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50-year-old Doctor Seeking Retirement Advice: Can I Retire on 3-4 Lakhs Per Month?

Ramalingam

Ramalingam Kalirajan  |6625 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 12, 2024

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 - Jul 01, 2024Hindi
Money

I am 50year old .i am doctor by profession.My wife is also doctor and govt.employee.our mo thly income is 4lakh.i have invested in real estate,ulip and guaranteed plans.Now i invested in mutual funds for last 3-4 month in motilal oswal mid cap,nippon large cap,quant small cap,quant infrastructure direct fund ,Sbi contra fund and tata small cap.I can invest 1 lakh per month and even more.PLease guide me in my portfolio and other investment to create fund for retirement of 3-4 lakh per month

Ans: At 50 years old, with a stable income of Rs. 4 lakhs per month, you are in a strong financial position. Both you and your wife being doctors and having government jobs provide a solid financial foundation. You aim to build a retirement corpus that provides Rs. 3-4 lakhs per month. This goal is realistic but requires careful planning and adjustments to your current investment strategy.

Evaluating Your Existing Investments
You have diversified your investments across real estate, ULIPs, guaranteed plans, and mutual funds. However, it’s important to assess how well these align with your retirement goals.

Real Estate Investments
Real estate can be a good long-term investment. However, it often lacks liquidity. In the context of retirement planning, liquidity is crucial. If you need funds quickly, selling real estate might not be easy. Also, the returns from real estate can be inconsistent. While it has growth potential, the market is also subject to downturns.

ULIPs and Guaranteed Plans
ULIPs and guaranteed plans often come with high fees and lower returns. The insurance component in these plans usually dilutes the investment returns. For someone aiming to build a retirement corpus, these might not be the most efficient options. It might be wise to consider surrendering these policies and reinvesting in more growth-oriented instruments like mutual funds.

Current Mutual Fund Investments
You have started investing in mutual funds, which is a positive step. Your portfolio includes mid-cap, large-cap, small-cap, infrastructure, and contra funds. While diversification is good, it’s important to ensure that each investment aligns with your long-term goals.

Assessment of Your Mutual Fund Portfolio
Let’s take a closer look at your current mutual fund investments and evaluate their suitability for your retirement goal.

Mid-Cap Funds
Mid-cap funds have the potential for high growth. They invest in medium-sized companies that are likely to grow over time. However, they also come with higher risk compared to large-cap funds. While it’s good to have mid-cap exposure, it’s important to balance it with more stable investments.

Large-Cap Funds
Large-cap funds invest in well-established companies. These companies have a track record of stability and growth. Large-cap funds are less volatile than mid or small-cap funds. They provide steady returns and are essential in a retirement portfolio.

Small-Cap Funds
Small-cap funds can deliver high returns, but they are also highly volatile. Investing in small-cap funds is risky, especially as you approach retirement. While they can be part of your portfolio, the allocation should be limited.

Infrastructure and Contra Funds
Infrastructure funds invest in companies involved in infrastructure development. They can provide good returns, but they are also subject to sector-specific risks. Contra funds, on the other hand, invest in underperforming sectors with the hope of a turnaround. These funds can be rewarding but require a long-term horizon and carry higher risk.

Direct Funds
Direct funds have lower expense ratios but require active management. If you are not monitoring your investments closely, direct funds might not be ideal. Investing through a Certified Financial Planner (CFP) can help manage this, as they provide professional advice and regular reviews.

Recommendations for Portfolio Adjustment
To create a robust retirement fund, it’s crucial to refine your portfolio. Here’s how you can do that:

Rebalance Your Mutual Fund Portfolio
Increase Allocation to Large-Cap Funds: Large-cap funds provide stability and should form the core of your portfolio. Consider increasing your allocation to these funds for steady growth.

Reduce Exposure to Small-Cap Funds: While small-cap funds offer high growth potential, they also carry high risk. Given your retirement goal, it’s advisable to reduce exposure to small-cap funds and reallocate to more stable options.

Consider Balanced or Hybrid Funds: These funds invest in both equity and debt instruments. They provide a balanced risk-reward ratio and are suitable for investors nearing retirement. They offer stability while still providing growth opportunities.

