Hello,
I am currently 43 years of age and below are some of my assets.
FD - INR 2.46 cr
PPF - INR 45 lakh
MF - INR 70 lakh
Life Insurance - INR 2.5 cr
Medical insurance (family plan) - INR 10 lakh
Gold jewellery + physical gold - approx. INR 1 cr
one house - yielding INR 30k per month rent
currently investing 1 lakh per month in mf through sip
staying in another house with family.
Loans - zero
monthly expense - INR 45k
2 kids - elder one in class 10th and younger one in class 6th
education for both kids expected from school to higher education - INR 3cr
marriage for both kids expected - INR 1 cr
What age should i plan to retire expecting a life expectancy of 85 years for myself and wife and avg expense to be around INR 1 lakh at future date.
Ans: You have built a strong financial foundation. Your assets include fixed deposits, mutual funds, life insurance, gold, and rental income. You also have no loans, which is excellent.
Your key financial goals are:
Children’s education (Rs. 3 crore)
Children’s marriage (Rs. 1 crore)
Retirement planning with Rs. 1 lakh per month from a future date
Your current age is 43, so let’s analyse when you can retire.
Current Asset Position
Fixed Deposits (Rs. 2.46 crore) – Highly liquid but generates taxable interest.
PPF (Rs. 45 lakh) – Safe and tax-free but locked for a longer term.
Mutual Funds (Rs. 70 lakh) – Can provide inflation-beating returns over time.
Life Insurance (Rs. 2.5 crore) – Provides family protection, but review the type of policy.
Gold (Rs. 1 crore) – Useful for long-term wealth storage, but returns are not high.
Rental Income (Rs. 30,000 per month) – A passive income stream.
SIP of Rs. 1 lakh per month – A disciplined approach to wealth accumulation.
Cash Flow & Expense Projection
Your current expense is Rs. 45,000 per month.
You expect Rs. 1 lakh per month at a future date.
Rental income of Rs. 30,000 per month can help offset future expenses.
You need to create a structured investment plan to cover your goals.
Education and Marriage Planning
Children’s education (Rs. 3 crore) will happen over the next 10–15 years.
You should allocate Rs. 1.5 crore in growth-oriented investments.
The remaining Rs. 1.5 crore should be in safer instruments.
Children’s marriage (Rs. 1 crore) is a long-term goal.
You can keep Rs. 50 lakh in balanced mutual funds.
The rest can be in long-term corporate bonds for safety.
Retirement Planning
You need Rs. 1 lakh per month post-retirement.
Rental income and interest from fixed deposits will help.
You need a mix of equity and debt to sustain for 40+ years.
Start a Systematic Withdrawal Plan (SWP) after retirement.
Keep at least 5 years’ expenses in safe assets for liquidity.
Asset Restructuring
Fixed deposits generate taxable income. Reduce exposure over time.
Increase mutual fund allocation for better long-term growth.
Reduce gold holding unless required for family needs.
Review life insurance policies. If they are ULIPs or traditional plans, reinvest in mutual funds.
Continue SIPs but ensure allocation to high-growth funds.
Final Insights
You are in a strong financial position. With proper planning, you can retire comfortably. Ensure your investments align with long-term cash flow needs. Maintain a balance between equity, debt, and passive income.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment