I have retired from service 2 years back, I have 15000000 in MF, 12000000 in bank FD, 6500000 in savings account and 5000000 in sr citizen savings scheme. I draw rs 85000 as pension every month. How I can earn rs 250000 every month after 3 years. I have no liability and I reside in my own house

Ans: If we calculate using a few assumptions, like post-retirement life of 25 years; average inflation of 6% pa during that period, and portfolio returns of about 8% (assuming a judicious mix of equity and debt with a higher allocation to the latter), then you need to have a corpus of about Rs 4.8 Cr. This is to ensure that starting at Rs 2 lakh monthly (after 15 years), your monthly income from there on increases by at least 6% assumed inflation. And starting from zero, you need to invest about Rs 1.1 lakh per month assuming equity:debt 50:50 and this monthly investment amount should increase by at least 5% every year.

To reach this target corpus, you have a sufficiently long runway of 15 years. So you should be willing to invest a major chunk in equities via equity funds if your risk appetite allows for it. You may also have some of the existing assets, which too can be earmarked towards this retirement corpus.

As mentioned, for equity allocation, choose diversified equity funds categories like passive largecap funds, flexicap funds, and large&midcap funds (and if you have a sufficiently high-risk appetite, then mid-and-small cap funds as well). For debt, your EPF+VPF alongwith PPF should be sufficient.

When the time comes for retirement (in 15 years), you may have to divide your portfolio into 2 buckets. One to take care of income needs (via SCSS, debt funds, PPF withdrawals, bonds, etc.) and the other for growth (via equity funds and ETFs)

Ans: Planning for Retirement Income

Retirement planning is crucial for ensuring financial stability and comfort during your golden years. Generating a steady monthly income of Rs 50,000 can be challenging but achievable with a well-thought-out strategy. Understanding your assets and how to optimize them is crucial.

Assessing Your Current Financial Status

You have several financial assets. Your provident fund (PF) balance is Rs 20 lakhs, mutual fund investments are Rs 11 lakhs, post office monthly income scheme (MIS) investments are Rs 18 lakhs, and bank fixed deposits (FDs) total Rs 10 lakhs. Owning a house provides financial stability as it eliminates rental expenses. This diverse portfolio gives you a solid foundation for retirement planning.

Certified Financial Planner (CFP) Role

A Certified Financial Planner (CFP) can help you create a comprehensive financial plan. Their expertise will guide you in making informed decisions. The goal is to maximize returns while ensuring capital protection and liquidity. A CFP will assess your current financial situation, understand your retirement goals, and develop a tailored plan to meet your needs.

Optimizing Provident Fund (PF) Balance

Your PF balance of Rs 20 lakhs can be utilized in a phased manner. Instead of withdrawing the entire amount, consider systematic withdrawals. This approach ensures a steady income while keeping the corpus invested for growth. A phased withdrawal strategy will help you manage your finances better and reduce the risk of depleting your funds too quickly.

Exploring Mutual Funds for Regular Income

Mutual funds offer diversification and potential for higher returns. However, choosing the right type of fund is crucial. Actively managed funds are preferable over index funds. Actively managed funds have professional fund managers who actively select stocks and bonds to outperform the market. This professional management can provide better returns and protect your investment during market downturns.

Disadvantages of Index Funds

Index funds passively track a market index. They do not aim to outperform the market. This means during market downturns, index funds will also suffer losses. They lack flexibility in managing market fluctuations, which can be a significant disadvantage during volatile periods. Moreover, index funds might not align perfectly with your specific financial goals and risk tolerance.

Advantages of Actively Managed Funds

Actively managed funds have the potential to deliver higher returns than the market average. Fund managers use their expertise to make strategic decisions, which can protect your investment during market downturns. They can also identify and invest in undervalued securities, providing opportunities for growth. This active management can be particularly beneficial in a retirement portfolio where stability and consistent returns are paramount.

