41, Earning 2.2L, Wants 5 Cr Retirement: How?

Ans: Assessment of Current Financial Status
You have done well in your investments. Your current investments include:

Rs. 1 lakh in equity stocks
Rs. 15 lakhs in mutual funds (lump sum)
Rs. 11 lakhs in fixed deposits
Rs. 10 lakhs in National Savings Certificate (NSC)
Rs. 26 lakhs in provident fund
Rs. 35,000 SIP monthly starting from 2023
Rs. 1.5 lakhs annually in PPF since 2022
Rs. 1 lakh annually in PPF for your wife since 2022
Rs. 50,000 annually in PPF for your daughter since 2023
Rs. 1.5 lakhs annually in Sukanya Samriddhi Yojana (SSY) since 2020
Rs. 50 lakhs term insurance
Rs. 10 lakhs LIC policy
Rs. 10 lakhs LIC Child Money Back
Rs. 5 lakhs SBI Smart Champ for your daughter’s education
Family medical insurance of Rs. 10 lakhs
Retirement Corpus Planning
To retire comfortably at the age of 55, you aim for a corpus of Rs. 5 crores. Here's how you can plan:

Evaluate Your Current Investments
Equity Stocks: Continue holding, but consider diversifying to reduce risk.
Mutual Funds: Ensure they are well-performing. Review your portfolio annually.
Fixed Deposits: Good for stability, but consider investing more in equity for higher returns.
NSC: Continue holding for assured returns.
Provident Fund: Continue contributing, as it offers tax benefits and steady returns.
SIP: Keep increasing your SIP amount periodically. This will boost your corpus significantly.
Additional Investment Strategies
Increase SIP Contributions: Gradually increase your monthly SIP contributions as your income grows.
Review and Adjust Investments: Annually review your portfolio with a certified financial planner to ensure alignment with your goals.
Maximize PPF Contributions: PPF offers tax benefits and stable returns. Continue maximizing your contributions.
Invest in Balanced Funds: They offer a mix of equity and debt, providing growth and stability.
Consider International Funds: They can provide geographic diversification and potentially higher returns.
Insurance and Risk Management
Term Insurance: Your current cover of Rs. 50 lakhs is good. Review it periodically.
LIC Policies: Evaluate the returns and consider switching to higher-yielding mutual funds.
Health Insurance: Ensure your coverage is adequate given rising medical costs.
Long-Term Financial Planning
Education Planning for Daughter
LIC Child Money Back and SBI Smart Champ: These are good, but assess their returns. You might find better growth in mutual funds.
Increase SSY Contributions: SSY offers good returns for your daughter's education and marriage.
Retirement Planning
Target a Higher Corpus: Considering inflation, a higher corpus might be beneficial. Aim for Rs. 6-7 crores to ensure comfort.
Diversify Investments: Spread your investments across different asset classes to manage risk better.
Tax Planning: Make full use of tax-saving instruments to optimize your post-tax returns.
Final Insights
To achieve a corpus of Rs. 5 crores by 55, keep enhancing your investments. Focus on increasing your SIPs, reviewing your portfolio, and diversifying your investments. Consult a certified financial planner regularly to stay on track.

You are on the right path with your disciplined savings and investments. Continue this approach, and you'll achieve your retirement goal comfortably.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in