Hi.. I am 41 yrs old and can park Rs 10 lacs in HDFC retirement savings fund and SBI Retirement Benefit fund for 10yrs. I would need monthly income after attaing the age 52yrs. Pl advise for the above.

Ans: You need a corpus of approx 2.5 crores to get 1.25 Lakh monthly. To create 2.5 crores you need to invest 1.41 crores today or SIP of 2.55 lakh in an equity fund

Ans: For your retirement planning, allocating a portion of your funds to retirement savings funds is advisable. Look for funds with retirement-focused investment strategies and consider diversifying your investment across different funds to manage risk. Opt for growth options to maximize capital appreciation over the investment period. Regularly review your portfolio and consider shifting to more conservative options as you approach retirement age to ensure steady income. Consulting a financial advisor can provide personalized guidance tailored to your financial situation and retirement goals.

Ans: Given your age and requirement for monthly income post 52 years, investing ?10 lakhs in retirement-focused funds like HDFC and SBI Retirement Savings Funds for 10 years is a good start. Ensure to choose growth or dividend options based on your preference for reinvestment or regular income. Additionally, consider diversifying with debt funds or fixed deposits for stability and regular income. Consulting a financial planner can provide personalized advice tailored to your retirement goals.

Ans: Evaluating Your Current Financial Position
Assets Overview
Post Office Deposit: Rs. 50 lakhs
Fixed Deposit (FD): Rs. 25 lakhs
Public Provident Fund (PPF): Rs. 40 lakhs
Mutual Funds (MF): Rs. 40 lakhs
National Pension System (NPS): Rs. 7 lakhs
Extra Flat: Rs. 40 lakhs
Total Assets
Total Value: Rs. 202 lakhs (excluding flat)
Monthly Income Requirement
Required: Rs. 1 lakh per month
Income Generation Strategies
Fixed Income from Deposits
Post Office Deposit: Generate regular interest income.
Fixed Deposit (FD): Provides stable interest income.
Utilising PPF
PPF can provide tax-free returns but has withdrawal restrictions.
Consider partial withdrawals after maturity for supplementary income.
Systematic Withdrawal from Mutual Funds
Set up a Systematic Withdrawal Plan (SWP) for a regular income stream.
Choose funds with a stable return history.
Utilizing NPS
Annuity purchase with 40% of NPS at retirement.
The remaining 60% can be withdrawn lump-sum.
Evaluating Additional Sources
Rental Income from Extra Flat
Consider renting out the flat for additional income.
Expected rental income could be Rs. 15,000 - Rs. 20,000 per month.
Diversification and Rebalancing
Diversify investments to mitigate risks.
Rebalance portfolio regularly for optimal returns.
Suggested Financial Plan
Fixed Income Sources
Post Office Deposit: Approx. Rs. 25,000 - Rs. 30,000 monthly.
FD: Approx. Rs. 10,000 - Rs. 15,000 monthly.
Income from PPF
Withdrawals to be used as supplementary income.
Plan for withdrawals to align with monthly needs.
Mutual Funds SWP
Generate Rs. 30,000 - Rs. 35,000 monthly through SWP.
Select funds with consistent performance.
Rental Income
Expected Rs. 15,000 - Rs. 20,000 monthly.
Use this for regular expenses.
Annuity from NPS
Approx. Rs. 10,000 monthly post-retirement.
Lump-sum withdrawal to cover unexpected expenses.
Monitoring and Adjusting
Review financial plan annually with a certified financial planner.
Adjust withdrawals and investments based on market conditions and needs.
Final Insights
Ensure all income sources cover your monthly needs.
Keep a contingency fund for emergencies.
Regularly consult with a certified financial planner to stay on track.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in