Hello sir. I am 45 year's old and I am working in overseas (Singapore) and take home around 1.5L saving.. Family: Wife and 2 kid's (6 year daughter and 4 year son) Investment: #1 : 1.2Cr rental property and monthly income 40000rs #2 : 1cr plot property (total 5 plot's) #3 : mutual fund value 50L(sipp stopped) #4: Gold 30L(gold beees) Debt: No debts and no EMI. Future plan: I am planning working until 2026 end and return back to Chennai... No more working and spending quality time with my family.. My requirements: 1L per month My request is: How to plan my retirement life?

Ans: You have built strong assets. You also have no debts. That is a great achievement. You are just 45 and want to retire by 47. You want Rs. 1 lakh monthly after retirement. That is a realistic target. Let us now plan a 360-degree strategy for your retirement life.

Quick Snapshot of Your Current Situation

Age: 45 years

Retirement plan: End of 2026 (at age 47)

Monthly savings now: Rs. 1.5 lakh

Family: Wife and two children (ages 6 and 4)

Rental income: Rs. 40,000 monthly

Plot property: Rs. 1 crore (5 plots)

Mutual funds: Rs. 50 lakh (SIP stopped)

Gold: Rs. 30 lakh (Gold Bees)

Debts: None

Desired post-retirement income: Rs. 1 lakh monthly

Location after retirement: Chennai

You have two years left before retirement. Let’s use this time smartly.

Step 1: Define Retirement Corpus Need Clearly

You need Rs. 1 lakh monthly after retirement. That is Rs. 12 lakh yearly. You will need this income for 40 years. Retirement at 47 means long retirement life. Inflation will reduce value of money every year.

So you must:

Build a retirement corpus that grows and pays

Keep risk low but returns high enough

Create income from multiple sources

Ensure money lasts for 35–40 years

You already have some good assets. Let us now structure them smartly.

Step 2: Secure and Optimise Rental Income

You are earning Rs. 40,000 rent now. This will help in retirement.

Action points:

Increase rent by 5–7% every year

Create rental agreement and register it properly

Ensure maintenance is handled by tenant

Keep property insured

Don’t depend 100% on rent for income

Keep Rs. 40,000 rent as support income. Main retirement income must come from your investments.

Step 3: Re-assess Your Gold Holding

Gold Bees worth Rs. 30 lakh is good. But gold should not exceed 10–15% of total assets. It does not give regular income. It also has no capital growth.

What you can do:

Redeem part of Gold Bees

Shift Rs. 15–20 lakh to mutual funds or SWP

Keep balance Rs. 10–15 lakh in gold as hedge

Gold is useful only during crisis. It is not suitable for monthly income.

Step 4: Mutual Fund Portfolio – Reactivate With Plan

You already have Rs. 50 lakh in mutual funds. That’s your strongest retirement tool. But your SIP is stopped. That reduces growth.

Start again:

Resume SIP of Rs. 1–1.5 lakh monthly till 2026

Invest in actively managed funds only

Avoid index funds completely

Why not Index Funds?

They follow market blindly

No protection in falling market

Cannot avoid bad sectors

No strategy or active decisions

Why choose Active Funds via MFD + CFP?

Managed by experienced fund managers

Good for risk-adjusted returns

Helps beat inflation over long term

Offers advice, rebalancing, and behaviour support

Also avoid direct mutual funds. Here's why:

No guidance or portfolio review

No support during market crash

No proper exit planning

A mistake costs more than low fee saving

Use regular mutual funds through MFD with CFP credential. This gives full financial support.

Step 5: 2-Year Retirement Strategy Until 2026

You are saving Rs. 1.5 lakh monthly now. You also have no loans. Use this time to maximise investments.

Action plan till 2026:

Invest Rs. 1 lakh monthly into mutual funds

Use balance Rs. 50,000 for emergency buffer or child fund

Review mutual fund portfolio every 6 months

Build Rs. 80–90 lakh corpus before you retire

Exit from plots only when needed

You can also use part of the gold proceeds to fund SIP.

Step 6: Post-Retirement Withdrawal Planning

After 2026, you can start monthly income from:

Mutual Fund Systematic Withdrawal Plan (SWP)

Rental income

Bank interest for short-term cash

Partial withdrawal from gold (if needed)

Why SWP is better than pension plans or annuities:

SWP gives flexible income

Your money keeps growing

Withdraw only what you need

Avoid annuity which locks money and gives low return

Example plan post-2026:

Rs. 40,000 rent income

Rs. 60,000 monthly from mutual fund SWP

This matches your Rs. 1 lakh monthly requirement.

Step 7: Asset Allocation for Retirement

Split your portfolio like this before you retire:

60% in mutual funds (Rs. 90 lakh approx.)

Mix of large-cap, hybrid, flexi-cap

15% in gold (Rs. 15 lakh)

Keep Gold Bees for emergencies

15% in debt (Rs. 15 lakh)

Use for short-term income

10% in plots (Rs. 10 lakh equivalent)

Liquidate as needed

This gives growth, stability, and liquidity.

Step 8: Emergency and Health Safety Net

You must protect your family before you retire.

Keep Rs. 5 lakh emergency fund in liquid mutual fund

Buy Rs. 25–30 lakh health insurance (family floater)

Add critical illness cover if possible

Keep health policy active even if you return to India

Do not depend only on Singapore policy. Health is expensive in India too.

Step 9: Child Future and Education Planning

Your children are 6 and 4 years old. Their higher education will start after 10–12 years.

Action steps:

Create separate mutual fund SIP for kids

Invest Rs. 10,000–15,000 monthly

Use actively managed diversified funds

Don't use child ULIPs or insurance plans

Review portfolio every year

Don’t mix your retirement corpus with their education fund.

Step 10: Property Sale Strategy for Plots

You have 5 plots worth Rs. 1 crore. But land gives no income.

Here is the plan:

Hold for 5 years more if not urgently needed

Sell one plot if market gives good price

Use that money to boost mutual fund retirement corpus

Avoid keeping all wealth in illiquid plots

Don’t treat land as your retirement money

Reinvest land sale proceeds in active mutual funds.

Step 11: Tax Planning for Mutual Fund Withdrawals

Remember these new tax rules:

LTCG above Rs. 1.25 lakh on equity funds taxed at 12.5%

STCG taxed at 20%

Debt fund gains taxed as per your slab

So:

Hold equity funds for more than 1 year

Withdraw in small parts through SWP

Work with MFD to plan tax-efficient redemptions

Do not exit all at once. That will increase tax burden.

Finally

You are financially stable.

No loans, good assets, and strong income.

Use next 2 years to build Rs. 80–90 lakh mutual fund corpus

Restart SIP now.

Avoid index funds and direct funds.

Use active funds through regular plan via CFP + MFD

Gold and rent will support partially

SWP will provide regular income

Build emergency and health cover

Create separate child education SIP

Plan exit from plots over time

Review retirement portfolio every 6 months

Your retirement goal is very much achievable. With clarity and action, you can enjoy full freedom.

Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment