Home > Money > Question
Need Expert Advice?Our Gurus Can Help

45, Businessman, Aiming to Retire at 55: How to Invest 10 Lakh for Secure Future?

Ramalingam

Ramalingam Kalirajan  |7981 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 04, 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 - Jan 25, 2025Hindi
Money

I am 45. In business.want to retire by 55.my current corpus is 2.5 cr mutual fund.50 lac equity.real estate of approx 10 cr. And gold 2 cr.and cash 2cr.annual income around 1 cr after tax.have 3 children.16.12.and 8 respectively .all in boarding @ 10lacs pa. And have 2 parents to support .monthly expenses of 4 lacs pm current .i am also taking a 12 cr term life insurance for 20 years..please guide the investment trajectory for next 10 lacs so i can retire in nxt 10 years and still able to maintain similar lifestyle while taking care of my parents and childrens education and marriage responsibilities.. i maintain 3 luxury cars of around 50 lacs each and change one every 3 years or so.also keep renewing the best health insurances..

Ans: You have built a strong financial base. Your goal is to retire in 10 years while maintaining your current lifestyle. Your portfolio is diversified across mutual funds, equities, gold, cash, and real estate. Below is a 360-degree investment plan to secure your retirement, support your children, and take care of your parents.

Current Financial Position
Mutual Funds – Rs.2.5 crore
Equity Holdings – Rs.50 lakh
Real Estate – Rs.10 crore
Gold – Rs.2 crore
Cash Reserves – Rs.2 crore
Annual Income (After Tax) – Rs.1 crore
Monthly Expenses – Rs.4 lakh
Children’s Education Cost (Annual) – Rs.30 lakh
Luxury Cars – Rs.50 lakh each (One replaced every 3 years)
Parents’ Support – Ongoing financial commitment
Health Insurance – Well-maintained premium plans
Term Life Insurance – Rs.12 crore (20 years)
Your financial strength is impressive, but a clear roadmap is necessary for a smooth retirement.

Major Financial Responsibilities
Retirement at 55 with a similar lifestyle
Children’s education and marriage expenses
Parental support for healthcare and living expenses
Luxury car maintenance and upgrades
Maintaining a strong healthcare safety net
Your financial plan must ensure wealth preservation, growth, and liquidity for these goals.

Optimising Existing Investments
Real estate holdings are illiquid and should not be relied upon for regular cash flow.
Gold provides stability but does not generate passive income.
Cash reserves must be actively deployed for higher returns.
Equity and mutual funds offer growth but need proper allocation.
A structured investment strategy is required to balance growth, liquidity, and risk.

Asset Allocation for the Next 10 Years
1. Increase Allocation to Mutual Funds
Actively managed funds provide superior returns over index funds.
A mix of equity, debt, and hybrid funds will balance growth and stability.
Allocate a portion for long-term growth and another for passive income.
Invest through a Certified Financial Planner (CFP) & MFD for better fund selection.
2. Optimise Direct Equity Holdings
Keep only high-quality stocks with strong fundamentals.
Periodically review and rebalance based on market trends.
Avoid speculative investments or short-term trading.
3. Deploy Cash Reserves Strategically
Do not keep large idle cash reserves.
Allocate systematically into high-return instruments.
Maintain emergency liquidity but invest the rest for long-term growth.
4. Structured Retirement Planning
Ensure a steady post-retirement income through well-structured investments.
Diversify across debt and hybrid instruments for stability.
Align cash flows with future expenses and lifestyle needs.
Children’s Education and Marriage Planning
Education expenses will rise as they progress to higher studies.
Allocate dedicated investments for their graduation and post-graduation.
Consider structured withdrawals to match educational timelines.
Marriage planning should start early to ensure fund availability.
Parental Financial Security
Their medical and living expenses will increase with time.
Enhance their health insurance for additional coverage.
Maintain a contingency fund specifically for their healthcare needs.
Ensure liquidity in case of emergency hospitalisation or treatment.
Luxury Lifestyle Sustainability
Your lifestyle choices require continuous cash flow.
Ensure that investments generate enough passive income.
Plan car replacements without affecting core financial goals.
Factor in inflation and increasing living costs for the next 20+ years.
Ensuring Strong Risk Management
1. Life Insurance Review
Your Rs.12 crore term insurance provides sufficient coverage.
Review every 5 years to ensure adequacy based on changing responsibilities.
2. Health Insurance Optimisation
Continue renewing the best health insurance policies.
Consider top-up policies for extra protection.
Set aside an additional health emergency fund for non-covered expenses.
3. Contingency Fund Maintenance
Keep a separate reserve for emergencies beyond regular investments.
Avoid using retirement corpus for unexpected financial shocks.
Building Sustainable Passive Income
Your current investments should generate sufficient post-retirement income.
Debt and hybrid mutual funds will provide a steady return.
Dividend-yielding equity can supplement passive earnings.
Reinvest surplus returns to maintain portfolio growth.
Final Insights
You are financially strong but need structured investment allocation.
Focus on liquid and growth-oriented assets.
Align investments with retirement, children’s future, and lifestyle goals.
Maintain a diversified portfolio for stability and long-term wealth creation.
By following this disciplined approach, you can retire comfortably at 55 while maintaining your lifestyle, securing your children’s future, and supporting your parents.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |7981 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

