I am 63 yrs rerured from lic getting pension of 55000 and mly annuity payment of 18000.i have 90 lacs in mutual funds 1crore 10 oacs in annuities and 25 lacs in deposits bajaj postvoffice sriram etc.i have a house in my name of 1 crore. I have a...

I am 63 yrs rerured from lic getting pension of 55000 and mly annuity payment of 18000.i have 90 lacs in mutual funds 1crore 10 oacs in annuities and 25 lacs in deposits bajaj postvoffice sriram etc.i have a house in my name of 1 crore. I have a son aged 34 no job health problems from childhood i have invested in his name 60 lacs ie 20clacs in mutual funds joint name post office sriram bank deposits and lic single plans and regular plans my mly expenses are 35000 and i onvest 45000 in sip lic premiums and mutual funds. I get qly hly and yly annuity paymebts also.is my portfolio ok

Ans: Hi Saras,

Firstly sorry to hear about your son's health. I can only hope and pray that the situation improves.

As you have retired and your monthly expenses of 35000 is well within the income you are receiving and at the same time you have ongoing investments of 45000 monthly, your accumulations are growing.

So as far as you are concerned it seems like you will be adding to the corpus you already have. But with inflation your monthly expenses will increase and also more importantly your medical expenses will rise. So this becomes important to be managed with your corpus.

It is important to assess the portfolio from 3 perspectives - liquidity, stability and growth.
Liquidity is important to cover any unexpected or unplanned event requiring money immediately or with a short span of time.
Stability is important to weather market conditions and provide security for continuous and steady cashflow.
Growth is also important as you are looking at a long time to live on the money you have accumulated/invested and overcome inflation value.

As you have a mix of FD, Post office schemes, Insurance plans and Mutual funds, it is important to evaluate the portfolio from the above perspectives and realign it for your requirement for future.

Insurance plans (assuming they are insurance + investment product) can be good option when you are working/earning, but once you have retired, they may not be ideal option for investments. So the Insurance plans need to be reviewed and then decided on. If you have taken them many years ago and they are nearing maturity then, wait and collect maturity benefits. If they are more recently purchased and their maturity will be after a very long period, then they won't be ideal for you.

FD's, PO schemes and Mutual funds are a good combination. Overall the corpus with investments and incomes seen seem to be fine but a detailed analysis is required.

I would suggest you contact a CFP/Financial advisor who will guide you. Choose a fee based advisor who is not pushing any products.

Thanks & Regards
Janak Patel
Certified Financial Planner.

Ans: You have a very well diversified portfolio.
Your income is strong and savings habit is excellent.
Your goals are clearly defined. That is a great strength.

Let’s review and align your plan in detail from every angle.

» Analysing Your Current Assets and Cash Flow

– Mutual Funds: Rs. 27 lakh
– Direct Stocks: Rs. 20 lakh
– Gold: Rs. 35 lakh (physical + ETF)
– EPF + PPF: Rs. 12 lakh
– Sukanya Samriddhi: Rs. 2.5 lakh
– NPS: Rs. 3 lakh
– Real Estate (Flats + Sheds): Rs. 1.8 crore
– Total Assets (Approx): Rs. 2.80 crore

– Monthly Salary: Rs. 2.5 lakh
– Monthly Rent: Rs. 95,000
– Total Monthly Income: Rs. 3.45 lakh
– Home Loan EMI: Rs. 25,000

This is a strong base.
Your income and savings ability are better than average.
You are in a very good financial position to achieve your goals.

» Evaluating Your Monthly Investments

– Mutual Fund SIP: Rs. 50,000
– Direct Stocks: Rs. 40,000
– Gold + Silver ETF: Rs. 10,000
– LIC Pension Plan: Rs. 8,500
– NPS: Rs. 4,400
– Postal RD: Rs. 5,000
– Sukanya Samriddhi: Rs. 5,000
– PPF: Rs. 8,000

Total Monthly Investments: Rs. 1.30 lakh
This is 38% of your monthly income.
Very healthy savings ratio.

Your investment spread is good but needs better alignment now.

» Real Estate – Too High Allocation

– Flats and industrial sheds form Rs. 1.8 crore of assets
– This is over 64% of your total portfolio
– Real estate is illiquid and cannot give regular income
– Resale may take time, taxation may be complex
– Maintenance cost and risk of vacancy also exist

Going forward, do not increase real estate.
Focus more on liquid and growth-oriented instruments.
Keep real estate purely for long-term value, not income.

» Children’s Higher Education – Target Rs. 1 Crore

– You have two children in 8th and 5th std
– You will need this amount in the next 8–12 years
– That makes it a medium-term goal
– Avoid gold or real estate for this purpose
– Equity mutual funds with balanced risk is best
– Split into two portfolios – one for each child
– Each with about Rs. 50 lakh target

For older child:
– 60% in flexi-cap and large & mid-cap funds
– 20% in mid-cap
– 10% in hybrid funds
– 10% in short duration debt

For younger child:
– 70% in equity (flexi + mid + small)
– 20% in hybrid
– 10% in debt

Review and reduce equity gradually when nearing education stage
Ensure you do SWP-based withdrawal, not lump sum.

