Sir i am 40 years old, wanted to retire early by 45 or 47. 1-daughter age 7. Invested 27 lac in MF, 30 lac in sbi life privilege plan ulip linked, 45 lac in EPF, 32 lac in PPF, 3 plots total worth 45 lac. Let me know how much should i need to retire in another 5 years. My monthly expenses is around 60 to 75k

Ans: About 2 crores

Ans: Hello;

Firstly if you are the guardian for the PPF account in the name of your minor child then the yearly contribution to your own PPF account and the minor account of your child for which you are the guardian cannot exceed 1.5 L in a financial year cumulatively (75 K each max).

Keep this in mind to avoid refund without interest by the bank later.

The current monthly expenses of around 1 L will be 1.8 L after 10 years considering 6% inflation.

After getting rid of 70 K rent+ 70 K education loan EMI, I would recommend you to enhance monthly sip to 1.25 K per month. The bonus amount of 15 L also should go into MF investments to achieve retirement target in 10 years.

Any increase in income should have commensurate increase in monthly sip to ensure target fulfillment in 10 years.

The 12.5x3=37.5 K monthly investments in PPF and SSY should continue for kids higher education, marriage financial goals.

After 10 years your monthly sips+ lumpsum may reach a corpus of around 6 Cr. Also your existing MF corpus of 60 L may grow into a sum of around 2 Cr. So total corpus for retirement is 8 Cr. (A modest return of 13% is assumed from pure equity mutual fund schemes)

You should use 2 Cr + pf balance to pre close outstanding home loan. The balance 6 Cr corpus you may use to buy an immediate annuity from a life insurance company and you may expect monthly payment of 2.1 L(post tax).[ 6% annuity rate considered)

Hope you both have adequate term life insurance cover(upt 60 age) with suitable riders and adequate personal healthcare cover apart from any group health policy from the company.

Happy Investing!!

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