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Ramalingam Kalirajan |10870 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 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

Question by Amit on Jul 19, 2025Hindi

Hi I am 43 year old. Wants a fixed income of Rs. 3 Lac after 5 - 7 year max at the age of 50 to retire. Currently i am getting in hand salary of 2.70L. My investments two residential floors where one is rented and getting approx 30K rent and one is used for own residence. I am loan free. My daughter is in 11th standard and saving around 25K per month in her account and total balance is approx 10L which i am keeping for her studies. For her marriage having some plots current cost is 50L. Also saving 1L monthly in MF SIPs from one and half year and portfolio is approx 22L. Apart from that having 70L FDs in my senior citizen mother account. My goal is to get retire by the age of 48-50 with a monthly income of 3L in hand. Please guide

Ans: You’ve built a strong base with disciplined saving and zero liabilities. Your clarity about retiring at 48–50 with a fixed monthly income of Rs 3 lakh is very practical if approached with the right asset structure and transition strategy.

Let’s take a complete view to assess and plan your next 5–7 years.

? Income and Savings Snapshot

Current monthly income is Rs 2.7 lakh, which provides decent surplus.

You are saving Rs 1 lakh in mutual funds via SIPs monthly. Very good step.

Rental income adds Rs 30,000 monthly. Passive income like this will be useful post-retirement.

Rs 70 lakh FD in your mother’s name can be a backup or intergenerational support.

Rs 25,000/month set aside for your daughter’s education is commendable. The Rs 10 lakh corpus for her is a solid start.

Rs 50 lakh worth real estate earmarked for her marriage shows thoughtful planning.

? Goal Review: Rs 3 Lakh Fixed Income at 48–50

Retirement goal is clear: generate Rs 3 lakh/month passive income in 5–7 years.

That translates to approx Rs 36 lakh/year, net of tax.

At 48–50, inflation will still be a major factor for next 30+ years of retirement.

You’ll need to build a corpus that can support this income sustainably, without eroding the capital too early.

? Your Existing Asset Summary

Rs 22 lakh in mutual funds. Growing steadily through SIPs.

Rs 70 lakh in mother’s FDs. This may not be fully accessible to you legally unless jointly held or bequeathed.

Rental income asset.

Self-occupied property. Not to be monetised unless downsized.

Daughter’s education and marriage costs already planned. That removes large future outflows.

? Action Plan for Retirement Readiness by 48–50

Maximise Wealth Creation in Next 5–7 Years

Continue your Rs 1 lakh/month SIPs. Try increasing it by 10% annually if possible.

That alone can build a sizeable mutual fund portfolio over the next 6 years.

Don’t pause SIPs. This is your primary wealth creator for retirement.

Allocate Wisely Across Asset Types

Don’t concentrate too much in FDs. FDs protect capital but erode real value after tax and inflation.

Shift some FD surplus (at least Rs 30–35 lakh) gradually into balanced and equity mutual funds.

If your mother doesn’t need the FD interest for her living, this corpus can be used more efficiently.

Build Passive Income Streams

By age 48–50, your mutual fund corpus must be ready to generate monthly income.

At that point, shift some funds to SWP-friendly hybrid or conservative equity mutual funds.

Use Systematic Withdrawal Plans (SWP) to get fixed income monthly.

Combine this with rental income and strategic FD usage for total Rs 3 lakh/month target.

Example: Rs 30K rent + Rs 50K FD interest + Rs 2.2L SWP = Rs 3L approx.

? Strengthen Contingency and Liquidity

Emergency fund currently sits with your daughter’s education fund.

Maintain a separate 6–9 months of expenses (Rs 5–7 lakh) in liquid mutual funds or sweep FDs.

This gives stability and avoids breaking long-term funds.

? Insurance and Risk Management

Your query didn’t mention term insurance or health insurance.

Ensure you have a term cover till at least 60 years of age.

Health insurance should be minimum Rs 15–20 lakh for self and family.

This will protect your retirement corpus from being used for medical emergencies.

? What Not to Do

Avoid relying heavily on real estate for retirement cash flows.

Property sales are illiquid, and income generation is unpredictable.

Plots should remain earmarked for daughter’s marriage as planned.

Avoid direct equity or index funds at this stage if your knowledge is limited.

Index funds lack flexibility and do not adapt to market phases.

Stick to actively managed mutual funds guided by an MFD with CFP qualification.

Avoid direct plans. Regular plans via a Certified Financial Planner give expert asset allocation and support in downturns.

? Tax Optimisation Strategy Post Retirement

MF withdrawals via SWP are more tax-efficient than FD interest.

STCG in equity MF is taxed at 20%. LTCG beyond Rs 1.25 lakh taxed at 12.5%.

Debt mutual fund gains will be taxed as per your slab.

Smart withdrawal structuring can keep post-retirement tax low.

Keep rental income under Rs 2.5 lakh/month bracket to avoid higher tax brackets.

? Reassess Daughter’s Education and Marriage Plan

Rs 10 lakh corpus for education should be reviewed annually.

Ensure it is parked in short-duration debt mutual funds or FDs. Not in equity.

For marriage, your plot’s value can be used, but ensure documentation and title clarity.

Prefer not to liquidate this asset early. Avoid attaching it to your retirement needs.

? Your Retirement Corpus Target

Without complex maths, a rough estimate suggests you’ll need at least Rs 5–6 crore.

This assumes you want Rs 3 lakh/month from 48–50 till age 85–90.

Your current SIPs, combined with FDs and rental income, can bridge the gap.

But asset growth, inflation, and reinvestment must be monitored yearly.

? Finally

Your efforts till now are strong. Discipline and vision are clear.

You must now shift focus from accumulating assets to structuring cash flows.

Increase SIPs over time. Reduce dependence on FDs gradually.

Strengthen insurance and keep contingency separate.

Engage a qualified MFD with CFP credentials to track and adjust your retirement corpus regularly.

Rs 3 lakh/month income from age 48–50 is possible if steps are consistent and reviewed yearly.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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