I am 46 years old with annual income of Rs.36 lacs. I already have investment in MF having current value as on today of Rs.3.15 Crores and also have a corpus of more than Rs.1 crore in PPF. I want to retire at the age of 55 with a monthly income of Rs. 2.5 lacs (at today's value). How much further should I invest in MF to achieve this. Also as of now I am investing in SIP of Rs.1 Lac per month.

Ans: PPF: corpus will be Rs 1 crore

SS: Corpus Rs 4 lakh

MF: Corpus will be Rs 1.45 crore

Total in next 7 years will be nearly Rs 2.5 crore.

Ans: Hi Kirti Sharma. The portfolio is well diversified, if you are planning for early retirement with corpus of 5 cr in the next 13-14 years. From your current 27k sips, I would suggest increasing it to 1 lakh sips per month.

In addition to the current SIPs, you can increase them by investing in categories like large & mid-cap, mid cap, etc.

Ans: To estimate your retirement corpus, multiply your monthly expenses by 12 to get your annual expenses. Then, considering a safe withdrawal rate of around 4-5% annually, divide your annual expenses by 0.04 or 0.05. As for MFs, opt for a diversified mix of equity and debt funds based on your risk tolerance and investment horizon. Consider consulting a financial advisor for personalized guidance.

Ans: Hello Mr. Sanjay Gupta, it's commendable that you're diligently investing towards your retirement. Let's strategize to ensure a comfortable lifestyle post-retirement.

Assessing Your Current Investments:

With monthly SIPs of 50k, NPS contributions of 10k, EPF contributions of 10k, and yearly PPF investments of 1.50 lakh, you're already on the right track towards building your retirement corpus.

Setting Retirement Income Target:

To achieve a monthly income of 3 lakh during retirement and a corpus of 3 crore before retirement, we need to evaluate your current investment trajectory and adjust it accordingly.

Calculating Required Investments:

Considering your current investments and retirement goals, we'll calculate the additional investment required to bridge the gap.

Strategic Allocation of Funds:

We'll optimize your investment portfolio by balancing allocations across different asset classes to maximize returns and manage risk effectively.

Benefits of SIPs:

SIPs offer a disciplined approach to investing in mutual funds, harnessing the power of compounding to build wealth over time.

Benefits of NPS and EPF:

NPS and EPF provide tax benefits and stable returns, contributing to your retirement corpus while ensuring financial security.

Importance of PPF:

PPF offers attractive interest rates and tax benefits, serving as a reliable long-term savings instrument to supplement your retirement income.

Analyzing Retirement Income Needs:

To generate a monthly income of 3 lakh during retirement, we'll assess the required corpus and strategize investments accordingly.

Calculating Corpus Required:

Based on your desired monthly income and life expectancy, we'll calculate the corpus needed to sustain your lifestyle post-retirement.

Consultation with a Certified Financial Planner:

Seeking advice from a Certified Financial Planner (CFP) ensures personalized guidance tailored to your financial goals and risk tolerance.

Conclusion:

In conclusion, achieving your retirement goals necessitates a comprehensive approach, balancing investments across various avenues. By optimizing your current investments and strategizing additional contributions, we can work towards securing your financial future and ensuring a comfortable retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in