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Can I Reach My Investment Goal With a 40k Monthly Investment?

Milind

Milind Vadjikar  | Answer  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Nov 21, 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
Asked by Anonymous - Nov 20, 2024Hindi
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I am 47 years old, earning 2Lacs P.M after tax. My wife also works and earns 1lac net. Have a daughter in 10th so she has another 7 years to complete her schooling and U.G (she plans for law 5years). I am in rented house paying 50k and own a 3 BHK apartment which has been rented out for 20k. I have a corpus of 1.7CR in MFs, FD and stock market shares. I am debt free. My aim is to fund my daughter's education completely thru the investment and the interest it's accrues. After 2 years I plan to live in my own house to save rental expense. My expectation is to get 2 Lakh passive income 10 years from now. My current household expense is around 1.4L p.m including rent, insurance premiums and school and tution fees. Is it possible to achieve this considering I can invest 40k every month to the corpus.

Ans: Hello;

The composite corpus of 1.7 Cr may grow into a sum of 4 Cr in 10 years assuming 9% return.

In the absence of any info on EPF/PPF/NPS, the monthly sip needs to be at the level of 90 K to reach a corpus of 2.09 Cr in 10 years considering 12% return from pure equity mutual funds.

Hence total corpus after 10 years will be 6 Cr, if you buy an immediate joint life annuity for life, you may expect a post tax monthly income of 2.1 L.

After 7-8 years you should start transferring your gains from equity funds to liquid or ultra short duration debt funds to protect it against market volatility via STP.

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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Ramalingam

Ramalingam Kalirajan  |10874 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 07, 2024

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Hello sir I am doctor with 41 yrs age . I have about 1cr investment in mf and I am doing 1.30 lakhs sip per month . Plus I have 40 lakhs in ppf and 25 lakhs invested in icici pru and emergency funds of 7 lakhs in Fd. I have real estate investment of 3 cr in land and flats which gives me 40 thousand rent per month I don’t have any loans on me.my monthly income is 4 lakhs .i have also investing 50,000 per year in nps with 10 lakh present value in nps . I have two kids with 12 yrs and 8 yrs old . My goal is to accumulate 2cr for kids education in next 10 yrs and monthly pension of 2 lakhs per month on retirement on age of 60 .is it possible
Ans: It's great to see your disciplined approach to investing and planning for your future. Let's assess your goals and see if they are achievable:

Kids' Education Fund:
With a monthly SIP of 1.30 lakhs and existing investments, you have a strong foundation to accumulate the desired 2 crore corpus for your kids' education in the next 10 years.
Ensure that you review your investment strategy periodically to optimize returns and align with your target timeframe.
Monthly Pension:
To achieve a monthly pension of 2 lakhs at the age of 60, you'll need to estimate the corpus required using the concept of retirement planning.
Consider factors such as inflation, expected rate of return on investments, and life expectancy to determine the corpus needed to generate the desired pension amount.
Retirement Planning:
Review your current retirement savings, including investments in MFs, PPF, ICICI Pru, NPS, and real estate.
Calculate the gap between your current retirement corpus and the required corpus to generate a monthly pension of 2 lakhs.
Adjust your savings and investment strategy accordingly to bridge the gap and achieve your retirement goal.
Regular Review and Adjustment:
Regularly monitor your investments and track your progress towards your financial goals.
Make adjustments to your investment strategy as needed based on changes in your income, expenses, market conditions, and life circumstances.
Professional Advice:
Consider consulting with a financial advisor or Certified Financial Planner to develop a comprehensive financial plan tailored to your specific needs and goals.
A professional can help you assess your current financial situation, set realistic goals, and create a roadmap to achieve them.
With careful planning, disciplined saving, and prudent investing, it's possible to achieve your financial goals of funding your kids' education and securing a comfortable retirement. Stay focused on your objectives, and continue to make informed decisions to build a brighter financial future for yourself and your family.

..Read more

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Milind

Milind Vadjikar  | Answer  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Sep 16, 2024

Asked by Anonymous - Sep 16, 2024Hindi
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I am 50 getting retirement in next 10 years now my net salary after deduction 70000, I made 25000 sip from this year upto 10 years I have to own houses and 30 lakhs lic which will come in next year , I want purchase one flat fr rs 25 lakhs ,fr retirement I want month of rs 75000 per months is it enough after 10 yrs , my daughter is studying in b.e in 2yr and son 8th standard.
Ans: Your current earnings of 70K per month if adjusted for inflation(6% assumed)10 years would be 1.25 L.

Assuming you will need 70% of that inflation adjusted value to cover your regular expenses in retirement so your monthly payout requirement will be 70% of 1.25 L=87.5K
A sip of 25 K for 10 years will yield you a corpus of 61.67 L.
A 6% annuity will yield you a monthly income of 30.8K.
If you have corpus available through other sources like EPF, PPF upto 1.13 Cr after 10 years then NO issue the current sip will suffice. (113+61.67=174.67)
A 6% annuity of 1.7467 Cr will yield you monthly payout of around 87.5K
Else you may need to do a sip of 32K for 15 years to reach targetted corpus.
It can be achieved in 10 years too but the sip amount comes to 71K more then your monthly income of 70K hence redundant. (All sip returns are assumed from an equity fund at a modest rate of 13%)

The LIC policy maturity proceeds can be used to purchase the flat as desired.

However more important goals before retirement are the education funding requirement for your children.

I hope you have made provisions towards the same.

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

If you need any further clarity, kindly revert.

Happy Investing!!

..Read more

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Ramalingam

Ramalingam Kalirajan  |10874 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 17, 2025

Money
I am 53 yrs old central government retired with in-hand pension of 57000 p.m. out of which I put 19k yearly for son's (23 year old) into investment like LIC and ULIP icici pru signature (2.5 lakh) for 5 year paying term with 20 years maturity period with swp @9% per annum after 10th year. I have not taken any type of loan. I have also invested in mutual funds lump sum in July 2024 growth fund like tata business cycle fund 3.7 lakh, kotak business cycle fund (1.9 lakh), nippon flexi cap fund 65k, kotak multi asset allocation fund 5 lakh, Bajaj Finserv flexi cap fund 5 lakh, Bajaj Finserv multi cap fund 65k, motilal oswal multi cap fund 15k, bank of india multi cap fund 15k, nippon multi asset active fof 45k, HDFC multi asset active fof 42k, in various bank i have deposited around 75 lakh as fd, 2 PPf a/c invested 40k every year each ppf account since 2023. I have already taken health insurance 8 lakh cover from 2021 and also have government health card cashless for life time. My son (23 year doing bba) and daughter (20 year doing Bpharma 5th semester) is still studying and unmarried. 2 years still remain in graduation. For two year around 6 lakh would be payable as a fees for both and in marriage 50 lakh would be expenses within 4-5 year for childrens marriage. My monthly income is 63 k however expenses is 71k. I am resending in my own parental house and also have a 1bhk flat and getting rent 6k per month. Can we generate 50-70k per month income within 10-12 years through investment? Please tell me if I need to rethink my investments. If yes then what changes should I make as I need to save more so that more investment can be made for my future.
Ans: – You have managed finances carefully after retirement.
– Pension and rent cover part of your expenses.
– No loans at this stage gives relief.
– Health cover and government card add strong security.
– Supporting children’s studies shows responsibility.
– Planning ahead for their marriages is thoughtful.

» Present income and expense position
– Your pension is Rs.57,000 per month.
– Rental adds Rs.6,000 monthly.
– Total income becomes Rs.63,000 monthly.
– Your expenses are Rs.71,000 monthly.
– Presently, there is a small shortfall.
– This shortfall must be addressed soon.

» Current investments overview
– You have invested Rs.17 lakh in mutual funds.
– Large part is in thematic, multi-cap, and flexi-cap funds.
– Around Rs.75 lakh is in bank fixed deposits.
– PPF contributions add long-term safety.
– LIC and ULIP plans are also included.
– You hold diversified mix but not fully efficient.