Systematic Withdrawal Plan (SWP) in Mutual Funds

A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount from your mutual fund investments regularly. This can provide a steady income stream while keeping the remaining funds invested. An SWP is an effective way to manage your mutual fund investments for regular income. It helps in mitigating the risk of market volatility and ensures a disciplined approach to withdrawals.

Advantages of SWP

Provides a regular income stream.
Keeps the corpus invested for potential growth.
Tax-efficient compared to lump sum withdrawals.
Flexible withdrawal amounts and frequency.
Implementing an SWP in your mutual fund investments can help you generate the desired monthly income while keeping your investment intact for future growth. It is a practical approach to manage your retirement income needs.

Post Office Monthly Income Scheme (MIS)

The Post Office MIS is a safe investment option, providing regular income. However, the interest rates are relatively low. It is important to diversify and not rely solely on this scheme for your retirement income. Keeping a portion invested in MIS ensures capital protection and regular income. It is a low-risk component of your retirement portfolio that provides stability.

Bank Fixed Deposits (FDs)

Bank FDs offer guaranteed returns but have lower interest rates compared to other investment options. To enhance returns, consider splitting your FDs into multiple deposits with different maturity periods. This strategy, known as a laddering approach, provides liquidity and reduces interest rate risk. It ensures you have access to funds at regular intervals without compromising on returns.

Generating Monthly Income

Combining different investment avenues can help achieve your goal of Rs 50,000 monthly income. A diversified portfolio ensures a balance between growth and stability. Here’s a potential strategy:

Withdraw from your PF balance in a phased manner. This ensures longevity of the corpus.
Implement an SWP in your mutual funds to provide a regular income stream.
Keep a portion in the Post Office MIS for guaranteed income.
Use a laddering approach with bank FDs to ensure liquidity and optimize returns.
This multi-pronged strategy ensures you have a steady income while protecting your investments from market volatility.

Investment Cum Insurance Policies

If you hold LIC, ULIP, or other investment cum insurance policies, evaluate their performance. These policies often have high charges and lower returns compared to mutual funds. Surrendering these policies and reinvesting in mutual funds might be a better option. Mutual funds typically offer better returns and more flexibility compared to traditional investment cum insurance policies.

Disadvantages of Direct Funds

Direct mutual funds have lower expense ratios compared to regular funds. However, they require you to make all investment decisions. This can be overwhelming without professional guidance. Regular funds, through a Mutual Fund Distributor (MFD) with a CFP credential, offer valuable advice and help in selecting the right funds. The additional support and guidance can be invaluable in achieving your financial goals.

Benefits of Regular Funds

Investing through an MFD with a CFP credential provides access to expert advice. They can help you navigate market complexities, select the right funds, and achieve your financial goals. The additional cost of regular funds is justified by the professional guidance and support. This ensures you make informed investment decisions that align with your retirement goals.

Maintaining Liquidity

It is essential to maintain liquidity to meet unforeseen expenses. Keep a portion of your investments in liquid assets such as savings accounts or short-term FDs. This ensures you can access funds without disrupting your investment strategy. Having liquid assets on hand provides financial flexibility and peace of mind.

Inflation and Retirement Planning

Inflation erodes purchasing power over time. Your investment strategy should aim to outpace inflation. Actively managed funds and equity investments can provide inflation-beating returns. Regularly review and adjust your portfolio to ensure it stays aligned with your goals. Staying ahead of inflation is crucial for maintaining your standard of living during retirement.

Tax Implications

Consider the tax implications of your investments. Different investment avenues have varying tax treatments. For instance, long-term capital gains from mutual funds are taxed differently than interest from FDs. Plan your withdrawals and investments to minimize tax liabilities. A well-structured plan can help you retain more of your earnings.

Health Insurance

Health expenses can significantly impact your retirement corpus. Ensure you have adequate health insurance coverage. This protects your savings from being depleted by medical costs. Review your health insurance regularly and update it as needed. Adequate health coverage is essential for protecting your retirement savings.

