Below are the details of my portfolio. I need your assessment if I am on track.

Name of funds:

Mirae Asset Large Cap fund - Monthly SIP INR 4000/- since Jan 2020. 

Current value INR 80896/-

Axis Bluechip fund - Monthly SIP INR 2000/- since Jan 2020. 

Current value INR 36547/-

Tata India Tax Savings fund - Monthly SIP INR 2000/- since July 2017. 

Current value INR 1.23 lakh/-

Kotak Flexi Cap fund - Monthly SIP INR 2000/- since Jan 2020. 

Current value INR 32652/-

Parag Parikh Flexi Cap fund - Monthly SIP INR 2000/- since Feb 2021. 

Current value INR 6292/-

Besides that, I invest in below as well:

Sukanya Samriddhi Yojana - INR 12500/- monthly since 2020.

NPS - INR 12500/- in Tier 1 since 2014 & INR 12500/- in Tier 2 since 2021

FD - INR 20 lakhs since Jan, 2019 @ 5.25% interest. 

Goals:

1- Daughter’s higher education:  

17 years away, Amount needed around 1 crore

2- Daughter’s marriage:

26 years away, Amount needed around 1.2 crore

3- Retirement:

31 years away, Amount needed around 8 crore

Ans: 01. First of all, kindly confirm what was your Income during A/Y 2022-23.
02. If this income was less than Rs.2,50,000.00, you may not file your ITR.
03. If your income during this period was more than Rs.2,50,000.00, it is mandatory for you to file your ITR.
04. You may file Updated ITR, if para no.3 above is applicable in your case.
05. Otherwise write to IT Department that your income was below minimum taxable limit, as such you are not required to file ITR. In this case, you are not required to take any action on the mail of department.
Most welcome for any further clarifications. Thanks.

Ans: Hello;

You may update your service record through your current employer based on documentary proofs to substantiate your claim.

If the employer doesn't co-operate or this doesn't work you may raise grievance at EPFiGMS portal.

Best wishes;

Ans: Hello;

If you have been in service for more then 10 years without any break while being contributing member of EPFO, then you are eligible for EPS.

If you sign-in into the EPFO portal you get your PPO by clicking on the "Know your PPO number" link.

Best wishes;

Ans: 01. I feel Form ITR-02 would be applicable in your case.
02. You need to declare the Sale & Cost of shares you have sold to work out LTCG/STCG.
03. If shares sold are of Listed company, it shall be covered under LTCG.
Most welcome for any further clarifications. Thanks.

Ans: Tax Rate would be 12.50% without Indexation, if shares were held for a period of more than 2 years.
Most welcome for any further clarifications. Thanks.

Ans: Hello;

Let us wait for the new income tax act supposed to be tabled in parliament next week.

However generally people below 4 L annual income may not file tax returns but it becomes essential sometimes to:

1. Claim TDS refund

2. Report capital gain transaction and tax liability on account of the same.(This is not exempted)

3.Report any other income which may or may not be exempt.

Best wishes;

Ans: Your financial planning is already strong. You have a well-diversified portfolio, no liabilities, and a supportive spouse who is willing to work for five more years. This puts you in a comfortable position to consider early retirement. However, we need to assess whether your current corpus can sustain your retirement needs for the next several decades.

Assessing Your Current Financial Position
Your Age: 47 years
Wife’s Age: Not mentioned, but assuming similar age
Son’s Age: 14 years
Total Corpus: Around Rs. 3 crore
Health Insurance: Rs. 15 lakh coverage
Life Insurance: Rs. 1 crore term insurance
Wife’s Job Stability: Will continue for five more years
No Outstanding Loans: Financially stress-free situation
Your financial discipline is strong. However, early retirement requires careful planning to ensure long-term financial security.

Breakdown of Your Assets and Their Role in Retirement
1. Liquid and Fixed Income Assets
PPF: Rs. 32.65 lakh
Fixed Deposits: Rs. 20.60 lakh
EPF: Rs. 69.98 lakh
Cash: Rs. 5.20 lakh
These funds provide stability but have limited growth potential. They can help with short-term needs but should not be over-relied upon for long-term wealth creation.

