I am 38 year old. Me & Wife both earn approx 12 lac per year. I have corpus of 3 CR as FD, MF, Shares. No liability. I have one daughter age 6. Can we both retire by 2028 ?

Ans: How much corpus needed depends on what kind of monthly income you are expecting during your retirement.

BTW, esops 7-8 crores , need to be definitely diversified. Your employment income and investment income should not be from the same source. This increases your overall risk.

Ans: To retire at 40 with a corpus of 13 crores and generate 4 lacs a month in 2024 money, here's a potential plan:

Corpus Allocation:

Stocks (2 crores): Consider keeping a portion in dividend-paying stocks for regular income and growth potential.
Mutual Funds (3 crores): Opt for a mix of equity and debt funds to balance growth and stability.
Business Sale Proceeds (5 crores): Invest in a diversified portfolio to ensure steady income and capital preservation.
Withdrawal Strategy:

Initially, withdraw 4 lacs per month from the corpus and adjust annually for inflation (assumed at 5%).
Use a systematic withdrawal plan (SWP) from mutual funds and dividends from stocks for regular income.
Investment Strategy:

Equity (40%): Invest in blue-chip stocks and large-cap mutual funds for growth.
Debt (40%): Invest in fixed income instruments like bonds, FDs, and debt mutual funds for stability.
Real Estate (20%): Consider investing in REITs or rental properties for rental income and capital appreciation.
Rental Increase:

Adjust the withdrawal amount annually to account for the 5% increase in rental expenses.
Emergency Fund:

Maintain an emergency fund equivalent to 6-12 months of expenses to cover unexpected expenses.
Healthcare and Insurance:

Ensure you have adequate health insurance coverage and consider a top-up plan or critical illness cover.
Review and update your insurance policies to protect your family and assets.
Review and Adjust:

Periodically review your portfolio's performance and adjust investments as needed.
Rebalance the portfolio annually to maintain the desired asset allocation.
Tax Planning:

Optimize your tax liabilities by utilizing tax-efficient investment strategies and instruments like tax-saving mutual funds and bonds.
Consult a Financial Advisor:

Consult with a certified financial planner or advisor to create a detailed retirement plan tailored to your needs and goals.
Consider seeking professional advice to ensure your retirement plan is robust and sustainable.
Stay Informed and Educated:

Stay updated with financial news and market trends to make informed investment decisions.
Continuously educate yourself about retirement planning and investment strategies to manage your finances effectively.
Remember, early retirement requires meticulous planning, disciplined saving, and prudent investing. With careful planning and execution, you can achieve your goal of retiring at 40 and enjoy a comfortable and financially secure retirement.

Ans: With a comprehensive portfolio and no liabilities, you're in a favorable position to consider retirement at 45. Let's assess your financial readiness to retire next year based on your current assets and expenses:

Existing Corpus:

Mutual Funds: Rs 15 lakh
Fixed Deposits: Rs 50 lakh
Plot: Rs 10 lakh
Bonds & NCDs: Rs 24 lakh
Own House: Value not specified
Monthly Expenses:

Your monthly expenses amount to Rs 22,000.
Given these figures, let's analyze your retirement prospects:

Sustainable Income:

Calculate the annual income generated from your existing corpus (mutual funds, fixed deposits, bonds & NCDs). Consider average returns and tax implications.
Ensure that the income generated from your investments is sufficient to cover your monthly expenses of Rs 22,000 and any additional retirement expenses.
Evaluate Future Expenses:

Anticipate any changes in your expenses post-retirement. Consider factors like healthcare costs, travel, and leisure activities.
Ensure that your retirement corpus can support these potential expenses and provide a comfortable lifestyle throughout your retirement years.
Emergency Fund:

Maintain an emergency fund equivalent to at least 6-12 months of your living expenses. This fund should be easily accessible and set aside for unexpected expenses or emergencies.
Consideration of Inflation:

Factor in the impact of inflation on your expenses and investment returns. Ensure that your retirement corpus can keep pace with inflation to maintain your purchasing power over time.
Professional Advice:

Consult with a Certified Financial Planner (CFP) to evaluate your retirement readiness comprehensively.
A CFP can assess your financial situation, retirement goals, and investment strategy to determine if you're adequately prepared for retirement.
Based on the information provided, retiring at 45 appears feasible given your substantial corpus, low expenses, and lack of liabilities. However, it's essential to conduct a thorough analysis, consider potential contingencies, and seek professional advice to ensure a smooth transition into retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in