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Ramalingam Kalirajan |10871 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Sep 08, 2025

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Asked by Anonymous - Sep 01, 2025Hindi

My age is 46 my mf investment 45 lkh I hv fd 15 lkh my sip 38 k every month I hv term plan 1 cr and mediclaim 1 cr I hv investment Direct share 15 lkh I want monthly income 50000 at 51 age

Ans: You have done a very thoughtful job in building your investments. At age 46, your assets are strong and well-spread. You also have the right protection through term and health insurance. With proper planning, your goal of Rs. 50,000 monthly income at age 51 is very realistic.

Let us now design a 360-degree plan to secure that income and protect your future.

» Know Your Current Financial Snapshot

– You are 46 years old.
– You have Rs. 45 lakh in mutual funds.
– SIP of Rs. 38,000 every month.
– Rs. 15 lakh in fixed deposits.
– Rs. 15 lakh in direct stocks.
– Term insurance of Rs. 1 crore.
– Mediclaim of Rs. 1 crore.
– Your income goal: Rs. 50,000 per month from age 51.

» Set a 5-Year Timeline for Your Goal

– You need Rs. 50,000 per month from age 51.
– That means your passive income must start in 5 years.
– So, we need to prepare a monthly flow from your current corpus.
– At the same time, protect your wealth from inflation.
– We also need to avoid early capital erosion.
– This needs a balanced plan of income and growth.

» Split Your Goal into 2 Phases

Phase 1: Wealth Accumulation (Age 46–51)
Phase 2: Income Generation (From Age 51 onwards)

– First, we will grow your corpus for 5 years.
– Then, from 51, we will withdraw Rs. 50,000 per month.
– All this while keeping your capital base stable.

» Create a Target Corpus for Income Phase

– You want Rs. 6 lakh per year income.
– Assuming 7% withdrawal rate, target is Rs. 85–90 lakh.
– This amount should generate Rs. 50,000 monthly safely.
– We now work towards building that corpus by 51.

» Review and Rebalance Mutual Fund Portfolio

– You already have Rs. 45 lakh in mutual funds.
– Continue SIP of Rs. 38,000 monthly till age 51.
– This will add more to the corpus.
– Review existing funds with a Certified Financial Planner.
– Remove underperforming or overlapping schemes.
– Add flexi-cap, large & mid-cap, and balanced advantage funds.
– Avoid direct plans. They offer no personalised guidance.
– Invest only through MFDs with CFP credential.
– They will help you track and switch when needed.
– Avoid index funds. They mirror the market without protection.
– Active funds have better downside control.

» Reallocate FD Portion Gradually

– FD gives poor post-tax returns.
– Don’t renew Rs. 15 lakh in FD fully.
– Shift Rs. 10 lakh to hybrid and conservative debt funds.
– Keep Rs. 5 lakh in liquid mutual fund for emergencies.
– This improves returns while keeping capital safe.
– Avoid using FD for monthly income post-retirement.

» Review and Consolidate Direct Shareholding

– You hold Rs. 15 lakh in direct shares.
– Review with a CFP to assess quality and risk.
– Avoid over-concentration in one or two sectors.
– If some shares are unstable, sell and reinvest in mutual funds.
– Mutual funds bring expert stock selection and diversification.
– Direct stocks can be risky without active monitoring.
– Keep direct stocks under 20% of your total investments.

» Build a 3-Bucket System for Stability

To ensure smooth income flow, use this:

– Bucket 1 – Emergency Fund (Rs. 5 lakh)
– Bucket 2 – Income from Age 51 to 60 (Rs. 60–70 lakh)
– Bucket 3 – Growth from Age 60 onward (Rest of the corpus)

– This system helps avoid panic during market falls.
– You will withdraw only from Bucket 2 in income years.
– Other buckets will keep growing.

» From Age 51, Start SWP from Mutual Funds

– Use Systematic Withdrawal Plan (SWP) to get Rs. 50,000 monthly.
– Select hybrid and balanced advantage funds.
– These have lower volatility and regular cash flow potential.
– Keep 2–3 funds for diversification.
– Review once every 6 months.
– Don't withdraw from equity funds directly.
– Let them grow for future years.

» Use Tax Efficiency While Withdrawing

– SWP from equity mutual funds is tax-efficient.
– LTCG up to Rs. 1.25 lakh per year is tax-free.
– Above that, LTCG taxed at 12.5%.
– STCG is taxed at 20%.
– Withdraw from long-held equity funds only.
– Spread SWP across folios to avoid high LTCG.

» Don’t Stop SIPs After Age 51

– Keep SIPs going if your cash flow allows.
– They will help refill your income bucket every year.
– This extends the life of your capital.
– You can slowly reduce SIP amount if income is tight.
– But never stop investing completely.

» Keep Reviewing Insurance Coverage

– You have Rs. 1 crore term insurance.
– Keep it till 60 years or till child becomes independent.
– You also have Rs. 1 crore mediclaim.
– This is excellent and must be continued lifelong.
– Renew policy on time every year.
– Add critical illness rider if not taken already.

» Avoid Risky or Locked Investments

– Avoid annuity plans. They give poor returns and lock capital.
– Do not buy traditional insurance plans again.
– Avoid putting more money in direct shares now.
– Don’t go for index funds. They fall without cushion.
– Avoid high-commission products without transparency.

» Keep Nominees and Joint Holdings Updated

– Make your spouse or child joint holder wherever possible.
– Add nominees to all mutual funds, bank accounts, and demat.
– This helps in faster claim settlement later.
– Keep one document file with all details clearly written.
– Store passwords, folio numbers, and contacts safely.

» Write a Will for Future Peace

– Prepare a Will covering all your assets.
– Mention all folios, shares, FD, and SIPs.
– Assign clear division of assets.
– Update it once every 5 years.
– Keep a signed copy in your home locker.

» Keep an Annual Review Plan in Place

– You are entering a key financial phase.
– Every 6 to 12 months, review all portfolios.
– Rebalance if needed with a Certified Financial Planner.
– Track goal progress, returns, and tax impact.
– Adjust withdrawal if market is too volatile.

» Final Insights

– You have created a very solid financial base.
– Your SIP discipline and insurance planning are commendable.
– With 5 years more of savings, you can comfortably earn Rs. 50,000 monthly.
– Focus on active mutual funds and avoid direct and index investments.
– Move your FD and shares into better yielding options.
– Use a structured bucket approach for steady income.
– Take help from MFD–CFP to build and monitor plan.
– Review it every year and involve your family also.
– Maintain your insurance and nomination hygiene.
– Your financial freedom at 51 is achievable with this roadmap.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.