» Issues with LIC and ULIP plans
– LIC and ULIPs combine insurance with investment.
– Returns from such policies are often very low.
– Long lock-in reduces flexibility.
– Costs inside ULIPs reduce growth potential.
– They are less suitable than pure mutual funds.
– Surrendering and shifting to mutual funds improves returns.

» Assessment of mutual fund allocation
– You have many funds with small amounts.
– Too many funds create overlap and confusion.
– Thematic and business cycle funds carry higher volatility.
– Multi-asset allocation is good for stability.
– Core allocation should be in diversified active funds.
– Flexi-cap and balanced equity are safer anchors.

» Disadvantages of index-based approach
– Index funds copy benchmarks without adjustment.
– They cannot exit underperforming sectors.
– In downturns, they fall fully with market.
– Active funds have flexibility to reduce risks.
– Skilled managers give better protection.
– Long-term returns are healthier with active strategies.

» Over-reliance on bank fixed deposits
– Rs.75 lakh in FDs is very high.
– FD interest is fully taxable.
– Inflation reduces real value of returns.
– For long-term income, FD is inefficient.
– Part of FD should shift into equity and hybrid funds.
– Balanced mix helps beat inflation while keeping safety.

» Income generation goal of Rs.50,000–70,000
– You want income growth within 10–12 years.
– Inflation will raise expenses further by then.
– Pure FD cannot support such rising income.
– Mutual funds can create sustainable growth.
– SWP from equity and hybrid funds gives steady flow.
– Professional planning ensures this income is stable.

» Children’s education and marriage needs
– Rs.6 lakh fees needed in two years.
– Keep this in liquid funds or FDs for safety.
– Do not take risk for short-term goals.
– Marriage expenses of Rs.50 lakh in 4–5 years need planning.
– Systematic withdrawals from balanced funds can help.
– Keep dedicated allocation for these goals separate.

» Insurance and protection
– Health insurance cover of Rs.8 lakh is good.
– Government health card adds strong backup.
– Ensure children also have health cover.
– Term insurance may not be needed now.
– Focus more on investment planning.

» Importance of cash flow management
– Present shortfall of Rs.8,000 per month must be covered.
– Can use small FD interest for now.
– Reduce non-essential spending where possible.
– Cash flow balance is first priority.
– Avoid dipping into long-term funds for daily use.

» Tax efficiency in investments
– Equity fund long-term gains above Rs.1.25 lakh taxed at 12.5%.
– Short-term gains taxed at 20%.
– FD interest is taxed at full slab rate.
– This reduces real benefit from FDs.
– Equity-hybrid mix provides better tax advantage.
– Planned withdrawals improve net income.

» Need for simplification
– You hold many small investments across funds.
– Simplification gives better tracking.
– Focus on 4–5 good diversified funds.
– Multi-cap, flexi-cap, and hybrid can form the base.
– Remove duplication to reduce confusion.
– Regular review keeps allocation aligned.

» Why professional support matters
– Your needs cover retirement, children, and marriages.
– Balancing all these alone is difficult.
– Certified Financial Planner gives structured approach.
– Mistakes in fund choice or redemption can be costly.
– Professional monitoring improves confidence.
– Safer path for long-term income stability.

» Behavioural discipline during investing
– Avoid chasing high returns aggressively.
– Too much focus on thematic funds increases stress.
– Long-term steady growth is better than quick gains.
– Patience is essential for compounding.
– Discipline ensures your plan works smoothly.

» Building sustainable income after 10 years
– Shift part of FD into equity-hybrid mix gradually.
– Allow them to compound for 10–12 years.
– At retirement stage, set up SWP.
– Monthly income can come from hybrid equity funds.
– Core corpus remains invested for continued growth.
– This supports Rs.50,000–70,000 monthly income sustainably.

» Succession and legacy planning
– Children are still young and dependent.
– Keep nominations updated for all accounts.
– Draft a simple Will for clarity.
– Inform family about all investments.
– Ensure smooth transfer of wealth later.
– This protects your family from future disputes.

» Finally
– You are already disciplined with no loans and good savings.
– Present investments need restructuring for efficiency.
– LIC and ULIPs should be surrendered and shifted to mutual funds.
– Reduce FD portion, increase equity-hybrid allocation.
– Simplify mutual funds into limited diversified options.
– Keep short-term money safe for education and marriage.
– Plan for SWP to create stable income in future.
– Professional guidance ensures goal alignment and tax efficiency.
– With these steps, Rs.50,000–70,000 monthly income is possible.
– You are on the right path, just fine-tune for better results.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

..Read more

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Naveenn

Naveenn Kummar  |233 Answers  |Ask -

Financial Planner, MF, Insurance Expert - Answered on Sep 11, 2025

Asked by Anonymous - Jul 31, 2025Hindi
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Ramalingam

Ramalingam Kalirajan  |10874 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 18, 2025

Asked by Anonymous - Aug 02, 2025Hindi
Money
HI sir am 55 year with annual income of 15 lacs my investment are as below One full paid flat in chennai - 50 lacs - Cr mrkt vlue 72 lacs MF investment cr value _ 1.80 cr equity investment cr value - 1.3 cr Real estate Forced sale value - 1 cr I need to allocate for my daughter education who will be starting her UG by next year want to keep aside some 25-40 lacs i want some steady passive income once am 60 monthly say 1 lac. i stay in a rented house and have let out my flat for 20k per month apart from this have some good gold saved for my daughter. Have loans for 12 lac as on date. advise on how to plan to get a monthly regular income from above by not eroding the capital
Ans: You have built a strong portfolio.
Your focus on your daughter’s future and your own financial stability is appreciable.

Let’s now work through each of your priorities in detail.

» Understanding Your Current Financial Snapshot

– Your flat in Chennai is rented out for Rs. 20,000/month.
– Its current market value is Rs. 72 lakh.
– Mutual funds are valued at Rs. 1.80 crore.
– Direct equity holdings are Rs. 1.3 crore.
– Real estate (excluding the Chennai flat) has forced sale value of Rs. 1 crore.
– You have gold saved for your daughter.
– Outstanding loan amount is Rs. 12 lakh.
– You are staying in a rented house.
– You want to set aside Rs. 25–40 lakh for your daughter’s UG education.
– You want a steady Rs. 1 lakh per month after age 60.

This is a very strong base. You have enough to meet both your goals comfortably.

» Plan for Daughter’s Education – 2026

– You wish to allocate Rs. 25 to 40 lakh for UG expenses.
– Since she’s starting UG next year, keep funds safe and liquid.
– Choose ultra short-duration or low-duration debt mutual funds via regular plan.
– Avoid equity or aggressive hybrid funds for this portion.
– These debt funds can give better returns than FDs and remain liquid.
– Use systematic withdrawal plan (SWP) for annual or semi-annual college fees.
– Gold savings can be used for PG or marriage later.
– Keep Rs. 5 lakh buffer for emergency from the education corpus.

Allocate this amount immediately in phased manner from mutual funds.

» Outstanding Loan of Rs. 12 Lakh – Action Plan

– Check if this is a personal loan or secured loan.
– If interest rate is above 9%, consider partial repayment.
– Don’t liquidate equity or MF fully to clear the loan.
– Instead, redeem Rs. 5-6 lakh from mutual funds or real estate only.
– Continue remaining EMIs. Let MF portfolio grow.

Clearing high-interest loans early is smart. But don’t disturb wealth creation too much.

» Housing and Rent Situation – Review

– You’re staying in a rented house. Your flat is rented out for Rs. 20,000/month.
– Evaluate moving back into your own flat after retirement if feasible.
– This saves rent outgo and increases monthly savings post-retirement.
– If not possible, continue renting and earning from your flat.

Don’t sell your flat now. Keep it for steady rent income or self-use later.

