Hi this is Barath(37 yrs age-high risk appetite investor),My portfolio worth is
around 4cr ,this includes 2.5cr in ppfs flexi+1.5cr in motilal micro 250 index.
I have requirement for son's education after 7yrs from now(amount req 1cr) and daughter education 12 yrs from now (around2 cr).I wish to retire at my age of 45 yrs.I am also doing an sip of 5 lacks a month in both above funs 3 lacks and 2 lacks respectively.I wish to have retirement withdrawal of 2.5lacks monthly via SWP with an increase of 8%in withdrawal rate.Pls suggest how am I placed
Ans: Hello Barath,
You've crafted a robust portfolio, and your proactive approach to investing is commendable. With a high-risk appetite and a sizable investment worth 4 crores, you're laying a strong foundation for your financial future.
Your investment allocation, with 2.5 crores in PPFS Flexi and 1.5 crores in Motilal Micro 250 Index, reflects a balanced strategy. However, it's important to regularly review and adjust your portfolio to align with your evolving goals and risk tolerance.
Your foresight regarding your children's education expenses, with a requirement of 1 crore in 7 years for your son and 2 crores in 12 years for your daughter, demonstrates prudent planning. Your SIP of 5 lakhs per month split between the two funds ensures disciplined saving and investment.
Planning for early retirement at 45 is ambitious yet achievable with careful financial planning. Your target retirement withdrawal of 2.5 lakhs monthly via SWP, with an annual increase of 8%, indicates a thoughtful approach to sustaining your lifestyle post-retirement.
While index funds have gained popularity for their low fees and passive management, it's essential to consider the limitations they pose, such as lack of flexibility and potential underperformance during market downturns. Actively managed funds, on the other hand, offer the expertise of fund managers to navigate market fluctuations and capitalize on opportunities, potentially yielding higher returns over the long term.
Opting for regular funds investing through an MFD with CFP credential provides the added benefit of personalized advice and guidance tailored to your financial goals and risk profile, ensuring optimal portfolio management and decision-making.
Overall, your proactive stance towards financial planning and investment management sets a solid precedent for securing your financial future and achieving your retirement goals.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
