Retiring in 2 yrs with 90L: how to get 50k monthly?

I have 90L. In another 2yr I wl retire, I want 50k regulor income. Plz guide me

Ans: You are nearing a big life step—retirement. You have Rs. 90 lakhs now. You want Rs. 50,000 every month after 2 years. You want this income to last long. You also want to protect your capital. Let us build a 360-degree plan to meet your needs with care and clarity.

Understanding Your Retirement Income Need

You want Rs. 6 lakhs every year.

Your money must last at least 25–30 years.

You want to beat inflation.

Your capital should stay safe.

You want less tax impact.

You want income to come monthly.

Key Challenges in Your Case

Retiring in 2 years gives you very short time to grow money.

Rs. 90 lakhs corpus is fair but needs strong planning.

Inflation will eat into your money if not managed.

Tax laws must be followed in a smart way.

Phased Investment Structure (2-Bucket Strategy)

Divide money into two parts. One for first 5–7 years.

Second part for long-term growth after 7 years.

First bucket must have safe and stable income options.

Second bucket must include growth-oriented mutual funds.

Use only regular mutual funds through MFD and CFP.

Investment Approach for First 5–7 Years

Park 30–35 lakhs in debt mutual funds with low risk.

Select funds that generate consistent monthly income.

Withdraw Rs. 50,000 monthly from this debt portfolio.

Ensure tax-efficient withdrawal using SWP route.

Do not use bank deposits for regular income due to taxation.

Investment Approach for Long-Term Growth

Invest remaining 55–60 lakhs in diversified regular mutual funds.

Choose large and flexi-cap categories with active fund managers.

Avoid index funds due to average returns and no downside control.

Avoid direct mutual funds. They lack advisory and review support.

Use MFD with CFP for selecting and tracking regular plans.

Let this bucket grow for 5–7 years without withdrawal.

After 7 years, start monthly withdrawals from this portfolio.

Tax Planning on Withdrawals

For debt mutual funds, income is taxed per your slab.

For equity mutual funds, LTCG above Rs. 1.25 lakh is taxed at 12.5%.

STCG on equity mutual funds is taxed at 20%.

Plan SWP and redemptions carefully with your CFP.

Aim for low tax outgo each year using smart withdrawals.

Insurance and Emergency Care

Keep Rs. 3–4 lakhs in a savings account for emergencies.

Continue or increase your health insurance cover.

Avoid annuities. They are rigid, less flexible and less tax efficient.

Avoid These Common Retirement Mistakes

Do not invest all in bank FDs.

Do not mix insurance and investment.

Do not withdraw randomly from your corpus.

Do not go for direct plans thinking you save cost.

Use certified planners for strategy and review.

What You Must Do Now

Sit with a CFP and design a 30-year withdrawal strategy.

Track inflation yearly and adjust withdrawals.

Monitor your mutual funds every 6–12 months.

Add spouse’s name in investments to avoid legal issues later.

Think about making a Will to protect your family.

Retirement is not the end. It’s the next long journey. Plan it fully.

Finally

You have done well to save Rs. 90 lakhs. You also think ahead. That’s a good habit. With right planning, you can enjoy your retirement peacefully. Income will come monthly. Capital will stay strong. Just avoid emotional decisions and shortcuts. Choose guided, professional planning with review. Take slow and steady steps. You will feel confident and secure. And your goal of Rs. 50,000 income each month will be possible.

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

Ans: You have done many things right already. You started early, invested across categories, and built assets. You also have income from rent, health insurance, and a term plan. At 43, you have 12 more years to plan before retirement. Your monthly retirement goal is Rs.50,000, which is realistic. A focused and disciplined plan from now can easily help you achieve this.

Let’s take a 360-degree view of your situation and goals.

» Understand Where You Stand Now

– Your age is 43 years.
– Retirement goal age is 55.
– 12 years left to grow your assets.
– Monthly SIP is Rs.25,000.
– Mutual fund value is Rs.25 lakhs.
– Equity stocks worth Rs.40 lakhs.
– EPF is Rs.5 lakhs.
– NPS is Rs.1.5 lakhs.
– FD is Rs.15 lakhs at 9.5% interest.
– Rental income is Rs.18,000–20,000 monthly.
– Term plan and full health cover are in place.
– You’ve covered insurance risks and health expenses already.

This is a strong financial structure. You have spread your risk smartly.

» Define the Core Retirement Goal

– Your goal is to get Rs.50,000 monthly after retirement.
– That is Rs.6 lakhs annually.
– Your portfolio should generate this amount safely.
– It must also beat inflation.
– So plan for slightly higher than Rs.50,000 in future.
– You need assets that give steady, tax-efficient income.
– Focus now must be on building this future income base.

» Assess and Optimise Existing Investments

– Mutual fund investments are Rs.25 lakhs now.
– Continue SIP of Rs.25,000 monthly.
– Review SIP portfolio every year.
– Make sure it includes diversified equity funds.
– Keep a balance between large, flexi, and small cap.
– Continue pharma, digital, and IT only if performance is consistent.
– These sectors are cyclical, not core retirement tools.
– Shift gradually towards balanced funds post age 50.