» Creating Passive Monthly Income of Rs. 1 Lakh Post 60

Your aim is clear:
From age 60, generate Rs. 1 lakh/month (Rs. 12 lakh/year) without eroding capital.

Let’s look at how this can be structured from age 60.

MF Corpus Growth by Age 60
– Current MF: Rs. 1.80 crore.
– 5 years of moderate growth (say 9%) could take this to Rs. 2.75 crore.
– Equity corpus of Rs. 1.3 crore could become around Rs. 2 crore.
– Total MF + Equity: ~Rs. 4.75 crore.

Asset Allocation From Age 60
– Shift 60% to conservative hybrid and balanced advantage funds.
– Keep 30% in equity mutual funds for growth.
– Keep 10% in short-term debt for liquidity buffer.

Using SWP From Mutual Funds
– Use SWP from hybrid or balanced funds to withdraw Rs. 1 lakh/month.
– Expected withdrawal rate can be 3%–4% of corpus yearly.
– This gives you Rs. 12 lakh annually without touching principal much.
– Hybrid funds give moderate growth and lower volatility.
– Avoid annuities. They give poor returns and block capital.

Rental Income
– Rs. 20,000/month rental income continues.
– This can increase with inflation.
– So total monthly income becomes Rs. 1.2 lakh or more.

Taxation Awareness
– SWP from equity-oriented funds is taxed.
– LTCG beyond Rs. 1.25 lakh annually is taxed at 12.5%.
– STCG taxed at 20%.
– Debt fund gains taxed as per slab.
– Regularly redeem units with highest cost (FIFO method).
– Use capital gain exemptions where possible.
– A Certified Financial Planner can optimise this further.

Emergency Buffer
– Keep Rs. 15–20 lakh separately in liquid or short-term debt funds.
– This helps in any medical or house-related emergency post 60.
– This should not be touched for monthly income needs.

Don’t Redeem Equity Shares Fully
– Keep your direct equity for long-term growth.
– Trim high-risk or non-dividend stocks gradually.
– Shift some part to mutual funds for steady withdrawal.

» Real Estate Asset – Forced Sale Value Rs. 1 Crore

– Don’t count this in retirement plan actively now.
– This can be a backup reserve.
– Consider selling if maintenance becomes difficult post age 65.
– Invest proceeds in mutual funds or SWP-based schemes.
– Or use it to support daughter’s PG or marriage later.

Let this be your future flexi-asset.

» Restructure Portfolio for Future Safety

Your mutual funds and equity are quite strong.
But consider these suggestions to improve structure:

– Move from direct funds to regular plans via MFD who is a CFP.
– Direct plans lack personal guidance. Wrong moves can hurt wealth.
– Regular plan through a Certified Financial Planner ensures rebalancing, SWP planning, tax efficiency.
– Regular funds give higher risk-adjusted returns in the long term with correct allocation.

Avoid DIY investing beyond a point. In retirement, stable guidance is more important than saving commission.

» Avoid These for Regular Income

– Don’t use index funds.
– They offer no downside protection.
– No flexibility to shift sectors.
– Actively managed funds adjust to market cycles better.
– They reduce volatility during crisis periods.

– Don’t invest in annuities.
– Returns are poor. Capital gets locked.
– No inflation adjustment in most annuities.
– Post-death, your heirs may get little or nothing.

Avoid these traps. Stay flexible and growth-oriented with moderate risk.

» Gold for Daughter – Ideal Usage

– Your gold can be used for her wedding or long-term wealth transfer.
– Don’t sell it now for UG needs.
– You can convert some physical gold to Sovereign Gold Bonds (SGBs) for future if needed.
– But only if holding for 8 years or more.

Treat this as her emotional and financial reserve.

» Estate Planning – Prepare Early

– Write a registered Will by age 60.
– Clearly mention asset transfer to daughter or spouse.
– Include MF, equity, real estate, gold, and insurance.
– Assign nominees correctly in all investments.
– Review once in 3 years.

Good estate planning avoids legal issues later.

