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

Sanjeev Govila  |458 Answers  |Ask -

Financial Planner - Answered on Feb 06, 2024

Colonel Sanjeev Govila (retd) is the founder of Hum Fauji Initiatives, a financial planning company dedicated to the armed forces personnel and their families.
He has over 12 years of experience in financial planning and is a SEBI certified registered investment advisor; he is also accredited with AMFI and IRDA.... more
Asked by Anonymous - Oct 16, 2023Hindi
Listen
Money

For retirement calculation, how to calculate the corpus value required based on monthly income needed? Also, what is the best way to invest the corpus to get this monthly income?

Ans: There are multiple ways to calculate the required retirement corpus

1. Estimate monthly expenses, adjust it for inflation, and multiply by the expected retirement duration.

2. Corpus = (Monthly Income Needed * 12) * Life Expectancy in Retirement / Expected Return Rate (inflation adjusted)).

3. However, I recommend you to use free financial calculators available on the google to calculate present value of requirement.

Remember there's no single "best" way to invest, as it depends on your risk tolerance, time horizon, and goals. However, a good asset allocation portfolio will help you to attain your goal easily. Invest in a mix of equity, debt, and consider annuities for steady income, while periodically reviewing and adjusting your portfolio.
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

Sanjeev

Sanjeev Govila  |458 Answers  |Ask -

Financial Planner - Answered on Feb 06, 2024

Asked by Anonymous - Sep 22, 2023Hindi
Listen
Money
Hi sir, I am 32 year old earning 42 LPA. I have 20 lakhs invested in stocks, 17 lakhs in mutual funds, 13 lakhs in PF, 3 lakhs in PPF, 2 lakhs in govt. bonds and 12 lakhs in FD. I want to retire by 45 with monthly pension of 2 lakhs post tax growing 7% annually. What should be my corpus amount and how should I invest per month in above instruments to reach it.
Ans: To achieve your retirement goal of a monthly pension of Rs 2 lakhs post-tax, growing at 7% annually, you'll need to calculate the required corpus. For this, I’m unable to let you know your exact corpus amount since I have no information about your current expenses, risk tolerance, life expectancy and other financial goals.

With assumptions like an 85-year life expectancy and an aggressive risk profile, you might need around Rs 7.75 crore at retirement (age 45). This considers a 7% inflation rate and 13% pre-retirement returns.

Right now, you have Rs 67 lakhs saved, split between equity and debt. However, solely relying on these might only sustain your desired lifestyle till age 60 only. To make sure you have enough until 85, you need to invest an additional monthly investment (SIP) of around Rs 1 Lakh along with your existing investments of Rs. 67 Lakhs. Also, slowly build up an emergency fund equal to 6 months of your expenses.

The response to your query is based on limited information and consulting a financial advisor is highly recommended. He/she can create a personalized plan considering your expenses, risk tolerance, and other goals. There are some free financial calculators (for retirement planning) available on google, you can also refer to the same for the calculation.

..Read more

Latest Questions
Samraat

Samraat Jadhav  |1707 Answers  |Ask -

Stock Market Expert - Answered on May 02, 2024

Listen
Money
Hi. I am currently 32 years old male working in a government sector. My take home salary is 1 lakh monthly and it will increase approx. 5% every year (basic 3%, da twice increase min. 4,4%). My NPS (employee and employer) deductions at present is around 25000 every month and will increase when basic increases every year (assuming basic increases by 3% pa without considering future promotions for now). Apart from this I am investing 10k every month in the mutual funds (small, mid and large cap), 5k every month in sukanya sammridhi yojana for my daughters educational needs. Parked 2 lakh in stock market and current value is 4 lakh, 6 lakh in PF (current value inc. interest earned so far), have LIC policy paying rs. 7300 quarterly, have term insurance (increasing sum assured, upto 1 CR for 15 years) and seperate health insurance to cover my family health expenses apart from govt. CGHS. I am repaying some loans (worth 20000 per month) took in the past and all loans will be cleared by 2030 December. Now I want to plan for my retirement (my current household expenses 40 to 45k per month=grocery, clothing, house rent, other misc. Needs), my child education (child current age is 2), her weeding expenses (consider marriage at 25 age), planning to have one more child in a year. I have privilege to join my kids in Kendriya Vidyalaya, so till 12th education expenses you can consider min. I also want to buy a home at the age between 50 to 55 near to Bangalore to old Mysore road (consider approx. Amount for 2 bhk apartment not in city little outskirts like kengeri or little farther). Now please suggest me. How to plan for my retirement, child marriage and education, construction of home
Ans: I would suggest you to visit a SEBI Registered Investment Advisor and seek advice from them. The following link will help you to find the nearest Adviser for you.
https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=13

...Read more

Samraat

Samraat Jadhav  |1707 Answers  |Ask -

Stock Market Expert - Answered on May 02, 2024

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