I am 44 years with monthly salary of around 3 lacs plus . I have 3 houses valued 65 lac, 60 lac and 2 Cr. The first two are loan free with monthly rental together around 30 k. Third home I am staying in with loan of around 1 Cr with 1.07 lac emi. At present my mutual fund corpus is 85 lac with 80 k monthly sip. I have mixed of large , madcap and small cap funds. My pf balance is around 25 lac, I have ppf which is maturing next year with around 30 lac corpus. I have taken nps with current annual contribution of 2.4 lacs , current corpus is around 15 lac. I have term plan of 1.5 Cr.with annnual premium of 78 k. and medical insurance for me, wife and son for 20 lac each. The annual premium is around 42 k. . I also have ppf account for wife with around 20 lac corpus which will mature in next 5 years. I will be needing around 50 lac for sons education in next 7-8 years . I am looking at having a corpus of 10 Cr in next 8-10 year's-when I am 55. . Pl suggest
Ans: You are on the right path towards financial independence. You have good savings, stable income, and well-structured investments. You are 44, targeting a corpus of Rs. 10 Cr in 8–10 years. That’s a very practical and focused goal.
Let’s now evaluate your current position and guide you with a 360-degree plan to reach your goal confidently.
? Assessing your current financial position
– Your monthly salary is around Rs. 3 lakh.
– You are investing Rs. 80,000 in SIPs each month.
– You have Rs. 85 lakh mutual fund corpus already.
– Your EPF balance is Rs. 25 lakh.
– Your PPF maturity next year is Rs. 30 lakh.
– NPS has Rs. 15 lakh corpus with Rs. 2.4 lakh yearly input.
– You own three houses. Two are debt-free. One has Rs. 1 Cr loan.
– Your rental income is Rs. 30,000 per month.
– Your EMI is Rs. 1.07 lakh monthly.
– Your insurance cover is adequate.
– You need Rs. 50 lakh for son’s education in 7–8 years.
You are saving aggressively, which is great. Now, the focus should be to streamline and protect these efforts.
? Housing loan and real estate load
– Two homes are loan-free. They generate Rs. 30,000 rental income.
– Third home has Rs. 1 Cr loan. EMI is Rs. 1.07 lakh.
– At this stage, don’t use MF corpus to prepay loan.
– Continue EMI for now as interest is partly tax-deductible.
– Maintain liquidity and avoid locking up funds into illiquid real estate.
– Avoid further property purchases.
– Focus only on financial asset building now.
? Targeting Rs. 10 crore corpus in 8–10 years
– You are 44. Target is age 52–54.
– You already have Rs. 85 lakh in mutual funds.
– Monthly SIP is Rs. 80,000.
– EPF, PPF, and NPS together are around Rs. 70 lakh.
– With current pace and disciplined investing,
– Reaching Rs. 10 Cr is achievable.
– You may need to step up SIP by 10% yearly.
– Also consider investing PPF maturity proceeds properly.
– Corpus needs to beat inflation and cover retirement life.
? Managing SIP portfolio and scheme mix
– You already invest in large, mid, and small cap funds.
– This is a healthy mix for long-term growth.
– Ensure there is also a flexi cap fund in portfolio.
– Avoid sectoral or thematic funds.
– Review fund performance every year.
– Exit underperformers in consultation with Certified Financial Planner.
– Avoid investing in index funds.
– Index funds track market passively and can’t manage downside risk.
– Actively managed funds offer better downside protection.
– They aim for superior returns with active strategy.
? Direct funds vs. regular funds
– If you are investing in direct plans, reconsider.
– Direct funds may save cost but offer no advice.
– Wrong fund selection or wrong time exit can damage returns.
– Regular plans through MFD with CFP give personalised support.
– Portfolio tracking, SIP health check, and timely fund switch are key.
– These services can save lakhs over time.
? Utilise PPF maturity wisely
– Your PPF will mature next year. Corpus is Rs. 30 lakh.
