I am 63 and retired. I have two flats , one is 25 year old and worth 90 lakh , where as the other is 6 year old and worth 2.5 cr. My monthly expenses are 1.2 lakh and I have a housing loan of Rs 15 lakh . I have no other liability . have almost exhausted all my funds in the bank after job loss during pandemic. Pls suggest which flat to sell and how to invest so that my funds last very long .

Ans: You have shown great strength by managing life even after pandemic struggles. Owning two valuable flats gives you flexibility. Many at your stage worry due to lack of assets. But your properties can be converted into strong retirement support. Let us review step by step.

» Current Situation

– You are 63 and already retired.
– Your monthly expenses are Rs. 1.2 lakh.
– You own two flats.
– One flat is 25 years old, worth Rs. 90 lakh.
– The other is 6 years old, worth Rs. 2.5 crore.
– You have Rs. 15 lakh housing loan left.
– Your bank savings are almost exhausted.
– You have no other liabilities.

This shows you are rich in assets but low in liquidity.

» Monthly Expense Requirement

– Rs. 1.2 lakh per month means Rs. 14.4 lakh per year.
– This is your minimum need today.
– Inflation will push this number higher every few years.
– Without financial income, depending only on rent or sale is risky.

You need a structured way to generate monthly income.

» Which Flat to Sell

– The 25-year-old flat worth Rs. 90 lakh is old.
– Older flats face more repair, maintenance, and lower rental demand.
– Price appreciation is usually slow for very old flats.
– The 6-year-old flat worth Rs. 2.5 crore is newer.
– Newer flats attract better rental income and maintain value longer.
– Liquidity is also higher for newer properties.

So, it is safer to sell the older 25-year-old flat first.

» Why Not Sell the Newer Flat

– Selling the 2.5 crore flat will give you bigger cash.
– But then you will lose a long-term strong asset.
– This property can fetch higher rent in future.
– It can also be useful for family inheritance.
– Keeping the newer property preserves value.
– Selling the smaller flat gives you funds without losing main wealth.

So, keeping the 2.5 crore flat is wise.

» Handling the Housing Loan

– You have Rs. 15 lakh housing loan.
– Interest will eat into your peace if not cleared.
– From sale proceeds of the 90 lakh flat, first clear this loan.
– This gives you a debt-free life.
– Balance funds can then be fully invested for income.

Clearing loan first reduces monthly pressure.

» How to Deploy Sale Proceeds

From Rs. 90 lakh flat sale:

– Rs. 15 lakh for loan closure.
– Balance Rs. 75 lakh available for investment.

Now, this Rs. 75 lakh must give you monthly income plus growth.

» Importance of Balanced Investment

– Do not keep everything in bank deposits.
– Bank interest alone will not beat inflation.
– Do not keep everything in equity either.
– Equity volatility can disturb your monthly income.
– A balanced allocation is needed.

Mixing debt, balanced, and equity mutual funds is safest.

» Mutual Fund Allocation

– Keep a part in debt-oriented funds for steady income.
– Keep a part in balanced funds for growth plus stability.
– Keep a smaller portion in pure equity funds for long-term inflation cover.
– Withdraw monthly from debt or balanced portion.
– Leave equity portion untouched for minimum 8–10 years.

This gives you both cash flow and growth.

» Why Not Index Funds

Some may suggest index funds. But index funds just copy the market.

– They cannot protect you when markets fall.
– They do not have active manager strategy.
– They cannot adjust to sector changes.
– They give average return, not superior return.
– Retirement needs safety and superior growth, not average outcome.

Actively managed funds handled by professionals give better balance. They aim to reduce downside risk.

» Why Not Direct Funds

Direct funds look cheap. But retirement money is not about saving small cost.

– Direct funds give no guidance.
– You may choose wrong funds.
– You may redeem at wrong time.
– Mistakes cost more than saved commission.
– Regular plans through Certified Financial Planner give ongoing support.
– You get right asset mix, withdrawal advice, and tax efficiency.

So, regular route with CFP is safer for retired investors.

» Building Monthly Income Flow

– Keep 12–18 months of expenses in ultra-safe liquid options.
– Use systematic withdrawal from debt-oriented funds for regular income.
– Keep equity untouched for growth.
– Rebalance every year with CFP help.
– This avoids sudden shortage and protects long-term wealth.

Your Rs. 75 lakh can thus support rising monthly needs.

» Tax Planning Angle

– Property sale attracts capital gains tax.
– You can use exemptions if you reinvest in another property.
– But since you already own two, exemption may not suit.
– Better accept tax, pay it, and invest balance smartly.
– Mutual fund withdrawal will attract tax as per new rules.
– Equity LTCG above Rs. 1.25 lakh is taxed at 12.5%.
– Equity STCG is taxed at 20%.
– Debt fund gains are taxed as per your slab.

Plan withdrawals carefully to reduce tax impact.

» Rental Income Possibility

– The 2.5 crore flat can earn good rent.
– Rent can support part of your monthly expenses.
– Even if vacant sometimes, your investment income will cover the gap.
– Do not depend fully on rent.
– Treat rent as support, not main source.

This gives you dual income security.

» Emergency Fund

– Keep at least Rs. 8–10 lakh aside in safe account.
– This should not be touched for monthly needs.
– Use only for sudden health or family emergency.
– This avoids breaking long-term investments.

Emergency fund is key in retired life.

» Health and Insurance Needs

– Health cost is biggest risk after 60.
– Ensure you have valid health insurance cover.
– Pay premiums regularly.
– Keep some extra buffer for medical beyond insurance.
– Do not compromise on health-related financial safety.

This protects both wealth and peace of mind.

» Estate Planning

– You have significant property assets.
– Make a proper Will now.
– Assign nominees for all bank and investment accounts.
– Clearly divide your property wishes.
– This avoids disputes for family later.

Proper estate planning is part of complete financial safety.

» Psychological Side of Retirement

– Retirement is not just money.
– You must keep busy with meaningful work.
– Engage in part-time consulting, teaching, or volunteering.
– This reduces mental stress and gives extra income.
– Keep social connections strong.

Peace in retirement is half money, half purpose.

» Finally

Your situation is secure if handled properly. Sell the older 90 lakh flat. Clear your Rs. 15 lakh loan. Invest balance in a mix of debt, balanced, and equity funds through regular plan with CFP guidance. Keep emergency and health cover strong. Use systematic withdrawals to fund Rs. 1.2 lakh expenses. Keep the 2.5 crore flat as your long-term asset and rental support. With this, your money can last for decades and your retirement can remain stress-free.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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