I am 52 and want to retire now. Want to have 2 lac/ month income. My corpus has 4.5Cr in FDs/EPF/PPF, 30 Lac in MFs, 75 Lac in Stocks. No liabilities. Let me know how should i invest my funds to get desired or better income

Ans: Congratulations on reaching the milestone of retirement! With your financial prudence and diligent savings, you've laid a solid foundation for this new chapter of life. Now, the focus shifts towards generating a steady income stream to sustain your lifestyle comfortably.

Given your retirement corpus of 6 crores, you're in a favorable position to achieve your income goal of 2 lakhs per month. To generate this income, a Certified Financial Planner would likely recommend a balanced approach that combines both growth and stability.

Here's a suggested strategy:

Investment Allocation: With a conservative approach in mind, consider allocating a portion of your corpus towards stable income-generating instruments such as Senior Citizen Savings Scheme (SCSS), Post Office Monthly Income Scheme (POMIS), or immediate annuity plans. These options provide regular income with relatively low risk.
Systematic Withdrawals: Utilize a systematic withdrawal plan from your FDs, EPF, and PPF to ensure a steady flow of income. You can set up monthly withdrawals that align with your income requirements while keeping the remaining corpus invested for growth.
Dividend-Paying Stocks and Mutual Funds: Allocate a portion of your equity portfolio towards dividend-paying stocks and mutual funds. This can provide a supplementary income stream while also offering the potential for capital appreciation over the long term.
Diversification: Maintain a diversified portfolio across asset classes to mitigate risk and capture opportunities for growth. Regularly review and rebalance your portfolio to ensure alignment with your income needs and risk tolerance.
Professional Advice: Consider consulting with a Certified Financial Planner who can assess your specific financial situation, goals, and risk appetite to tailor a comprehensive retirement income strategy that suits your needs.
By adopting a balanced approach and leveraging a combination of stable income sources and growth-oriented investments, you can potentially generate a sustainable income of 2 lakhs per month in retirement while safeguarding your financial security for the years ahead.

Ans: Congratulations on your impending retirement and the substantial corpus you've accumulated across various investment avenues. Planning for a comfortable post-retirement income is essential, and I'm here to offer guidance on how to achieve your financial goals.

With a corpus of around 3.5 crores invested in PPF, EPF, Superannuation Fund, and mutual funds, you have a solid foundation for retirement. Additionally, owning your own flat with a market value of Rs. 1.8 crores and an inherited flat valued at Rs. 80 lakhs provides further financial security.

To generate a monthly income of Rs. 2.0 lakhs after retirement, you'll need to ensure your investments are structured to provide a consistent stream of income while preserving capital for the long term.

Given your investment horizon of 3 years until retirement, it's crucial to adopt a balanced approach that combines both growth and income-generating assets. Here are some suggestions:

Dividend-Paying Mutual Funds: Allocate a portion of your corpus towards dividend-paying mutual funds, focusing on both equity and debt funds. These funds provide regular income through dividend payouts while also offering the potential for capital appreciation.

Systematic Withdrawal Plans (SWP): Consider setting up SWPs from your mutual fund investments to meet your monthly income requirement post-retirement. SWPs allow you to withdraw a fixed amount periodically, ensuring a steady stream of income while keeping your investments intact.

Rental Income: Utilize the rental income from your inherited flat to supplement your monthly income post-retirement. If feasible, you may also explore renting out a portion of your own flat to generate additional income.

Fixed Deposits and Bonds: Allocate a portion of your corpus towards fixed deposits and bonds to provide stability and ensure liquidity. Opt for instruments with varying maturities to create a ladder that aligns with your income needs.

Real Estate Investment Trusts (REITs): Consider investing in REITs, which offer exposure to income-generating commercial real estate properties. REITs provide regular dividends and the potential for capital appreciation, enhancing your overall income stream.

Regular Review and Adjustment: Regularly review your investment portfolio and make necessary adjustments to ensure it remains aligned with your financial goals and risk tolerance. Consider consulting with a Certified Financial Planner to optimize your investment strategy and navigate the complexities of retirement planning.

By diversifying your investment portfolio across multiple asset classes and implementing income-generating strategies, you can work towards achieving your goal of a monthly income of Rs. 2.0 lakhs post-retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Hello, glad to see that you have retired at the age of 50yrs
According to me , you can have the following strategy :
Mutual funds - 2.27crs
FD for emergency money - 25L
Gold - 20L
Stocks ( super aggressive ) - 15L

Your Mutual fund can have SWP started of 1L per month which is about 5.3% per annum
Funds that can be selected for the mutual fund portfolio :
1) Mid cap - 30%
2) Small cap - 30%
3) Multi cap - 15%
4) Large and mid cap - 15%
5) Equity Hybrid fund - 10%

Please note that these suggestions are based on your stated goals and the information you provided. It is always a good idea to consult with a financial advisor in person to better understand your risk tolerance, time horizon, and specific financial goals.

Let me know if you want more clarity for the same on my LinkedIn Profile
https://www.linkedin.com/in/ca-vivek-lala-21a2038b?utm_source=share&utm_campaign=share_via&utm_content=profile&utm_medium=android_app

Ans: Hello;

Your current total corpus adds upto around 3.7 Cr. (Excluding NPS part of which will get annuitized at 60 age & RE properties).

If you buy an immediate annuity for this corpus you may expect to receive monthly payout of around 2 L(pre-tax) assuming 7% as annuity rate.

I presume you have occupied one flat for self use and other flat is let out on rent.

The rental income per month from one flat and annuity from balance 40% of NPS(after 60 age) will be your surplus income over and above 2 L as envisaged.

You may opt for annual increase in annuity which is a feature offered by some life insurers.

I do not advise retirement corpus to be exposed to equity considering risks involved hence corpus will remain 4 Cr at 65 unless you decide to sell the extra flat or add lumpsum of NPS corpus (60%) to your sum for more annuity income.

Happy Investing!!