» Retirement Goal – Rs. 2 Lakh/Month After 58

– You have 16 years to build this
– Need a retirement corpus of Rs. 5 to 6 crore
– At 11% growth, you will need to invest around Rs. 1.1–1.3 lakh monthly
– You are already investing Rs. 1.3 lakh/month

So your retirement goal is possible with discipline
But you need better portfolio structuring

Continue SIPs but realign funds towards retirement-specific allocation
Do not depend on LIC pension plan or NPS fully
They are too conservative and inflexible

» Fund Selection Suggestions – No Specific Names

– Avoid index funds for retirement and education
– Index funds cannot adjust to market conditions
– They follow a fixed formula
– No protection during market crashes
– No advantage of sector rotation
– Active funds managed by professionals perform better long term

Choose diversified equity mutual funds
Go through regular plans with help of MFD having CFP credential
Direct funds may save cost, but reduce guidance
Wrong decisions and lack of review can cost more than expense ratio saved

Regular plans give:
– Handholding during market stress
– Periodic review and rebalancing
– SWP setup at retirement
– Goal-specific allocation and exit management

» Gold and Silver ETF – Role and Limits

– Gold is a store of value, not a compounding asset
– Rs. 35 lakh is already a big holding
– Don’t add more to gold and silver
– It won’t help meet retirement or education goals
– Keep maximum 10% of portfolio in gold/silver

Going forward, increase exposure in equity mutual funds, not metals

» Direct Stocks – Keep But Limit Risk

– Rs. 20 lakh in stocks is reasonable
– Monthly addition of Rs. 40K is okay if well-researched
– Avoid overlapping sectors or penny stocks
– Focus on quality and long-term holdings
– Book partial profits when stocks overperform
– Shift part of profits to mutual funds for diversification

Don’t make direct stocks more than 20% of portfolio
Mutual funds provide better risk management

» EPF + PPF + NPS – Role and Importance

– EPF + PPF give safe and tax-free returns
– They form your core fixed income layer
– NPS also helps with extra retirement cushion
– But don’t depend on them fully for post-retirement income
– They don’t support SWP or inflation adjustment well

Use them for partial support
Build the rest using mutual funds
That gives growth + liquidity

» LIC Pension Plan – Reevaluate Its Role

– LIC pension plans give poor returns
– Returns often don’t beat inflation
– Capital gets locked in
– Income post-retirement is taxable
– There’s little flexibility

You are contributing Rs. 8,500/month
Review surrender value and exit if feasible
Shift those funds to hybrid mutual funds

Only if it’s investment + insurance combo, ask for surrender
Invest proceeds in goal-based SIPs

» Postal Recurring Deposit – Reconsider Usage

– Postal RD gives fixed but low returns
– Not suitable for long-term wealth creation
– Income is taxable
– Better to use debt mutual funds for safer growth
– They provide liquidity, tax efficiency, and flexibility

Discontinue fresh investments in RD
Redirect to mutual funds with proper debt allocation

» Sukanya Samriddhi – Continue

– This is a good scheme for girl child
– Gives tax-free interest and maturity
– Continue Rs. 5,000/month till limit is reached
– But don't use this for college education planning
– It matures only after 21 years of age

Treat this as a separate backup for daughter

» Home Loan – Review and Manage Smartly

– Outstanding loan: Rs. 11 lakh
– EMI: Rs. 25,000/month
– Balance can be cleared in 4–5 years easily
– If interest rate is above 9%, partially prepay
– Use some rental income for prepayment
– Don’t touch SIPs for loan repayment

After closing loan, shift EMI amount to SIPs
This boosts long-term compounding power

» Emergency Fund – Build It Now

– You must keep 6 months of expenses ready
– That is approx Rs. 2 lakh × 6 = Rs. 12 lakh
– Use liquid mutual funds for this purpose
– Do not use PPF or gold for emergency

This gives peace of mind and protects your main goals

» Real Estate – Use With Caution

– Flats and sheds are not useful for education or retirement income
– Maintenance, taxation, and liquidity are concerns
– Avoid buying more
– Consider selling one flat or shed after 10 years
– Use proceeds to support retirement or kids’ PG abroad

Do not count fully on real estate for future income

» Final Insights

You have excellent cash flow and strong saving habits
But your portfolio needs shifting towards liquidity and growth

Don’t add more to real estate or gold
Avoid direct stocks beyond 20%
Avoid index funds and direct mutual funds
Avoid low return and rigid products like LIC plans or postal RDs

Focus on equity mutual funds through regular plans
Use an MFD with CFP support for right fund selection
Plan separately for kids and retirement goals
Keep reviewing and shifting based on age and needs

Your dream of Rs. 2 lakh/month pension is very much possible
Your target of Rs. 1 crore for education is also achievable
Keep investing regularly with more focus and structure

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