Sir I am confused about my retirement. Though not fully retirement but want to work easy and joyfully. I know I will get those kind of work. Age 53, earning 3.5 lac/month. Son settled in US. No liability and zero debt. Own house another 2 apartment giving rent 53k/monthly. Medical insurance Lacs. Term plan 50 lacs. PPF saving 32 lacs till now 2 more yrs to go. Equity 4 cr. Giving dividend 3.5 lacs annually (average) 60 lac fixed diposite, Gold value 15 lacs purlely investment purpose. ( Gold Average purchase price 45k). Property from parents 2.5 Cr.(In future) I purchase new home for self living paid 55 lacs as down payment. Still need to pay 1.2 cr. In next 30 months. Once I move to new house will rented out current house(expected rental income will be 90k after 3 years) + monthly dividend 35k + 70k salary (considering opt for easy job) Current Monthly expenses 80k. Should I sold one property keep it for remaining payment of new home. Is that wise decision ? Or continue job till new home payment done? Vimal

Ans: Dear Vimal,

You have built strong financial stability over the years.

You deserve appreciation for staying debt-free and planning wisely.

Your equity, PPF, and property portfolio reflect mature financial discipline.

Still, let’s assess this in depth and help you move toward your relaxed work life.

Below is a 360-degree guidance based on your inputs.

 

 

Your Income Sources (Now and Future)

Present salary is Rs. 3.5 lakh per month.

 

Rental income from two flats is Rs. 53,000 per month.

 

Dividend income from equity is about Rs. 3.5 lakh per year (Rs. 29,000/month).

 

After moving into your new home, current home rental may give Rs. 90,000/month.

 

After shifting to a light job, you expect Rs. 70,000/month as salary.

 

So, future income = 90,000 (rent) + 70,000 (job) + 29,000 (dividend) = Rs. 1.89 lakh.

 

Current expenses = Rs. 80,000/month.

 

You will still have a decent surplus post-retirement-style job.

 

 

Your Outgoing: New Home Payment Responsibility

You already paid Rs. 55 lakh as down payment.

 

Rs. 1.2 crore needs to be paid in 30 months.

 

That means around Rs. 4 lakh/month for the next 2.5 years.

 

This is a significant commitment. Needs careful handling.

 

 

Option 1: Sell One Property to Fund the New Home

This is the most practical way to reduce stress.

 

You are already earning rental income from two apartments.

 

One apartment sale can easily fund the remaining Rs. 1.2 crore.

 

Property sale proceeds are tax-free if reinvested into a residential house.

 

Selling now gives you mental peace. No pressure from large EMI-type outgo.

 

You can invest the balance (if any) from the sale wisely.

 

It gives you room to semi-retire without worry.

 

 

Option 2: Continue Current Job Till Home Payment Ends

You may be able to finish payment from salary and investment withdrawals.

 

But this will need Rs. 4 lakh/month for 30 months.

 

That’s higher than your salary of Rs. 3.5 lakh/month.

 

This will force you to draw from equity or FDs.

 

That may disrupt compounding and long-term retirement goals.

 

Mentally and physically, the pressure may not allow a joyful job switch.

 

You may have to keep working longer just to compensate the shortfall.

 

Hence, this is not ideal if peace of mind is priority.

 

 

Your Equity Portfolio Strategy

You hold Rs. 4 crore in equity. That’s a strong number.

 

You’re getting Rs. 3.5 lakh as dividends. Approx 0.9% yield.

 

You must ensure your funds are in well-managed, actively managed mutual funds.

 

Avoid index funds. Index funds cannot protect during market crashes.

 

They lack fund manager insights. They blindly copy indices.

 

Active funds, with skilled managers, adjust strategies based on market shifts.

 

It’s better to invest in regular plans through MFDs who are CFP certified.

 

They track performance, suggest portfolio changes, and offer annual reviews.

 

Direct funds don’t offer advisory or review support.

 

That leads to unmanaged risk. And missed opportunities.

 

 

Your PPF and Fixed Deposit Planning

You have Rs. 32 lakh in PPF. Maturity is in 2 years.

 

PPF gives tax-free returns. You can continue it in 5-year blocks if needed.

 

Rs. 60 lakh in FD is good for liquidity and emergencies.

 

FD interest is taxable. Consider partial shift to hybrid mutual funds for better post-tax returns.

 

But keep 1–2 years of expenses in FD always.

 

Emergency fund must be untouched even after home payment.

 

 

Gold as Investment

You hold Rs. 15 lakh in gold. Purchased at Rs. 45,000 average.

 

Current price is higher. Gold acts as hedge against inflation.

 

Keep gold as long-term hold, but don’t add further for investment.

 

Returns from gold are not consistent. Use equity for long-term growth.

 

 

Medical and Life Insurance Review

You have Rs. 25 lakh health cover. That is good.

 

Post retirement, premium may rise. Review portability to senior citizen plan if needed.

 

Term cover of Rs. 50 lakh is fine as you have no liabilities.

 

You may not need high life cover now. But keep it till age 60.

 

 

Future Inheritance Planning

You expect Rs. 2.5 crore from parents in future.

 

That gives you an additional safety net.

 

But don’t factor that in for immediate planning.

 

Plan your new home payment only from current assets.

 

Future inheritance can support long-term family needs or gifting.

 

 

Should You Sell Property or Not? Final Suggestion

You want to move to relaxed work life now.

 

You are financially ready for it.

 

But new home payment is a big roadblock.

 

Selling one rental property today is wise.

 

It clears the Rs. 1.2 crore due. No stress.

 

You still keep one rented apartment + old house rent in future.

 

You get tax-efficient, regular passive income from rentals + dividends.

 

You reduce risk of liquidating mutual funds or breaking FD.

 

Equity keeps compounding peacefully. Retirement fund stays safe.

 

You can then choose a job that brings peace, not pressure.

 

There’s no need to wait 30 months to relax.

 

 

Final Insights

Sell one rental flat now. Use proceeds to close new home payment.

 

Keep equity untouched. Let it grow for next 10–15 years.

 

FD should be used only for emergencies. Not home purchases.

 

Review medical cover annually. Ensure portability at 60+.

 

Let PPF mature. Reinvest matured PPF as per goals.

 

Move towards less-stress work as planned. No need to delay it.

 

Enjoy your financial freedom. Your discipline earned this comfort.

 

Review your portfolio with a Certified Financial Planner every year.

 

Ensure estate plan is in place for future asset transition.

 

Keep one goal clear — peace of mind and simplicity.

 

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