Home > Money > Question
Need Expert Advice?Our Gurus Can Help

Early Retirement at 45 with 60k Monthly Pension: Indore Resident Seeks Guidance

Milind

Milind Vadjikar  | Answer  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Dec 05, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Asked by Anonymous - Dec 04, 2024Hindi
Listen
Money

Hi , My name is Sanjay from Indore M.P , I am a Senior Software Professional. I am 40 year old having two daughters of age 10 years and 7 years old. Wife is PSU bank branch manager. I don't have any money/finance expectations from her for me. I want to retire in age of 45 years. I am expecting 60K per month of copus to retire in 45 age. I have 12 lac in EPF. Plot of current value 25 lac atleast in Indore. 15 lac cash in bank. NPS of about 3 lac. Having PPF also but not more than 1 lac. Having my own flat with home loan 20lac. No other loans. Please guide how much money need to have retirement at 45 age with 60k per month pension from any source. Currently earning about 1.5lac after tax deduction.

Ans: Hello;

First and foremost utilise the funds available with you to prepay and close the home loan liability.

This will ensure more investible funds available to you for planning your retirement.

(Many people continue home loan for long due to a false myth of saving money by claiming income tax deduction but they are oblivious of the fact that huge chunk of their income is going towards profiteering the lender as EMI which if judiciously invested could earn handsome returns over long-term.)

Start a sip of 1 L in a combination of equity mutual funds for 6 years at the end of which you may have a corpus around of 1 Cr.

Sell the land plot and put the sale proceeds to your corpus which may be around 1.25 Cr after 6 years.

You may buy an immediate annuity for 1.2 Cr from a life insurance company which may yield you a monthly income of around 60 K, as desired. (6% annuity rate considered)

I hope adequate provisions have been made for education and other expenses for your kids.

Also you may pursue some alternate vocation after quitting regular employment, at least for another 10 years, and get some income which may be used to top-up the annuity income to account for inflation.

Hope you have adequate term and healthcare insurance.

Happy Investing;
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |9273 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

Listen
Money
I am 44 years old my Total savings in FD ,mutul fund , Insurance is Rs 2 Cr and 2nd property worth 50 lacs which is on rent , my current monthly expenses is Rs 45000/- How much amount will i require for retirement at 60.
Ans: Assessing Retirement Needs and Financial Preparedness
As a Certified Financial Planner, I understand the importance of planning for a comfortable retirement. Let's analyze your current financial situation and estimate the amount required for your retirement at age 60.

Genuine Appreciation for Financial Discipline
I commend you for diligently saving and investing to secure your financial future. Your prudent financial habits lay a solid foundation for retirement planning.

Evaluating Current Assets
Savings and Investments:
Fixed Deposits (FD)
Mutual Funds
Insurance Policies
Real Estate:
Second property worth 50 lakhs generating rental income
Estimating Retirement Expenses
To estimate the amount required for retirement, we need to consider your current monthly expenses and potential future expenses.

Current Monthly Expenses:
Rs 45,000
Projected Retirement Expenses:
Inflation-adjusted lifestyle expenses
Healthcare costs
Travel and leisure expenses
Calculating Retirement Corpus
To calculate the retirement corpus, we need to consider:

Expected retirement age
Life expectancy
Inflation rate
Rate of return on investments
Conclusion and Recommendation
Based on your current assets, monthly expenses, and retirement age, it's essential to:

Conduct a Detailed Analysis: Assess your current financial situation and future needs thoroughly.
Estimate Retirement Corpus: Calculate the amount required to maintain your desired lifestyle during retirement.
Explore Retirement Planning Options: Consider various retirement planning strategies, such as systematic investment plans (SIPs), retirement funds, and pension plans, to build a sufficient corpus.
Regular Review: Periodically review your retirement plan to ensure it remains aligned with your financial goals and life circumstances.
Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9273 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 30, 2025

Asked by Anonymous - May 30, 2025
Money
Hi , I am 36 year old earning 1.9 lakhs per month and in terms of liability I have car loan remaining 6 lakhs (emi 16k). My wife she is 31 and earning 1.6lakhs per month and having personal loan of 4 lakhs. We both have an fd of close to 50 lakhs and rd of 20 lakhs. We live on a rented flat which is 30k month and have no other liability . We have started ppf now and have nps from our company. We don't have any other investments . We want to have a plan on retirement and our 6year old education . How much money is needed for retirement at age 50? Also buying a home in Bangalore is a wise decision now at 36?
Ans: . Your questions are thoughtful and timely. Let us explore them one by one with clarity and care.

