I need advice from anyone here. I am 34 years old woman and married. I have 10 year old daughter. I am also working in MNC.I got married 12 years back. I am seeing lot of challenges in my home. I am living with my in laws from the day one. They were lot of issues going on from the starting. I faced lot of issue during my pregnancy due to this. Here giving just an example, My MIL condition is I was not allowed to drink milk more than one small glass for a day and allowed to eat rice only one rice spatula for afternoon and night, no veggies and no fruits during pregnancy. Due to this My health got deteriorated and I had gone through surgery in my 6th month and was in bed rest till the delivery. My FIL used to bring some fruits to me, and she scolded him very badly. After that he stopped to bring anything. Like this lot of things keep on happening till date. She doesn't allow me to cook, and she only prepare lunch. Tells everyone in the family and neighbourhood that I won't cook. Lot of times I asked her I will cook. She says she doesn’t like if others cook. So, she allows me to chop the veggies or grating coconut like that. She gives very less amount of food for my daughter. sometimes even my daughter is hungry, she scolds her saying don't eat too much. For 10 years old kid, she weighs 24. To her school lunch bag and snacks, I fought with my MIL and prepare food for her box and give. She eats happily. Sometimes my husband and myself tried to tell her and she goes on like I changed her son and He doesn't love her anymore because of me etc., Now a days, I feel relationship between my husband and me is going down. He only listens to her. Sometimes my MIL scolds my daughter unnecessarily Infront of my husband and he we will scold my daughter for this again. Due to this, my husband and my daughter relationship is also getting worst. He keeps on scolding her, My daughter is average in her academics, she doesn't study properly after coming home due to lot distractions and mood swings at home. One more reason is TV. At home My MIL watches the TV from the morning. We are not allowed to watch but that’s ok I don’t have time for that anyway. While my daughter is studying in the evening, my MIL watches some serials. My daughter's whole concentration is on the voices coming from TV. She will keep on getting distracted and make excuses for something to watch TV like drinking water,etc. We tried to tell my MIL, but it didn’t go well. Most of the times, I feel like me and my daughter are outsiders and whatever we do they doesn't like it. I like to pray by singing one song at least once a day. She doesn't like it. Whatever food I prepare to my daughter my MIL complains it to my husband as junk. I normally prepare her rice with lot of veggies, parathas with veggies and sandwich. After I started preparing these, my daughter started eating veggies, otherwise there was big no from her. I don't know how to handle all those things . Also recently during Dusshera, due to one of the situation like this, my husband is not talking properly with me and my daughter. I am an introvert, and I don’t have any friends. I don’t know with whom to seek advice.

Ans: Your financial discipline is remarkable, and you are in a strong position.

You have Rs. 1.1 crore in savings spread across various instruments.
Your monthly income is Rs. 1.4 lakh, with expenses of Rs. 40,000.
You live in your parental house and have no debt.
Your financial commitments include SIPs and PPF contributions.
Your daughter is young, and her education requires long-term planning.
This stability provides a good foundation for retirement planning.

Key Factors to Consider for Retirement
1. Desired Retirement Age:

The ideal retirement age depends on your goals and financial needs.
Early retirement at 55 is possible if you ensure adequate savings.
A standard retirement age of 60 allows more time to build wealth.
2. Post-Retirement Expenses:

Estimate post-retirement expenses, including healthcare and inflation.
Current expenses of Rs. 40,000 may rise with time and lifestyle needs.
Factor in additional costs for your daughter’s education and marriage.
3. Life Expectancy:

Plan for at least 25-30 years post-retirement.
Ensure your savings generate steady income over this period.
4. Emergency Corpus:

Maintain at least 2 years’ expenses in liquid funds.
This ensures financial security during unforeseen situations.
Evaluating Existing Investments
1. Public Provident Fund (PPF):

Rs. 52 lakh in PPF ensures tax-free returns.
Continue annual contributions for long-term compounding benefits.
2. Provident Fund (PF):

Rs. 13 lakh in PF is a stable retirement asset.
Avoid withdrawing this corpus before retirement.
3. Mutual Funds:

Rs. 10 lakh in mutual funds provides growth potential.
Consider increasing SIPs to diversify and maximise equity exposure.
Actively managed funds can outperform during volatile markets.
4. Fixed Deposits (FD):

Rs. 20 lakh in FD ensures stability but offers limited growth.
Explore alternatives like hybrid funds for better returns with moderate risk.
5. Savings Account:

Rs. 5 lakh in a savings account is good for liquidity.
Avoid keeping excess funds here due to low returns.
6. Post Office MIS:

Rs. 9 lakh in MIS provides steady income but limited growth.
Redeploy this in equity or balanced funds for inflation-adjusted returns.
Planning for Your Daughter’s Future
1. Education:

Allocate funds for her higher education in equity-oriented investments.
SIPs in child-focused or diversified funds ensure disciplined savings.
2. Marriage:

Start a separate goal-based investment for her marriage.
Long-term equity investments provide better inflation-adjusted returns.
Building a Retirement Corpus
1. Increase Equity Exposure:

Equity is essential for wealth creation over the long term.
Gradually increase allocation to equity funds for higher returns.
2. Diversify Investments:

Combine equity, debt, and hybrid funds for balanced growth.
Diversification reduces risk and ensures stability.
3. Reduce Dependence on Fixed Income:

Fixed income instruments like FDs provide low post-tax returns.
Reallocate some funds to equity for higher growth.
4. Regular Portfolio Review:

Monitor your portfolio’s performance every six months.
Rebalance assets to maintain desired risk and return levels.
Tax Planning
1. Tax on Mutual Funds:

LTCG on equity funds above Rs. 1.25 lakh is taxed at 12.5%.
STCG is taxed at 20%. Plan redemptions to optimise taxes.
2. Tax-Efficient Investments:

PPF and PF remain tax-efficient instruments.
Consider ELSS funds if additional deductions under Section 80C are needed.
3. Avoid Tax Drags:

Fixed income returns are taxed as per your income slab.
Redeploy funds for better post-tax returns.
Deciding the Perfect Retirement Age
1. Retiring at 55:

This requires a larger corpus due to an extended retirement period.
Aggressive savings and investments are needed in the next 9 years.
2. Retiring at 60:

More time to build wealth reduces financial stress.
A balanced approach ensures a comfortable retirement.
3. Retiring at 58 (Mid-Way):

Retiring at 58 balances early retirement and corpus adequacy.
It aligns with both financial and lifestyle goals.
Additional Steps for Financial Security
1. Health Insurance:

Ensure adequate health insurance for your family.
This reduces the burden of medical expenses post-retirement.
2. Emergency Fund:

Maintain Rs. 10 lakh in liquid funds or FDs for emergencies.
This ensures immediate access during financial crises.
3. Will and Estate Planning:

Create a will to ensure smooth transfer of assets.
This avoids disputes and protects your family’s financial security.
Final Insights
Your current financial position supports a flexible retirement plan. Retiring at 58 offers a balanced approach, giving you time to build a corpus.

Focus on equity for long-term growth while maintaining stability in debt instruments. Plan separately for your daughter’s education and marriage to avoid straining your retirement corpus.

Review your investments regularly with a Certified Financial Planner. This ensures alignment with your evolving goals and market conditions.

With disciplined savings and strategic investments, you can achieve financial independence.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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