Hello sir, I am 52 years handicapped with a good govt. job. I have been married for 27 years now. My son also married recently and he is in USA. I dont know where to start. Mine was arranged marriage. But my husband and his family cheated us regarding his job. He was jobless after our marriage. I had a son in the first year of our marriage. I stayed with him for only 2 months then I was send to my fathers house for delivery. He never visited me during this time nor he had called me. As he was jobless, I tried hard to build my carrier for sake of my son. I had managed all these years financially. I never received any financial support or emotional support from him past 27 years. We had fought badly accusing each. He will physically abuse me every time. He is addicted to alcohol and watching prone movies. My son once saw his mssg to call girls and other such women in his mobile. I was shocked too. Later I discovered he had many such connections. He had been spending his merger salary for all this self enjoyment and never shared anything for HL or son education. However, I had stayed with him for social security and status. Now I have completed all my duties. My son is safe and far from him. Even after my sons marriage, he behaved violently after consuming alcohol. I am really fed up with him. I have my income and properties. But I have no one to share my emotions as my son also has left and busy with his life in USA. I don't need any physical needs but need emotional support for rest of my life. I am in total depression for all I have undergone for 27 years. I currently having my father who is 80 years with me in the house. My husbands behaviour towards my father is very bad. Now my fathers health is getting affected because of my husbands shouting. I have no other friends or relations to relate to. My health also is getting slowly affected and I my mobility is very much restricted. Sometimes I was having succidal ideas. I have no life goals now. I have achieved all my goals. I have completed all my duties now. What should I do now?

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