2. Market-Linked Investments
Stocks, Mutual Funds & Company Stocks: Rs. 72.73 lakh
These investments can generate high long-term returns. However, market volatility can impact short-term liquidity. A proper withdrawal strategy is essential.

3. Precious Metals and Insurance Policies
Gold: Rs. 10.60 lakh (Good for diversification but should not be considered for regular income)
ICICI Pru: Rs. 15.14 lakh (If it is a ULIP or endowment plan, consider exiting)
LIC Policy: Rs. 21.63 lakh (Check surrender value and shift to better options if it’s a traditional plan)
HDFC ERGO: Rs. 3.30 lakh (Assuming this is a general insurance policy, it is not an investment asset)
4. Real Estate Holdings
Real Estate: Rs. 31.21 lakh
Real estate is an illiquid asset. It should not be relied upon for regular retirement income unless it is rental property generating passive cash flow.

5. Retirement Benefits
Your Gratuity: Rs. 7.28 lakh
Wife’s Gratuity: Rs. 4.16 lakh
These funds will be received at retirement and can act as a financial cushion.

Retirement Feasibility Analysis
1. Expected Expenses in Retirement
Your current expenses need to be evaluated. Retirement expenses may include:

Household expenses
Medical costs
Child’s education
Lifestyle expenses
Travel and leisure
Inflation will erode purchasing power. A corpus that looks sufficient today may not last 30+ years without proper planning.

Major future expenses:

Son’s higher education: Can range from Rs. 30-80 lakh depending on domestic or international education.
Medical expenses: As you age, medical costs will rise.
2. Income Sources Post-Retirement
Your wife’s salary for five more years provides financial support.
Your investments need to generate passive income.
Health insurance is in place but may need enhancement.
Life insurance (term plan) is for dependents, not for investment.
Key Action Points for a Secure Retirement
1. Decide Whether to Retire Now or Work a Few More Years
If you retire now:

You must rely on investments to cover expenses.
You need a withdrawal strategy to sustain a 30+ year retirement.
You must ensure your portfolio can beat inflation.
If you work for a few more years:

You can build a bigger corpus.
You can cover your son’s higher education expenses comfortably.
You can retire with more financial security.
2. Restructure Investments for Growth and Stability
Exit underperforming insurance policies. LIC, ICICI Pru, and any endowment or ULIP plans should be surrendered, and funds should be reinvested in mutual funds.
Enhance your equity exposure. Keep a mix of large-cap, mid-cap, and hybrid funds for steady growth.
Increase debt exposure selectively. Use short-duration debt funds or bonds to generate stable returns.
Create a systematic withdrawal plan. This ensures a steady cash flow during retirement.
3. Build an Emergency and Health Fund
Keep at least two years’ expenses in a liquid fund. This helps manage any immediate financial needs.
Increase health insurance beyond Rs. 15 lakh. Medical inflation is high. Consider adding a super top-up plan.
4. Plan for Child’s Education
Keep a dedicated fund for your son’s education. A mix of mutual funds and fixed-income assets is ideal.
Ensure adequate coverage. If something happens to you, your son’s future should be secure.
5. Tax-Efficient Withdrawal Planning
Mutual fund capital gains taxation:
LTCG above Rs. 1.25 lakh is taxed at 12.5%.
STCG is taxed at 20%.
Debt fund taxation:
Gains are taxed as per your income slab.
PPF and EPF withdrawals are tax-free. These should be used strategically.
Finally
Retiring now is possible, but you must have a strong withdrawal plan.
If you work for a few more years, your retirement will be financially safer.
Reallocate low-return assets into high-growth investments.
Ensure medical and emergency funds are sufficient.
Plan your withdrawals tax-efficiently.
If you feel mentally ready to retire, you can do so with a clear financial strategy. However, working for a few more years will provide greater long-term stability.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

Ans: Yes. Award amount is exempt form Income Tax u/s 10(17A) of I.T.Act-1961.
Most welcome for any further clarifications. Thanks.

Ans: Yes. your mother can Gift 25% share in the Flat to all 4 children. This will not attract LTCG/Income Tax.
It may create practical problems, if any of the child wants to sell his/her share. It is easy to sell Flat, than to sell 25% share in the Flat. You need to consider this aspect, before taking any decision.
Most welcome for any further clarifications. Thanks.