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MF, PF Expert - Answered on Oct 11, 2024

Nitin Narkhede, founder of the Prosperity Lifestyle Hub, is a certified financial advisor with eight years of experience in helping clients design and implement comprehensive financial life plans.
As a mentor, Nitin has trained over 1,000 individuals, many of whom have seen remarkable financial transformations.
Nitin holds various certifications including the Association Of Mutual Funds in India (AMFI), the Insurance Regulatory and Development Authority and accreditations from several insurance and mutual fund aggregators.
He is a mechanical engineer from the J T Mahajan College, Jalgaon, with 34 years of experience of working with MNCs like Skoda Auto India, Volkswagen India and ThyssenKrupp Electrical Steel India.... more

Asked by Anonymous - Oct 08, 2024Hindi

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Hello Sir, I am 50 year old male, I have MF portfolio of 23 LAC of current value, and SIP of 18000 pm. I have invested in 3flats + commercial properties ( current value1.8 cr) having rental income around 55000. I am having my own house.I am freelancer , getting around 15 lac per year in that business. Would like to what i can do have a comfortable leaving after 60 years of age . I have feeling that i had invested more on real-estate ignoring MF. Pls advice

Ans: Dear Friend,
Given your substantial real estate investments, you can make a few strategic adjustments to ensure a comfortable retirement after 60.
Diversify further into Mutual Funds—Since you feel you have over-invested in real estate, increasing your mutual fund exposure can balance your portfolio and help provide more liquidity and growth in the long term.
Increase SIP- You’re currently investing Rs 18,000 per month in SIPs. Gradually increasing this amount could lead to better growth over time. Since your goal is retirement, focus on equity mutual funds with the potential for higher returns over the next 10-15 years.
Consider a Retirement-focused Fund—You could add retirement or balanced advantage funds to your portfolio, which reduce risk as you approach retirement age.
Create a Target Corpus for Retirement - Assuming you retire at 60 and live until 80, estimate your future expenses (including inflation). Given that you have real estate generating rental income of Rs 55,000, you can also expect this to grow with inflation. But, for other living expenses, a mutual fund corpus will give you the flexibility to withdraw when necessary.
Balance Real Estate and Financial Assets—While real estate generates good rental income, it is less liquid than mutual funds. Consider diversifying your overall portfolio by slightly reducing your real estate holdings (if feasible) and directing that amount into a more liquid asset class like mutual funds or fixed-income investments.
Emergency Fund and Health Insurance—Ensure you have an adequate emergency fund and increase your health insurance coverage, as healthcare costs tend to rise with age. Your current rental and freelance income can help you build this up over time.
Focusing on these strategies can help you achieve a balanced approach to retirement planning that includes growth, liquidity, and stability.
Regards, Nitin Narkhede Founder of Prosperity Lifestyle Hub https://Nitinnarkhede.com
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