Review and Adjust Your Plan

Retirement planning is not a one-time activity. Regularly review your financial plan to ensure it remains aligned with your goals and market conditions. Adjust your strategy as needed to accommodate changes in your life or financial landscape. Continuous monitoring and adjustment ensure your plan stays relevant and effective.

Engaging a Certified Financial Planner

A CFP can provide personalized advice tailored to your unique situation. Their expertise can help you optimize your investments, manage risks, and achieve a stable retirement income. Engaging a CFP ensures you have a professional guiding your financial decisions. Their insights and advice can be invaluable in navigating complex financial markets.



Retirement planning can be overwhelming. Understanding your concerns and goals is crucial. A CFP listens to your needs and provides solutions that align with your aspirations. This empathetic approach ensures your financial plan is not only effective but also comforting. Knowing that a professional understands and addresses your concerns can provide peace of mind.



You have done well by accumulating substantial savings and investments. Owning a house and having diverse investments indicate good financial discipline. With a structured plan, you can achieve your goal of a steady retirement income. Your efforts in saving and investing wisely have set a strong foundation for a secure retirement.

Final Insights

Achieving a monthly income of Rs 50,000 post-retirement is possible with strategic planning. Utilize your PF balance wisely, invest in actively managed mutual funds, and diversify your portfolio. Consider professional guidance from a CFP for personalized advice. Implement an SWP for regular income, maintain liquidity, and protect against inflation. Regularly review your plan to ensure it remains effective and aligned with your goals. With a comprehensive and well-structured plan, you can enjoy financial stability and peace of mind in retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Financial Overview
Current Assets

SIP Accumulated Amount: Rs 25 lakhs

Retirement Corpus: Rs 30 lakhs

Dwelling House Value: Rs 80 lakhs

Other Savings: Rs 10 lakhs

Desired Monthly Income

Monthly Income Requirement: Rs 50,000
Generating Sustainable Monthly Income
1. Diversify Investments

Fixed Deposits:

Invest a portion of your corpus in fixed deposits (FDs).
They offer guaranteed returns and low risk.
Debt Mutual Funds:

Consider allocating funds to high-quality debt mutual funds.
They provide steady returns and lower risk compared to equities.
Senior Citizens Savings Scheme (SCSS):

If eligible, invest in SCSS for higher interest rates compared to regular savings accounts.
2. Systematic Withdrawal Plan (SWP)

SWP from Mutual Funds:
Set up an SWP from your mutual fund investments.
This allows you to withdraw a fixed amount regularly.
3. Create a Balanced Portfolio

Equity Exposure:

Maintain a small portion in equities for growth.
This will help with inflation and potentially higher returns.
Hybrid Funds:

Invest in hybrid funds that offer both equity and debt components.
They provide a balanced approach to growth and stability.
4. Use of Retirement Corpus

Safe Investment Options:

Allocate a part of your corpus to safe investment avenues.
Include options like post office monthly income schemes.
Interest-Bearing Instruments:

Invest in interest-bearing instruments for regular income.
Examples include bonds and government securities.
5. Regular Review and Adjustment

Monitor Investments:

Regularly review your investment performance.
Adjust allocations as needed to meet your income requirements.
Rebalance Portfolio:

Rebalance your portfolio periodically.
Ensure that it aligns with your risk tolerance and income needs.
6. Budget Management

Expense Planning:

Prepare a detailed budget for your monthly expenses.
Ensure that your income meets or exceeds your planned expenses.
Emergency Fund:

Maintain an emergency fund equivalent to 6-12 months of expenses.
This will provide financial stability in case of unexpected events.
Final Insights

Risk Management:

Avoid high-risk investments in retirement.
Focus on stable and predictable income sources.
Professional Consultation:

