Hi Sir, I am 36 years old & I am getting 1.15lacs in hand per month. I have 7.6 lacs in epf, 7.2Lacs in Sukanya, 2.9 Lacs in NPS, 2.3 Lacs in PPF, 6 Lacs in MF, 1 Lac in stocks, approx 2 Lacs in Lic. On an average I am spending (approx): 3.3k : LIC 1.5k : health insurance 8.5k : Sukanya 8.5k : PPF 8.5k : NPS 16k : MF Total Approx 46k per month. I am planning retirement @55 ( 20 years from now), please suggest if I am on right track or i should increase the investment (if yes, then please suggest which one). I may need 50k to 70k per month post retirement. Please suggest.

Ans: You're demonstrating excellent foresight by planning for your future and your family's financial security. Here's an assessment of your current investments and some suggestions:
1. Retirement Planning:
• Your goal to retire in the next 15 years is ambitious and requires careful financial planning to ensure you achieve your desired lifestyle post-retirement.
• Consider factors such as your desired retirement age, anticipated expenses, inflation, healthcare costs, and potential sources of retirement income.
2. Investment Analysis:
• Your current investment portfolio consists of a mix of life insurance policies, Sukanya Samriddhi Yojana (SSY) for your daughter, and SIPs in various mutual funds.
• Life insurance policies provide financial protection but may have limited investment growth potential compared to other investment options.
3. SIP Review:
• Review your SIP portfolio to ensure alignment with your long-term financial goals, risk tolerance, and investment horizon.
• Consider diversifying across different asset classes and fund categories to spread risk and optimize returns.
• Evaluate the performance of individual funds regularly and make adjustments as needed.
4. Asset Allocation:
• Assess your overall asset allocation to ensure a balanced mix of equity, debt, and other investment instruments based on your risk profile and investment objectives.
• Consider increasing exposure to equity for long-term wealth accumulation, but maintain a diversified portfolio to mitigate risk.
5. Emergency Fund:
• Ensure you have an adequate emergency fund to cover unforeseen expenses and mitigate financial risks. Aim to maintain 6-12 months' worth of living expenses in a liquid savings account or short-term investments.
6. Professional Advice:
• Consider consulting with a Certified Financial Planner to conduct a comprehensive financial review and retirement planning assessment.
• They can provide personalized recommendations tailored to your specific circumstances, goals, and risk tolerance.
7. Regular Monitoring and Adjustment:
• Periodically review your investment portfolio and retirement plan to track progress towards your goals.
• Make adjustments as needed based on changes in income, expenses, market conditions, and personal circumstances.
In summary, while your current investments show prudent planning, it's essential to periodically reassess your financial strategy to ensure it remains aligned with your evolving goals and circumstances. By staying proactive and seeking professional guidance, you can optimize your investments and work towards achieving a comfortable retirement for yourself and your family.

Ans: It's great to see that you're proactively planning for your retirement at the age of 55. Let's assess your current financial situation and see if any adjustments are needed:

• Kudos on building a diversified portfolio across various investment avenues. Your allocations in EPF, Sukanya, NPS, PPF, MFs, stocks, and LIC reflect a disciplined approach towards wealth creation.

• With a monthly surplus of approximately 69.7k (1.15L - 46k), you're already saving a substantial portion of your income towards investments and insurance premiums.

• To ensure you're on track to meet your retirement goal of needing 50k to 70k per month post-retirement, consider the following:

Evaluate your current investment allocations and assess if they align with your retirement objectives and risk tolerance.
Since your retirement is still 20 years away, you have the advantage of time to potentially increase your investment contributions.
Given your surplus income, you may consider increasing your allocations to mutual funds or other growth-oriented assets to boost your retirement corpus.
Review your asset allocation strategy to ensure a balanced mix of equity, debt, and other asset classes, considering your risk profile and investment horizon.
• It's crucial to periodically review your financial plan and make adjustments as needed to stay on track towards your retirement goals.

• Lastly, consider consulting with a Certified Financial Planner to create a personalized retirement plan tailored to your specific needs and objectives. They can provide valuable insights and recommendations based on your financial situation and goals.

With careful planning and disciplined execution, you can work towards achieving a comfortable retirement lifestyle. Keep up the excellent work, and best wishes for a secure financial future!

Ans: Assessment of Current Financial Situation

You have diversified your investments across various financial instruments. Your goal to retire at 50 with Rs. 5 crore and a monthly income of Rs. 1 lakh is achievable with proper planning.

Current Investments

PPF: Rs. 4,00,000
ULIP: Rs. 2,50,000
FD: Rs. 1,00,000
EPF: Rs. 3,00,000
NPS: Rs. 2,00,000 (Rs. 50,000 yearly)
Stock: Rs. 8,00,000
Mutual Funds: Rs. 7,00,000
Child Plan: Amount not specified
Own House
Health Insurance: Rs. 20 lakh
Term Insurance: Rs. 1 crore
Financial Goals Analysis

Your goal requires disciplined saving and strategic investments. Let’s evaluate each aspect:

Public Provident Fund (PPF)

PPF is a safe investment. It offers tax benefits and guaranteed returns. However, its limit restricts the amount you can invest yearly.

Unit Linked Insurance Plan (ULIP)

ULIP combines insurance and investment. It may not be the best for high returns. Consider reviewing its performance and charges.

Fixed Deposit (FD)

FDs provide security but lower returns. Inflation can erode their value. Consider keeping only a portion in FDs.

Employees' Provident Fund (EPF)

EPF is a stable option for long-term savings. It provides decent returns and tax benefits. Continue contributing.

National Pension System (NPS)

NPS is beneficial for retirement. It offers market-linked returns and tax benefits. Your current contribution of Rs. 50,000 yearly is good.

Stock Market

Stocks can yield high returns but come with risks. Regularly review and rebalance your portfolio. Diversify to mitigate risks.

Mutual Funds

Mutual funds are good for wealth creation. Choose funds based on your risk appetite. Consider consulting a Certified Financial Planner for advice on fund selection.

Child Plan

Ensure the plan meets your child’s future education needs. Evaluate its performance and adjust if necessary.

Health and Term Insurance

You have sufficient coverage. Ensure to review and increase if needed with inflation.

Additional Investment Recommendations

To achieve your retirement goal, you need to increase investments. Here’s how:

Increase Mutual Fund Investments

Mutual funds offer potential for high returns. Increase SIPs in diversified equity mutual funds. Consult a Certified Financial Planner to choose the best funds.

Review and Adjust ULIP

Evaluate the charges and performance of ULIPs. If returns are low, consider surrendering and reinvesting in mutual funds. Consult a Certified Financial Planner for advice.

Maximize NPS Contributions

Increase your NPS contributions. It will enhance your retirement corpus and provide tax benefits.

Invest in Stocks Wisely

Continue investing in stocks. Diversify across sectors and regularly review. Stay updated with market trends.

Emergency Fund

Maintain an emergency fund. Ensure it’s 6-12 months of your expenses. Park it in liquid funds for easy access.

Retirement Corpus Calculation

Without specific calculations, aim to increase your investments by 10-15% annually. This will help you reach your Rs. 5 crore goal.

Final Insights

Your current investment strategy is strong. However, regular review and adjustments are crucial. Consult a Certified Financial Planner for personalized advice. Stay disciplined and focused on your goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in