Hello Sir
Currently I am 34 years old working in software career. My monthly in hand salary is 1.7 L. I have home loan of 39 Lakhs with 8 years tenure and another top up home loan of 5 Lakhs. Also I have 4 Lakhs used car loan. Also I have recently invested Rs 2lakhs in tata motors share @ Rs 960.
I am investing in tata AIA fortune plus plan with Rs 12k / month.
I have around 7 Lakhs rupees in pf account.
My monthy expenses are below -
Home Expense - Rs 60k
Home loan emi - 60k
Home loan top up emi - 10k
Other emi - 10k
Investment in tata AIA - 12k
Please help me to close all these loans and want to retire in age 50 with the 6 lakhs / month on that time. Or 30 cr corpus at age of 50.
Ans: Given your goals of becoming debt-free and retiring comfortably by age 50 with either a monthly income of 6 lakhs or a corpus of 30 crores, it's crucial to devise a strategic financial plan.
Firstly, let's address your loans. With a total outstanding home loan of 44 lakhs and a car loan of 4 lakhs, your monthly EMIs sum up to 140k. Your current monthly expenses are 142k, leaving little room for savings.
Considering your 7 lakhs in the PF account, utilizing a portion of it to reduce your high-interest loans can be beneficial. However, completely depleting your PF may not be advisable due to its impact on retirement savings.
Refinancing your loans to lower interest rates or increasing your income through side hustles could help manage the debt burden. Redirecting a portion of your monthly expenses towards loan repayment can also accelerate the process.
Now, regarding your investments, while Tata AIA Fortune Plus Plan can provide returns, it's essential to ensure that your insurance needs are adequately met separately. Avoid mixing investments with insurance to optimize both aspects.
For retirement planning, achieving a monthly income of 6 lakhs at age 50 or accumulating a corpus of 30 crores necessitates a disciplined approach. You may need to increase your investment contributions substantially and explore diverse investment avenues to achieve such ambitious targets.
Consulting with a Certified Financial Planner can provide personalized guidance tailored to your financial situation and goals. They can help structure a comprehensive financial plan encompassing debt management, investment strategies, and retirement planning.
Remember, achieving financial freedom requires dedication, patience, and informed decision-making. Stay committed to your goals, and with prudent financial management, you can realize your aspirations.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
