You posted: Hi I am 36 years old married. I have a net worth of 4.2 crore which includes second home (bungalow in tier 2 city) of 1.25 Crore without any loan. Investment in equity & mutual fund of 90lakhs. Balance 2.05 Cr in debt, FD & gold. My monthly expense is ?60K. Salary of 1.8L per month. I have Life insurance for self and Health insurance for self and spouse. Can I retire with this amount in tier 2 city?

Ans: Congratulations on building such a substantial net worth at 36! Your financial discipline and strategic investments have put you in a strong position for the future. Let's assess whether you can retire comfortably in a tier 2 city with your current assets:

With a net worth of 4.2 crores, including investments, real estate, and other assets, you have accumulated a significant amount for retirement.

Your monthly expenses of 60K are relatively modest compared to your net worth and monthly income of 1.8L, which is a positive sign for retirement planning.

The absence of any outstanding loans, coupled with life and health insurance coverage, provides financial stability and security for you and your spouse.

Retirement readiness depends on various factors, including your desired lifestyle in retirement, inflation, healthcare costs, and potential unforeseen expenses.

Given your substantial net worth and relatively low monthly expenses, you may have the option to retire comfortably in a tier 2 city, especially if you continue to manage your finances prudently.

However, it's essential to consider factors such as inflation, healthcare expenses, and potential market fluctuations that could impact your retirement corpus over time.

As a Certified Financial Planner, I recommend conducting a detailed retirement projection analysis to assess whether your current assets are sufficient to sustain your desired lifestyle throughout retirement.

Additionally, continue to monitor and adjust your investment portfolio as needed to ensure it remains aligned with your financial goals and risk tolerance.

Remember, retirement is not just about financial readiness but also about emotional and psychological preparedness. Ensure you have meaningful activities and pursuits planned for your retired life.

With careful planning and ongoing financial management, you can look forward to a comfortable and fulfilling retirement in your tier 2 city.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in