Listen
Money
Sir i am 27 yrs old unmarried .i have 35L in FD 10L in ppf 15L in mutual fund 20L in stocks 5L in SGB . I have an annually income of 30L i want to retire by 40 i have brought a term insurance and health insurer. Can help me plan how to invest further and achieve my goal .Karthik banglore
Ans: Hello Karthik,

Firstly, congratulations on being proactive about planning for your retirement at such a young age. Let's delve into crafting a strategic financial plan to help you achieve your goal of retiring by the age of 40, with a focus on mutual funds (MFs) as a key component of your investment strategy.

Current Financial Position
Your current financial standing reflects a commendable level of savings and investments, providing a solid foundation for your retirement aspirations. Let's review your existing assets:

FDs, PPF, and SGB: These traditional investment avenues offer stability and security, but they might not maximize long-term growth potential.

Mutual Funds and Stocks: Investing in equities and mutual funds demonstrates your willingness to explore avenues with higher growth potential, albeit with associated market risks.

Retirement Planning Strategy
Given your ambitious retirement goal, here's a tailored approach to further optimize your investments, focusing more on mutual funds:

Asset Allocation Review:

Evaluate your current asset allocation to ensure alignment with your retirement timeline and risk tolerance. Consider reallocating a portion of your conservative investments (FDs, PPF) towards equity mutual funds for higher growth potential over the long term.
Diversification with Mutual Funds:

Explore a diversified portfolio of mutual funds across different categories:
Large-Cap Funds: These funds invest in large, well-established companies with stable performance. They offer relatively lower risk compared to mid-cap and small-cap funds.
Mid-Cap and Small-Cap Funds: These funds focus on mid-sized and small-sized companies with higher growth potential but also higher volatility. Allocate a portion of your portfolio to these funds for capital appreciation.
Flexi Cap Funds: These funds provide flexibility to invest across market capitalizations based on prevailing market conditions. They offer a balanced approach between growth and stability.
ELSS Funds: Consider investing in Equity Linked Savings Schemes (ELSS) to avail tax benefits under Section 80C of the Income Tax Act, while also benefiting from potential capital appreciation.
Regular Portfolio Monitoring:

Implement a disciplined approach to monitor and rebalance your MF portfolio periodically. Review fund performance, expense ratios, and fund manager track records to ensure they align with your investment objectives.
Systematic Investment Plan (SIP):

Utilize SIPs to invest systematically in mutual funds, enabling rupee-cost averaging and mitigating the impact of market volatility over time. Allocate your monthly investment amount across various MF categories based on your risk profile and investment horizon.
Tax Planning:

Optimize your tax efficiency by leveraging tax-saving mutual fund options such as ELSS funds. Maximize contributions to tax-deferred accounts like ELSS to reduce your taxable income and enhance overall savings.
Conclusion
In conclusion, by adopting a proactive and strategic approach to your financial planning, with a focus on mutual funds, you're well-positioned to achieve your goal of retiring by the age of 40. Continuously assess and adjust your MF portfolio to align with evolving market conditions and personal financial objectives. Remember, early retirement requires diligent planning and disciplined execution, but with careful guidance and prudent decision-making, you're on the right track to realizing your retirement dreams.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7981 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 27, 2024