Your Financial Profile – A Quick View
You are 36 years old. Your wife is 31.

Monthly family income is Rs. 3.5 lakhs.

Car loan of Rs. 6 lakhs with Rs. 16,000 EMI.

Personal loan of Rs. 4 lakhs by your wife.

You pay Rs. 30,000 as house rent.

You have Rs. 50 lakhs in FD and Rs. 20 lakhs in RD.

You have started PPF.

You both have NPS from your employers.

You have a 6-year-old child.

No other investments made yet.

Appreciating Your Financial Efforts
You both earn well and have created solid savings.

No unnecessary lifestyle debt.

You’ve begun PPF and have employer NPS – a good start.

FDs and RDs of Rs. 70 lakhs show discipline.

Assessing Your Current Investments
Fixed Deposits and Recurring Deposits
FD and RD give safety. But returns are low.

Post-tax returns may not beat inflation.

FDs are taxable. Tax eats into your actual gain.

You can keep 6 months of expenses in FDs for emergencies.

The rest can be channelled into better options for growth.

On NPS and PPF
Both give tax benefit and are safe.

But NPS has lock-in till retirement.

PPF is good for long-term, but limited contribution allowed.

These cannot alone build your full retirement corpus.

Should You Buy a Home in Bangalore at 36?
A house gives emotional security. But it’s a big decision.

Real estate also brings huge loan, interest and maintenance.

Property prices in Bangalore are high. Entry cost is steep.

You already have Rs. 30k rent. A home EMI will be higher.

You’ll need down payment of Rs. 30-40 lakhs minimum.

It can eat into your FD/RD corpus.

Home loan EMI can block cash flow for other goals.

It may delay child’s education funding and early retirement.

Property may not grow fast in value after purchase costs.

Flexibility reduces if you buy now. Renting gives freedom.

So, home buying should be delayed till education and retirement are on track.

Your Retirement at Age 50 – Is It Possible?
You aim to retire at 50. That’s only 14 years away.

Your current age and income allow this dream.

But it needs aggressive planning now.

Your retirement may last 35 years or more.

So corpus needed is large due to inflation.

Also medical and lifestyle costs will rise.

Building a Strong Retirement Corpus
Rs. 70 lakhs in FD/RD must be re-allocated.

Don’t keep all in low return instruments.

Begin investing monthly in actively managed mutual funds.

SIPs offer compounding. They beat inflation.

Choose funds based on risk appetite and goals.

Start with equity-heavy portfolio now.

Shift to debt allocation slowly after age 45.

Avoid index funds.

They copy markets. No downside protection.

In volatile markets, they fall without control.

Active funds have professional management.

Fund managers exit bad stocks in time.

They give better returns with lower risk.

Why Regular Plans via MFD and CFP are Better than Direct Plans
Direct funds may look cheaper on paper.

But guidance is missing.

You may pick wrong funds or wrong mix.

No one will rebalance or monitor regularly.

Regular plans through MFD with CFP guidance give:

Tailored advice for you.

Goal mapping done by expert.

Portfolio is reviewed, updated, and adjusted regularly.

Emotions are managed during market falls.

Timely exit and entry strategies are given.

Your Child’s Education Planning – Key Priority
Your child is 6 years old.

Higher education starts in 12 years.

Engineering, medical, or abroad studies need Rs. 40-80 lakhs.

This cost doubles every 6-8 years.

FDs won’t grow that fast.

Begin dedicated education goal SIPs now.

Use child-specific mutual funds or multi-cap diversified equity funds.

You need a mix of safety and growth.

Don’t rely only on scholarships or education loans.

Loans are stress for your child later.

Action Plan – Step by Step
Pay off personal loan first. It has high interest.

Increase your SIPs monthly after that.

Car loan is moderate. Pay EMI as planned.

Keep Rs. 10-12 lakhs as emergency in FD.

Use balance Rs. 58-60 lakhs for mutual fund investments.

Start SIPs in different categories with CFP guidance.

Start separate SIPs for retirement and child education.

Keep increasing SIPs every year as income grows.

Avoid lump sum unless market corrections occur.

Tax Planning Angle
You already invest in PPF and NPS.

Add ELSS funds for Section 80C.

ELSS has 3-year lock-in.

Gives market-linked returns.

Good for long-term wealth creation.

Insurance – A Must Check
Do you both have term insurance?

Term cover should be minimum 15-20 times your annual income.