– Avoid index funds completely.
– Index funds mirror markets and do not protect downside.
– Index funds fail in volatile or sideways markets.
– Actively managed funds have higher return potential.
– Professional fund managers manage risk better.
– Direct mutual funds should also be avoided.
– Direct plans lack MFD support and guidance.
– Use regular mutual funds via a Certified Financial Planner-guided MFD.
– This ensures proper tracking and corrections.

» Equity Stock Holdings Evaluation

– Stocks are worth Rs.40 lakhs.
– You invested since 2018, which gives 6+ years’ experience.
– Continue holding quality blue-chip stocks.
– Avoid frequent buying or selling.
– Stocks should not be more than 35% of retirement corpus.
– As you approach age 50, shift part of stocks to mutual funds.
– Mutual funds give better liquidity and diversification.
– Stocks can be volatile in short term.
– Regular review is important every 6 months.
– Keep stocks only in companies with high dividend yield and strong cash flows.

» EPF and NPS Outlook

– EPF balance is Rs.5 lakhs.
– This is safe and offers guaranteed interest.
– Don’t withdraw EPF early.
– Let it grow till retirement.
– Keep contributing if possible through employment.

– NPS is Rs.1.5 lakhs now.
– You can continue yearly contributions.
– But don’t rely on NPS for full retirement.
– NPS comes with partial annuity requirement.
– It also has limited withdrawal flexibility.
– Keep it as a secondary tool only.

» Review of Fixed Deposit Allocation

– FD of Rs.15 lakhs at 9.5% is very rare.
– Check if rate is locked or temporary.
– After maturity, don’t reinvest full in FD again.
– FDs are not tax-efficient.
– Interest is fully taxed as per your slab.
– FD must only cover short-term needs or emergency.
– For long-term, mutual funds are better.

» Rental Income Management

– Rent is Rs.18,000–20,000 per month.
– Keep this for post-retirement cash flow.
– Don’t count on major hike in rent.
– Use this income to reduce retirement withdrawal pressure.
– Include property maintenance cost every year.
– Don’t depend fully on rental income for future goals.
– Treat it as support income, not core income.

» Boost Retirement SIP From Now

– You have 12 years to retire.
– Increase your SIP from Rs.25,000 to Rs.35,000 minimum.
– If possible, raise by 10% every year.
– Use salary increments or bonuses to boost SIP.
– Start a dedicated SIP only for retirement.
– Don’t mix other goals like child education or marriage.
– Separate retirement funds give clarity and focus.
– Long-term compounding will support your goal better.

» Portfolio Structuring From Age 50

– Slowly reduce equity risk after 50.
– Don’t exit equity fully.
– Shift part into hybrid and balanced mutual funds.
– Maintain 40–50% equity even after 55.
– Use debt funds, not FDs, for steady income.
– Keep 1 to 2 years’ expense in liquid or short-term funds.
– This avoids selling during market downturns.
– Balance safety and growth to protect capital.

» Build Income Buckets After Retirement

– Plan retirement corpus in 3 buckets:

Short-Term:
– Keep 1–2 years' monthly needs in liquid funds.
– Use for day-to-day monthly expenses.

Mid-Term:
– Invest 5–7 years' worth in balanced funds.
– Withdraw from here when short-term gets empty.

Long-Term:
– Keep 10+ years' needs in equity or hybrid funds.
– This grows to beat inflation.
– Shift to mid bucket after 3–5 years.

– This structure ensures stability and income.
– Avoid stress during market corrections.

» Tax Planning and Withdrawal Strategy

– Equity mutual fund LTCG over Rs.1.25 lakhs taxed at 12.5%.
– STCG in equity funds is taxed at 20%.
– Debt mutual fund gains taxed as per your income slab.
– Plan your withdrawal amounts wisely.
– Withdraw only what you need.
– Don’t exit big chunks in one year.
– Spread withdrawals to save tax.

– Rental income is added to taxable income.
– Adjust other income accordingly.
– FDs give taxable interest, reduce this portion post-retirement.
– Use mutual funds for tax-efficient growth.

» Stay Consistent With Annual Reviews

– Every year, review goals, SIP, and portfolio performance.
– Markets will not behave the same every year.
– Small corrections in portfolio can improve results.
– Rebalance fund allocation every 12 months.
– Re-assign risk level based on age.
– Use support of Certified Financial Planner for portfolio corrections.

» Avoid New Risky or Emotional Investments

– Don’t enter into crypto or high-risk small cap bets now.
– Stay focused on long-term plan.
– Don’t chase short-term returns.
– Stick to large cap, flexi cap, and quality stocks.
– Never invest based on social media trends.
– You are in wealth preservation phase now.
– Growth must be safe and sustainable.

» Educate Family and Share Plan

– Let your spouse know about all your investments.
– Share passwords and nominee details.
– Make a Will once retirement corpus is built.
– Keep documentation ready and easy to access.
– Family must not struggle to understand your finances.

» Finally

– You have a strong and diversified portfolio already.
– At 43, with 12 years left, your target is practical.
– Rs.50,000 monthly retirement income is reachable.
– Just increase SIP and review assets yearly.
– Avoid FDs for long-term wealth.
– Avoid index funds and direct mutual funds.
– Use regular funds via MFDs with CFP guidance.
– Reduce stock risk gradually after age 50.
– Structure assets in income buckets post retirement.
– Make withdrawals tax-efficient.
– Stay disciplined and consistent.
– You are well on track.
– Just tighten your SIP and allocation path now.
– Your retirement goal is secure with this approach.

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