Sir,
I am 41 years old , state govt. class I officer, will retire in 2040. I have a term insurance plan of Rs. 1 Cr. No health facility after retirement. I am currently making SIP of Rs. 30000/- in various MFs and total amount accumulated till date is Rs. 21 Lacks. I am covered under NPS. Present corpus under my NPS is Rs. 51 Lacks. I own a residential plot . I have 02 daughters aged 11 Y & 9 Y. there is Rs. 4 Lakh in my PPF who will mature in 2026 and i am not continuously making contribution in PPF. My Goals are as under:-
1. To build home with approximate amount of Rs. 80Lacs in 2028.
2. Require 25 Lakh for daughter education in 2028 and another 25 Lakh for 2nd kid education in 2031.
3. Want to retire rich with good corpus in hand. My present monthly expenditure is Rs. 50000/- . How much corpus will require to retire and live peacefully.
Please suggest investment philosophy and best investment options.
Ans: Given your financial goals and current situation, here's a suggested investment strategy:
Home Construction Fund (2028): Since you aim to build a home by 2028, you'll need to save aggressively for this goal. Consider investing in a mix of equity mutual funds and debt instruments to accumulate the required Rs. 80 lakhs by diversifying your investments.
Education Fund for Daughters (2028 & 2031): Allocate a portion of your savings towards education funds for your daughters. Start separate SIPs or investments earmarked for these goals to accumulate the required Rs. 25 lakhs for each daughter's education by the specified years.
Retirement Corpus: To retire comfortably with a good corpus in hand, you need to estimate your post-retirement expenses. Since your current monthly expenditure is Rs. 50,000, factor in inflation and other lifestyle changes to determine your future expenses. Consider consulting a financial advisor to assess your retirement needs accurately.
Investment Options:
Equity Mutual Funds: Given your long-term investment horizon, continue SIPs in equity mutual funds for wealth accumulation. Choose a mix of large-cap, mid-cap, and multi-cap funds based on your risk tolerance and investment objectives.
Debt Instruments: Since retirement planning involves preserving capital and generating regular income, allocate a portion of your investments towards debt instruments like PPF, debt mutual funds, and fixed deposits to provide stability to your portfolio.
NPS: Continue contributing to NPS to build a significant retirement corpus. Monitor your NPS investments regularly and adjust asset allocation based on market conditions and your risk appetite.
Term Insurance and Health Cover: Ensure adequate coverage for your family's financial security. Consider enhancing your health coverage post-retirement to mitigate medical expenses.
Regular Review: Regularly review your investment portfolio and adjust your asset allocation as needed to stay on track with your financial goals.
It's essential to periodically reassess your financial plan and make adjustments based on changing circumstances, market conditions, and personal priorities. Consider consulting a certified financial planner to create a comprehensive financial plan tailored to your specific needs and goals.
