Dear Sir I am going to retire from government service in few months under NPS. I want to invest a part of my received amount . Kindly suggest. Neel

Ans: Your question is not clear please

Ans: Hi Renukadevi

Yes NPS is good for investing and tax saving both as per old regime. You can invest say 2 lacs in it and 6 lacs you must allocate to aggressive funds lime mid cap and small cap and index funds but in a systematic transfer plan method

Ans: It's great that you've started investing in NPS for your retirement. To achieve your goal of investing ?20,000 for both your future and your child's education, consider the following suggestions:

SIP in Mutual Funds:
Allocate a portion of ?20,000 towards SIPs in mutual funds. Opt for diversified equity funds for long-term growth potential.
Choose funds based on your risk tolerance and investment horizon.
Child Education Fund:
Create a separate fund or invest in child education-specific mutual funds or SIPs for your child's education.
Start a recurring deposit or systematic investment plan (SIP) to accumulate the desired amount by the time your child starts higher education.
Emergency Fund:
Set aside a portion of your monthly income for an emergency fund, aiming to accumulate 3-6 months' worth of expenses.
Consider a liquid or short-term debt fund for this purpose.
Insurance:
Ensure you have adequate life and health insurance coverage for yourself and your family to protect against unforeseen events.
Review & Adjust:
Periodically review your investments to track performance and make necessary adjustments.
Increase your investments gradually as your income grows.
Remember to maintain a balanced approach between equity and debt investments based on your risk tolerance. Consult a financial advisor to create a personalized investment plan tailored to your financial goals and situation.

Ans: It's great that you're thinking about your retirement at such a young age. Let's calculate how much you need to invest in the National Pension System (NPS) to achieve a monthly income of 80,000 after retirement.

Understanding NPS
National Pension System (NPS): NPS is a voluntary, long-term retirement savings scheme offered by the Government of India.
Investment Options: NPS offers various investment options, including equity, corporate bonds, and government securities, allowing you to choose a suitable asset allocation based on your risk tolerance and investment goals.
Retirement Income: The accumulated corpus in your NPS account can be used to purchase an annuity, providing you with a regular income stream during retirement.
Estimating Retirement Corpus
To generate a monthly income of 80,000 after retirement, we'll first calculate the required retirement corpus based on your life expectancy and expected rate of return.

Calculation Steps
Monthly Income Requirement: 80,000 (as per your requirement)
Annual Income Requirement: 80,000 * 12 = 9,60,000
Annual Income in Retirement: Assuming a conservative 6% annual return post-retirement, the corpus required would be:
Retirement Corpus = Annual Income Requirement / Expected Annual Return
Retirement Corpus = 9,60,000 / 0.06 = 1,60,00,000
Determining NPS Contribution
Given your age of 25, you have a considerable investment horizon, allowing you to benefit from compounding returns over time. Let's calculate how much you need to invest in NPS to accumulate the required retirement corpus.

NPS Calculator
Using an NPS calculator with assumed rates of return and retirement age, you can determine the monthly contribution required to achieve your retirement goal.

Conclusion
To ensure a comfortable retirement with a monthly income of 80,000, you need to start investing in NPS early and contribute regularly. Consider consulting with a Certified Financial Planner to develop a personalized retirement plan aligned with your financial goals and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in