Asked by Anonymous - Aug 20, 2024Hindi
Money
Hello, I am 37 year old and need advice on how I can retire in next 10 years. I live in Bangalore and am married with a kid in 4th standard. Here are my current situation on Assets, Liabilities and Investments details , Assets: House Approx. Rs 1 CR jointly owned with my Dad 50:50, FD: In 2 banks Rs 30 lac + Rs 30 Lac = Total 60 lac, Liability: House loan Rs 1.5 lac remaining, Investment: Shares: Direct investment With Axis Direct Rs. 47lac + ICICI Direct Rs 12 lack + ESOPs Rs 12 lac, MF: Current Investment in MF: Overall, Rs.40 Lac till date, MF SIP: Ongoining ICICI Pru BlueChip - SIP of Rs20000/m PGIM MidCap - SIP of Rs 20000/m Quant Active Fund - SIP of Rs 20000/m Axis Small Cap - SIP of Rs 20000/m SBI PSU Fund – Sip of Rs 20000/M Need your expert analysis of my financial planning till date and suggest on how can I maximize my gains and improve my early retirement chances.
Ans: To achieve early retirement in the next 10 years, a thorough assessment of your current financial position is essential. This includes reviewing your assets, liabilities, investments, and overall financial strategy. Let's break down each aspect of your financial situation and create a comprehensive plan to enhance your chances of retiring early.

1. Overview of Current Financial Situation
Assets
House: Jointly owned with your father, valued at approximately Rs 1 crore.

Fixed Deposits (FDs): Rs 60 lakh spread across two banks.

Liabilities
House Loan: Rs 1.5 lakh remaining.
Investments
Direct Investments in Shares:

Axis Direct: Rs 47 lakh
ICICI Direct: Rs 12 lakh
ESOPs: Rs 12 lakh
Mutual Funds (MFs):

Current Investments: Rs 40 lakh
Ongoing SIPs:
ICICI Pru BlueChip: Rs 20,000/month
PGIM MidCap: Rs 20,000/month
Quant Active Fund: Rs 20,000/month
Axis Small Cap: Rs 20,000/month
SBI PSU Fund: Rs 20,000/month
2. Analysis of Current Investments and Strategy
Fixed Deposits
Your fixed deposits (FDs) offer safety and guaranteed returns but usually provide lower interest rates compared to other investment options. While FDs are a safe haven for your capital, they may not offer the growth needed to achieve early retirement goals. They are also less effective in combating inflation.

Direct Investments in Shares
Your investment in shares through Axis Direct and ICICI Direct, along with ESOPs, indicates a substantial exposure to equity markets.

Strengths: Direct investments in shares can yield high returns if chosen wisely and managed effectively. ESOPs offer potential upside if the company performs well.

Risks: Direct investments in individual stocks carry higher risk. Market fluctuations can impact returns, and lack of diversification may lead to higher volatility.

Mutual Funds
You have a diversified portfolio with ongoing SIPs in various mutual funds, which is a positive aspect. Mutual funds offer professional management and diversification, reducing individual stock risk.

Strengths: SIPs provide disciplined investing, averaging out market costs. They help in capital appreciation over the long term.

Risks: Mutual funds are subject to market risks. Performance varies with the fund manager's decisions and market conditions. Active management often involves higher fees compared to passive management.

Asset Allocation and Diversification
Your current asset allocation includes significant exposure to both direct investments in shares and mutual funds. Balancing these with safer investments and ensuring proper diversification across different asset classes is crucial.

3. Strategy for Early Retirement
Evaluating Retirement Corpus Requirements
To retire comfortably in 10 years, calculate your required retirement corpus. This includes estimating your monthly expenses, expected inflation, and desired retirement lifestyle.

Monthly Expenses: Rs 50,000 to Rs 60,000
Inflation Rate: Assume an average inflation rate of 6% per annum to estimate future expenses.
Increasing Returns and Growth
To maximize your returns and ensure a sufficient corpus for early retirement, consider the following:

Enhance Equity Exposure: Continue your SIPs in actively managed mutual funds. These funds typically offer better returns compared to index funds due to active selection and management. Focus on funds with a proven track record.

Diversify Investments: Balance your equity exposure with investments in debt instruments. Consider a mix of:

Equity Mutual Funds: Maintain a portion of your investments in equity mutual funds for growth. Funds with a good performance history and strong management are beneficial.

Debt Instruments: Invest in bonds, government securities, or debt mutual funds for stable returns and capital preservation.

Review and Rebalance Portfolio: Regularly review your investment portfolio to ensure it aligns with your risk tolerance and financial goals. Rebalance as needed to maintain your desired asset allocation.

Debt Management
Pay Off Liabilities: Focus on clearing your remaining house loan of Rs 1.5 lakh. This will reduce your financial burden and free up resources for investment.

Emergency Fund: Maintain an emergency fund with 6-12 months' worth of living expenses. This fund should be kept in a liquid and safe investment, such as a savings account or short-term FD.

