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Ramalingam Kalirajan |10865 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 10, 2025

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Asked by Anonymous - Jul 03, 2025Hindi

Hi I am Hemant Dutta. My age is 30 and take home salary is 80k per month now. Working from 2.5 years. My wife also have a running business from where she earn 1.5 lakh to 1.75 lakh. My additional income are approx 5 to 7 k per month. Recently we bought a land market value of 24 to 25 lakh. Monthly expenses are 16000 as rent. Other are 14000 (electricity and grocery) Investment: 15000 every month on SIP 23000 AS comittee installment from where we received 50000 as profit in 20 months. We have no other liability. How many years we have to work to get retired and will be financially stable

Ans: Understanding Your Financial Background
– Hemant, your financial foundation is solid for your age.
– You have a steady salary of Rs. 80,000 monthly.
– Your wife’s business income adds Rs. 1.5 to 1.75 lakhs every month.
– Additionally, Rs. 5,000 to 7,000 per month boosts household income.
– You recently bought a land worth Rs. 24–25 lakhs.

– Monthly rent is Rs. 16,000.
– Utilities and groceries cost Rs. 14,000 monthly.
– That totals to about Rs. 30,000 in monthly expenses.
– You invest Rs. 15,000 in SIPs.
– You also contribute Rs. 23,000 to a committee.
– That gave Rs. 50,000 profit over 20 months.

– No other loans or liabilities. That’s very good.
– Overall, your combined income and investments show great early planning.

Estimating Retirement Timeline
– You want to know when you can retire and be financially stable.
– That depends on many variables. Let’s understand each clearly.

– Your current age is 30. Retirement goal can be early, say age 50 or 55.
– You both earn approx Rs. 2.35 to Rs. 2.62 lakhs monthly.
– Expenses are just Rs. 30,000. That’s very low in proportion.

– That means you save more than Rs. 2 lakhs monthly.
– This high saving rate is your biggest strength.
– If maintained well, early retirement is absolutely possible.

Monthly Surplus and Savings Potential
– Your SIP is Rs. 15,000 monthly.
– Committee contribution is Rs. 23,000.
– Let’s treat it as a savings vehicle with low returns.
– After Rs. 30,000 in expenses and Rs. 38,000 in investing,
– You still have around Rs. 1.7–2 lakhs left every month.

– This surplus must be strategically used.
– It should not lie idle in savings account.
– Idle money loses to inflation and taxes.
– Use this money for structured, long-term investment.

Key Factors in Retirement Planning
– Retirement depends on four major components:

Your current savings

Future investments

Your target retirement lifestyle

Your post-retirement lifespan

– You need a clear target corpus for retirement.
– You should estimate future expenses considering inflation.

– Let’s assume your current monthly need is Rs. 30,000.
– With inflation, this can go above Rs. 1 lakh in 20–25 years.
– Your retirement corpus must generate that without exhausting itself.

– So, your goal is to build a large, sustainable investment pool.
– That corpus will give monthly income post-retirement.

Evaluating Your Current Investment Strategy
– Your SIP of Rs. 15,000 is a good beginning.
– But it needs to be scaled up gradually.
– With high surplus, you can easily increase SIPs.

– SIP should be split into a balanced mix.
– Avoid over-allocating into one risky segment.
– Use a diversified approach across categories.

– Index funds are passive and rigid.
– They can’t beat market during corrections.
– They follow market blindly, even in crashes.
– Active funds managed by professionals are better.
– They adjust holdings based on market conditions.

– Direct plans may seem to give more returns.
– But they lack ongoing guidance and support.
– Without a Certified Financial Planner or MFD,
– Mistakes in fund selection or exit timing are common.
– Regular plans through Certified Financial Planners offer
ongoing review, rebalancing and behavioural coaching.

Recommended Action Plan to Retire Early
– Step 1: Fix your retirement goal age.
– Choose between 50 and 55 years based on comfort.

– Step 2: Estimate future monthly expenses.
– Multiply your current lifestyle cost with expected inflation.
– A Certified Financial Planner can assist with clarity.

– Step 3: Target a retirement corpus.
– That corpus should generate income for at least 30 years post-retirement.

– Step 4: Use the high surplus wisely.
– Increase SIP to Rs. 50,000 monthly within a year.
– Invest another Rs. 1 lakh monthly in long-term MFs.

– Step 5: Review insurance coverage.
– Health insurance must cover both of you adequately.
– Term insurance is needed if any future loans or dependents are expected.

– Step 6: Don’t add more land or gold.
– These are illiquid and don’t support retirement cash flow.

– Step 7: Avoid investment-cum-insurance policies.
– If you hold LIC, ULIP or similar plans, surrender and reinvest in mutual funds.

– Step 8: Create an emergency fund of Rs. 4–5 lakhs.
– This should be in liquid funds or short-term debt MFs.

– Step 9: Review your mutual fund portfolio every 6 months.
– Don’t keep old or underperforming funds for long.

– Step 10: Set financial milestones.
– Track wealth creation every year with a retirement tracker.

Creating Passive Income Streams
– For early retirement, passive income is essential.
– Relying only on mutual fund withdrawals is risky.
– Start planning for monthly income generation through:

Balanced Advantage mutual funds with SWP

Conservative hybrid mutual funds

Systematic withdrawal from debt and hybrid funds

– Don’t fall for annuities.
– They give poor returns, low flexibility and are taxable.

Tax Implications to Be Aware Of
– New capital gain tax rules apply.
– For equity MFs: LTCG above Rs. 1.25 lakh taxed at 12.5%.
– STCG taxed at 20%.
– For debt funds: Both LTCG and STCG taxed as per income slab.

– Plan redemptions carefully to reduce taxes.
– A Certified Financial Planner can help optimise this.

Wife’s Business Income Utilisation
– Her business earns around Rs. 1.5 to 1.75 lakh monthly.
– After household expenses and your SIPs,
– Her entire income can be used for long-term goals.

– Open a separate investment portfolio in her name.
– Use part of it for retirement planning.
– Use part of it for future goals like children, travel, health care.

Role of a Certified Financial Planner
– A qualified CFP helps plan long-term wealth creation.
– He will assist in building, reviewing and rebalancing portfolio.
– He brings discipline and protects against behavioural mistakes.

– He also creates a goal-based investment plan.
– For early retirement, this kind of expertise is essential.
– With your current surplus, a structured strategy will
help you retire peacefully before age 50.

Final Insights
– You both have a strong financial base.
– Your income is high, and expenses are modest.
– Savings potential is excellent, and SIPs are already in place.

– With the right guidance, you can achieve early retirement.
– Build a diversified mutual fund portfolio with increasing SIPs.
– Avoid real estate, ULIPs, annuities and direct mutual funds.

– Involve a Certified Financial Planner to monitor progress.
– Retiring by 50 is very realistic for you.
– You just need steady action and regular portfolio reviews.

– Stay disciplined, stay invested and keep your goals sharp.

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

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