Limit Sector-Specific Funds: Infrastructure and contra funds are subject to sector-specific risks. It might be wise to limit your exposure to these funds and focus on more diversified funds that spread risk across sectors.

Reevaluate Real Estate and ULIPs
Surrender ULIPs and Guaranteed Plans: ULIPs and guaranteed plans might not provide the returns needed for your retirement goals. Consider surrendering these policies and reinvesting the proceeds in mutual funds. This move can potentially offer better returns and align with your retirement plan.

Consider Selling Real Estate: If your real estate investments are not generating the expected returns or if they are illiquid, you might consider selling some properties. The proceeds can be reinvested in more liquid and growth-oriented instruments like mutual funds.

Increase Monthly Investment
Allocate Rs. 1 Lakh or More Monthly: With a monthly income of Rs. 4 lakhs, you can afford to invest more. Allocating Rs. 1 lakh or more per month towards your retirement fund can significantly enhance your corpus over time. Focus on large-cap and balanced funds for these investments.

Set Up a Systematic Investment Plan (SIP): A SIP allows you to invest regularly in mutual funds. This approach not only helps in averaging out the cost but also instills discipline in investing.

Tax Planning and Retirement
Investing in mutual funds is tax-efficient, but it’s essential to plan for the tax implications. Equity mutual funds are subject to long-term capital gains tax (LTCG). Proper tax planning can help in maximizing your retirement corpus.

Consider Tax-Saving Funds: Investing in tax-saving mutual funds can help reduce your taxable income while growing your retirement corpus.

Plan for Post-Retirement Income: Once you retire, the withdrawal strategy will be crucial. Systematic Withdrawal Plans (SWP) from mutual funds can provide regular income while minimizing tax liabilities.

Final Insights
Building a retirement corpus of Rs. 3-4 lakhs per month is achievable with the right strategy. Your current portfolio is diverse, but it needs adjustments to align with your retirement goals. Focus on increasing your allocation to large-cap and balanced funds, reducing exposure to high-risk small-cap and sector-specific funds, and considering the liquidity and return potential of your real estate and ULIP investments.

By investing Rs. 1 lakh or more per month, regularly reviewing your portfolio, and working with a Certified Financial Planner (CFP), you can create a solid retirement fund that meets your needs. This disciplined approach will ensure that your investments grow steadily, providing the desired retirement income.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
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  |6625 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 02, 2024

Money
I am 38 year old married 1 kid, i dont have any loans. I have 1 cr invested in equity 1 cr is mutual fund. 25 lac in pf and 15 lac in nps and 15 lac in gold. 13 lac in land. I do have individual house. I am earning 2.5 lac per month investing around 1 lac in mutual fund sip. I want to retire comfortably in 3 to 5 years. Can you assist
Ans: Planning for early retirement is an ambitious and commendable goal. Your current financial position indicates a strong foundation. Let's delve into a comprehensive strategy to ensure you achieve a comfortable retirement in the next 3 to 5 years.

Compliments on Your Financial Discipline

Your commitment to saving and investing Rs. 1 lakh per month in mutual funds demonstrates excellent financial discipline. This approach has built a solid foundation for your future.

Understanding Your Current Portfolio

You have diversified your investments well across various asset classes:

Rs. 1 crore in equity
Rs. 1 crore in mutual funds
Rs. 25 lakh in PF
Rs. 15 lakh in NPS
Rs. 15 lakh in gold
Rs. 13 lakh in land
Own individual house
These investments indicate a well-rounded portfolio aimed at growth and stability.

Goals and Timeline

Your goal is to retire comfortably within 3 to 5 years. This requires a strategic approach to ensure your investments can generate sufficient income to sustain your lifestyle post-retirement.

Evaluating Your Investment Strategy

1. Equity Investments

Equities offer high growth potential, making them ideal for wealth accumulation. However, they also come with higher risks. As you approach retirement, it’s crucial to balance the equity portion of your portfolio to mitigate risks.

