Hello Vivek , I have taken early retirement due to my health issues. I have 2 kids one in 12th and second 9 th Class . I keep aside 50 L for my kids education , 25 L PPF , 14 L mutual fund, 10 L bond , 5 L FD . My PPF will mature 2026 and Bonds will mature 2024. I have 70 L EPF and i will have approx 50 L selling of property . I have my own house of 1.5 Cr . With these money can i get 1 L per month , but i do not want to touch kids education money . Your suggestion will help me to see my finaances. My wife has decent job she eran 50 K per month and we have health insyrance and term insurance.

Ans: It's understandable that you're concerned about your financial security after losing your job, especially with two children's education expenses to consider. Let's assess your current financial situation and retirement prospects:

Education Fund:

With 60 lakhs set aside for your children's education, you have a significant portion of their expenses covered. Ensure that these funds are invested appropriately to generate returns that align with the time horizon of their education needs.
EPF and Other Investments:

Your EPF corpus of 71 lakhs, along with your other investments in mutual funds, PPF, government bonds, NSC, gold bonds, shares, and FDs, forms a substantial part of your financial assets.
Review the performance and asset allocation of these investments to ensure they are diversified and positioned to provide growth and stability over the long term.
Retirement Planning:

With a monthly interest income target of 70,000 rupees, you'll need to calculate the rate of return required on your investments to achieve this goal. Given the current interest rate environment, it may be challenging to generate such high returns without taking on significant risk.
Consider consulting with a financial advisor to assess your risk tolerance, investment options, and retirement goals. They can help you develop a personalized retirement plan that balances risk and return effectively.
Contingency Planning:

While your wife's income covers household expenses, it's essential to have a contingency plan in case of unexpected expenses or emergencies. Maintain an emergency fund equivalent to 6-12 months' worth of living expenses to provide financial stability during challenging times.
Reassessing Retirement Income:

Depending solely on interest income from your investments for retirement may not be sufficient, especially considering inflation and rising living costs. Explore additional income streams or part-time work opportunities to supplement your retirement income.
In conclusion, while your current investments provide a solid foundation, achieving your retirement income target solely through interest earnings may require a review of your investment strategy and retirement goals. Consider seeking professional financial advice to optimize your portfolio and plan for a secure retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: As you mentioned that with 50k you run your house so I believe 70k should be sufficient. Your exposure is too high on debt fund type of investments. Convert it into hybrid funds

Ans: Based on an analysis of your finances, it appears that you have sufficient assets to cover your monthly requirement of Rs 1 lakh.

However, your allocation in equity-oriented investments is minimal. We recommend allocating funds equivalent to three years of expenses into debt-oriented schemes, while the remainder should be invested in equity and/or hybrid combination for potential capital appreciation.

We advise consulting a financial advisor for personalized guidance tailored to your goals, risk tolerance, and time horizon. He/She can assist in setting up tax-efficient systematic withdrawal plans (SWPs) to meet monthly needs while allowing your investments to grow.