I am 50 years old privet sector employee, my job may be over coming 3 months. My investments value are, Demat account stocks= 60 Lakhs, MF, Flexi Cap = 40 L, Mid Cap =12L, Small Cap = 5L, FD=25L, PPF=20L will matured on 2031. Cash in hand 10L, Please suggest me correct investment plan to get 1.0L monthly. I have term plan for Rs 1.0Cr. and family mediclaim policy for rs. 25 L.
Ans: Current Financial Position
You have a strong financial foundation. Your investments and savings include:
Demat account stocks: Rs 60 Lakhs
Mutual Funds (Flexi Cap): Rs 40 Lakhs
Mutual Funds (Mid Cap): Rs 12 Lakhs
Mutual Funds (Small Cap): Rs 5 Lakhs
Fixed Deposit: Rs 25 Lakhs
PPF: Rs 20 Lakhs (matures in 2031)
Cash in hand: Rs 10 Lakhs
You also have a term insurance plan of Rs 1 crore and a family mediclaim policy of Rs 25 Lakhs.
Investment Strategy for Steady Income
Systematic Withdrawal Plan (SWP)
Utilize SWP from your mutual funds.
Withdraw Rs 1 lakh monthly from Flexi Cap and Mid Cap funds.
This ensures a regular income without depleting the principal rapidly.
Dividend-Paying Stocks
Invest part of your Demat account in dividend-paying stocks.
This provides regular income and potential for capital appreciation.
Balanced Mutual Funds
Shift some funds to balanced mutual funds.
These funds offer stability and regular returns.
Debt Funds
Allocate a portion to debt funds.
These are less risky and offer regular interest income.
Emergency Fund
Maintain Rs 10 Lakhs cash for emergencies.
This ensures liquidity and financial security.
Fixed Deposits and PPF
Keep FDs and PPF as they provide guaranteed returns.
Use FD interest for additional income.
PPF will mature in 2031, adding to your corpus.
Healthcare and Insurance
Ensure your family mediclaim policy is adequate.
Consider increasing the coverage if needed.
Your term plan is sufficient for your family's financial security.
Tax Efficiency
Tax-Efficient Investments
Invest in tax-efficient options like debt funds and balanced funds.
These can reduce your tax liability on returns.
Tax Planning for Withdrawal
Plan your withdrawals to minimize tax impact.
Use tax-saving strategies to optimize your income.
Regular Review and Adjustment
Review your portfolio regularly.
Adjust investments based on market conditions and financial goals.
Consult a Certified Financial Planner for personalized advice.
Benefits of Actively Managed Funds
Actively managed funds can outperform the market.
They adapt to changing market conditions.
Professional fund managers aim for higher returns.
Avoid Direct Funds
Direct funds require constant monitoring.
Regular funds through a CFP offer professional guidance.
This reduces the burden of managing your investments.
Final Insights
You are on the right track with your investments. By optimizing your current assets and planning withdrawals strategically, you can achieve your goal of Rs 1 lakh monthly income. Regularly review your financial plan and make adjustments as needed to ensure long-term financial security.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
