Hello Sir,
My age is 43, married and having two daughters (age 14 & 6) and have monthly net salary of Rs. 55k and I am saving around 20k per month (various SIPs-10K, NPS 5K & Stocks-5K)
My other investments are as follows;
• EPF – as of now 4 Lakhs
• Post office MIS – 9 Lakhs
• Post office NSC – 15 Lakhs
• Sukanya Samriddhi Yojana – 1 Lakh
• Fixed Deposits – 6 Lakhs
• PPF – 10 Lakhs
• Gold Bond – 3.5 Lakhs
• Existing Stock + Mutual fund portfolio – 12 Lakhs
• Home Loan outstanding – 7.6 Lakhs (Owned apartment current value is 50 Lakhs)
Please let me know whether my current investment is enough for peaceful retirement of do I need to invest more.
Ans: You've made commendable strides in securing your financial future, but let's delve deeper to ensure a comfortable retirement awaits you:
Your current savings strategy, including SIPs, NPS contributions, and investments in various instruments, demonstrates a proactive approach towards wealth accumulation. However, to ascertain whether your current investments suffice for a peaceful retirement, let's analyze your financial position comprehensively.
Your existing investments across EPF, post office schemes, PPF, and other instruments provide a diversified portfolio catering to both short-term liquidity needs and long-term wealth accumulation. Additionally, your allocation towards Sukanya Samriddhi Yojana reflects a thoughtful consideration for your daughters' future financial needs.
Considering your age and retirement horizon, it's crucial to assess the adequacy of your retirement corpus. While your current savings rate is commendable, projecting your future expenses, inflation, and lifestyle expectations is imperative to determine the gap between your current savings and retirement goals.
Factors such as your daughters' education expenses, healthcare needs, inflationary pressures, and desired retirement lifestyle warrant careful consideration. Additionally, factoring in unforeseen circumstances and emergencies is vital to ensure financial resilience during retirement.
Your outstanding home loan adds a liability to your financial equation, albeit a manageable one. It's advisable to assess the impact of loan repayment on your cash flow and retirement savings trajectory. A structured approach to debt repayment, balancing between accelerating loan clearance and boosting retirement savings, can optimize your financial position.
To bridge any potential shortfall in your retirement corpus, consider augmenting your savings rate and exploring investment avenues offering higher returns. Reviewing your asset allocation, optimizing tax-saving strategies, and seeking professional guidance from a Certified Financial Planner can provide invaluable insights tailored to your specific circumstances.
In conclusion, while your current investments lay a solid foundation, a comprehensive review considering your financial goals, obligations, and aspirations is essential to ensure a peaceful retirement. By proactively addressing potential gaps and optimizing your savings and investment strategy, you can embark on a journey towards financial security and tranquility in your golden years.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
