My age 63 years total money is 2 crore ie 90 lacs mutual funds and shares 1 crore 10 lacs in annuity policies of lic and balance in deposits of bajaj sriram rbi bonds and post office schemes.i have a son who has no job last many years age 35 and has some health problems. My husband is retired .i retired from lic of india and i get a decent pension and also monthly annuities. My pension is 55000 and i fet 15000 annuities per month our mly expenses are 30000 and i put the balance in sip .i have sip and lic premiums per mobth of 45000.i also get some annuities as qly hly yly.i have put upto 45lacs in mutual funds lic single plans lic regular plans and sriram deposit in my son name.is this ok

Ans: You have shown great discipline in your retirement planning. You’ve created income from pension, annuities, and investments. This shows strong planning.

Still, some restructuring can improve safety, returns, and peace of mind. Let’s explore everything step-by-step with full clarity.

Overview of Your Financial Health
Your total assets are around Rs.2 crore. This is a strong base.

You get Rs.55,000 pension and Rs.15,000 from annuities every month.

Your family’s monthly expenses are Rs.30,000, which is quite manageable.

Your monthly savings into SIP and premiums total Rs.45,000.

You also have quarterly, half-yearly, and yearly annuities coming.

You have invested well across mutual funds, LIC plans, and deposits.

Around Rs.45 lakh is invested in your son’s name.

Your financial structure is stable but needs some rebalancing now.

Income vs Expenses – A Clear Monthly Picture
Your pension and annuity together give Rs.70,000 per month.

Your family needs Rs.30,000 monthly for expenses.

You are left with Rs.40,000 monthly surplus. This is a good habit.

But allocating Rs.45,000 monthly for SIPs and premiums may be high.

If any emergency happens, you may feel short of funds.

You need to keep a clear emergency fund of 12 months’ expenses.

This should be about Rs.3.6 lakh, kept in savings or liquid funds.

Don’t keep all surplus money in long-term SIPs without liquidity.

Assessment of Annuity Policies
You have Rs.1.10 crore in LIC annuities.

Annuities give steady income, but they lock your capital permanently.

Once bought, they cannot be changed or surrendered.

Return from annuities is not very high. Often between 5%–6%.

They also offer no growth or flexibility for future needs.

You already receive enough monthly income from pension.

So, future annuity purchases are not needed.

For income needs in future, better to use mutual fund SWP instead.

SWP gives monthly income and better returns with more tax control.

Your Mutual Fund Investments – Are They Aligned?
You have around Rs.90 lakh in mutual funds and shares.

This is a good allocation towards growth assets.

But mutual funds must be well-diversified across equity and debt.

At your age, equity must be under 40% of your mutual fund portion.

Rest 60% should go into debt mutual funds or hybrid funds.

Debt funds give better post-tax returns than fixed deposits.

Use regular mutual fund plans with help of a Certified Financial Planner.

Avoid direct mutual funds, as there’s no support during review.

Direct funds can cause wrong selection and poor asset balance.

Regular plans allow guidance, portfolio monitoring, and rebalancing every year.

About Your LIC Policies and Premiums
You are retired now. So buying new LIC policies is not useful.

LIC policies combine investment with insurance.

This results in low returns and poor flexibility.

Existing LIC policies can be continued if they are near maturity.

But do not buy any more LIC or traditional plans from now.

Future savings must be focused only on mutual funds and debt funds.

Your life insurance need is very low now. Children are grown up.

You can stop any life cover policy that has no investment value.

Investments in Your Son’s Name – Are They Safe and Useful?
You have Rs.45 lakh invested in your son’s name.

He is 35 and not employed currently, and also has health concerns.

You are caring for him financially. That’s highly responsible.

But placing large assets in his name may create future problems.

If he faces legal or health-related issues, assets in his name may get stuck.

Also, if he is not financially disciplined, the funds may not be used wisely.

Instead, keep assets in joint name or in your control.

You can always earmark funds for his use later through will or trust.

You can create a simple family trust or assign a guardian for him.

Consult a CFP and lawyer to explore this in more detail.

Protection and Health Insurance for Family
Health coverage for you, your husband, and your son is important.

At age 63, medical costs can rise fast.

Ensure you have at least Rs.5 lakh health insurance with super top-up.

Also check if your son has medical insurance coverage.

If not, buy one immediately. Even basic cover is helpful.

Avoid health plans that combine savings or return of premium.

Tax Planning and Withdrawals – What to Know
You should withdraw carefully from mutual funds.

New mutual fund tax rules are:

Equity mutual fund LTCG above Rs.1.25 lakh taxed at 12.5%

STCG is taxed at 20%

Debt fund gains are taxed as per your slab

Plan your redemptions to keep tax low.

Take guidance from CFP on when to sell and how much.

Also use SWP (Systematic Withdrawal Plan) to create monthly cash flow.

SWP is better than annuity and more tax efficient.

SIP Planning at This Stage – Is It Needed?
You are saving Rs.45,000 monthly in SIPs and LIC premiums.

That is good, but may be too high considering your age.

You already have a good asset base and income stream.

Now the focus should shift from wealth creation to wealth preservation.

Reduce equity SIP amount gradually. Shift towards hybrid or debt SIPs.

Always maintain enough liquidity and emergency money.

Don’t continue SIPs just because of habit. Check if they match your needs.

What You Should Do Now – Actionable Steps
Reduce your equity exposure if it is above 40% of total assets.

Review all your LIC plans. Don’t buy any new ones.

Do not put more money into annuities. No flexibility, low growth.

Recheck all SIPs. Reduce amount if income or liquidity needs rise.

Review your son’s investment ownership. Keep control for his safety.

Avoid direct funds. Use regular mutual funds with CFP guidance.

Plan SWP after 2–3 years for extra income, if needed.

Set aside 12-month expenses as emergency funds in liquid debt funds.

Ensure full health cover for yourself, husband, and son.

Finally
You’ve built a strong and well-spread portfolio over many years.

Now, your focus should be on simplifying and protecting your wealth.

Mutual funds and debt funds will serve better than annuities going forward.

Avoid any insurance-linked savings or pension products.

Your financial strength is already enough for a peaceful retired life.

Keep reviewing the plan once a year with a Certified Financial Planner.

Keep your son protected by holding assets in joint or trust structure.

Spend more time enjoying your retirement. You have earned it.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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