2. Mutual Funds

Your monthly SIP of Rs. 1 lakh in mutual funds is a wise decision. Diversify your mutual fund investments across different types of funds to achieve a balance between growth and stability.

3. Provident Fund (PF) and National Pension System (NPS)

PF and NPS provide a secure and steady return, ideal for retirement planning. These funds should remain a core part of your retirement corpus due to their stability and tax benefits.

4. Gold Investments

Gold acts as a hedge against inflation and economic uncertainty. While it’s not a high-growth asset, it provides stability. Maintain your current allocation to gold.

5. Land Investment

Real estate can be a good long-term investment, but it has drawbacks like illiquidity, no easy entry and exit, and partial withdrawal challenges. Consider this investment as a non-liquid part of your portfolio.

6. Emergency Fund

Ensure you have an emergency fund covering at least 6-12 months of expenses. This fund should be in a highly liquid form like a savings account or liquid mutual funds.

Investment Strategy for the Next 3 to 5 Years

1. Portfolio Rebalancing

As you approach retirement, gradually reduce your exposure to high-risk assets like equities. Increase your allocation to safer assets like debt mutual funds and fixed income instruments.

2. Debt Mutual Funds

Investing in debt mutual funds can provide stability and regular income. These funds invest in bonds and fixed-income securities, offering lower risk compared to equities.

3. Hybrid Funds

Hybrid funds can be a balanced choice, offering both growth and stability by investing in a mix of equities and debt. These funds can provide moderate returns with reduced risk.

4. Systematic Withdrawal Plan (SWP)

As you near retirement, consider setting up a Systematic Withdrawal Plan (SWP) from your mutual funds. SWP allows you to withdraw a fixed amount regularly, ensuring a steady income post-retirement.

5. Retirement Corpus Estimation

Estimate your retirement corpus by calculating your expected expenses post-retirement. Factor in inflation and any additional expenses like healthcare and leisure. This will help you determine if your current investments are sufficient or if you need to adjust your savings rate.

6. Tax Planning

Ensure you utilize tax-saving instruments to minimize your tax liability. Investments in tax-saving mutual funds (ELSS), PPF, and NPS can provide significant tax benefits under Section 80C.

7. Life and Health Insurance

Adequate life and health insurance are crucial to protect your family’s financial future. Ensure you have a comprehensive health insurance policy and a sufficient life cover through term insurance.

8. Estate Planning

Plan for the distribution of your assets to ensure your family’s financial security. Creating a will and considering setting up trusts can help in managing and protecting your wealth.

Analyzing Your Risk Tolerance

Given your goal to retire in 3 to 5 years, it’s essential to reassess your risk tolerance. While you have a substantial investment in equities, shifting towards safer assets can protect your portfolio from market volatility.

Advantages and Risks of Mutual Funds

Advantages:

Professional Management: Fund managers use their expertise to make informed investment decisions.
Diversification: Mutual funds spread your investment across various securities, reducing risk.
Liquidity: Mutual funds are easily tradable, providing flexibility.
Tax Efficiency: Certain mutual funds offer tax benefits under Section 80C.
Power of Compounding: Reinvesting returns can significantly grow your wealth over time.
Risks:

Market Risk: Equity funds are subject to market fluctuations.
Credit Risk: Debt funds carry the risk of default by issuers.
Interest Rate Risk: Changes in interest rates can affect the performance of debt funds.
Liquidity Risk: Some mutual funds might face liquidity issues during market downturns.
Power of Compounding

The power of compounding can significantly enhance your returns over time. By reinvesting your earnings, you earn returns on both your initial investment and the accumulated returns. This exponential growth can help you achieve your retirement goals.

