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At 43, With 10 Years Till Retirement, Can I Reach My 3cr Corpus Goal?

Ramalingam Kalirajan |8093 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jan 30, 2025

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Asked by Anonymous - Jan 30, 2025Hindi

Hello Sir, I am 43 years old now. I work in private sector. I have a wife and 1 kid as a part of my family. Wife is working as well and she is 42 years old. Kid is 10 year old now. As a couple put together we have below assets : MF - 1.6 CR, EPF - 1.1 CR, PPF - 25 lacs, NPS - 12 lacs, Sukanya samriddhi - 26 lacs, stocks- 50 lacs, immovable property - 3 CR. FD - 10 lakhs. No loans and emi’s. I donot have any financial liability as of now. Have closed all my home loans. Our current monthly exp is 1 lakh as of today, groceries is 30k, fuel is 20k and rest is discretionary spend. I intend to retire by 50. What should I aim for as a corpus at 50? Can I retire earlier?

Ans: You have no loans or liabilities.

Your investment portfolio is well-diversified.

Your expenses are well documented.

Your retirement goal at 50 is clear.

These factors make your financial planning more structured.

Assessing Your Retirement Corpus
Your current monthly expenses are Rs 1 lakh.

Inflation will increase these expenses over time.

Retirement will need a large corpus to sustain your lifestyle.

You also need funds for medical emergencies and unexpected costs.

Your investments must generate inflation-adjusted income after retirement.

Evaluating Your Existing Assets
Your total financial assets (excluding property) are around Rs 4.8 Cr.

Mutual Funds (Rs 1.6 Cr): These can continue growing over time.

EPF (Rs 1.1 Cr) & PPF (Rs 25 Lacs): These provide stable returns.

NPS (Rs 12 Lacs): Locked till retirement but useful for post-retirement income.

Sukanya Samriddhi (Rs 26 Lacs): Dedicated for your child’s future.

Stocks (Rs 50 Lacs): Market-dependent but can give high growth.

Fixed Deposits (Rs 10 Lacs): Useful for short-term needs.

Key Considerations for Early Retirement
If you retire at 50, your assets must last for 40+ years.

You need income from investments without depleting capital too soon.

Health insurance is essential as employer coverage will end.

You need an emergency fund for unexpected situations.

Passive income sources should be explored.

Can You Retire Earlier?
It depends on whether your investments generate sustainable returns.

Higher equity exposure is needed for long-term wealth creation.

A clear withdrawal strategy is required to manage post-retirement expenses.

If your portfolio can generate stable returns, early retirement is possible.

If not, delaying retirement will provide better financial security.

Optimising Your Investments
Increase equity exposure in mutual funds to outpace inflation.

Avoid excessive fixed deposits as they offer lower returns.

Maintain a mix of growth and income-generating assets.

Keep reviewing your investments with a Certified Financial Planner.

Final Insights
You are on track for retirement at 50.

Early retirement is possible with disciplined investing.

Managing withdrawals efficiently will be crucial.

Ensure adequate health and emergency coverage.

Continue monitoring and adjusting your portfolio.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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