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Sunil

Sunil Lala  |203 Answers  |Ask -

Financial Planner - Answered on Apr 10, 2024

Sunil Lala founded SL Wealth, a company that offers life and non-life insurance, mutual fund and asset allocation advice, in 2005. A certified financial planner, he has three decades of domain experience. His expertise includes designing goal-specific financial plans and creating investment awareness. He has been a registered member of the Financial Planning Standards Board since 2009.... more
Peeyush Question by Peeyush on Feb 29, 2024Hindi
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Sir, I am 36 Yrs Old having a daughter aged 2. We (me and my wife) have a corpus of 3 Cr invested 70% in equities in rest in debt via FDs, Gold and Debt Mutual Funds. I'll be getting some lumpsum amount in next 2 years and our corpus will grow to 5 Cr in that time frame. How much more do I need to save if I want to retire by 42-43? My monthly expenses are currently 1.2 lakhs per month.

Ans: Your situation is very good so no need to worry
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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Ramalingam

Ramalingam Kalirajan  |6995 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 17, 2024

Asked by Anonymous - Apr 17, 2024Hindi
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RamalingamJi, I am 51 years old & having approx. corpus of Rs. 30L. I want to have 1.5L/month after retirement (at the age of 58 yrs.) so how much should I save from now so that I can have this much money w/o trouble. At present I am investing 20K/month in MF, 12.5K/month in PPF, 30K/month in EPF, 12K in Sukanya Smridhi, 17k/month in NPS, 6k/month in another PPF & another 20K/month in other saving schemes making it total 117.5K/month.
Ans: Planning for your Retirement Income
You're taking a great step by planning for your retirement income at 51. Here's how we can estimate how much you might need to save to reach your goal of Rs. 1.5 lakh per month after retirement at 58.

Factors to Consider:

Current Savings: Your current monthly savings of Rs. 1,17,500 is a significant starting point.
Time Horizon: You have 7 years (58 - 51) till retirement.
Desired Retirement Income: Your target monthly income is Rs. 1,50,000.
Inflation: Inflation erodes the purchasing power of money over time. Consider a conservative estimate of 5-7% inflation.
Rate of Return: The expected return on your investments will determine how much you need to save.
Here's a simplified calculation (assuming a fixed rate of return):

Total Corpus Required:

Let's assume an 8% annual return and 7% inflation (adjusted return of 1%).
We can use the formula for perpetuity present value (PV) to calculate the corpus needed: PV = Desired monthly income (adjusted for inflation) / Adjusted annual return PV = (Rs. 1,50,000 * 12) / (1 + 0.01) = Rs. 1,80,00,000
Shortfall in Corpus:

You already have Rs. 30 lakh corpus.
The shortfall would be Rs. 1,80,00,000 - Rs. 30,00,000 = Rs. 1,50,00,000
Additional Monthly Savings:

To calculate the additional monthly savings required, we can use a savings goal calculator available online.
These factors will be considered: time horizon, desired corpus, and expected return.
Important Points to Remember:

This is a simplified calculation. Real-world returns may fluctuate.
Consider consulting a financial advisor for a personalized plan considering your risk tolerance and investment portfolio.
You've mentioned various investments (MF, PPF, EPF, etc.). An advisor can help assess the asset allocation and suggest adjustments if needed.
Positive Aspects of your Current Savings:

Your current savings of Rs. 1,17,500 per month is commendable.
You're invested in a variety of instruments (equity, debt, government schemes).
Next Steps:

Estimate Shortfall: Use a retirement calculator to get a more accurate estimate of the additional monthly savings required.
Review Investments: Consult a financial advisor to assess your current asset allocation and suggest adjustments if necessary to align with your retirement goals.
Increase Savings: If there's a shortfall, consider ways to increase your monthly savings by reviewing expenses or increasing income.
By planning and potentially making some adjustments, you can be well on your way to achieving your desired retirement income.

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Ramalingam

Ramalingam Kalirajan  |6995 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 21, 2024

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I am 53 years old working woman having SIP of 50000 per month. My retirement age is 60 years. My total corpus is 1 crore 30 lacs. How much I should save to have a corpus of around 2.25 crores at my retirement?
Ans: Assessing Your Current Financial Situation
You have done an admirable job, accumulating a corpus of ?1.30 crores and saving ?50,000 per month through SIPs. At 53 years old, you are well on your way to securing a comfortable retirement by 60.

Setting a Retirement Goal
Your goal is to have a corpus of ?2.25 crores by the time you retire at 60. To achieve this, you need to evaluate your current savings strategy and make necessary adjustments.

Calculating the Required Savings
Your existing corpus and ongoing SIPs are already substantial. However, to bridge the gap and reach ?2.25 crores, you may need to increase your monthly savings or invest in higher-yielding instruments.

Benefits of Actively Managed Funds
Consider investing in actively managed funds. These funds have professional managers who actively make investment decisions to outperform the market. This approach can potentially yield higher returns compared to index funds, which merely track the market.

Evaluating Your SIP Strategy
Your current SIPs of ?50,000 per month are a great way to build wealth systematically. Review the performance of these SIPs periodically. Ensure they are aligned with your financial goals and risk tolerance. Adjusting your SIP amount upward, if feasible, can help you reach your target faster.

Diversifying Your Investments
Diversification reduces risk and enhances potential returns. Ensure your portfolio includes a balanced mix of equity and debt funds. Equity funds offer growth, while debt funds provide stability.

Importance of Regular Reviews
Regularly reviewing your investment portfolio is essential. Financial markets and personal circumstances change over time. Annual reviews with a Certified Financial Planner can help you stay on track towards your retirement goal.

Risk Management
Assess your risk tolerance. As you approach retirement, consider gradually shifting from high-risk investments to more stable ones. This strategy protects your corpus from market volatility as you near your retirement age.

Professional Guidance
A Certified Financial Planner can provide personalized advice tailored to your situation. They can help optimize your investment strategy, ensuring it aligns with your retirement goals. Their expertise ensures your financial plan is robust and adaptable to changes.

Inflation Considerations
Inflation erodes purchasing power over time. Ensure your retirement corpus grows at a rate that outpaces inflation. Investing in growth-oriented funds can help counteract the effects of inflation.

Health and Emergency Funds
Maintain an emergency fund separate from your retirement savings. This fund should cover unexpected expenses and be easily accessible. Additionally, ensure you have adequate health insurance to cover medical costs during retirement.

Appreciating Your Progress
Your dedication to saving and planning for retirement is commendable. By staying disciplined and proactive, you are well on your way to achieving your retirement goals. Continue your efforts with confidence and regular guidance from a Certified Financial Planner.

Conclusion
To achieve a retirement corpus of ?2.25 crores by age 60, consider increasing your SIPs, diversifying your investments, and regularly reviewing your portfolio. With professional guidance and careful planning, you can secure a comfortable and fulfilling retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Prof Suvasish

Prof Suvasish Mukhopadhyay  |19 Answers  |Ask -

Career Counsellor - Answered on Nov 08, 2024

Prof Suvasish

Prof Suvasish Mukhopadhyay  |19 Answers  |Ask -

Career Counsellor - Answered on Nov 08, 2024

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I am engineer with 16 years of IT experience and now a break of 11 yrs. But in 11 yrs I had been taking Quantitative aptitude lectures as a visiting faculty in various engineering and MBA colleges and also done Mutual fund certification. I haven't been siting but doing many things professionally in last 11 yrs(In my subject of interest as Maths, Teaching, Finance, Accounting, Wealth Management). I was thinking of doing ESG certification. What kind of role I would get if i am CFA ESG certified.I am looking for Professionally and intellectually engaging role where I can contribute to Society. Not a very NGO type( I have tried working with few NGO's)
Ans: I won't recommend you to go for ESG certification unless you are having a background of Env. Engg and Environmental Impact Assessment. The certificate course of ESG is costly also. I would request you to open your own academy ( if off line not possible then online) and go for only one subject. Let me know your age.Focus only on one subject. You have explored many areas and now you are perplexed. Here the questions are assigned to me through rediffmail. So second time whether your question will come to me or not is not known to anyone of us. Due to the policy I can’t share my email ID and Phone Number. But I would request you to follow me in LINKEDIN and send request so that I can accept you, then through LINKEDIN I can counsel you in the future multiple times. Through LINKEDIN I will be readily and easily accessible. I have counselled and changed thousands of lives. As long as I am there I won’t allow you to be defeated. Mind that always I am there with you like an invisible shadow to show you the right career path.

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Ravi

Ravi Mittal  |403 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 08, 2024

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