Firstly I would like to thank for your suggestions and recommendations you provide. I would like to know how much corpus is required to get 1 lakh per month in retirement, which will start from June 22. Also, please guide where to invest to get monthly amount of 1 lakh. 

Ans: To achieve your retirement goal of a monthly pension of Rs 2 lakhs post-tax, growing at 7% annually, you'll need to calculate the required corpus. For this, I’m unable to let you know your exact corpus amount since I have no information about your current expenses, risk tolerance, life expectancy and other financial goals.

With assumptions like an 85-year life expectancy and an aggressive risk profile, you might need around Rs 7.75 crore at retirement (age 45). This considers a 7% inflation rate and 13% pre-retirement returns.

Right now, you have Rs 67 lakhs saved, split between equity and debt. However, solely relying on these might only sustain your desired lifestyle till age 60 only. To make sure you have enough until 85, you need to invest an additional monthly investment (SIP) of around Rs 1 Lakh along with your existing investments of Rs. 67 Lakhs. Also, slowly build up an emergency fund equal to 6 months of your expenses.

The response to your query is based on limited information and consulting a financial advisor is highly recommended. He/she can create a personalized plan considering your expenses, risk tolerance, and other goals. There are some free financial calculators (for retirement planning) available on google, you can also refer to the same for the calculation.

Ans: Hello Rajesh! It's great to see your commitment to investing for your future, especially with retirement on the horizon. Let's dive into planning for your retirement corpus.

Given your current investments in MF SIPs and equity stocks, you're already on a solid path. However, to estimate the corpus needed for retirement, we need to consider factors such as your desired post-retirement lifestyle, inflation, and expected expenses.

With your monthly expenses at Rs. 25,000 and a family of three, projecting your future expenses accounting for inflation is essential. Additionally, factoring in potential healthcare costs and other unforeseen expenses is prudent.

As a Certified Financial Planner, I recommend conducting a comprehensive financial review to determine your retirement goals and risk tolerance. This will help in estimating the corpus required to sustain your lifestyle post-retirement comfortably.

With your additional Rs. 5,00,000 in hand, you have an opportunity to further diversify your investments. Whether you choose to invest in stocks or MFs, consider your risk appetite and the need for diversification to mitigate risks.

I suggest consulting with a financial advisor who can create a personalized retirement plan tailored to your specific circumstances and goals. By taking proactive steps now, you're setting yourself up for a financially secure retirement in 10 years. Keep up the good work, and remember, investing is a journey, so stay focused on your long-term objectives.

Ans: To generate a monthly income of 1 lakh after retirement, calculate your annual expenses and multiply by 25 to estimate the corpus needed for retirement. Subtract your expected pension and factor in inflation. Since you have three years until retirement, focus on aggressive savings and investments to build your retirement corpus swiftly. Prioritize clearing your home loan to reduce financial burden. Consider purchasing adequate term and medical insurance coverage to safeguard against unforeseen expenses. Start saving diligently to accumulate the required corpus within the given timeframe, ensuring financial security for retirement and your daughter's education.

Ans: With a savings corpus of 3.5 cr and aiming for a monthly income of 1 lakh, you'll need to strategize your withdrawal carefully to ensure it lasts throughout your retirement. A conservative withdrawal rate is typically 3-4% of the corpus annually to ensure sustainability, adjusting for inflation.

Considering your needs, you might start with withdrawing 4% initially, which amounts to 14 lakhs annually or approximately 1.17 lakhs per month. Monitor the market conditions and your portfolio's performance to adjust this rate periodically. It's crucial to consult a financial advisor to tailor a withdrawal strategy suitable for your needs.

Ans: Planning for your retirement at 38 is a wise decision, and aiming for a corpus of Rs. 2 Crore demonstrates a clear vision for your financial future.

Understanding Your Goal:

To achieve a corpus of Rs. 2 Crore by retirement, several factors need consideration, including your current age, income, risk appetite, and investment horizon.

Determining Investment Required:

To calculate how much you need to invest monthly to reach your goal, we must consider factors such as expected rate of return, inflation, and investment duration.

Savings vs. Investments:

Given your monthly income of Rs. 1.3 Lakh, you could allocate a portion towards savings and investments. By investing a significant portion in mutual funds, you can potentially accelerate the growth of your retirement corpus.

Investment Strategies and Mutual Fund Suggestions:

Systematic Investment Plan (SIP): You can start a SIP in equity mutual funds with a diversified portfolio. Allocate funds to large-cap, mid-cap, and small-cap funds to spread risk and maximize returns over the long term.

Debt Funds: Alongside equity funds, consider investing in debt funds to provide stability to your portfolio. Debt funds offer steady returns and can act as a hedge against market volatility.

Balanced Funds: Balanced funds, also known as hybrid funds, invest in a mix of equity and debt instruments. They offer a balanced risk-return profile, making them suitable for investors with moderate risk tolerance.

Sectoral Funds: For investors willing to take higher risks, sectoral funds focused on specific industries can provide opportunities for significant capital appreciation. However, they come with higher volatility and should be approached with caution.

Regular Funds vs. Direct Funds:

Consider investing through a Certified Financial Planner who can provide personalized advice and assistance in selecting the right mutual funds. Regular funds offer the advantage of professional guidance and ongoing portfolio management, ensuring your investments align with your financial goals.

Calculating Monthly Investments:

To determine the monthly investment required to reach a corpus of Rs. 2 Crore by retirement, we need to consider factors such as expected rate of return and investment duration. A Certified Financial Planner can help you calculate this figure based on your specific circumstances and goals.

Final Recommendations:

Investing in mutual funds is an excellent way to build wealth for retirement, given their potential for long-term growth and diversification benefits. However, it's crucial to develop a well-rounded investment strategy tailored to your risk tolerance and financial objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in