Sir I am 48 years old and would like to retire by 55 years. I am investing Rs 70 K per month in MF through SIP for the last 7 years & have a corpus of close to Rs 1.3 CR. Shres separe portfolio and invested Rs 25 Lakhs & value today Rs 45 Lakhs. I have 2 shops & getting monthly rent of Rs 15 K & one independent house & flat 3 bHk in Bhopal so getting another 15 K rent. The property value all put together will be 2.5 CR & a loan of 20 lakh housing for my current appartment where I am staying. Therefore I need atleast 1.20 Lakhs as retirement corpus at the age of 55. Please advice
Ans: You aim to retire by 55 years. You currently invest Rs 70,000 per month in mutual funds through SIPs and have accumulated a corpus of Rs 1.3 crore over the last 7 years. Your goal is to secure Rs 1.20 lakhs per month as a retirement corpus. Let's evaluate your current investments and how to achieve this goal.
Evaluating Current Investments
Mutual Funds: Rs 1.3 crore corpus from 7 years of Rs 70,000 monthly SIPs.
Stocks: Invested Rs 25 lakhs, now valued at Rs 45 lakhs.
Rental Income: Rs 15,000 monthly from two shops and Rs 15,000 monthly from residential properties.
Property Value: Total property value of Rs 2.5 crore, with a Rs 20 lakh housing loan.
Steps to Achieve Your Retirement Goal
Continue SIP Investments: Maintain or increase your SIP investments to grow your corpus.
Diversify Portfolio: Balance your portfolio with equity, debt, and balanced funds for stability and growth.
Review Stock Portfolio: Ensure your stock portfolio is diversified to minimize risk and maximize returns.
Utilize Rental Income: Use rental income to supplement monthly expenses and potentially reinvest a portion.
Analyzing the Adequacy of SIP Amount
Future Value Projection: Calculate the potential growth of your current SIPs and corpus to estimate future value.
Inflation Adjustment: Consider the impact of inflation on your retirement corpus needs.
Evaluating Real Estate Holdings
Rental Income: Continue leveraging rental income for additional cash flow.
Property Value: Assess the potential appreciation of your properties over time.
Addressing Housing Loan
Repayment Plan: Develop a strategy to repay the Rs 20 lakh housing loan before retirement.
Alternative Investment Strategies
Actively Managed Funds: Consider the benefits of actively managed funds over index funds for potentially higher returns.
Regular Funds via CFP: Highlight the advantages of regular funds and professional guidance from a CFP over direct funds.
Final Insights
Diversification: A diversified investment portfolio balances risk and reward.
Regular Review: Periodically review your investment strategy to ensure alignment with retirement goals.
Professional Guidance: Seek advice from a Certified Financial Planner for personalized financial planning.
Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
