are 37 years old with a stable income of Rs. 1.10 lakh per month.

Monthly expenses are Rs. 35,000, leaving Rs. 75,000 as surplus.

There are no savings currently, which means you need to start from scratch.

Retirement at age 55 leaves 18 years for financial planning.

Set Your Retirement Goal
Decide your retirement corpus based on lifestyle needs.

Consider inflation and plan for 30+ years post-retirement.

Assume monthly expenses of Rs. 35,000 today. Adjust them for inflation.

A Certified Financial Planner can help calculate your retirement corpus.

Determine Savings Target
Start saving at least 50-60% of your surplus.

Target saving Rs. 50,000 to Rs. 60,000 monthly consistently.

Increase savings as your income grows in the future.

Early and disciplined saving will ease the burden later.

Create a Diversified Investment Portfolio
Equity Mutual Funds
Equity mutual funds offer long-term growth.

Invest 70% of savings here for higher returns.

Choose actively managed funds for wealth creation.

Invest regularly through monthly SIPs.

Debt Mutual Funds
Allocate 20% of savings to debt mutual funds.

These funds ensure stability and lower risk.

Use them for medium-term goals and rebalancing.

Public Provident Fund (PPF)
Invest 10% of savings in PPF for tax-free returns.

PPF is a secure, long-term investment option.

Regular Review and Rebalancing
Review your portfolio yearly to track progress.

Rebalance investments to maintain equity and debt ratio.

Adjust for changing income, expenses, and market conditions.

Emergency Fund and Insurance
Build an emergency fund with 6 months of expenses.

Keep this fund in liquid instruments like FDs or savings accounts.

Get adequate health and term insurance coverage.

Avoid Common Mistakes
Do not invest in real estate for retirement planning.

Avoid ULIPs or investment-cum-insurance policies.

Focus on investments aligned with your goals.

Tax Efficiency in Investments
Use tax-saving instruments under Section 80C.

Stay updated on mutual fund capital gains taxation.

Use the guidance of a Certified Financial Planner for tax planning.

Final Insights
Start saving Rs. 50,000-60,000 monthly immediately.

Invest in equity, debt, and PPF for diversification.

Review and adjust your plan regularly for better results.

Stay disciplined and focus on long-term goals for retirement at 55.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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