I am retired pensioner at 53 years of age with monthly pension of 1.15 k. My monthly expenditure is 80 k . I have 1.15 CR in FD and a term insurance of 1 CR. My health insurance is covered too. I want to travel the world and also create substantial wealth for my daughter when she gets married in next 15 years. Please plan a strategy with moderate risk especially index funds or equivalent funds so I don't need to work in a corporate job.
Ans: Monthly Budget and Savings
Your pension is Rs 1.15 lakh per month.
Monthly expenditure is Rs 80,000.
This leaves you with a surplus of Rs 35,000 each month.
Keep this surplus for future investments and travel.
Emergency Fund
Maintain a portion of your FD as an emergency fund.
Rs 1.15 crore in FD can cover emergencies.
This ensures liquidity and peace of mind.
Travel Fund
Allocate part of your savings for travel.
Create a separate travel fund.
Consider investing in short-term debt funds for this purpose.
Wealth Creation for Daughter
Invest in actively managed equity mutual funds.
These funds offer better returns than index funds.
Regularly review and rebalance your portfolio with a Certified Financial Planner.
Disadvantages of Index Funds
Index funds often track market performance.
They do not aim to outperform the market.
Actively managed funds have the potential for higher returns.
Professional fund managers make strategic decisions.
Investing through Mutual Fund Distributors (MFD)
Investing through an MFD with a CFP credential offers many benefits.
They provide personalized advice and support.
They also assist in regular portfolio reviews.
This ensures your investments are on track.
Health and Term Insurance
Your health insurance is already covered.
Continue with your Rs 1 crore term insurance.
Ensure your daughter is a nominee for both policies.
Generating Additional Income
Consider Systematic Withdrawal Plans (SWPs) from mutual funds.
SWPs provide a regular income stream.
This helps supplement your pension.
Diversifying Investments
Diversify between equity mutual funds and debt funds.
Equity mutual funds provide growth.
Debt funds offer stability and lower risk.
Final Insights
Focus on creating a balanced portfolio.
Regularly review and adjust your investments.
Keep your travel and daughter’s future in mind.
Work with a Certified Financial Planner for ongoing guidance.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
