Hi, I have another 5 years to reach retirement. I have my own house, a plot worth Rs.50 Lakhs, 1 crore in Fixed Deposit, Rs.500,000 invested in mutual fund. I have no loans and my present savings per month is Rs.225,000 tax free. I have a wife and two sons. One son is settled and another son is still in college level. Want to know how much more funds are required to lead a decent retired life after 5 years. I am physically fit to work for another 10 years.

Ans: It's great to hear about your proactive approach towards retirement planning. Let's assess your current financial position and estimate the funds required for a comfortable retired life after 5 years:
1. Existing Assets:
• Own house and a plot worth Rs. 50 lakhs: These assets provide stability and potential for appreciation over time.
• Fixed Deposit of 1 crore: Offers liquidity and stability in your portfolio.
• Mutual fund investment of Rs. 5 lakhs: Provides diversification and growth potential.
2. Monthly Savings:
• Your tax-free savings of Rs. 2,25,000 per month are impressive and will contribute significantly towards building your retirement corpus.
3. Future Expenses:
• Consider your anticipated expenses post-retirement, including living expenses, healthcare, travel, and other leisure activities.
• Estimate your children's education and marriage expenses if any.
4. Income Sources in Retirement:
• Assess your expected income sources in retirement, such as pension, rental income, interest from investments, and any other sources.
5. Gap Analysis:
• Calculate the shortfall between your estimated expenses in retirement and your expected income sources.
• Determine how much additional funds you need to bridge this gap.
Given your current financial assets, monthly savings, and future income sources, it seems you're well-positioned for a comfortable retired life. However, it's essential to consider inflation and potential healthcare expenses in retirement.
As a Certified Financial Planner, I recommend consulting with a professional to conduct a detailed analysis of your retirement needs and develop a customized financial plan. They can help you determine the additional funds required and suggest suitable investment strategies to achieve your retirement goals.
By continuing your disciplined savings approach and investing wisely, you can ensure a financially secure and fulfilling retired life for you and your family.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in