Tax Efficiency
Optimize Tax Liabilities: Use tax-saving investments and deductions to minimize your tax burden. Consider tax-efficient funds and investment options to maximize your returns.

Utilize Tax Benefits: Take advantage of tax benefits under sections like 80C, 80D, and 80G. Investments in tax-saving instruments such as PPF, NPS, and ELSS can provide deductions.

4. Enhancing Your Retirement Strategy
Retirement Planning
Estimate Retirement Corpus: Calculate the amount needed to cover your retirement expenses, considering inflation and expected returns. This helps in determining how much you need to save and invest.

Create a Retirement Fund: Allocate a portion of your investments specifically for retirement. Use a combination of mutual funds, fixed deposits, and other suitable instruments.

Consider Systematic Withdrawal Plan (SWP): Once you retire, use SWP from mutual funds to generate regular income. This provides flexibility and tax efficiency compared to fixed monthly withdrawals.

Additional Investment Options
Equity-Linked Savings Scheme (ELSS): Invest in ELSS for tax benefits and potential growth. These funds offer both tax-saving and capital appreciation.

National Pension System (NPS): Consider NPS for additional tax benefits and a structured retirement plan. NPS provides a mix of equity and debt investments, offering a balanced approach.

Protecting Your Future
Health Insurance: Ensure you and your family have adequate health insurance coverage. Medical expenses can significantly impact your retirement savings.

Life Insurance: Review your life insurance needs and ensure adequate coverage. This protects your family in case of unforeseen events.

5. Monitoring and Adjusting Your Plan
Regular Reviews
Financial Check-ups: Regularly review your financial plan to track progress towards retirement goals. Adjust your strategy based on changes in your financial situation and market conditions.

Professional Advice: Consider consulting a Certified Financial Planner for personalized advice and to ensure your plan remains on track.

Adjustments and Flexibility
Adapt to Changes: Be flexible and ready to adapt your investment strategy based on market performance and personal circumstances.

Periodic Rebalancing: Adjust your portfolio allocation periodically to align with your evolving risk tolerance and retirement goals.

Final Insights
To retire comfortably in 10 years, you need a well-structured and diversified investment strategy. Focus on enhancing your returns through a mix of equity and debt investments while maintaining a disciplined approach to savings. Regularly review and adjust your plan to ensure it aligns with your retirement goals and financial situation.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7981 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 14, 2024

Asked by Anonymous - Oct 14, 2024Hindi
Money
My salary 2.4 lac per month. I am 42 my wife and two son comprising of my family. One son is in 5th standard and other yet to start education. I have 2 house emis of 1.6 lacs of which one generates rent of 40k per month. Have around 50 lacs in investment comprising of 20lac in ppf and rest in stocks and sips and mfs. Only have company health insurance and no term insurance. Schooling cost is 1.2 lacs per annum. Rest expenses includes holiday every 6 months and daily needs. Please help me sort out investment to ensure I can generate enough to retire in next 10 years?
Ans: You have a solid foundation, and it’s commendable that you are managing two home loans while balancing various investments. Your monthly salary of Rs 2.4 lakhs and an EMI burden of Rs 1.6 lakhs shows you are carrying significant financial responsibility. However, generating Rs 40,000 from rent is helping reduce the impact of your EMIs.

Key highlights:

Monthly salary: Rs 2.4 lakhs
Two house EMIs: Rs 1.6 lakhs
Rent: Rs 40,000 per month
Investment portfolio: Rs 50 lakhs (Rs 20 lakhs in PPF, rest in stocks, SIPs, and MFs)
Annual schooling cost: Rs 1.2 lakhs
Other expenses: Holiday every 6 months, daily needs
No term insurance
Company health insurance only
While you have done well to invest Rs 50 lakhs, the lack of term insurance and the heavy EMI burden may be areas for improvement. Your goal of retiring in 10 years is achievable, but some adjustments will be necessary to optimize your portfolio and secure a comfortable future.

Investment Strategy Review
Let’s break down your current investments to better align them with your retirement goal in the next 10 years.

PPF (Public Provident Fund) - Rs 20 Lakhs
The PPF is a safe, long-term investment with tax benefits, but its returns are relatively modest. Over the next 10 years, this will continue to grow at a steady pace.

Action Plan:

Keep contributing to your PPF but avoid putting additional large sums.
PPF should be treated as part of your safe, low-risk portfolio.
Stocks, SIPs, and Mutual Funds (Rest of Rs 30 Lakhs)
Your exposure to equities through stocks and mutual funds will help you generate growth, but it needs diversification and regular review. SIPs in actively managed funds are ideal for long-term goals like retirement.

