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Ramalingam Kalirajan |10894 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 21, 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

Question by Atanu on Jul 20, 2025Hindi

I am 58 years old male.I am working in a private limited company.My current monthly income is Rs 80000/-PM.I run my family(my one daughter 20 years studing BBA final and wife) with this Income.I will retire in Jul,2027.I will have a corpus of approx Rs 1.10 crore at the time of retirement.How can I get Rs 80000 pm with that corpus after retirement?

Ans: You have shown great responsibility in planning your retirement. At 58, with only two years left for retirement and a corpus of Rs 1.10 crore, your focus on how to generate a steady Rs 80000 per month post-retirement is both timely and essential.

Let us now work out a complete 360-degree retirement income strategy to help you meet your monthly needs comfortably and confidently.

? Understanding Your Retirement Objective

– You aim to get Rs 80000 per month after July 2027.

– Your corpus at retirement will be Rs 1.10 crore.

– You have no major dependents except wife and daughter. Daughter is already in final year.

– The income you seek must last for at least 25 years or more.

– It must also beat inflation and stay stable.

– You want safety, steady income and reasonable growth.

– You must preserve capital and draw from it wisely.

? Assessing Monthly Expense Structure

– Rs 80000 per month is your current family expense.

– Post retirement, some expenses may reduce. But some like health will rise.

– Assume Rs 80000 per month will still be required even after retirement.

– So, your investment strategy should generate this much income safely.

– You will need both growth and income assets.

– Fixed income alone will not help beat inflation over the long term.

? Understanding the Impact of Inflation

– Rs 80000 per month today will not have the same value 10 years later.

– Your portfolio should grow a part of the capital to fight inflation.

– Just earning interest is not enough. Real return after inflation matters.

– You must invest part of your money in assets that grow faster than inflation.

– You must not withdraw entire income only from fixed instruments.

? Avoiding Common Mistakes in Retirement Planning

– Avoid putting 100% money in bank FDs or post office deposits.

– These give low returns and do not beat inflation.

– Avoid investment-linked insurance policies. They offer low liquidity and returns.

– Avoid annuities. They block capital and offer low income.

– Don’t invest in direct equity or stocks at this stage.

– Avoid real estate. It lacks liquidity and involves hassles in old age.

? Asset Allocation Approach: Growth + Stability

– You must divide your Rs 1.10 crore in two parts.

– First part: Safety and regular income portion.

– Second part: Growth and inflation-beating portion.

– A balanced and staggered approach will give better results.

– You may consider 30% to 40% in fixed income, rest in mutual funds.

– This mix will help balance safety, income, and growth.

? Role of Mutual Funds in Retirement Planning

– Mutual funds help you earn inflation-beating returns.

– Actively managed mutual funds are suitable for your situation.

– They are managed by professional fund managers.

– These funds help generate steady long-term returns.

– Unlike index funds, actively managed funds aim to outperform markets.

– Index funds do not adjust to market changes or opportunities.

– Actively managed funds allow flexibility across sectors and asset classes.

– They are suitable when guided by a certified mutual fund distributor and Certified Financial Planner.

– Regular plans give access to proper service, reviews, and handholding.

– Direct funds lack personalised advice and ongoing support.

– Regular funds with CFP oversight help manage risk and returns better.

? Building a Retirement Income Ladder

– Your goal is to get Rs 80000 per month from Rs 1.10 crore corpus.

– You should not withdraw entire income from one source.

– Use the bucket strategy in your investment plan.

– Divide the money into short term, medium term, and long-term buckets.

– Short-term bucket (first 3 years income) can be kept in fixed income.

– Medium-term bucket (next 4-6 years) can be kept in conservative hybrid funds.

– Long-term bucket (7 years onwards) can be kept in diversified equity mutual funds.

– This layered approach ensures safety plus growth.

– It also prevents the need to redeem equity funds during market falls.

? Creating the Monthly Income Stream

– Withdraw from fixed income part first for first 3 years.

– This gives time for equity funds to grow.

– Do not withdraw monthly directly from equity funds.

– Withdraw from the short-term bucket monthly or quarterly.

– Refill this bucket every 2-3 years by booking profits from growth buckets.

– This systematic withdrawal plan ensures stability.

– It keeps your main equity funds untouched during market volatility.

? Managing Taxation on Withdrawals

– Mutual fund withdrawals are subject to capital gains tax.

– For equity funds, long-term capital gains above Rs 1.25 lakh are taxed at 12.5%.

– Short-term capital gains are taxed at 20%.

– For debt funds, both STCG and LTCG are taxed as per your income slab.

– Plan your withdrawals smartly to manage tax impact.

– Avoid redeeming large amounts at once. Stagger redemptions to stay within limits.

– Take help from a Certified Financial Planner to optimise tax and income.

? Importance of Regular Review

– Post-retirement, review your plan once a year.

– Markets, interest rates and your expenses may change.

– Keep an eye on fund performance and rebalance if needed.

– Avoid panic-based decisions during market falls.

– Stick to plan and adjust only when needed.

– Proper monitoring ensures long-term financial stability.

? Emergency Fund and Medical Reserve

– Keep 6-12 months’ expense in emergency fund.

– Park this money in a liquid fund or short-term debt fund.

– This fund helps during any sudden expense or delay in income.

– Keep separate health reserve for medical expenses.

– Do not mix this with regular income corpus.

– Buy proper health insurance for both you and wife.

– Rising medical costs can shake retirement income.

? Retirement Is Not the End of Growth

– You still need to grow part of your corpus post-retirement.

– This ensures you beat inflation in later years.

– You are not spending your full corpus in 3-5 years.

– So, it makes sense to grow your money for next 20 years.

– Long-term investments still matter even after retirement.

– Right fund selection and review will help.

? Planning for Your Spouse’s Financial Security

– Ensure your wife is financially aware.

– Joint investments and nominations are important.

– Educate her about how the income plan works.

– In your absence, she should continue without stress.

– Keep documentation clear and accessible.

– Use joint holding in mutual funds where possible.

? Documentation and Estate Planning

– Write a simple Will. Register it if possible.

– Nominate your wife and daughter in all investments.

– Make sure your financial papers are organised.

– Keep details of investments, health insurance, bank accounts, passwords handy.

– This will help your family continue without delay or confusion.

? Finally

– You are doing well by planning this early.

– Rs 1.10 crore is a solid base to build from.

– With proper allocation, you can safely get Rs 80000 monthly income.

– Use fixed income for safety and mutual funds for growth.

– Avoid mistakes like annuities, real estate or direct stocks.

– Use professional support from Certified Financial Planner and licensed MFD.

– Review plan every year to stay on track.

– Retirement is not just about income, but also about peace of mind.

– Balanced, flexible, and smart planning is the key.

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.