I am going to enter my 60 on 1 Aug 2023. I could invest at least 50 K per month from now for a minimum of 10 years. Suggest suitable investment idea for a long term retirement fund. This 50 k includes a 12k of rental income. No EMIs to pay. Some 2 L in bank balance. No retirement for me compulsorily. Can work as long as I wish. I am fit enough to work for at least for 20 years. 1 Cr. Corpus, I am planning. Guide me suitably. Thanks in advance

Ans: What do you mean by good investment ?

Ans: Retiring at 50 with a Rs. 1 crore corpus and a Rs. 1 lakh monthly SIP is a bold move. Let's discuss some key points to consider for your fixed income plan:

1. Planning for Early Retirement:

Short Timeframe! Retiring in 4 years with a Rs. 1 lakh monthly income target requires careful planning. Your current corpus and SIP are a good start, but may need adjustments.

Focus on Safety! Since you need regular income, focus on investment options with lower risk and predictable returns, like Debt Funds.

2. Understanding Your Options:

Debt Funds: Debt Funds invest in fixed-income instruments like bonds and provide regular interest payouts. They are suitable for generating a fixed monthly income.

Other Options: While Debt Funds are a good starting point, a CFP can explore options like Senior Citizen Savings Scheme (SCSS) or Post Office Monthly Income Scheme (POMIS) for potentially higher interest rates.

3. Creating a Sustainable Plan:

Balancing Growth & Income: You might need to consider a combination of Debt Funds and some Equity Funds for potential long-term growth to combat inflation.

Review and Rebalance: Your income needs and risk tolerance might change over time. A CFP can help you review your portfolio regularly and rebalance if needed.

4. Maximizing Your Potential:

Increase SIP or Corpus? Consider if you can increase your SIP amount or add a lump sum to your corpus to reach your Rs. 1 lakh monthly income target.

Professional Guidance! A Certified Financial Planner (CFP) can analyze your situation, risk tolerance, and income needs. They can recommend a personalized investment strategy to achieve your desired retirement lifestyle.

Remember, planning for early retirement requires a strategic approach. Consulting a CFP can help you create a plan that balances your income needs with potential growth to ensure a secure and comfortable retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Hello;

An investment of 30 K with 10% top-up each year will be required to be continued for 10 years minimum to reach a corpus of 1 Cr(12% return considered from pure equity mutual funds).

You may invest in a combination of flexicap mutual fund and a Large and Midcap type mutual fund in proportion of 50:50.

For pension you may invest in NPS with active choice and maximum possible equity allocation. Contributions can continue upto 70 age.

Happy Investing;
X: @mars_invest