Avoid ULIP or endowment policies.

If you hold any such LIC or ULIP policies, surrender them.

Reinvest into mutual funds with a goal-based plan.

Take separate health cover for family.

Employer cover is not enough or permanent.

What Not to Do
Don’t buy home now just due to peer pressure.

Don’t invest in real estate as an investment.

Don’t put all money in FD and RD.

Don’t invest in direct funds without guidance.

Don’t buy insurance policies as investments.

Lifestyle Adjustments and Budgeting
Keep expenses in check even with high income.

Avoid luxury loans and credit card debts.

Monitor spending on lifestyle and gadgets.

Save minimum 40% of your income every month.

Review Every Year
Sit with a CFP yearly to review.

Check progress of SIPs and goals.

Adjust fund choices if needed.

Track performance and make corrections.

Finally
You have strong income and savings.

With focused planning, retirement at 50 is possible.

Start goal-based mutual fund SIPs soon.

Keep real estate for later, not now.

Give your child an education without debt burden.

Let your wealth grow in right directions with expert guidance.

Be disciplined, consistent and review annually.

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

..Read more

Latest Questions
Nayagam P

Nayagam P P  |7462 Answers  |Ask -

Career Counsellor - Answered on Jun 30, 2025

Asked by Anonymous - Jun 29, 2025Hindi
Career
Sir I have obc rank 1104 in jee advanced. Iam getting iit ropar cse In both round. I want iit indore mnc having closing rank 941 in round 2. I have more chance of getting Iit guwahati electronic and electrical engineering and iit Hyderabad electrical engineering having closing rank 976 and 996. Should I take risk for desired branch in round 6
Ans: With an OBC-NCL rank of 1104, IIT Ropar CSE is a confirmed seat (closing rank 1154) offering 87.95% average placement over three years, strong faculty engagement, modern labs, robust industry partnerships, NBA accreditation, and active research culture . IIT Indore Mathematics & Computing (closing rank 941) delivers 90% placement, interdisciplinary curriculum, advanced computational and mathematics labs, international collaborations, and UoE status, but your rank exceeds its cutoff, making admission unlikely . IIT Guwahati EEE (closing rank 2066) features 84% placement, specialized high-voltage and core electronics facilities, experienced faculty, NIRF-ranked labs, and strong PSU and tech recruiter ties . IIT Hyderabad EE (closing rank 1781) provides 75% placement, cutting-edge power electronics and IC design labs, multidisciplinary research, international MoUs, and NAAC A++ accreditation .

Recommendation: Do not risk IIT Indore M&C as your rank falls outside its cutoff; accept IIT Ropar CSE for guaranteed admission and high placement, or upgrade to IIT Guwahati EEE or IIT Hyderabad EE in Round 6 if branch preference for core electronics outweighs the certainty of the Ropar CSE seat. All the BEST for the Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Nayagam P

Nayagam P P  |7462 Answers  |Ask -

Career Counsellor - Answered on Jun 30, 2025

Career
My daughter has got CSE core in VIT-Bhopal in 2nd catagory also CSE with Bigdata analyst in SRM-KTR. Kindly suggest where to join
Ans: Sailendra Sir, VIT-Bhopal offers a UGC-recognized, NAAC A++, ABET-accredited CSE Core program with centralized placements across four campuses achieving 90% job offers in 2024, an average package of ?8–11 LPA, and top recruiters like Microsoft and Amazon. Its School of Computing Science & Engineering features two 75-machine coding labs, modern AI/Cloud/IoT research facilities, and MoUs with Dell, Wipro, Bosch, and Volvo Group for internships and training. The curriculum, developed with industry and international university input, emphasizes software fundamentals, data structures, cybersecurity, and elective specialization.

SRM-KTR’s NAAC A++ (3.58/4.0), UGC Category I, IET and ABET-accredited Big Data Analytics program reports 83–95% CSE placement rates over the last three years, an average package of ?7.13 LPA, and highest offers up to ?52 LPA. The department maintains advanced computing and analytics labs, IBM/Nokia/Schneider Electric partnerships for live projects, and a curriculum covering ML, data mining, visualization, and research-driven learning. Strong placement coordination and active student-industry engagement underpin its career support.

Recommendation: Join VIT-Bhopal CSE Core for its higher placement consistency, global accreditation, extensive industry MoUs, and cutting-edge research labs; choose SRM-KTR CSE Big Data only if you prioritize specialized analytics curriculum and strong domain labs despite slightly lower placement rates. All the BEST for the Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x