Final Insights

To retire comfortably in 3 to 5 years, a well-planned investment strategy is crucial. Here’s a summary of the key steps you should take:

Rebalance Your Portfolio: Gradually shift from high-risk equities to safer debt funds.
Diversify: Invest across various asset classes to balance risk and returns.
Utilize SWP: Set up a Systematic Withdrawal Plan for steady post-retirement income.
Maintain an Emergency Fund: Ensure you have funds for unexpected expenses.
Tax Planning: Maximize tax benefits through strategic investments.
Insurance: Ensure adequate life and health insurance coverage.
Estate Planning: Plan the distribution of your assets for your family’s security.
By following these steps and regularly reviewing your financial plan with a Certified Financial Planner, you can achieve your retirement goals and secure a comfortable future. Your disciplined approach and proactive decision-making will help you build a strong financial foundation.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6625 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 08, 2024

Asked by Anonymous - Jul 29, 2024Hindi
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Money
I am 33 years old female with a monthly salary of 2 lakhs. I have a 6 year old son. I have a home loan of 37 lakhs. Monthly expenses 31500 of home loan emi , house expenses 60000 . I have no emergency fund. I have to start investing in mutual fund and stocks . Please help in guiding me for the same to build the portfolio within next 15 to 20 years. I have to retire at 50
Ans: I appreciate your proactive approach to planning your financial future. You have a clear goal to retire by 50, and I can guide you on how to achieve this.

Current Financial Situation
Age: 33 years

Monthly Salary: Rs 2 lakhs

Home Loan: Rs 37 lakhs with a monthly EMI of Rs 31,500

Monthly Household Expenses: Rs 60,000

No Emergency Fund: This is a critical aspect to address

Investment Goals: Building a portfolio for retirement and starting investments in mutual funds and stocks

Building an Emergency Fund
Before you start investing, it's crucial to build an emergency fund.

Fund Size: Aim for 6-12 months of expenses

Monthly Savings: Set aside Rs 30,000-40,000 monthly until you reach this goal

Savings Account: Use a high-interest savings account or a liquid mutual fund

Home Loan Management
Your home loan EMI is Rs 31,500, a significant portion of your monthly expenses.

Prepayment: Consider making lump sum prepayments when possible to reduce the loan tenure and interest

Interest Rates: Regularly review and switch to lower interest rates if available

Investment Strategy for Mutual Funds
Diversified Portfolio
Creating a diversified portfolio will help balance risk and returns.

Large-Cap Funds: These funds invest in large, established companies. They offer stability and steady growth.

Mid-Cap Funds: These funds invest in medium-sized companies with high growth potential. They are moderately risky.

Multi-Cap Funds: These funds invest across large, mid, and small-cap stocks, providing diversified growth.

Equity-Linked Savings Scheme (ELSS): These funds offer tax benefits under Section 80C and are good for long-term growth.

SIPs for Consistent Investing
Start a Systematic Investment Plan (SIP) to invest regularly.

Monthly SIP Amount: Aim to invest Rs 50,000-60,000 monthly across different funds

Automate Investments: Set up automatic transfers to ensure consistent investing

Active Fund Management
Actively managed funds often outperform index funds.

Fund Manager’s Track Record: Choose funds with experienced managers who have a good performance history

Risk-Adjusted Returns: Evaluate funds based on risk-adjusted returns

Stock Investments
Investing in stocks can provide higher returns but comes with higher risk.

Building a Stock Portfolio
Blue-Chip Stocks: Invest in well-established companies with a strong track record

Growth Stocks: Invest in companies with high growth potential

Diversification: Spread investments across various sectors to reduce risk

Regular Monitoring
Review Performance: Regularly monitor your stock portfolio

Adjust Holdings: Make adjustments based on market conditions and company performance

Insurance Coverage
Ensuring adequate insurance coverage is crucial for financial security.

Health Insurance
Coverage Amount: Ensure you have a health insurance policy with adequate coverage

Family Floater: Consider a family floater plan for comprehensive coverage

Life Insurance
Term Plan: Opt for a term plan to provide financial security for your family

Coverage Amount: The sum assured should be at least 10-15 times your annual income

Retirement Planning
Setting Retirement Goals
Monthly Income Requirement: Estimate the monthly income you will need post-retirement

Inflation Adjustment: Factor in inflation to ensure your savings last throughout retirement

Investment for Retirement
Long-Term Equity Investments: Continue investing in equity mutual funds for long-term growth

Debt Funds: Gradually shift to debt funds as you approach retirement for stability

Regular Review and Adjustment
Annual Review: Review your financial plan annually

Adjust Investments: Make necessary adjustments based on changes in income, expenses, and financial goals

Final Insights
By building an emergency fund, managing your home loan, and strategically investing in mutual funds and stocks, you can achieve your retirement goal. Diversify your investments, ensure adequate insurance coverage, and regularly review your financial plan. This comprehensive approach will help you build a robust portfolio over the next 15-20 years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Anu

Anu Krishna  |1201 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Oct 15, 2024

Asked by Anonymous - Oct 07, 2024Hindi
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Relationship
Mam i am a 52 year ols women i have never had a secure relationship only who wanted to have s.Marriage in proposals too dint work for me. At late 40 age i met a guy it was all good till start 1 year but since 3 years we just fight my fault to as i have no family no friends and all i have to look after 2 aged parents and i am deep involved my life is just that. This relationship is good to talk on phone as all i do is talk my problems 24 by 7 365 days which i understands upsets him. But i see no effort too from him for meeting planning dates and if i do i pay for it all he never pays . I lost interest felt disappointed after going on saying he never tries to make plans talk future his family finance. I am not sure what i should do stay or live my life alone which i was always doing.
Ans: Dear Anonymous,
Start fresh and if you had a clean slate, what would you want to draw on it?
All your miseries or what you actually want from life?
When you meet someone new and you dump your set of issues on them, how exactly do you think they are going to be interested in taking you out on a date?
Your prospective life partner is not a dumping yard for your life's problems BUT a person that is going to marry you and support you and who you can trust. And will you start this relationship by actually talking only about your problems? Honestly, you need to ask yourself if you will be interested in a guy who keeps ranting about all things going wrong...
Establish a connection by being on a positive ground and showing the other person that you care and also are interested in knowing about them. This interest will let them lower their guard down and actually connect with you at an emotional level and then you can pursue this as a potential life partner association...somewhere down the line, they will be genuinely interested in being a part of your challenges and that's when you make them your strength to solve these challenges. Am I making sense to you?
Do you see how you have been sabotaging your own future? Dust yourself, become genuinely interested in people not to dump your problems on them but to make a genuine connection and watch how things change for you. Prioritize your life not your problems!

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

Anu

Anu Krishna  |1201 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Oct 15, 2024

Relationship
Hi, I am a 36yo guy. Married and have 2 beautiful kids. I am a naturally happy person in life and have achieved reasonable success through my hard work. From last 3 years i am in love with a married girl who works at an office near my workplace. We two believe that we are best suited for each other in every aspect i.e. mental, emotional and physical. We share a great chemistry that we never felt with our respective spouses. We decided that we both cant leave our spouses because of our kids. But very often she keeps on getting crazy and tortures and taunts me that i love my wife more and doesnt give value to her. She is mostly unhappy about this in her life and many times abuses me when she sees that i am a naturally happy and content person. I have even told her that if she wants we can take divorce from our spouses and move-in together. But she never accepts that also and keeps on making my life hard. But i do believe that we both love each other like crazy and my sexual life with her is just out of this world. I have a very high libido and she satisfies me like no other girl. My question is how can i make her sane and make her trust me that i am more inclined towards her?
Ans: Dear Avinash,
I am sure by now you realize that having parallel lives is not easy. Maybe you are at that stage where a decision must be made...
You owe at least that much to your respective spouses who have nothing to do this life of yours...

The lady in question wants the cake and wants to eat it too...obviously she needs to see that if she wants her marriage, then you are going to keep your marriage as well and with that all the insecurities that arise must also be accepted as this is something that the two of you got into willingly...did she not know that a relationship outside of marriage comes with its set of challenges like insecurities, doubts, fears, instability and more? I guess it's not about you making her sane and trust you BUT for the two fo you to come to some sort of a decision on where all this is leading?

Again, I say this...leading two lives in parallel ain't easy; especially on an emotional level!