Action Plan:

Actively managed mutual funds: Ensure that the mutual funds you are invested in are diversified across sectors and are actively managed.
Avoid direct funds: Regular funds provide better tracking and advice from an MFD with CFP credentials, which is crucial for your long-term planning.
Review your stock portfolio: Individual stocks carry more risk than mutual funds. It is wise to regularly assess performance and sell off underperforming stocks.
Balance with debt funds: Include some debt funds for stability, especially as you approach your retirement goal.
Rental Income from Property
Your rental income of Rs 40,000 per month is a significant contributor to offset your EMIs. While real estate is not recommended as a new investment option, your existing property generating income can support your cash flow needs.

Action Plan:

Rent reassessment: Ensure you are getting market rent or consider raising it over time to adjust for inflation.
No additional real estate investments: Avoid tying more capital into real estate. Focus on growing your financial portfolio instead.
Critical Areas for Improvement
1. Lack of Term Insurance
It’s essential to secure your family’s future in case of any unexpected event. Currently, you do not have term insurance, which is a vital part of any financial plan.

Action Plan:

Immediate term insurance: Buy a term plan covering at least 10-12 times your annual income. This will ensure your family is financially secure if something happens to you.
2. Health Insurance Coverage
You rely on company-provided health insurance. This is risky, as you may lose coverage if you switch jobs or retire early. Having separate family health insurance will ensure consistent protection.

Action Plan:

Buy individual health insurance: Get family floater health insurance with adequate coverage for your entire family, ensuring lifelong renewability.
Supplemental critical illness cover: Consider adding critical illness coverage to protect against major health expenses.
3. EMI Management
You have significant EMIs totaling Rs 1.6 lakhs per month. While one property generates rental income, the overall EMI burden is high. Managing this will be crucial for freeing up cash flow for further investments.

Action Plan:

Prepay EMIs: Any surplus income should go toward prepaying your loans, starting with the one without rental income. Reducing this burden will ease your cash flow.
No additional loans: Avoid taking on any further debt to ensure your financial plan stays on track.
Retirement Planning
You aim to retire in 10 years, at age 52. With your current lifestyle and goals, your investments will need to provide enough to cover your post-retirement expenses. Here’s a strategy to ensure a comfortable retirement:

1. Estimate Future Expenses
Your current schooling costs are Rs 1.2 lakhs per year, and other living expenses include vacations and daily needs. Over the next 10 years, expenses will increase due to inflation, and you must account for these future costs when planning your retirement.

Action Plan:

Create a detailed budget: Track all your current expenses and project them for the next 10 years, considering inflation. This will give you a clearer picture of your financial needs after retirement.
2. Build a Retirement Corpus
With 10 years to go, you will need to create a solid retirement corpus. The Rs 50 lakhs you currently have, along with further investments, will need to grow substantially. Here’s how to optimize this growth:

Action Plan:

Increase SIP contributions: Start contributing more to your SIPs as soon as your EMI burden reduces. A higher SIP contribution in actively managed mutual funds will provide better growth potential over the next decade.
Diversify investments: Include a mix of large-cap, mid-cap, and flexi-cap funds to ensure a balanced risk-return profile. Actively managed funds, especially those recommended by a certified financial planner, will perform better than index funds or ETFs.
Regular portfolio review: Work with a certified financial planner to review your portfolio annually. Ensure your funds are performing as expected and make necessary adjustments.
3. Plan for Post-Retirement Income
After retirement, you will need a reliable source of income to meet your monthly expenses. Your investments must be structured to provide regular income, adjusted for inflation.

Action Plan:

Systematic Withdrawal Plans (SWP): Set up SWPs in mutual funds to provide a regular, inflation-adjusted income post-retirement.
Emergency Fund: Set aside a portion of your corpus in a liquid fund for emergencies. This will ensure you don’t have to liquidate long-term investments prematurely.
Final Insights
To achieve your goal of retiring in 10 years, you will need to fine-tune your investment strategy and reduce your EMI burden. Your current investments, while substantial, require diversification and a focus on growth-oriented funds.

Additionally, securing term insurance and individual health insurance is critical for protecting your family’s future. By prepaying your loans and increasing SIP contributions over time, you will be better positioned to build a retirement corpus capable of supporting your post-retirement lifestyle.

