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49-Year-Old with Rs. 91 Lakhs Investments Seeks Retirement Advice

Ramalingam Kalirajan |8482 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 17, 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 - Apr 17, 2025Hindi

dear Mr. Ramalingam, I'm 49 years of age and have been working abroad.. I have worth of Rs56 Lakhs of investment in stocks, have 15L in SIP and monthly about RS25K, other investments is about 20L plus i may work for another 10 years, how can i plan for my retirement FYI, i have a son who is doing engineering and will finish by 2026 and daughter is doing grade XI

Ans: You have done a good job so far. Your existing investments show your commitment to building wealth. Let us now work on giving your plan a complete 360-degree retirement approach. The goal is to create steady income and long-term stability for your future.

We will now evaluate your current financial standing and help you design a retirement strategy that works well for the next 10 years and beyond.

Let us start step by step.

Assessing Your Current Financial Position

You are 49 years old and plan to work for 10 more years.

Your son will finish engineering in 2026. Your daughter is in Grade XI now.

You have Rs 56 lakhs in direct stocks. That’s a solid start.

You are investing Rs 25,000 monthly in SIPs with Rs 15 lakhs corpus already.

You also have other investments worth Rs 20 lakhs.

Your investment journey shows discipline and patience. That is your strength.

Reviewing Stock Holdings and Equity Exposure

Rs 56 lakhs in stocks is a big allocation. Stocks are high risk and volatile.

Stock markets need constant tracking. Sudden downturns may harm your goals.

Please check if your stocks are concentrated in few sectors. Diversification is key.

Also check if your stocks are dividend paying. This helps during retirement.

For stability, consider reducing high-risk exposure after age 55.

Move some stock funds to balanced equity funds with professional fund managers.

Active mutual fund managers handle volatility better than passive options.

Index funds don’t offer downside protection. They fall as much as the market falls.

Active funds allow tactical moves during market falls. That’s a big advantage.

Please work with a Certified Financial Planner to review your stock portfolio.

SIP Investments – The Growth Engine

Rs 15 lakhs in SIPs shows consistent investing. Well done here.

Rs 25,000 monthly SIP is a good habit. You have already built discipline.

Try to increase the SIP amount every year. Even 10% rise yearly can help.

Equity mutual funds are best for retirement growth over 10+ years.

Don’t go with direct mutual funds. Regular plans through a trusted CFP are better.

A Certified Financial Planner can track, rebalance and handhold you.

Direct plans look cheap. But wrong fund selection can cost a lot more.

Regular plans come with advice, research and emotional discipline.

Direct plans have no safety net. Avoid mistakes by going with professional help.

Other Investments – Time for Consolidation

You have Rs 20 lakhs in other investments. Kindly review those with care.

Check if they are in ULIPs, LIC, endowment or traditional policies.

If yes, assess surrender value. Exit if returns are poor or locked too long.

ULIPs and LIC policies usually give very low long-term returns.

That money can earn better in mutual funds over 10 years.

Insurance should be separate from investments. Mixing both causes loss.

Surrender the policy only after comparing exit load, tax, and maturity timelines.

Children’s Education and Future Planning

Your son will finish engineering by 2026. Some costs will arise before that.

Keep separate funds ready for final year fees, project work or study abroad.

Your daughter is in Class XI. Her higher education will need money in 2 years.

Estimate the total cost for both children now. Keep money safe and liquid.

Avoid equity investments for education needed within 3 years.

Use short-term debt funds or bank FDs for that goal.

Keep education planning separate from retirement planning.

Next 10 Years – The Build-Up Phase

You have 10 strong working years left. These years are very crucial.

Try increasing your SIPs every year. Focus on long-term equity funds.

Keep adding lump sum money to mutual funds when you get bonuses or surplus.

Track your portfolio yearly with a Certified Financial Planner.

After age 55, shift some equity to conservative hybrid or dynamic asset funds.

Don’t time the market. Stay invested through ups and downs.

Start building a separate emergency fund of 6 months expenses.

That helps during job loss, health issue or any surprise cost.

Income Planning for Retirement

At 60, you need monthly income for 25+ years. Start preparing now.

You will need to build Rs 3 to 4 crore retirement fund at least.

That can come from stocks, SIPs, PF and other sources.

Don’t depend only on one asset class. Use a proper mix of funds.

Use SWP (Systematic Withdrawal Plan) from mutual funds to create monthly income.

SWP is tax efficient and gives flexibility. Avoid annuities. They are rigid.

Choose 3 to 4 mutual fund types to balance growth and income.

Avoid investing in index funds. They rise and fall blindly with the market.

Actively managed funds offer better downside control and risk-adjusted returns.

Tax Planning Before and After Retirement

Keep a track of capital gains tax while redeeming mutual funds.

Long Term Capital Gains above Rs 1.25 lakhs is taxed at 12.5%.

Short-term capital gains on equity are taxed at 20%.

Debt fund gains are taxed as per your income slab.

Work with a tax advisor to minimise tax while withdrawing after 60.

Plan your redemptions in tranches to stay within tax-free limits.

Health Insurance and Emergency Protection

Please ensure you have good health insurance for self and family.

After 60, health costs rise fast. A Rs 25 lakhs cover is ideal.

If you have company health cover now, take personal cover too.

Personal policy stays even after retirement.

Also take critical illness and accident protection if not already done.

Estate Planning and Will Creation

Please create a simple Will. Keep your family informed.

Nominate family members in mutual funds, stocks and bank accounts.

Keep one document listing all your investments and passwords.

Inform your spouse or child about your retirement plan and goals.

Keep copies of all documents and insurances in one place.

Finally

You are on the right track with your investments and mindset.

With 10 years of active income, you can build a solid retirement base.

Focus on increasing SIPs and reducing risky stock exposure slowly.

Don’t stop SIPs when market falls. Continue no matter what.

Separate funds for retirement, children’s education and emergencies.

Avoid ULIPs, index funds and direct plans. Choose funds through CFPs only.

Review all investments yearly with a trusted Certified Financial Planner.

Stay disciplined. Retirement success is not luck. It is pure planning and patience.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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