I am 67 years retired with no liabilities. Both the children are well settled. My two SIPs @5000 each, for 5 years will mature in March 2026.How I can employ the maturity amount to increase my monthly income?

Ans: At 67 years, being debt-free and having settled children is wonderful. You also have two SIPs running for five years, maturing in March 2026. That shows disciplined planning. Now your focus is to use this maturity to increase monthly income. Let's understand the most efficient and structured way forward.

Understanding Your Current Financial Situation

Age: 67 years, fully retired.

Liabilities: None. Financially independent. That’s excellent.

Children: Well settled. No further responsibility.

SIPs: Two SIPs of Rs.5000 each, total Rs.10,000/month.

Investment Horizon: 5 years, maturing March 2026.

Objective: Generate steady monthly income after SIP maturity.

You have built your base. Now the goal is monthly stability. Let’s assess how to deploy this future corpus effectively.

Assessing Your Needs and Priorities First

Before investing the maturity, it’s important to assess the following:

Monthly expenses: What is your average monthly cost?

Medical expenses: How much is set aside for health needs?

Emergency fund: Do you have 6 to 12 months’ expenses kept safely?

Risk comfort: Are you okay with some market fluctuations?

Tax slab: Which tax bracket are you in?

These help choose the right investment for income. Not all options suit everyone. Your income plan should match your comfort and safety.

Estimate Your SIP Maturity Value

Each SIP is Rs.5000 for 5 years. So, total investment is Rs.6 lakhs.
Returns over 5 years may range from 8% to 12%, depending on fund performance.
So maturity could be between Rs.7.5 lakhs to Rs.8.25 lakhs.
This is a healthy lump sum to plan income generation.

What Should You Not Do With the Maturity?

Some people make common mistakes after maturity. Avoid these:

Do not keep the full money in savings account. Very low interest.

Avoid putting entire amount in fixed deposits. Not tax efficient.

Do not fall for annuity products. They are rigid and low-yielding.

Don’t invest in real estate for rental income. It needs maintenance and effort.

Avoid investing directly in stocks at this stage. Risk is high.

Also, do not go for index funds. They do not provide better risk-adjusted returns.
Index funds just copy the market. They lack smart strategy.
You need expert-managed active funds to ensure smart allocation.
They manage risk better and aim to beat inflation.

Choose Actively Managed Mutual Funds Only

Avoid index funds, as they offer only average performance.
You need consistent returns, not average returns.
Actively managed funds adjust according to market conditions.
They give potential for better returns even during volatility.
They also align better with income-generation strategy.

Avoid direct mutual fund plans. They look cheaper, but offer no guidance.
At this age, guidance is more important than cost saving.

Regular mutual funds through MFD with CFP support are better.
You get:

Personalised strategy based on your needs.

Ongoing monitoring and rebalancing.

Emotional support during market changes.

Better goal-based tracking.

Fees in regular plans ensure accountability and hand-holding.
Especially useful in post-retirement years.

How to Use the Maturity Corpus to Get Monthly Income

Once SIP matures in March 2026, follow this step-by-step method:

Step 1: Keep Emergency Fund Ready

Set aside Rs.1.5 lakh in liquid mutual fund or sweep FD.

It should cover 6 months' expenses.

Easy to withdraw. No penalties or charges.

Step 2: Invest in Hybrid Mutual Funds

Use a part of corpus in monthly income-type hybrid funds.

These funds have equity and debt mix.

They give regular dividend or SWP options.

Less risky than full equity. Better than FD returns.

Step 3: Start a SWP (Systematic Withdrawal Plan)

From April 2026, start monthly SWP.

Withdraw fixed amount every month from the invested fund.

SWP is more tax-efficient than FD interest.

Choose only after consulting a CFP to align with your tax bracket.

Step 4: Use Laddering Strategy for Debt Mutual Funds

Invest part of the corpus in 3-5 short term debt funds.

Set maturity at different intervals like 1 year, 2 years, 3 years.

Use each fund maturity to top-up your SWP or meet future expense.

This gives both income and liquidity.

Step 5: Reinvest Any Surplus

If your monthly income is more than enough, don’t keep surplus idle.

Reinvest in short term mutual funds or hybrid funds.

Let the unused money grow slowly.

Important Tax Rules You Must Know

As per new rules from April 2024:

Equity MF SWP:
Gains above Rs.1.25 lakh yearly are taxed at 12.5%.
If sold before 12 months, taxed at 20%.

Debt MF SWP:
Gains taxed as per your income tax slab. No LTCG benefit now.

So plan your SWP carefully.
Withdraw only the required amount monthly.
Take help from a Certified Financial Planner to manage tax outgo.

Diversify Your Income Sources

It’s best not to rely only on one income source.
Use multiple mutual fund types to spread the risk.

Hybrid Funds with SWP – for monthly cash flow.

Short Duration Funds – for near-term needs.

Liquid Funds – for emergencies.

Avoid annuities. They offer low return and no flexibility.
You lose control of your money once you invest.
Mutual funds offer better control, flexibility and liquidity.

Review Your Insurance Needs

Health insurance is vital at this age.
Make sure you have a personal health policy, not just corporate one.
Also check if any top-up plans are needed.
Keep all documents accessible to your children.

Do not hold LIC endowment or ULIP policies now.
If you have any, review returns.
If it gives less than 6% return, surrender it and shift to mutual funds.

Discuss With Your Family

Share your investment plan with your children.

Keep one nominee updated and trustworthy.

Maintain a list of investment documents and policy details.

Your income plan should work even in your absence.
Ensure family knows where and how to access it.

Financial Planning Should Be Ongoing

Even after retirement, planning is not over.
Every year review your income and expenses.
Rebalance portfolio with help of Certified Financial Planner.
This helps optimise returns and manage risk.

Also update your will if not done already.
Keep all instructions simple and documented.

Finally

You have done a great job by staying financially disciplined.
Now it’s time to use your maturity amount smartly.
Avoid locking full funds in rigid options like annuities or FDs.
Avoid real estate due to high effort and low income yield.
Don’t go for index funds or direct funds to save cost.
Instead, use hybrid and debt mutual funds with SWP.
Plan tax-friendly and flexible income with support of Certified Financial Planner.
Keep some funds for emergencies and medical needs.
Reinvest surplus so that your wealth keeps working for you.

This ensures monthly income with safety, growth, and peace of mind.

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