» Suggested Allocation Summary (At Age 60)

– Mutual Funds (Hybrid + SWP focus): Rs. 2.5–3 crore
– Equity MF (Growth allocation): Rs. 1–1.2 crore
– Short-term Debt / Liquid Funds (Emergency): Rs. 20 lakh
– Rental Income: Rs. 20,000/month
– Real estate reserve (long-term): Rs. 1 crore
– Gold reserve (for daughter): As is

This setup supports your Rs. 1 lakh/month target easily.

» Finally

You have built your wealth wisely and carefully.
Your portfolio is strong and diversified.
You are now in a position to enjoy financial freedom.

With some reallocation, SWP planning, and focus on steady funds, your post-retirement life can be stress-free.

Avoid real estate additions. Avoid direct plan investing.
Avoid annuities and index funds.

Focus on goal-based investing with professional guidance.
Ensure your money works for you, not the other way around.

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

..Read more

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Hi i am 40M. would request your help to understand what should be the corpus required for retirement as i want to get retired in next 3-5yrs. currently my take home is 2.3L monthly & my wife also works but leaving the job in next 2-3 months. we have a daughter 10yrs, currently i stay on rent and total monthly expense is 1.1L month. once i will retire we will shift in our own parental flat, where hopefully there will be no rent. current Investments 1. 50L in REC bonds getting matured in 2029 2. 42L in stocks 3. 17L in MF 4. 16L FD 5. 15L in PPF 6. 1.3L SIP monthly i do My Wife Investments 1. 30L corpus 2. flat with current value 40L and we get rental of 10K monthly. Please guide what should be the retirement corpus required combined to retire, assuming i need 75L for my daughter post grad and marriage and we would be requiring 75K monthly for our expenses after retiring
Ans: You have explained your income, goals, current assets, and future plans with great clarity. Your early planning spirit is strong. This gives a very good base. You can reach a peaceful retirement with smart steps in the next few years.

» Your Current Position

You are 40 years old. You plan to retire in 3 to 5 years. You earn Rs 2.3 lakh per month. Your wife also works but will stop working soon. You have one daughter aged 10. Your current monthly cost is around Rs 1.1 lakh. This cost will reduce after retirement because you will shift to your parental flat.

Your investment base is already good. You have saved in bonds, stocks, mutual funds, PPF, FD, and SIP. Your wife also has her own savings and rental income from a flat. All these create a good starting point.

This early base helps you plan stronger. It also gives room for more shaping. You are on the right road.

» Your Family Goals

You need Rs 75 lakh for your daughter’s higher education and marriage.

You want Rs 75,000 per month for family living after retirement.

You want to retire in 3 to 5 years.

You will shift to your parental flat after retirement.

You will have rental income of Rs 10,000 from your wife’s flat.

These goals are clear. They give direction. They allow a strong plan.

» Your Present Investments

Your investments include:

Rs 50 lakh in REC bonds maturing in 2029.

Rs 42 lakh in stocks.

Rs 17 lakh in mutual funds.

Rs 16 lakh in fixed deposits.

Rs 15 lakh in PPF.

Rs 1.3 lakh as monthly SIP.

Your wife holds:

Rs 30 lakh corpus.

A flat worth Rs 40 lakh with rent of Rs 10,000 each month.

Your combined net worth is healthy. This gives good power to build your retirement fund in the coming years.

» Understanding Your Expense Need After Retirement

You expect Rs 75,000 per month after retirement. This includes all basic needs. You will not have rent. That reduces cost. This assumption looks fair today.

Your cost will rise with inflation. So you must plan for rising needs. A strong retirement corpus must support rising cost for 40 to 45 years because you are retiring early.

An early retirement needs a large buffer. So you need safety along with growth. Your plan must include growth assets and safety assets.

» How Much Monthly Income You Will Need Later

Rs 75,000 per month is Rs 9 lakh per year. In future years, this cost can rise. If we assume steady rise, your future cost will be much higher.

So the retirement corpus must be designed to:

Give monthly income.