Consider consulting a Certified Financial Planner for personalized advice.
They can help tailor an investment strategy that suits your specific needs.
Maintain Flexibility:

Be prepared to adjust your strategy as needed.
Stay informed about changes in financial markets and products.
Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

Ans: Creating a Retirement Corpus for a Monthly Income of Rs 2 Lakh

Understanding the Goal

To generate Rs 2 lakh per month post-retirement, you'll need a substantial corpus. Considering a conservative withdrawal rate of 4 per cent per year, you'll need approximately Rs 6 crore. This means you'll need to increase your current investments significantly over the next 15 years

Strategies to Achieve Your Goal:

1. Increase Monthly Contributions:

• Assess affordability: Determine how much more you can contribute each month to your investments.
• Consider additional income sources: Explore side hustles or part-time work to increase your income.

2. Optimise Existing Investments:

• Review your MF portfolio: Ensure your investments align with your risk tolerance and long-term goals.
• Rebalance regularly: Periodically adjust your asset allocation to maintain your desired risk-return profile.

3. Explore Alternative Investments:

• Real estate: Consider investing in rental properties for passive income.
• Equity investments: Explore direct stock investments or ETFs for potentially higher returns.
• Annuities: Purchase an annuity to provide a guaranteed income stream in retirement.

4. Leverage Tax Benefits:

• Utilise tax-saving instruments: Maximise investments in tax-saving options like ELSS, NPS, and PPF.
• Consult a tax advisor: Understand the tax implications of different investment strategies.

5. Consider Professional Advice:

Seek guidance from a financial advisor: A professional can help create a personalized retirement plan tailored to your specific needs and risk tolerance.

Example Calculation:

Assuming an annual return of 10 per cent on your investments, you'll need to contribute approximately Rs 25,000 per month to reach Rs 6 crore in 15 years This is a significant amount, but achievable with disciplined saving and investing.

Remember:

• Inflation: Factor in inflation when calculating your required retirement corpus.
• Emergency fund: Maintain an emergency fund to cover unexpected expenses.
• Risk tolerance: Choose investments that align with your comfort level.
• Regular review: Periodically assess your progress and make adjustments as needed.

By following these strategies and making consistent contributions to your investments, you can increase your chances of achieving your goal of a Rs 2 lakh monthly income post-retirement.

Ans: You have Rs 17 lakhs from gratuity.

Rs 8 lakhs from earned leave encashment.

Rs 12 lakhs from EPF.

Rs 65 lakhs in bank savings.

Total retirement corpus is Rs 1.02 crore.

That’s a good sum for retirement planning.

You should protect this money for regular income.

It’s important to have liquidity and safety.

Your retirement income needs careful planning.

Immediate Needs and Emergency Fund

Keep Rs 5 to 10 lakhs as emergency fund.

This should be in a safe liquid option.

Use a high-interest savings account or liquid funds.

This ensures you can manage any sudden needs.

Emergency fund gives peace of mind.

Don’t invest this money in risky options.

Debt Repayments and Obligations

If you have any debts, try to clear them.

Retiring with no debts is very important.

Interest on loans can eat your income.

If you have loans, repay them from the corpus.

Then focus on investing for monthly income.

Health and Insurance Planning

Make sure you have a good health cover.

Medical expenses can be heavy after retirement.

A family floater plan is helpful.

Top-up plans can also reduce medical burden.

Don’t depend only on employer-provided insurance.

Health insurance premiums rise with age.

So, take cover while you are still healthy.

Regular Income Strategies

You need a steady monthly income.

Avoid investing everything in one product.

Diversify to get a mix of safety and returns.

Use 3 to 4 types of investments.

Mix debt and equity mutual funds for growth and income.

Also, have some safe instruments for surety.

Debt-Based Investments for Stability

Use senior citizen saving schemes and post office schemes.

These give steady interest.

They are safe and government-backed.

These can meet some part of your monthly needs.

These can be your core income source.

Equity Mutual Funds for Growth

Equity mutual funds are important for beating inflation.

Don’t invest all in equity, but have some portion.

They give better returns over time.

You can invest in balanced funds or hybrid funds.

These funds reduce risk compared to pure equity.

They help your money grow for 20-25 years of retirement.

Avoid index funds.

Index funds only copy market, they don’t beat market.

Actively managed funds have professionals managing money.

They try to get better returns than index.

This extra effort can give you better income in retirement.

Disadvantages of Direct Funds

Direct funds are cheaper, but they need more attention.

You need to track performance yourself.

This is not easy for a retired person.

A certified financial planner guides better in regular plans.

Regular funds through MFDs with CFP support give comfort.

CFPs do periodic review and rebalancing.

This can help you protect and grow retirement money.

Systematic Withdrawal Plans (SWPs)

You can use SWPs from mutual funds.

This gives monthly income like a pension.

You decide how much you need each month.

SWPs are tax efficient compared to FDs.

They help your money last longer.

Taxation Aspects

For equity mutual funds, long-term gains over Rs 1.25 lakh are taxed at 12.5%.

Short-term gains taxed at 20%.

For debt funds, gains are taxed as per your slab.

Keep this in mind while planning SWP.

Plan withdrawals to reduce tax impact.

Certified financial planner can help here.

Bank FDs and Safety

Some part of your money can be in bank FDs.

Choose short tenure FDs of 1-2 years.

Renew them for better rates and safety.

Don’t put everything in long-term FDs.

Keep some flexibility for future needs.

Asset Allocation and Diversification

Divide your corpus in 3 parts.

1st part in safe debt products for sure income.

2nd part in balanced funds for growth and income.

3rd part in equity mutual funds for long-term growth.

This gives balance of safety, income and growth.

Review it every year for changes.

Regular Monitoring and Rebalancing

Don’t leave investments unattended.

Market changes affect risk and returns.

Every year, check if you need to adjust.

A certified financial planner can do this.

Rebalancing keeps your money safe and growing.

Monthly Income Planning

Estimate how much you need every month.

Include rent, groceries, medical and entertainment.

Make sure investments cover this comfortably.

Don’t withdraw more than what investments can support.

This ensures your money lasts through retirement.

Family and Legacy Planning

Think about family needs too.

Make a will for your assets.

This avoids family disputes later.

Discuss with family and a certified financial planner.

Have nominations in all investments.

Update them if family situation changes.

Avoid High-Risk Investments

Don’t put retirement money in risky options.

Avoid stock trading or crypto.

These can erode your money.

Stick to safe, managed funds.

Let professionals manage risks.

Review of Insurance Policies

If you have old insurance policies, check them.

ULIPs and investment policies may not suit your goals now.

If you have such policies, check surrender value.

It may be better to exit and move to mutual funds.

This can give better income and flexibility.

Future Lifestyle Adjustments

Be realistic about lifestyle in retirement.

Adjust spending to your income flow.

Avoid big purchases if money is tight.

Focus on health and peace of mind.

Benefits of Working with a Certified Financial Planner

A CFP will understand your needs.

They will make a plan that suits your comfort.

They also track your investments.

CFPs suggest changes if market changes.

This ensures you always have enough.

They work with you, not just sell products.

What to Avoid

Avoid real estate investments.

Real estate is illiquid and needs large sums.

It may not give monthly income.

Also hard to sell quickly in need.

Avoid index funds and direct funds.

Regular mutual funds with MFD and CFP is better.

Final Insights

You have built a good retirement corpus.

Protect it with proper allocation.

Use debt options for safety.

Use equity mutual funds for growth.

Get monthly income from SWP and safe options.

Work with a certified financial planner for peace.

Review plan every year for long life income.

Enjoy retirement with health and family.

Stay away from risky ideas.

Your retirement can be secure and peaceful.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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