I'm 53, earn ₹3.5L. Sell flat for new home, easier job?

Ans: Hello;

I can see 2 factors that may force you to delay your retirement:

1. Kids higher education+ wedding expenses are underestimated.

2. So long as you have a loan, you need to have salary income to fund the EMIs.

Rental income may help to enhance your corpus or prepay the loan but shouldn't be substituted as source for loan repayment in my view.

If you don't take loan then I can say with some degree of comfort that you are retirement ready but more allocation for kids future expenses is a must(1 Cr+) and also the term insurance cover(1.5-2 Cr) for self and healthcare insurance for the family(Min 50L) are highly desirable.

Feel free to revert in case you have any queries.

Happy Investing!!

Ans: Your situation requires a well-thought-out financial strategy. You have a housing loan of Rs 70 lakh, a house worth Rs 2 crore, and a need for Rs 30,000 per month after retirement. Additionally, you plan to buy a house worth Rs 8 lakh and have two daughters to be married. Below is a structured approach to help you achieve financial stability.

Selling the Property – A Necessary Step?
Selling your house is a practical option. Your outstanding loan is Rs 70 lakh, and the house is worth Rs 2 crore.

After repaying the loan, you will have Rs 1.3 crore. This can be used for investments and future expenses.

If you continue living in this house, EMIs will be a burden. Selling will free you from debt and give you financial stability.

Consider renting a home instead of buying again. This will keep more money available for investments.

Buying a House for Rs 8 Lakh
If you want to buy a smaller house for Rs 8 lakh, use only a small portion of your funds.

Avoid taking another loan. Pay for the house in full from the sale proceeds.

Ensure the house is in a location with good facilities, medical access, and safety.

Creating an Investment Plan for Rs 1.3 Crore
After selling your house and clearing the loan, you will need an investment plan.

Keep Rs 10-15 lakh in a bank FD or liquid mutual funds. This will act as an emergency fund.

Invest Rs 30-40 lakh in debt mutual funds. These provide stability and liquidity.

Invest Rs 50 lakh in equity mutual funds for long-term wealth growth. Use regular plans with a Certified Financial Planner.

Keep Rs 10-15 lakh in a balanced fund for moderate returns with lower risk.

Generating Rs 30,000 Monthly Income
Debt mutual funds can provide a stable withdrawal option. Withdraw systematically for monthly expenses.

Use a mix of dividend and growth options. This ensures you get both regular income and capital appreciation.

Equity funds will provide growth, helping you sustain your money for 20-25 years.

Managing Daughters’ Marriage Expenses
If you need Rs 20-30 lakh for each daughter’s wedding, set aside Rs 40-60 lakh from the sale proceeds.

Invest this amount in a mix of debt and equity funds. This will help you reach your goal in a few years.

Avoid withdrawing from your retirement corpus for wedding expenses.

Starting Your Medical Practice
If you plan to start a medical practice, keep Rs 10-20 lakh for setting it up.

Avoid heavy investments in infrastructure initially. Work from an existing clinic or shared space.

Ensure you have medical indemnity insurance to protect yourself.

Final Insights
Selling your house will give you financial freedom and remove loan pressure.

Invest wisely to generate a steady monthly income and secure your daughters' futures.

Do not invest in real estate again. Keep your funds liquid and flexible.

Work with a Certified Financial Planner to review your investments regularly.

Focus on financial security rather than high-risk investments.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

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

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