Beat inflation.

Support you for 40 to 45 years.

Protect your family even in market down cycles.

Allow flexibility if your needs change.

A strong retirement fund must support both safety and long-term growth.

» How Much Corpus You Should Target

A safe target is a large and flexible corpus that can support long years without running out of money. For early retirement, the usual thumb rule suggests a very high number. This is because you need income for many decades.

You need a corpus big enough to produce rising income. You also need a cushion for unexpected health costs, lifestyle shocks, and inflation changes.

Your target retirement corpus should be in a strong range. For your needs of Rs 75,000 per month and for goals like daughter’s education and marriage, you should aim for a combined retirement readiness corpus in the higher bracket.

A safe range for your family would be a very large number crossing multiple crores. This large range gives you:

Income safety.

Inflation protection.

Peace during market cycles.

Comfort in long life.

Room for daughter’s future.

Strong backup for health.

You are already on the way due to your existing assets. You will reach close to this range with systematic building over the next 3 to 5 years.

» Why You Need This Larger Corpus

You will retire early. That means more years of living from your corpus. Your corpus must not fall early. It must grow even after retirement. It must give monthly income and long-term family protection.

This is only possible when the corpus is strong and well-structured. A weak corpus creates stress. A strong corpus creates freedom.

Also, your daughter’s future cost must be kept aside. This must be parked in a separate fund. This must not touch your retirement money.

A strong corpus makes these two worlds separate and safe.

» Your Existing Assets and Their Strength

You already have good diversification:

Bonds give safety.

Stocks give growth.

Mutual funds give managed growth.

FD gives stability.

PPF gives tax-free long-term savings.

This blend is already a good start. But you need to make the blend more structured for early retirement.

Your Rs 1.3 lakh monthly SIP is also strong. It builds your future fast. You should continue.

Your wife’s rental income is small but steady. This adds strength.

Your combined financial base can reach your retirement target if you refine your allocation now.

» Your Daughter’s Future Fund Need

You need Rs 75 lakh for your daughter’s education and marriage. You should keep this goal separate from your retirement goal.

Your current SIP and future allocations should create a dedicated fund for this goal. A long-term fund can grow well when managed actively.

Do not mix this fund with your retirement needs. Mixing leads to shortage in old age. Always keep this corpus ring-fenced.

» A Strong Asset Mix For Your Retirement Path

A balanced mix is needed. You need growth assets to beat inflation. You also need stable assets for income.

You must avoid index funds because they do not give flexibility. Index funds follow a fixed index. They cannot make active changes in different markets. They cannot move to better stocks when markets change. They force you to stay in weak sectors for long. They also do not help you in down cycles because they cannot protect you by shifting to safer options. This can hurt retirement planning.

Actively managed funds are better because:

They give active asset selection.

They give scope for better returns.

They give flexibility to change sectors.

They give downside management.

They give access to a skilled fund manager.

They support long-term planning more safely.

Direct plans also carry risk. Direct plans do not give guidance. They do not give behavioural support. They do not give market timing help. They do not give portfolio shaping. They leave all the judgement to you. One mistake can cost years of wealth.

Regular plans with guidance from a Certified Financial Planner help you shape decisions. They help you remain disciplined. They help you avoid panic. They help you decide allocation changes at the right time. This saves wealth in long-term.

» How Your Investment Journey Should Grow in the Next 3–5 Years

Continue your SIP.

Increase SIP when your income rises.

Shift part of your stock holding into planned long-term mutual funds to reduce concentration risk.

Build a defined daughter’s education fund.

Keep a part of your REC bond maturity amount for long-term.

Avoid locking too much into fixed deposits for long periods.

Build a safety fund for one year of expenses.

This will create a full structure.

» Your Rental Income Role

Your rental income of Rs 10,000 per month is small but steady. Over time it will rise. This income will support your monthly cash flow after retirement.

You can use this for utilities or health insurance premiums. This gives a cushion.

