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42-Year-Old Aims for ?2 Lakh Monthly Income in 10 Years: Expert Advice

Milind

Milind Vadjikar  |1205 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Sep 17, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Tupt Question by Tupt on Sep 09, 2024Hindi
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I am 42 years old, and for the last 18 months, I have been investing ?90,000 per month in SIPs (20% in small cap, 25% in multicap, 20% in hybrid, 30% in large cap, and 5% in an IT digital fund). The total value of these funds is now ?18,00,000. I also have a PF of ?11,00,000, ?3 lakh in the stock market, and two houses with a monthly EMI of ?40,000. Currently, this is all the wealth I have. I would like to achieve a monthly income of ?2 lakh after 10 years. Could you please suggest the best steps I can take to reach this goal? Thank you in advance for your guidance. Best regards,

Ans: Existing corpus 18+11+3=32 L
Assuming modest growth @ 10% pa this corpus will grow to 83 Lakhs 10 year hence.

Also SIP of 90K will yield a corpus of 2.22 Cr after 10 years

So comprehensive corpus of 2.22 + 0.83=3.05 Cr

Considering annuity at 6 % this will yield a monthly income of 1.52 L falling short of your expectation of 2 L pm.

This can be addressed in two ways:
Either you increase SIP amount to 1.30 L or top-up current SIP amount by 10% each year.

This leads to corpus of 3.21 + 0.83=4Cr+

An annuity at 6% will yield you a monthly income of 2 L(pre-tax).

The rental income from your extra house or other fund resources are not considered.

A modest return of 13% is considered from pure equity schemes.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

You may follow us on X at @mars_invest for updates

Happy Investing
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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Ensure your investment portfolio remains well-diversified across different asset classes and investment styles to manage risk effectively. Regularly review your portfolio's performance and adjust your investment strategy as needed to stay on track towards your income goal.

Regarding your decision to pay 70% down payment for your house purchase, it can be a wise move if it aligns with your financial goals and risk tolerance. By making a higher down payment, you can potentially reduce your loan burden and overall interest costs. However, it's essential to ensure that you maintain an adequate emergency fund and continue investing for your long-term financial goals alongside your home purchase plans.

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To meet your income goal, you'll need to accumulate a significant corpus that can generate a sustainable monthly income. Based on your current investments and savings rate, you may need to increase your monthly investment amount and consider higher-returning investment avenues.

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Preferred institute types (NIT, IIIT, GFTI)
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If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
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Step 6: Select Your Preferred Academic Program (Branch)
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Preferred institute types (NIT, IIIT, GFTI)
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List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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