Finally, always remember that regular reviews with a certified financial planner are key to staying on track and adjusting for any changes in your financial situation.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

..Read more

Nitin

Nitin Narkhede  |60 Answers  |Ask -

MF, PF Expert - Answered on Jan 21, 2025

Asked by Anonymous - Jan 14, 2025Hindi
Listen
Money
Hi sir/mam, I'm 32 years old working in a private firm as Manager. I own 9 lacs in FDs, accumulated 17 lacs in Mutual funds through SIP of around 23k pm (currently XIRR at 15-16% in with 75% in equity). I also have 2.5 lacs in PPF and 1.2 lacs in NPS. For tax savings I do yearly investments in PPF and NPS of about 1 lacs and rest I cover with ELSS (part of my SIPs). I want to retire at the age of 50, my current salary is 1.2 lac per month in hand, and receive few incentives of 1.5 lac a yr. I live in Mumbai with my wife and plan to buy a house of 60 lacs (out of which 20 L I'm borrowing from family, and rest of it will be loan with about 35k EMI). I also have a flat in NCR worth 80 L (purchased at 35 lacs), for which I have an EMI of 11k per month which is covered by rent I receive from there. I don't have kids yet, but I plan to have two of them. What should be my plan of investing that I can retire by max between 50 and 55 yrs of age with an upper middle class lifestyle in either Mumbai or NCR. How much should my corpus be? My current expenses are around 60k including rent in Mumbai, and my parents are independent. I have both health and life insurance of 1 cr+ cover.
Ans: Dear Friend,
To retire comfortably at 50-55 with an upper-middle-class lifestyle, you’ll need a retirement corpus of ?5 crore. Currently, your mutual funds, PPF, and NPS are projected to grow to ~?1.82 crore by 50. To bridge the gap of ?2.18 crore, increase your SIPs by ?30,000/month in equity funds, which can grow to ~?2.25 crore at 12% CAGR in 18 years. Prioritize repaying the ?20 lakh family loan after buying the Mumbai house, ensuring the ?35,000 EMI doesn’t hinder your additional investments. Post-retirement, rely on rental income from your NCR property and a 4% systematic withdrawal strategy from your corpus to cover inflation-adjusted expenses. Maintain ?5-6 lakhs in an emergency fund and continue tax-saving investments like ELSS, PPF, and NPS. Regularly review and rebalance your portfolio to stay aligned with your goals. With disciplined savings and investments, you’re on track for a secure retirement.
Regards, Nitin Narkhede
-Founder Prosperity Lifestyle Hub,
Free webinar https://bit.ly/PLH-Webinar

..Read more

Latest Questions
Milind

Milind Vadjikar  |1030 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Feb 17, 2025

Listen
Money
Hello sir, I am 33years old and like to have a stable life with a good retirement corpus along with children education. I have 2 sons both are of 1 and 3years old respectively and my wife is a housewife. I am having FD of 16L, 10L in gold, bought a flat paying housing loan EMI of 25K, having term insurance for 1cr and health insurance for 4L. I am making investments in mutual funds SIP of 30k since last 1 year. Hdfc dividend yeild fund 1000 Icici bluechip fund 8000 Quant small cap fund 1000 Canara robecco small cap fund 1000 Uti nifty index fund 5000 Icici balanced advantage fund 5000 Jm flexicap fund 2000 Quant elss fund 5000 Parag pareekh flexicap fund 2000 Lumsum Investments Sbi healthcare fund 20K Quant infrastruture fund 10k Sbi magnum gilt fund 20k Plz advice....am i really doing good with these investments or shall i replan my investments....
Ans: Hello;

Having 12 funds(9 sip+3 lumpsum) in portfolio is not required.

You need to just 4 funds for your sip of 30 K(divided equally):
1. Flexicap fund
2. Large and midcap fund
3. Balanced advantage fund
4. Multi asset allocation fund

You may consider exiting the sectoral, thematic and debt fund owned by you and redeploy it in your regular funds.

This ensures equity(large cap oriented)is predominant asset class in your portfolio but it also has exposure to debt and gold for balance and risk mitigation.

Also keep a target to step up sip amount every year by 7-10% atleast.

This will go towards higher education provision for your kids. (~1.85 Cr in 15 years considering 7% annual top-up and 10% modest returns)

For your retirement planning you may consider NPS and start with a decent amount(~30 K pm) as regular investment since time is on your side(27 years to hit 60 age).[3.45 Cr in 27 years without any step up consideration. 8% returns assumed].

Consider buying home loan insurance and super top-up health cover.

Happy Investing;
X: @mars_invest

...Read more

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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x