Id asked this question earlier, but i believe i didnt explain the details well enough...i started inveating rather late in life.. at 39.. I am 48 now... i started with 3000 pm in HDFC flexicap....over the years, ive invested in more MFs, so that at present, I'm investing 60K a month for the past few years... ihaveHDFC housing bonds, GOI bonds, Gold bonds, LIC JEEVAN UMANG/LABH, PPF, NPS, even APYS, as well as some GIPs, like HDFC SANCHAY PLUS, ABSLI SECURE PLUS, and SBI SHUBH NIVESH... I have some FDs and RDs and even KVPs... i live in our family house woth my parents, I'm single...
I want a 3 L/month income when i choose to retire at 60.. I feel Ive not done enough.. ia there anything else I could/should do ?
Ans: Starting your investment journey at 39 is commendable, and you've made significant progress over the years. Let's assess your current portfolio and explore additional strategies to ensure a comfortable retirement at 60 with a monthly income of ?3 lakhs.
Reviewing Your Current Portfolio
Your diversified investment portfolio reflects careful planning and commitment to securing your financial future. With monthly investments of ?60,000 across various Mutual Funds (MFs), bonds, insurance policies, and government schemes, you've laid a solid foundation.
Analyzing Investment Choices
Mutual Funds: Investing in MFs offers potential for growth, but it's crucial to review fund performance regularly and diversify across different fund categories to manage risk effectively.
Bonds and Government Schemes: While bonds and government schemes provide stability, ensure they align with your risk tolerance and investment goals. Consider the impact of inflation on fixed-income investments.
Insurance Policies: Investment-cum-insurance policies like LIC JEEVAN UMANG/LABH may offer life cover but tend to have lower returns compared to pure investment options like MFs over the long term.
Assessing Retirement Income Goal
Income Requirement: Your target of ?3 lakhs per month at retirement is ambitious but achievable with proper planning and strategic investment decisions.
Exploring Additional Strategies
Increase Investment Amount: Consider boosting your monthly investment amount to accelerate wealth accumulation and achieve your retirement income goal. Review your budget and identify areas where you can save more.
Focus on Equity: Given your relatively short investment horizon, consider shifting towards equity-oriented funds for higher growth potential. However, maintain a balanced portfolio to mitigate risk.
Maximize Tax-Efficient Investments: Explore tax-saving investment avenues like Equity Linked Savings Schemes (ELSS), National Pension System (NPS), and Public Provident Fund (PPF) to optimize tax benefits while building wealth.
Review Insurance Policies: Evaluate the performance and cost-effectiveness of your insurance policies. Consider reallocating premiums from investment-cum-insurance policies to term insurance for adequate coverage at lower premiums and investing the difference in MFs for potentially higher returns.
Consider Retirement Products: Explore retirement-focused investment products like Senior Citizen Savings Scheme (SCSS) and Immediate Annuity Plans (IAPs) to supplement your retirement income.
Embracing Lifestyle Adjustments
Living Arrangements: Living in your family home with your parents can help reduce living expenses, allowing you to allocate more towards investments.
Budgeting and Saving: Continuously review your expenses and identify areas where you can cut back to increase your savings rate.
Conclusion
While starting investments later in life presents challenges, it's never too late to take proactive steps towards securing your financial future. By optimizing your investment portfolio, increasing savings, and making strategic adjustments, you can work towards achieving your retirement income goal of ?3 lakhs per month by age 60.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in