– Do not keep it idle in savings account.
– Do not re-invest in real estate either.
– Use this amount for retirement or goal-based MF investments.
– Prefer hybrid or balanced funds for this portion.
– This gives growth with stability.
? Wife’s PPF maturity and planning
– Wife’s PPF has Rs. 20 lakh. Maturing in 5 years.
– Use this as part of retirement or son’s education planning.
– Start discussing goals with her.
– You can plan joint investment in mutual funds post maturity.
? Education goal of Rs. 50 lakh
– You need Rs. 50 lakh in 7–8 years.
– Do not disturb retirement-linked investments for this.
– Create a separate SIP or STP for this goal.
– Prefer hybrid or aggressive hybrid funds.
– These offer stability plus growth over mid-term.
– Rebalance gradually 3 years before goal.
– Shift to conservative or debt funds slowly.
? Optimise NPS strategy
– You contribute Rs. 2.4 lakh yearly to NPS.
– Current corpus is Rs. 15 lakh.
– This is a useful retirement tool.
– Don’t stop it. But don’t over-rely on it either.
– 60% of NPS withdrawal will be tax-free.
– 40% must be used to buy pension.
– That limits flexibility.
– Hence, build more wealth via mutual funds alongside NPS.
? Life insurance and health cover status
– Term insurance of Rs. 1.5 Cr is good.
– Annual premium of Rs. 78,000 is fine for your age.
– Medical cover of Rs. 20 lakh each is also sufficient.
– Don’t go for ULIPs or endowment plans.
– Don’t combine insurance and investment.
– Keep them separate.
– If you have any LIC savings plans or ULIPs,
– Surrender and reinvest into mutual funds.
? Retirement income planning beyond corpus
– After 10 years, you can consider retiring or slowing down.
– You will have rental income from two homes.
– You will have EPF, PPF, NPS, and MF corpus.
– Focus now should be on inflation-beating growth.
– Later, shift slowly into safer assets post age 52.
– Use SWP from mutual funds to generate monthly income.
– Avoid annuities. They lock money and give poor returns.
? Tax awareness and withdrawal planning
– Mutual fund taxation needs care.
– LTCG above Rs. 1.25 lakh is taxed at 12.5%.
– Short-term gains are taxed at 20%.
– Plan redemptions in a tax-efficient way.
– Spread withdrawals across years if possible.
– Use SWP to manage cash flow and taxes.
– Keep track of debt fund taxation.
– Debt fund gains taxed as per income slab.
? Future corpus tracking and discipline
– To reach Rs. 10 crore, stay invested without breaks.
– Step-up SIP every year by 10–15%.
– Reinvest PPF maturity and annual bonus if any.
– Don’t time markets.
– Rebalance asset allocation every year.
– Don’t chase trendy funds.
– Review portfolio with Certified Financial Planner annually.
– Stick to long-term approach.
? Risk protection and contingency planning
– Maintain emergency fund of 6 months expenses.
– Don’t mix this with SIP or long-term funds.
– Keep it in liquid mutual fund or sweep FD.
– This protects you during job loss or medical crisis.
– Also review nomination on all accounts.
– Create a basic Will for asset distribution.
? Estate planning and wealth transfer
– You own 3 houses. Have large financial corpus.
– Create a Will to ensure smooth asset transfer.
– Register the Will legally.
– Involve family in financial discussions once a year.
– This prevents confusion later.
– Also makes family confident in handling wealth.
? Finally
– You have a strong financial base already.
– You are investing in the right direction.
– Now focus on consistency and protection of wealth.
– Your Rs. 10 crore target is realistic.
– With correct fund mix, SIP step-up, and annual reviews,
– You can achieve and exceed this corpus confidently.
– Take support of a Certified Financial Planner for annual reviews.
– Make financial life simpler, goal-based, and peaceful.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Question by Dyaga on Jun 18, 2024Hindi
