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35, MNC Sales: Is My Plan for Retiring at 50 Secure Enough?
Ramalingam Kalirajan |9255 Answers |Ask -Follow
Mutual Funds, Financial Planning Expert - Answered on Jun 03, 2025
Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Question by Saptesh on May 28, 2025Hindi
Hi I am 35 years old working in an MNC into the Sales domain. My wife is 32 years of age, also working in the Sales domain. We do not have kids but planning for it within a year. We together earn 50-55 Lakh per year after taxes. We also have a total of 1 crore INR worth of vested RSU's. We pu together invest 1.5 per month in SIP's (60 Large Cap, 10 Mid Cap, 30 Small Cap) and we have accumulated a corpus of 35 Lakh in SIP. We also own stocks worth 15 lakh. We have also invested in FD's, LIC policies etc which which is worth 10 Lakh maturing by 2031. We also have a total of close to 30 lakh in EPF. We have 2 apartment which is worth 1.2 cr. We wanted to know how safe is our investment strategy and how can we better it moving forward? Also if we want to retire by 50, what should be our savings and investment strategy?
Ans: You both are doing very well. Your income, savings and investment habits show great discipline.
Let’s now look at your current strategy, assess its safety, and build a 360° plan for retirement at age 50.
?
Income and Lifestyle Management
Your annual post-tax income is around Rs. 50–55 lakhs. That is a strong base.
?
Please try to maintain expenses within 40–45% of total income.
?
Keep lifestyle inflation under check. This protects long-term savings growth.
?
Avoid large loans or EMIs. Especially with retirement planned early.
?
If lifestyle inflates with income, wealth building will slow down.
?
Create a clear budget with savings goals first, expenses second.
?
Use surplus income mindfully. Direct it into goal-based investment buckets.
?
Review both your CIBIL scores. Keep them above 750 for financial flexibility.
?
Emergency Fund and Risk Protection
Emergency fund is very important. It should cover 6 months’ expenses.
?
Keep this in liquid mutual funds or sweep-in FD. Avoid idle cash.
?
Ensure both of you have health cover above Rs. 25 lakhs as a floater.
?
Include a Rs. 50–75 lakh personal health policy, not just employer coverage.
?
Take term insurance of Rs. 1.5–2 crore each. No returns needed. Pure cover.
?
Avoid investment-based insurance. They give poor returns with high costs.
?
LIC and ULIPs, if held, should be reviewed. Likely best to surrender.
?
Reinvest maturity from LIC into mutual funds via Certified Financial Planner.
?
Mutual Funds and SIP Allocation
Your SIP of Rs. 1.5 lakh/month is very strong and well-disciplined.
?
You invest Rs. 60K in large cap. That’s slightly high allocation.
?
Large caps give stable returns, but growth is slower than others.
?
Rs. 30K in small cap is fine. But monitor for volatility. Reduce if needed.
?
Rs. 10K mid cap can be increased slightly for better balance.
?
You may adjust to 40K large, 30K mid, 30K small, 50K flexi-cap.
?
Do not choose index funds. They lack flexibility during market falls.
?
Actively managed funds can control downside better than index funds.
?
Invest through regular plans via an MFD with CFP credential.
?
Avoid direct mutual fund plans. They lack handholding and strategy review.
?
Direct funds can reduce advisor support. Regular plans bring value through planning.
?
Maintain SIP discipline for the next 15 years. Returns will compound well.
?
EPF and Fixed Income Assets
You have Rs. 30 lakh in EPF. This is your stable long-term base.
?
Keep contributing to EPF. Don’t withdraw before retirement.
?
EPF gives safety and tax efficiency. A good hedge to equity volatility.
?
Rs. 10 lakh in FD and LIC is fine. But FDs reduce real value over time.
?
Returns after tax and inflation are usually negative.
?
Shift matured FD money to conservative mutual funds or hybrid debt funds.
?
These funds give better post-tax returns than FDs.
?
Monitor FD and LIC maturity plans. Redeploy into flexible and liquid assets.
?
Equity Stocks and RSUs
Rs. 15 lakh in direct stocks is manageable. Keep it under 10–15% of net worth.
?
Monitor RSU concentration. Rs. 1 crore is high exposure to one company.
?
Don’t let RSUs go above 20–25% of total net worth.
?
Periodically liquidate RSUs. Redeploy proceeds to mutual funds.
?
This reduces company-specific risk. Also helps in portfolio diversification.
?
Stock market investments should be reviewed yearly.
?
Avoid frequent trading. Long-term holding builds wealth.
?
RSU tax treatment must be understood clearly. Use CFP to plan tax-efficient exits.
?
Real Estate Ownership
You have 2 apartments worth Rs. 1.2 crore. That’s sufficient for living.
?
Do not invest further in real estate. Liquidity is low. Returns are slow.
?
Real estate ties up money for long and lacks flexibility.
?
Maintain these 2 houses. Don’t add more unless for own use.
?
Real estate should not be core of retirement corpus.
?
Use mutual funds and retirement-focused tools to build real wealth.
?
Child Planning and Future Responsibilities
As you plan for a child, prepare financially for education and care.
?
Begin a child education fund through dedicated mutual funds.
?
Create a SIP goal with 10–15 years target for college funding.
?
Review your term insurance coverage once child is born.
?
Prepare a will once child arrives. Nominate all your assets properly.
?
Begin Sukanya Samriddhi if girl child is born. Invest monthly for safety.
?
Keep child healthcare and schooling funds liquid and accessible.
?
Retirement Planning at Age 50
You want to retire by age 50. That gives you 15 years more to save.
?
Your savings rate is excellent. But retirement needs disciplined strategy.
?
First, estimate future expenses after retirement. Then add 5–6% inflation.
?
You will need 30–35 years of retired life fund.
?
Total retirement corpus must be built by age 50.
?
Create retirement buckets – Safety, Growth, Liquidity, Income.
?
EPF and PPF will form Safety.
?
Mutual funds will build Growth.
?
Conservative hybrid funds will give Liquidity.
?
SWP from mutual funds will support Income.
?
Don’t depend on rental income. Expenses may not match rental flow.
?
Review your mutual fund portfolio every 6 months.
?
Use XIRR to measure SIP performance.
?
Slowly move part of equity to hybrid or debt as you near 50.
?
Maintain equity till 45 years. After that, shift slowly to safety buckets.
?
Retirement planning must have tax efficiency, safety and liquidity.
?
Work with a Certified Financial Planner for regular check-ins.
?
Tax Management and Optimisation
Invest in NPS for extra Rs. 50,000 tax benefit. But don’t over-allocate.
?
NPS should not exceed 10–15% of retirement portfolio.
?
Equity mutual funds are taxed on gains above Rs. 1.25 lakh/year at 12.5%.
?
STCG is taxed at 20%. So avoid selling before 1 year if not needed.
?
Debt funds are taxed as per slab. Plan redemptions carefully.
?
Plan to stagger mutual fund exits in retirement to manage tax load.
?
Use HUF, senior citizen benefits and joint accounts to optimise taxes later.
?
Estate Planning and Asset Protection
Write a will for both spouses. Include all assets and nominations.
?
Make sure each asset has proper joint names or nominations.
?
Use separate lockers and record all documents securely.
?
Create a master asset list every year. Share with trusted family.
?
Use joint demat, joint mutual fund folios for smooth transmission.
?
Investment Risks and Safety Check
You are fairly safe currently. But exposure to company RSUs is high.
?
Real estate can reduce liquidity in case of emergency.
?
Direct stocks can give high risk and low returns if unmanaged.
?
Safety is stronger with balanced mutual funds and debt allocation.
?
Keep checking your portfolio balance every 6 months.
?
Use a Certified Financial Planner to assess asset quality and goal match.
?
Don’t use random online tips or short-term investment trends.
?
Create written goals with timelines and corpus targets.
?
Tag each investment to a specific goal like child education, retirement, etc.
?
Review Strategy for Next 15 Years
Stay on SIP mode till at least age 45–47.
?
Reduce equity only slowly after that.
?
At 50, 30–40% in equity, 60% in debt and hybrid is safe mix.
?
Don’t try to beat markets. Be consistent with strategy.
?
Prioritise peaceful, stress-free retired life over highest returns.
?
Plan early exits from RSUs and stock holdings for safety.
?
Avoid property investments or large loans from now on.
?
Include health, insurance and emergency buffers in all plans.
?
Make financial reviews a yearly habit.
?
Automate savings. Manual investing leads to delays.
?
Finally
You both have built a strong base. Savings, equity exposure and SIPs are in place.
?
The next steps are discipline, de-risking, tax-efficiency and goal tagging.
?
Early retirement is achievable if you continue current pace and correct excess risks.
?
Work closely with a Certified Financial Planner for yearly strategy correction.
?
Make retirement peaceful and planned. Not reactive or rushed.
?
This is possible. You are already ahead of most.
?
Keep your focus. Avoid unnecessary complexity.
?
Build clarity, safety and long-term wealth. That’s the goal.
?
Best Regards,
?
K. Ramalingam, MBA, CFP,
?
Chief Financial Planner,
?
www.holisticinvestment.in
?
https://www.youtube.com/@HolisticInvestment
Let’s now look at your current strategy, assess its safety, and build a 360° plan for retirement at age 50.
?
Income and Lifestyle Management
Your annual post-tax income is around Rs. 50–55 lakhs. That is a strong base.
?
Please try to maintain expenses within 40–45% of total income.
?
Keep lifestyle inflation under check. This protects long-term savings growth.
?
Avoid large loans or EMIs. Especially with retirement planned early.
?
If lifestyle inflates with income, wealth building will slow down.
?
Create a clear budget with savings goals first, expenses second.
?
Use surplus income mindfully. Direct it into goal-based investment buckets.
?
Review both your CIBIL scores. Keep them above 750 for financial flexibility.
?
Emergency Fund and Risk Protection
Emergency fund is very important. It should cover 6 months’ expenses.
?
Keep this in liquid mutual funds or sweep-in FD. Avoid idle cash.
?
Ensure both of you have health cover above Rs. 25 lakhs as a floater.
?
Include a Rs. 50–75 lakh personal health policy, not just employer coverage.
?
Take term insurance of Rs. 1.5–2 crore each. No returns needed. Pure cover.
?
Avoid investment-based insurance. They give poor returns with high costs.
?
LIC and ULIPs, if held, should be reviewed. Likely best to surrender.
?
Reinvest maturity from LIC into mutual funds via Certified Financial Planner.
?
Mutual Funds and SIP Allocation
Your SIP of Rs. 1.5 lakh/month is very strong and well-disciplined.
?
You invest Rs. 60K in large cap. That’s slightly high allocation.
?
Large caps give stable returns, but growth is slower than others.
?
Rs. 30K in small cap is fine. But monitor for volatility. Reduce if needed.
?
Rs. 10K mid cap can be increased slightly for better balance.
?
You may adjust to 40K large, 30K mid, 30K small, 50K flexi-cap.
?
Do not choose index funds. They lack flexibility during market falls.
?
Actively managed funds can control downside better than index funds.
?
Invest through regular plans via an MFD with CFP credential.
?
Avoid direct mutual fund plans. They lack handholding and strategy review.
?
Direct funds can reduce advisor support. Regular plans bring value through planning.
?
Maintain SIP discipline for the next 15 years. Returns will compound well.
?
EPF and Fixed Income Assets
You have Rs. 30 lakh in EPF. This is your stable long-term base.
?
Keep contributing to EPF. Don’t withdraw before retirement.
?
EPF gives safety and tax efficiency. A good hedge to equity volatility.
?
Rs. 10 lakh in FD and LIC is fine. But FDs reduce real value over time.
?
Returns after tax and inflation are usually negative.
?
Shift matured FD money to conservative mutual funds or hybrid debt funds.
?
These funds give better post-tax returns than FDs.
?
Monitor FD and LIC maturity plans. Redeploy into flexible and liquid assets.
?
Equity Stocks and RSUs
Rs. 15 lakh in direct stocks is manageable. Keep it under 10–15% of net worth.
?
Monitor RSU concentration. Rs. 1 crore is high exposure to one company.
?
Don’t let RSUs go above 20–25% of total net worth.
?
Periodically liquidate RSUs. Redeploy proceeds to mutual funds.
?
This reduces company-specific risk. Also helps in portfolio diversification.
?
Stock market investments should be reviewed yearly.
?
Avoid frequent trading. Long-term holding builds wealth.
?
RSU tax treatment must be understood clearly. Use CFP to plan tax-efficient exits.
?
Real Estate Ownership
You have 2 apartments worth Rs. 1.2 crore. That’s sufficient for living.
?
Do not invest further in real estate. Liquidity is low. Returns are slow.
?
Real estate ties up money for long and lacks flexibility.
?
Maintain these 2 houses. Don’t add more unless for own use.
?
Real estate should not be core of retirement corpus.
?
Use mutual funds and retirement-focused tools to build real wealth.
?
Child Planning and Future Responsibilities
As you plan for a child, prepare financially for education and care.
?
Begin a child education fund through dedicated mutual funds.
?
Create a SIP goal with 10–15 years target for college funding.
?
Review your term insurance coverage once child is born.
?
Prepare a will once child arrives. Nominate all your assets properly.
?
Begin Sukanya Samriddhi if girl child is born. Invest monthly for safety.
?
Keep child healthcare and schooling funds liquid and accessible.
?
Retirement Planning at Age 50
You want to retire by age 50. That gives you 15 years more to save.
?
Your savings rate is excellent. But retirement needs disciplined strategy.
?
First, estimate future expenses after retirement. Then add 5–6% inflation.
?
You will need 30–35 years of retired life fund.
?
Total retirement corpus must be built by age 50.
?
Create retirement buckets – Safety, Growth, Liquidity, Income.
?
EPF and PPF will form Safety.
?
Mutual funds will build Growth.
?
Conservative hybrid funds will give Liquidity.
?
SWP from mutual funds will support Income.
?
Don’t depend on rental income. Expenses may not match rental flow.
?
Review your mutual fund portfolio every 6 months.
?
Use XIRR to measure SIP performance.
?
Slowly move part of equity to hybrid or debt as you near 50.
?
Maintain equity till 45 years. After that, shift slowly to safety buckets.
?
Retirement planning must have tax efficiency, safety and liquidity.
?
Work with a Certified Financial Planner for regular check-ins.
?
Tax Management and Optimisation
Invest in NPS for extra Rs. 50,000 tax benefit. But don’t over-allocate.
?
NPS should not exceed 10–15% of retirement portfolio.
?
Equity mutual funds are taxed on gains above Rs. 1.25 lakh/year at 12.5%.
?
STCG is taxed at 20%. So avoid selling before 1 year if not needed.
?
Debt funds are taxed as per slab. Plan redemptions carefully.
?
Plan to stagger mutual fund exits in retirement to manage tax load.
?
Use HUF, senior citizen benefits and joint accounts to optimise taxes later.
?
Estate Planning and Asset Protection
Write a will for both spouses. Include all assets and nominations.
?
Make sure each asset has proper joint names or nominations.
?
Use separate lockers and record all documents securely.
?
Create a master asset list every year. Share with trusted family.
?
Use joint demat, joint mutual fund folios for smooth transmission.
?
Investment Risks and Safety Check
You are fairly safe currently. But exposure to company RSUs is high.
?
Real estate can reduce liquidity in case of emergency.
?
Direct stocks can give high risk and low returns if unmanaged.
?
Safety is stronger with balanced mutual funds and debt allocation.
?
Keep checking your portfolio balance every 6 months.
?
Use a Certified Financial Planner to assess asset quality and goal match.
?
Don’t use random online tips or short-term investment trends.
?
Create written goals with timelines and corpus targets.
?
Tag each investment to a specific goal like child education, retirement, etc.
?
Review Strategy for Next 15 Years
Stay on SIP mode till at least age 45–47.
?
Reduce equity only slowly after that.
?
At 50, 30–40% in equity, 60% in debt and hybrid is safe mix.
?
Don’t try to beat markets. Be consistent with strategy.
?
Prioritise peaceful, stress-free retired life over highest returns.
?
Plan early exits from RSUs and stock holdings for safety.
?
Avoid property investments or large loans from now on.
?
Include health, insurance and emergency buffers in all plans.
?
Make financial reviews a yearly habit.
?
Automate savings. Manual investing leads to delays.
?
Finally
You both have built a strong base. Savings, equity exposure and SIPs are in place.
?
The next steps are discipline, de-risking, tax-efficiency and goal tagging.
?
Early retirement is achievable if you continue current pace and correct excess risks.
?
Work closely with a Certified Financial Planner for yearly strategy correction.
?
Make retirement peaceful and planned. Not reactive or rushed.
?
This is possible. You are already ahead of most.
?
Keep your focus. Avoid unnecessary complexity.
?
Build clarity, safety and long-term wealth. That’s the goal.
?
Best Regards,
?
K. Ramalingam, MBA, CFP,
?
Chief Financial Planner,
?
www.holisticinvestment.in
?
https://www.youtube.com/@HolisticInvestment
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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