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Ramalingam Kalirajan |10881 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 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

Asked by Anonymous - Jul 20, 2025Hindi

I am 58 years old.Working in a Private company.I will be retiring in july 27.I will have a retirement corpus around Rs 1.10 Crores at that time.How can I earn Rs 80000 pm after my retirement with my corpus of Rs 1.10 crores.I have my own house.I have only 1 daughter and she is Final year BBA student

Ans: You are nearing retirement with great clarity.
Having Rs 1.10 crores as retirement corpus is commendable.
Your plan to generate Rs 80,000 per month is bold and hopeful.
Let us now approach your retirement needs from all sides.

? Retirement Corpus and Monthly Income Expectation

– Your expected corpus is Rs 1.10 crores.
– Your expected monthly income is Rs 80,000.
– This means you want Rs 9.6 lakhs every year.
– This is about 8.7% yearly withdrawal from your corpus.
– This is slightly on the higher side for long-term stability.
– A sustainable withdrawal rate is ideally around 5–6%.
– But with careful structuring, Rs 80,000 is still possible.

? Understanding Time Horizon and Risk Appetite

– You are 58 now and retiring at 60.
– You must plan income till at least age 85 or 90.
– This means you need a minimum of 25–30 years of income.
– Post-retirement, risk capacity reduces, but risk tolerance matters.
– With proper allocation, even moderate-risk options can help.

? Investment Strategy with Rs 1.10 Crores Corpus

– Your corpus should be split into multiple buckets.
– Each bucket must have a different time horizon and objective.
– This strategy gives safety, income, and growth over time.

? Bucket 1: Emergency and Safety Reserve

– Allocate around Rs 5–7 lakhs here.
– Keep in a senior citizen savings scheme or bank FD.
– This is for 1–2 years of unavoidable expenses.
– Do not expose this portion to market risks.

? Bucket 2: Regular Monthly Income for First 5 Years

– Allocate around Rs 30–35 lakhs here.
– Invest in post-office monthly income plans or MIS.
– Consider conservative hybrid mutual funds through a Certified Financial Planner.
– These offer better returns than FDs over medium term.
– Use only regular plans through MFDs.
– Avoid direct plans. Direct funds may look cheaper but lack service, review, and guidance.
– Regular plans through CFP offer better strategy, advice, and regular rebalancing.
– Also get capital gains tracking, STP, and withdrawal support.
– Direct plans miss these essential services.

? Bucket 3: Growth-Oriented Medium-Term Corpus (6 to 15 Years)

– Allocate Rs 30–35 lakhs in this bucket.
– Invest in actively managed balanced advantage and equity savings funds.
– These are relatively less volatile and offer better tax-adjusted returns.
– Avoid index funds. They don’t beat inflation over long term.
– Index funds blindly copy the index without managing downside risk.
– Active funds are managed by professional fund managers.
– They aim to outperform markets.
– That’s important in retirement when steady returns matter.

? Bucket 4: Long-Term Growth (15+ Years)

– Keep Rs 25–30 lakhs in this bucket.
– Invest in large-cap and flexi-cap mutual funds.
– Use SWP (systematic withdrawal plan) after 10–15 years if needed.
– Helps build long-term capital appreciation to fight inflation.
– Always invest via regular plans through a qualified CFP.
– Regular plans offer periodic fund review, handholding, and guidance.
– That makes a real difference in retirement.
– Avoid direct mutual funds. You won’t get timely guidance or review.
– Retirement needs change often. DIY investing can cause mistakes.
– Regular plan investors get emotional support during market fall.
– Direct plan investors may panic and withdraw at wrong times.

? Monthly Income Planning and Execution

– Combine monthly returns from all 4 buckets.
– From Bucket 2 and 1, get around Rs 30,000–35,000 per month.
– From growth buckets, start SWP after 3–5 years.
– That will cover the remaining Rs 45,000–50,000 per month.
– This way, your principal lasts longer.
– Corpus grows while giving you income.
– Do annual review with Certified Financial Planner.
– Rebalance funds yearly to adjust for risk and need.
– Don’t rely on ad hoc withdrawals.

? Post Retirement Tax Strategy

– Plan withdrawals smartly to reduce tax.
– LTCG on equity mutual funds is tax-free up to Rs 1.25 lakh per year.
– Above that, it is taxed at 12.5%.
– STCG is taxed at 20% flat.
– So avoid short-term selling.
– For debt mutual funds, gains are taxed as per income slab.
– Use exemptions, deductions, and senior citizen benefits.
– File returns properly. Avoid TDS surprises.
– You can also split income across family if needed.

? Health Insurance and Medical Planning

– Ensure you have adequate health cover.
– Buy senior citizen health insurance before retiring.
– Use super top-up cover to increase base limit.
– Medical inflation is high. Do not ignore it.
– Emergency bucket will help during health crisis.
– Never break growth corpus for medical emergencies.

? Avoid These Post Retirement Mistakes

– Don’t keep full corpus in bank FDs.
– FD returns will not beat inflation.
– Do not fall for traditional insurance plans.
– They lock your money and give low returns.
– Avoid real estate investments.
– They are illiquid and difficult to manage in old age.
– Don’t invest in annuities.
– They offer low returns and lack flexibility.

? Support for Your Daughter

– She is in final year BBA.
– Ensure she is financially educated.
– Help her build a career and independence.
– Avoid allocating your retirement money for her wedding.
– Support her emotionally, not financially after few years.
– Encourage her to start SIPs once she starts earning.

? Estate Planning and Peace of Mind

– Create a will now itself.
– Mention all financial and physical assets clearly.
– Appoint a reliable executor.
– Share details with family.
– Ensure nomination is updated in all investments.
– Keep one file with all login details and account numbers.
– This reduces confusion later.

? What If You Live Beyond 90?

– This plan considers long retirement life.
– Corpus will last with proper structure.
– Rebalancing and staggered withdrawal will help.
– Growth bucket will keep growing your wealth.
– Peace of mind comes from diversified planning.

? What If Inflation Rises Too Much?

– That’s why equity allocation is essential.
– Fixed income options can’t beat inflation alone.
– Equity funds create buffer.
– Use them wisely. Don’t exit during market correction.
– Stay invested with discipline.

? Final Insights

– Your journey is inspiring and disciplined.
– Rs 1.10 crores corpus can give you Rs 80,000 per month.
– You need strategic withdrawal and diversified allocation.
– Avoid DIY investing.
– Work with a Certified Financial Planner to guide you every year.
– Protect health, plan legacy, and live peacefully.
– Retirement should be financially worry-free and emotionally fulfilling.

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

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