Dear Col. Sanjeev sir, I am 46 yrs old, I have the following investments, 12 lacs in various mutual funds, 12 lacs in PPF, 10 lacs in NPS, around 60 lacs in PF. I have term plans to cover any eventuality and health insurance for me and my family. My take home per month is around 2.5 lacs. I have a land worth ~25 lacs (no loan). 1 flat worth ~40 lacs (no loan). 1 flat worth ~1.7 cr. (loan of 70 lacs). I have two sons and I need to fund their education (assuming they will join engineering). Expenses expected in 2 yrs - 4 yrs time frame. Please advise if my savings will be sufficient for studies and retirement. I am expecting a monthly expense of Rs. 1 lacs per month post retirement. Thank you!

Ans: You are doing extremely well.
Your savings habits are strong.
Your lifestyle is grounded and simple.
You are clearly thinking ahead.
That mindset itself sets the base for long-term success.
You already built multiple assets.
You are repaying loans quickly and saving consistently.
Let’s evaluate your full picture to assess retirement readiness and future security.

» Income and Cash Inflow Summary

– Take-home salary is Rs.1.5 lakhs monthly (including bonus).
– Rental income is Rs.18000 monthly.
– Your mother contributes Rs.15000 from pension and FD interest.
– That brings total monthly inflow to Rs.1.83 lakhs.

This is a stable income mix.
Salary, rent, and family support bring good cash flow.

» Monthly Expense Overview

– Home loan EMI is Rs.48000.
– Car loan EMI is Rs.13600.
– School fees are Rs.21000 monthly.
– Household expenses are Rs.15000 per month.
– Other regular expenses are Rs.10000 to Rs.12000.

Total outflow comes to around Rs.1.08 to Rs.1.10 lakhs.
You are saving around Rs.40000 to Rs.45000 monthly.
This is a decent saving ratio after accounting for EMIs and lifestyle.

Once loans end, your saving capacity will increase sharply.

» Asset Holdings and Investment Portfolio

Your current assets are well spread:

– 3 houses (Rs.60L, Rs.75L, Rs.30L)
– 1 plot (Rs.30L)
– Fixed deposits worth Rs.32L
– Shares worth Rs.2.15L
– SIPs of Rs.25000 monthly
– PPF corpus Rs.19.5L
– PF balance Rs.20.7L
– NPS corpus Rs.9.7L
– Sovereign Gold Bonds worth Rs.8L
– Gold jewellery worth Rs.30L

This is a rich and diversified portfolio.
But a good part of it is in physical and real estate assets.
These are not very liquid.
They won’t help you easily during retirement if cash is needed.

More exposure to mutual funds and financial assets is required.

» Loan Commitments and Repayment Strategy

– Home loan outstanding is Rs.19.8L.
– You are paying Rs.15000 extra EMI to finish early.
– This is excellent discipline.
– You will finish a 20-year loan in just 10 years.
– Car loan of Rs.7L has 5 years left.

Loan repayment strategy is solid.
Try to close car loan early if possible.
This will increase savings and reduce interest burden.

Once home loan closes, your monthly saving potential jumps significantly.

» Retirement Planning Target – Rs.43 Crores

– You aim to retire around 57-58 years.
– You desire a corpus of Rs.43 crores by retirement.
– You plan a simple, comfortable retired life.

This is a realistic goal.
But needs calculated asset allocation and investment discipline.

Based on current savings, a Rs.43 crore corpus is achievable.
But only if regular income-producing assets are built.
Real estate alone won’t help during retirement.

You must focus more on financial investments now.
Especially mutual funds and debt hybrids.

» SIP Strategy and Mutual Fund Exposure

– You are doing Rs.25000 SIP monthly.
– That’s around 17% of your income.
– This is a strong habit.
– However, increase SIPs when loans end.
– Try to take SIPs to Rs.40000-45000 per month by age 50.

This step alone will boost long-term corpus.
Mutual funds offer better post-tax and inflation-adjusted returns.

Avoid index funds or ETFs.
They are passively managed and don’t adjust to market movements.
They lack human research and decision-making.

Actively managed funds through a Certified Financial Planner help better.
They guide sector rotation, fund selection, and risk management.
Don’t go for direct plans.
You lose behavioural support, tax guidance, and rebalancing help.

