Sir, I have completed 58 years and what reason should I select for exit date in EPF Retirement or Superannuation for pension? kindly advise soon.

Ans: EPF

Ans: As you are planning to quit your job here is what can be considered before doing the same:-

Estimate your monthly expenses: Create a detailed budget factoring in all your essential and non-essential expenses. This will give you a clear picture of your monthly needs.

Prioritize debt repayment: Ensure you clear any high-interest debts to avoid financial stress.

Lifestyle adjustments: Consider if adjustments like downsizing your living arrangements or reducing discretionary spending can help bridge any income gaps.

Plan for unforeseen events: Build an contingency fund to cover unexpected expenses.

You are eligible for an EPF pension if you complete a minimum service period of 10 years and are at least 58 years old. However, since you mentioned turning 55 in March, you'll need to wait for 3 years to access the pension.

To plan your monthly income we can consider your current assets PF corpus (45 lacs), gratuity (9 lacs), SIPs (15 lacs), and NPS (4 lacs). We suggest you to invest the current available amount in mutual funds and opt for monthly SWPs or you can invest some amount in Post office schemes and take the advantage of Post office monthly scheme. Please remember SWPs are tax efficient whereas any amount received from POMIS will be taxable at your applicable slab rate.

Ans: Considering your age and investment portfolio, it's essential to plan for your old age by gradually shifting towards more conservative investments. You may want to increase your allocation to debt funds or fixed-income instruments to reduce risk as you approach retirement.

Regarding your mutual fund investments, the decision to exit depends on various factors such as fund performance, investment goals, and market conditions. If a fund no longer aligns with your investment objectives or has consistently underperformed, it may be prudent to consider exiting. However, it's essential to assess each fund's performance and consult with a financial advisor before making any decisions.

Ans: It's wonderful that you're taking steps to plan for your retirement. At 36, you're in a prime position to make some smart decisions for your future. Your current salary and existing investments show that you're already on a good track, so let's build on that foundation.

Firstly, kudos on having a substantial PF balance and employee stocks. That's a solid start towards securing your retirement. Now, let's strategize further. Retirement at 45 means you have about nine years to optimize your investments.

Given your timeframe and risk appetite, we should focus on growth-oriented investments. While real estate might seem appealing, let's explore other avenues due to the associated risks and illiquidity.

Instead, consider diversifying your portfolio with a mix of equity and debt instruments. Since you're not keen on index funds, we can explore actively managed mutual funds. These funds are managed by professionals who aim to outperform the market, potentially yielding higher returns.

Now, regarding your Employee Stocks, while they can be a valuable asset, it's essential to review their performance regularly. Don't hesitate to consider diversifying them to minimize risk.

Additionally, ensure you have adequate health and life insurance coverage. Unexpected medical expenses or unfortunate events can derail even the best-laid plans.

Lastly, stay committed to your financial goals. Regularly review your investments and adjust them as needed. Remember, retirement planning is a marathon, not a sprint.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in