I am 59 years now.Next year i am retiring.currently i am having Rs 9 cr equity,RS 80 LAKS MF,Rs 50 laks FD and Rs 85 laks PF and having 2 house owned.I am expecting Rs 2 laks for my monthly income after retirement.I am having 1 daughter she is 22 years and studying
Ans: At age 59, with retirement just a year away, your planning so far shows strong discipline.
Your goal of Rs 2 lakhs monthly income after retirement is very achievable.
Let’s look at your situation from all angles to build a secure post-retirement financial roadmap.
? Retirement Readiness Assessment
– Your current corpus is excellent.
– Rs 9 crore in equity is significant.
– Rs 80 lakhs in mutual funds adds strong diversification.
– Rs 50 lakhs in FD offers fixed income security.
– Rs 85 lakhs in PF ensures steady post-retirement liquidity.
– Two houses add to your overall stability and confidence.
– With Rs 11.15 crore in financial assets, your financial independence is assured.
– Your target of Rs 2 lakhs monthly income (Rs 24 lakhs annually) is realistic.
– Even assuming modest returns, this can sustain for 30+ years of retirement.
? Portfolio Allocation Post Retirement
– Shift from aggressive to balanced allocation now.
– Reduce direct equity exposure gradually.
– Allocate into hybrid or balanced advantage mutual funds.
– Keep 30%–40% in equity-oriented funds for inflation protection.
– Move 20%–25% to debt-oriented mutual funds for regular income.
– 15%–20% in FDs for short-term needs and emergencies.
– Retain your PF. Start withdrawing gradually after retirement.
– Use a Systematic Withdrawal Plan (SWP) from mutual funds for regular monthly income.
– Prefer growth option and withdraw as per requirement via SWP.
– This gives you tax efficiency and cash flow predictability.
? Monthly Income Plan
– You aim for Rs 2 lakhs/month post-retirement.
– A smart combination of sources can give this.
Use SWP from mutual funds: target Rs 80,000–Rs 1 lakh/month.
Interest from FD: Rs 30,000–Rs 40,000/month.
Partial PF withdrawal: Rs 40,000/month for 15–20 years.
Rental income (if available from 2nd house): Additional support.
– Rebalance every 1–2 years to adjust for inflation and market changes.
? Risk Management and Safety
– Keep Rs 25–30 lakhs in FD or ultra-short debt funds.
– This acts as emergency and buffer for market volatility.
– Avoid new high-risk equity bets at this stage.
– Your current equity should be gradually rebalanced.
– Avoid ULIPs, PMS or structured products from banks or agents.
– They are unsuitable post-retirement.
– Ensure asset safety through joint ownership and nomination updates.
? Tax Planning
– After retirement, your taxable income will change.
– SWP from mutual funds is tax-efficient due to capital gains benefit.
– Long-Term Capital Gains (LTCG) above Rs 1.25 lakh is taxed at 12.5%.
– Short-Term Capital Gains (STCG) on equity funds is taxed at 20%.
– For debt funds, gains are taxed as per your slab.
– FD interest is fully taxable as per slab. Spread FDs in family names.
– Consider gifting funds to daughter (once she earns) to save tax.
– Create a family income-splitting strategy to optimise overall taxation.
? Role of Mutual Funds After Retirement
– Mutual funds will play a central role now.
– Use regular plans through a trusted MFD with CFP credential.
– Avoid direct plans.
– Direct plans lack guidance, reviews, and emotional coaching.
– With regular plans, you get active monitoring and risk control.
– In retirement, having a Certified Financial Planner guiding you adds immense value.
– Stay away from index funds.
– Index funds blindly follow the market.
– They lack downside protection and fund manager expertise.
– Active funds offer rebalancing, risk controls and better retirement fit.
? Daughter’s Education & Support
– At 22, she may need support for higher education or career goals.
– Keep aside Rs 15–20 lakhs in debt funds or FD for her future needs.
– This avoids disturbing your retirement corpus.
– Do not rely on equity for short-term educational needs.
– Once she starts earning, encourage her to plan own finances early.
? Estate and Legacy Planning
– Make a clear Will without delay.
– Include all financial and real estate assets.
– Mention nominees clearly in all accounts and investments.
– Register the Will if possible for legal strength.
– Keep a secure record of passwords, account numbers and bank lockers.
– Share with trusted family members.
– Plan your corpus distribution well – spouse, daughter, charity if desired.
– Protect legacy from legal disputes with proper documentation.
? Health Coverage and Contingency
– Maintain a strong health insurance policy.
– Do not rely only on savings for medical emergencies.
– Take a top-up health plan if needed.
– Ensure spouse is also covered.
– Medical inflation is high. Keep Rs 10–15 lakhs buffer in debt funds.
– This ensures you don’t withdraw from retirement income for health costs.
? Use of Property
– You own two houses.
– Live in one and rent the other if feasible.
– Avoid selling unless absolutely needed.
– Rental income helps reduce pressure on mutual fund withdrawals.
– However, do not consider property as a retirement plan.
– Illiquidity and maintenance are major risks in old age.
? Inflation and Lifestyle
– Rs 2 lakhs per month is good today.
– But inflation will erode it slowly.
– After 10 years, you may need Rs 3.5–4 lakhs/month for same lifestyle.
– So keep at least 35% of portfolio in growth assets like equity funds.
– This ensures your portfolio beats inflation over the long term.
– Revisit your retirement plan every 2 years.
– Adjust withdrawals and investments based on market and expenses.
? Behavioural and Emotional Discipline
– Avoid panic during market volatility.
– Stay disciplined with withdrawal strategy.
– Work with your Certified Financial Planner to avoid emotional investment errors.
– Retirement is a long phase – maybe 25+ years.
– You need growth, income, safety, and peace.
– Stick to the strategy. Don’t chase returns.
– Make spending priorities clear – needs vs wants.
– Focus on health, relationships, experiences – not on flashy lifestyle.
? Action Plan (Next 6–12 Months)
– Rebalance portfolio: Reduce equity, increase hybrid and debt funds.
– Setup SWP from mutual funds for regular cash flow.
– Allocate emergency corpus in FD or liquid funds.
– Create Will and update nominees.
– Review health insurance coverage for self and spouse.
– Keep Rs 15–20 lakhs separate for daughter’s education.
– Finalise post-retirement income plan with Certified Financial Planner.
? Finally
You are entering retirement from a position of great strength.
You have created a solid foundation with over Rs 11 crore in financial assets.
With the right guidance, steady withdrawals and discipline, your retirement life can be peaceful.
Stay focused on safety, tax-efficiency and sustainable income.
Avoid risky products, emotional decisions and large lifestyle jumps.
Let your wealth serve your life goals without tension.
A Certified Financial Planner can support you regularly in these next decades.
Not just for returns, but also for reviews, rebalancing and family safety.
Wishing you a peaceful and prosperous retirement journey ahead.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Question by Dinesh on Feb 28, 2020Hindi