Stick to regular plans through MFD with CFP support.

» PPF, PF, and NPS Evaluation

– PPF corpus is Rs.19.5L
– PF is Rs.20.7L
– NPS is Rs.9.7L

Combined, this is around Rs.50L in retirement-focused assets.
That’s excellent.
Continue PPF till age 60.
It offers tax-free and safe returns.

Don’t withdraw PF unless urgent.
Let it compound till retirement.

NPS should be continued.
But keep it to around 10-15% of total retirement asset base.
Only 60% of NPS can be withdrawn at retirement.
The rest goes into annuity, which gives low returns and no flexibility.

So, avoid depending too much on NPS alone.

» Fixed Deposits and Cash Holdings

– You hold Rs.32L in FDs.
– FDs are low-risk but give low post-tax returns.
– Also not inflation-friendly.
– Don’t increase FD allocation further.
– Use part of FD to fund any lump sum mutual fund investment.
– Also use FD maturity to add to equity or hybrid mutual funds gradually.

Hold only 12-18 months of expenses in FD or liquid funds.
Rest should be in long-term wealth building assets.

» Gold and Sovereign Gold Bonds

– SGBs worth Rs.8L offer decent diversification.
– They give annual interest and maturity value in 8 years.
– Continue holding till maturity.
– No need to add more SGBs now.

Your gold jewellery is Rs.30L.
This is family asset and emotional reserve.
But don’t count this in retirement corpus.
Jewellery is not an income-generating asset.
Its liquidity and resale are difficult.

Focus retirement planning on liquid and growth assets.

» Real Estate Holdings

– 3 houses and 1 plot worth total Rs.1.95 crores
– Rental income is Rs.18000 monthly
– But real estate is not efficient for retirement

It is illiquid, has high maintenance, and gives low post-tax yield
You may consider selling one house post-retirement
That proceeds can be used to fund medical or family goals

Don’t count on all real estate for income
Prefer financial assets like mutual funds and SWPs for monthly cash flow

Also, don’t buy more property going forward
Focus on liquidity, not accumulation

» Children’s Education and Long-Term Responsibilities

– School fees of Rs.21000 monthly
– Plan for higher education corpus of Rs.25L–Rs.30L per child
– You have time to build this over next 7-10 years

Start a separate SIP only for education
This prevents touching retirement funds later

Don’t rely on property for education
Financial assets offer better flexibility

» Medical and Emergency Planning

– Ensure you have personal health insurance
– Don’t depend only on employer group plan
– Cover both self and spouse under family floater policy

Also, keep Rs.5L in a liquid fund as emergency corpus
Health cost inflation is rising rapidly
This buffer will protect your investment goals

» Action Plan to Reach Rs.43 Crore Corpus

Increase SIP from Rs.25000 to Rs.40000–45000 after loans close

Keep investing in PPF, NPS, and PF

Use FD maturity to invest in lump sum in balanced or equity mutual funds

Don’t invest further in gold or real estate

Sell unused real estate after retirement to unlock value

Create income flow via SWP from mutual funds post-retirement

Keep retirement portfolio mix of equity, hybrid, and debt funds

Plan tax-efficient withdrawals

Use MFD with CFP support to rebalance regularly

Don’t chase direct or passive funds

Stay consistent with yearly reviews

This approach will help reach or even exceed Rs.43 crore by age 58

» Finally

Your base is already strong
Your savings culture, family values, and discipline stand out
You are not just saving, but saving smartly
You are planning ahead for peace and simplicity

With a few more focused steps, your dream retirement is fully possible
Maintain discipline, review every year, and take help from a Certified Financial Planner

Don’t stop SIPs
Don’t over-rely on real estate
Don’t keep too much in FDs
Focus on financial investments that grow and pay you back

You are already on the right path
Your target of Rs.43 crore is realistic
You can definitely retire at 57–58 comfortably

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

Ans: dear sir ,

I would also strongly suggest working with a QPFP / MFD to create a detailed retirement cash flow plan and fund monitoring strategy.

Best regards,
Naveenn Kummar, BE, MBA, QPFP
Chief Financial Planner | AMFI Registered MFD
https://members.networkfp.com/member/naveenkumarreddy-vadula-chennai