Hii,I am 37 years old and am a central govt. Employee. My monthly in hand salary is aproximately ? 70000. My investments as of now are as under
01. PPF :- 8500 pm (current bal. ?872000 in
this fund.mature on
31/03/2032)
02. Sukanya :- 2000 pm ( opened in sep'16
Bal. ? 190000)
03. Sbi life :- ? 15000 pa ( mature in 2037
Cur.bal. ?150000
market base fund)
04. SIPs :- ? 6250 pm
(a).:- sbi magnum midcap fund :? 2000pm
(b).:-sbi magnum global fund. : ?1000 pm
(c).:- sbi small cap fund : ? 2000pm
(d).:- Moti.Oswal microcap 250 ? 1250pm
( current bal (4 SIPs) aprox. ? 300000)
05. NPS :- cur.bal aprox. ? 1350000
(Current contribution (emplo. + govt.)
? 11628/ month . It will increase
as per DA, increament's hike as per
rule)
Can I achieve 3--4 cr goal by the age of 60 ?
Ans: Firstly, I commend your proactive approach towards financial planning, especially at a relatively young age. Let's delve into your current investment portfolio and evaluate the feasibility of achieving your long-term goal of accumulating 3-4 crores by the age of 60.
Assessing Current Investments
Your existing investments showcase a blend of traditional and market-linked instruments, reflecting a diversified approach to wealth creation. Here's a breakdown of your portfolio:
PPF and Sukanya Samriddhi: These schemes offer tax-efficient savings avenues, providing stability and long-term growth potential.
SBI Life Insurance: While life insurance provides financial protection, ensure that the chosen policy aligns with your risk profile and long-term goals.
Systematic Investment Plans (SIPs): Investing in mutual funds through SIPs allows for disciplined wealth accumulation, harnessing the power of compounding over time.
National Pension System (NPS): NPS offers retirement savings with tax benefits, ensuring financial security post-retirement.
Evaluating Future Wealth Projection
To determine the feasibility of reaching your 3-4 crore goal by the age of 60, consider factors such as:
Contribution Amount: Evaluate if your current investment contributions align with your target corpus. Assess if there's room to increase contributions over time to bridge any potential shortfall.
Investment Growth: Project the potential growth of your investments based on historical returns and market performance. Account for fluctuations and adjust your expectations accordingly.
Inflation: Factor in the impact of inflation on your future expenses and investment returns. Adjust your target corpus to maintain purchasing power and meet lifestyle needs.
Optimizing Investment Strategy
To enhance your wealth accumulation potential and work towards your target goal, consider the following strategies:
Review and Adjust: Regularly review your investment portfolio and make necessary adjustments to ensure alignment with your financial goals and changing market conditions.
Increase Contribution: Explore opportunities to increase your investment contributions over time, especially in high-growth potential assets such as equity mutual funds or diversified portfolios.
Seek Professional Advice: Consult with a Certified Financial Planner (CFP) to develop a customized financial plan tailored to your specific needs, risk tolerance, and long-term objectives.
Maintaining Discipline and Patience
Building a substantial corpus requires discipline, patience, and a long-term perspective. Stay committed to your investment strategy, monitor progress regularly, and make informed decisions to navigate market fluctuations effectively.
Conclusion
While achieving a 3-4 crore corpus by the age of 60 is ambitious, it's certainly attainable with prudent financial planning, disciplined investing, and periodic review. By optimizing your investment strategy, maximizing contributions, and seeking professional guidance, you can work towards securing a financially secure future.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in