» Your Emergency Buffer

You should keep at least one year of essential cost in a safe place. This can be in a liquid account or short-term fund. This protects you in shocks.

Since you plan early retirement, a strong buffer is important. It gives peace even in low months.

» A Structured Retirement Approach

A complete retirement plan for you should include:

A clear monthly income plan after retirement.

A corpus that can grow and protect.

A rising income system that matches inflation.

A separate daughter’s future fund.

A health cover plan for your family.

A tax-efficient withdrawal plan.

A market cycle plan to protect you in tough times.

This holistic approach keeps your family strong for decades.

» What You Should Build by Retirement Year

Your aim should be to reach a strong multi-crore range in investments before retirement. You already hold a large amount. You will add more in the next 3 to 5 years through SIP, stock growth, bond maturity, and disciplined saving.

Once you reach your target range, you can start the shifting process:

Move a part to stable assets.

Keep a part in long-term growth assets.

Create a monthly income strategy.

Keep a reserve bucket.

Keep a child future bucket.

Keep a long-term growth bucket.

This structure protects you in all market conditions.

» Final Insights

Your financial journey is already strong. You have a good income. You have saved well. You have multiple asset types. You have a clear timeline. And you have clear goals. This foundation is solid.

In the next 3 to 5 years, your focus should be on growing your combined corpus to a strong multi-crore range, keeping a separate fund for your daughter, reducing risk in unplanned assets, and building a stable long-term structure.

With the present path and a disciplined structure, you can retire peacefully and support your family with confidence for many decades.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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

...Read more

Money
Samraat

Samraat Jadhav  |2499 Answers  |Ask -

Stock Market Expert - Answered on Dec 08, 2025

Money
Ramalingam

Ramalingam Kalirajan  |10874 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 08, 2025

Money
Hello my name is saket, I monthly salary is 43k and my saving is zero. My Rent is 15 k and 10 k i send to my parents. How can i save money and investments.
Ans: 1. Your Current Monthly Numbers

Salary: Rs 43,000

Rent: Rs 15,000

Support to parents: Rs 10,000

Left with: Rs 18,000 for food, travel, bills, and savings

You have very little room, but saving is still possible if done smartly.

2. First Step: Build a Small Emergency Buffer

You must build Rs 10,000 to Rs 20,000 emergency money.
This protects you from taking loans for small issues.

How to build it:

Save Rs 3,000 to Rs 5,000 every month in a simple bank savings account

Do this for the next few months

Don’t touch it unless truly needed

3. Create a Mini Budget (Very Simple One)

Try this split from the remaining Rs 18,000:

Daily living (food + transport): Rs 10,000 – 11,000

Personal expenses (phone, internet, basics): Rs 3,000 – 4,000

Savings + investments: Rs 3,000 – 5,000

If this feels difficult, reduce food/transport costs by small adjustments.

4. Where to Invest Once You Have Emergency Money

(For minors: This is general education. For actual investing, get guidance from a trusted adult or family member.)

After you build emergency money, start small monthly investing.

You can begin with:

Rs 1,000 to Rs 2,000 SIP in a simple, diversified equity fund

Increase the SIP whenever salary increases or expenses reduce

Avoid complicated products.
Keep it simple.
Focus on consistency.

5. Easy Practical Ways to Increase Saving

These small moves help a lot:

Avoid food delivery

Use public transport as much as possible

Reduce subscriptions you don’t use

Fix a daily expense limit

Keep a separate bank account only for savings

Even Rs 200 saved daily = Rs 6,000 monthly.

6. Increase Income Slowly

Try small income boosters:

Weekend tutoring

Freelancing

Part-time projects

Selling old gadgets

Learning new skills for future salary growth

Even Rs 3,000 extra income changes your savings life.

7. Build the Habit First

The amount doesn’t matter in the beginning.
The habit matters more.

Even saving Rs 500 every month is better than zero.
Once salary grows, you will already know how to save.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

...Read more

Money
Radheshyam

Radheshyam Zanwar  |6737 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Dec 08, 2025

Career
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