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Ramalingam Kalirajan6275 Answers |Ask - Follow
Mutual Funds, Financial Planning Expert - Answered on Jul 16, 2024
Asked on - Jul 09, 2024Hindi
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I am 51 now and want to retire now. What should be retirement corpus i need if my current monthly expenditure is 75000.
Ans: You want to retire now at 51. Your current monthly expenditure is Rs. 75,000. Let's determine the retirement corpus needed.
Inflation Consideration
Consider inflation, which will increase your expenses over time. Assuming an average inflation rate of 6%, expenses will double in about 12 years.
Longevity Planning
Plan for a retirement period of 30 years. This ensures you have enough funds even if you live longer.
Safe Withdrawal Rate
A safe withdrawal rate is around 4% per year. This helps preserve your capital while providing regular income.
Calculating the Corpus
To generate Rs. 75,000 monthly, you need Rs. 9 lakhs annually. With a 4% withdrawal rate, the corpus required is Rs. 2.25 crores.
Investing for Retirement
Invest in a mix of equity and debt funds. Actively managed funds provide better returns than index funds. Consult a Certified Financial Planner for tailored advice.
Healthcare and Emergencies
Set aside funds for healthcare and emergencies. Health insurance and an emergency fund are essential.
Reviewing and Adjusting
Regularly review your investments. Adjust them based on market conditions and personal needs.
Final Insights
A corpus of Rs. 2.25 crores should be adequate for your retirement. Focus on inflation, longevity, and a safe withdrawal rate. Invest wisely and review regularly.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
Inflation Consideration
Consider inflation, which will increase your expenses over time. Assuming an average inflation rate of 6%, expenses will double in about 12 years.
Longevity Planning
Plan for a retirement period of 30 years. This ensures you have enough funds even if you live longer.
Safe Withdrawal Rate
A safe withdrawal rate is around 4% per year. This helps preserve your capital while providing regular income.
Calculating the Corpus
To generate Rs. 75,000 monthly, you need Rs. 9 lakhs annually. With a 4% withdrawal rate, the corpus required is Rs. 2.25 crores.
Investing for Retirement
Invest in a mix of equity and debt funds. Actively managed funds provide better returns than index funds. Consult a Certified Financial Planner for tailored advice.
Healthcare and Emergencies
Set aside funds for healthcare and emergencies. Health insurance and an emergency fund are essential.
Reviewing and Adjusting
Regularly review your investments. Adjust them based on market conditions and personal needs.
Final Insights
A corpus of Rs. 2.25 crores should be adequate for your retirement. Focus on inflation, longevity, and a safe withdrawal rate. Invest wisely and review regularly.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
Asked on - Jul 16, 2024 | Answered on Jul 17, 2024
Thank you. Can you please connect with me individually to guide me on investment planning
Ans: I appreciate your trust and willingness to connect.
Let's embark on this financial journey together.
You can reach me through my website mentioned below.
This platform has restrictions on sharing personal contact. Hope you understand.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
Let's embark on this financial journey together.
You can reach me through my website mentioned below.
This platform has restrictions on sharing personal contact. Hope you understand.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in