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

Anu

Anu Krishna  |1201 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Oct 15, 2024

Asked by Anonymous - Oct 01, 2024
Relationship
Hi Anu, I have been reading since long the advices you give to others expecting that there can be an identical issue which i am suffering, i am 48yrs and my wife 42yrs married for 22yrs & having grown up children, over period of time my wife has become more dominating expecting me to listen and follow everything what she says, everything was going fine for until last six years when she was following me as a dutiful wife, since last 6-7yrs she is disinterested in sex also, i sit and speak with her trying to address all the issues, but things get back to ZERO within days, she has turned very short tempered and egoistic, shouting and using foul language in rage at times, we both are highly educated and give lectures at college with limited reasonable income, the problem is she compares her life to others and disturbs our life, ours is a marriage against parents so both the side relatives are little indifferent and we are not extroverts or that persons who are outgoing to change all that, we just lead our life within ourselves and try to help the relatives whenever they come to us. My question is that is it not cruel for a wife to deprive the husband of sex and develop unreasonable expectations comparing the lifestyles of others. when at peace my wife suggests that i can look outside for sex and she is ok with it but i don't believe in it and in her words, at times in rage she keeps asking for divorce uttering foul language, i keep reminding her that emotions, anger and rage shall only aggravate the issues we should know what we actually want and seek it speaking to each other, i feel that my wife doesn't know what she wants from herself or from me or from life, Anu, Is this all that pre-menopause frustrations which is building up or is it some mental issues which are surfacing due to negligence from me or our relatives? Please suggest? Thank you
Ans: Dear Anonymous,
Let's understand it in 3 ways..

1) Whether your wife is in pre-menopause or perimenopause or menopause stage can be determined only by a doctor. A lot of material floats on the internet convincing people of one over the other BUT it's important to get it validated by a doctor that will help your wife understand what is going on with her body and how it impacts her mind...

2) It is also possible that the current sex routine maybe boring to her and infusing it with some spice can get things going? So, think out of the box here...

3) Also, you might want to think if the emotional bond between the two of you has broken down; women respond to sex easier when they feel emotionally connected and safe with their man...

What will be useful in your situation is: to reconnect with her and aim to connect with her emotionally. This will help her in conveying to you what might be the problem and then it gets easier to solve it or take necessary steps...

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

Milind

Milind Vadjikar  |418 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 15, 2024

Milind

Milind Vadjikar  |418 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 15, 2024

Milind

Milind Vadjikar  |418 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 15, 2024

Asked by Anonymous - Oct 15, 2024Hindi
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Money
Hi Milind I am 52 years old single woman, from small town and who has worked hard ro reach to level in corporate with good salary. I have a corpus of about 5 crores and small flat in tier 2 town. I dont enjoy yhis new job wirh reputed brand and at a senior level as i dont find ut engaging or doing justice to role. My parents are old and i worry for rhem ans want to spent rkmw with them. With this corpus can i take a call to leave job and get decent income of atleast 2-2.5 lac a month. I have been quite action oriented, but now my mind and body feel exhasuted and also fear rhat without a job i will become lazy. Also living with parents will be a joy, at the same time resteictive to eating or socializing. I am quite concious ,if i leave this well paying ,senior role job with a big renonwed corporate which many of my friends aspired for and whole lot of people congratulated me ,they will think i was not able to justify my role,hence left . I dont want that impression at last stage of career as whole life i have been seen as hard working ,passionate professional. Such rhoughts are taking toll on my mental health. Please advise what should be done
Ans: Hello;

With the corpus that you have (5 Cr) you may buy an immediate annuity from a life insurance company and can expect to receive monthly payout of 2.5 L (pre tax)from the very next month. 6% annuity rate considered, if you shop around and negotiate you may get a better rate.

You can opt for increasing annuity to account for inflation and return of purchase price to your nominee, after you.

Ensure good health insurance policy to cover yourself and your parents.

Think about some vocation which you would like to pursue passionately after retirement.

You are seeking retirement from regular 9 to 5 job not from pursuit of your passion/goals.

It could be in the role of an consultant, counselor or educator.

You should take the decision which you feel is appropriate for you irrespective of what people comment because they will comment in any case.

Learn to ignore such people.

Happy Retirement!!

...Read more

Milind

Milind Vadjikar  |418 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 15, 2024

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.

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