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Ramalingam Kalirajan |10881 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Sep 09, 2025

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Asked by Anonymous - Sep 08, 2025Hindi

I am 43. I have liquid savings of 1 crore. My monthly expenses are 40k and 100000 for yearly travel. I own a house and pay no rent. The house is worth 1.5 crores and own a land wprth 20 lakhs. My regular income is around 180000 per month to 240000 from my profession. I have no other responsibilities. I want to invest 60 lakhs of my savings in agriculural land and retire. Dp you siggest to wait or any other idea on how to improve my portfolio allocation.

Ans: You have done very well so far. You have a high income, no loans, a house, and land. You have Rs 1 crore liquid savings at age 43. That is a strong and rare position. Most people at 43 still pay EMIs. You have peace and flexibility. You also have the choice to retire early. You are asking the right question at the right time.

Below is a full 360-degree assessment. It will help you decide wisely. It will cover your portfolio allocation, retirement income safety, risk, and your plan to buy agricultural land.

» Your current financial strength

– You earn Rs 1.8 to 2.4 lakhs every month. This is very healthy.
– You have Rs 1 crore liquid savings. That gives you comfort and options.
– You own a house worth Rs 1.5 crores. You save on rent.
– You own land worth Rs 20 lakhs. It adds stability to your net worth.
– Your monthly expense is Rs 40,000. That is controlled compared to your income.
– Your yearly travel cost is Rs 1 lakh. That is a lifestyle choice you can afford.
– You have no other family responsibility right now. That reduces pressure.

You have built wealth carefully. This creates room to plan for growth and security.

» Your retirement dream and timing

– You want to retire. That is a major life decision.
– Retirement means no active income. All living costs must come from your investments.
– You need Rs 40,000 per month now. But inflation will increase this need.
– In 15 years, Rs 40,000 may become Rs 80,000 or more.
– So, your portfolio must grow, not just stay safe.
– Retirement also needs liquidity. You must avoid being asset rich but cash poor.

Agricultural land is illiquid. It does not pay monthly income. It may also have legal or operational risk. You must not depend on it for retirement income.

» Why agricultural land is a risky choice for retirement

– Agricultural land does not generate predictable income unless farmed or leased.
– Legal checks are complex. Ownership issues can arise in rural areas.
– Liquidity is low. Selling takes time, sometimes years.
– Price growth depends on local development. It is not predictable like equity.
– Stamp duty, legal cost, and registration increase total cost.
– Sometimes government policy changes impact use or transfer.

You can still buy if it is a passion. But not as the core retirement plan. At most, use a small part of savings, maybe 10-15%, for emotional value, not financial.

» The right portfolio allocation mindset

– You need growth, safety, and income in one plan.
– You need three buckets: emergency, growth, and income.
– Emergency: at least 12 months of expense in safe liquid instruments.
– Growth: equity mutual funds for long-term wealth creation.
– Income: debt mutual funds, deposits, or bonds for stability and predictable cash flow.

You must not put all in one asset like land. A balanced mix will give peace and power.

» Why actively managed mutual funds suit you

– Actively managed funds beat index funds in many Indian market cycles.
– Index funds just copy the market. They cannot protect during market fall.
– Active funds use fund manager skill. They adjust sectors, stocks, and risk levels.
– This helps protect wealth and capture growth.
– Direct funds look cheaper. But advice is missing. Wrong asset mix costs more than fee savings.
– Regular plans through a Certified Financial Planner and MFD align your plan with your goals.
– You also get tax guidance, rebalancing, and emotional control in tough markets.

You are not buying products. You are building a life plan. Active funds with guided allocation make that happen.

» A sample allocation approach for your Rs 1 crore liquid savings

– Keep Rs 15 lakhs in liquid and ultra-short debt funds for emergencies.
– Keep Rs 10 lakhs in safe fixed deposits or short-term debt funds for planned travel or life events.
– Allocate Rs 50 lakhs into diversified equity mutual funds through SIP and lumpsum.
– Allocate Rs 25 lakhs into conservative hybrid or debt mutual funds for income safety.

This gives liquidity, growth, and predictable income when you stop working.

» Retirement income planning approach

– When you retire, you can use a systematic withdrawal plan (SWP) from mutual funds.
– You can draw Rs 50,000 to Rs 80,000 per month safely depending on corpus size and market cycle.
– The remaining corpus continues to grow, beating inflation over time.
– This is more efficient than FDs or property rent.
– Tax is also more efficient under new mutual fund capital gain rules.

» Steps before you take action

– Review your health insurance. Make sure you and dependents are covered.
– Review your term insurance. Keep it till your financial independence is confirmed.
– Check nomination and wills for all assets.
– Do not commit large sums to illiquid assets before locking core retirement income.
– Use a Certified Financial Planner to build and monitor a customised allocation.

» Why waiting can be better than rushing into agricultural land

– Land cycles are slow. Prices may not grow for years.
– Your current portfolio gives you liquidity and power to act later.
– You can observe opportunities, not chase them.
– You may later find a better area or better use for money.
– You keep your options open. Flexibility is worth more than land in uncertain times.

» Risks to avoid at this stage

– Overconfidence from current high income.
– Assuming expenses will stay flat. Inflation will silently increase them.
– Locking too much into one asset. Diversification is your shield.
– Ignoring taxation on withdrawals. Tax planning must run with investment planning.
– Emotional buying of assets like land without a clear income or growth plan.

» Finally

You have built a strong base. You have the rare gift of choice. Please protect it. Buying agricultural land with Rs 60 lakhs now will reduce liquidity and increase risk. It may also delay your retirement security. You can still retire early if you build a balanced portfolio now. Keep enough for lifestyle, travel, and rising costs. Keep a mix of growth, safety, and liquidity. Use mutual funds actively managed with a Certified Financial Planner. That will improve your portfolio allocation and give you peace and steady income.

Waiting is not a delay. It is wisdom. Land may still be an option later in a smaller size, after your core plan is secure. You deserve both freedom and safety. With the right portfolio today, both are possible.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

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