Sir, I am a retired person having a pension of 1 lakh. I have 33 lakhs in PPF, 50 lakhs in bank FD, 60 lakhs in share under PMS, 28 lakhs in MF, two houses with one house in rent of 30k pm, home loan of 10 lakhs. My only son is working with 80k salary. Can I ask him to take retirement to look after us
Ans: You have a stable pension of Rs 1 lakh per month. Your PPF account holds Rs 33 lakhs. You also have Rs 50 lakhs in a bank FD. Your shares under PMS are valued at Rs 60 lakhs. Your mutual funds are worth Rs 28 lakhs. You own two houses, one of which generates a rental income of Rs 30,000 per month. You have a home loan of Rs 10 lakhs.
Dependence on Son
Your son earns Rs 80,000 per month. You are considering asking him to take early retirement to look after you. Let's evaluate the financial and emotional aspects of this decision.
Financial Considerations
Your Pension and Income: Your pension and rental income provide a stable monthly inflow. This can cover your regular expenses.
Assets: Your PPF, FD, shares, and mutual funds offer substantial financial security. They can be used for future needs or emergencies.
Home Loan: You have a home loan of Rs 10 lakhs. Ensure it is manageable within your current income and assets.
Asking Your Son to Retire
His Financial Independence: Your son’s financial independence is crucial for his future. Early retirement could affect his long-term financial stability.
Supporting You: While he might want to support you, his income is also important for his family and future plans.
Alternative Solutions
Professional Care: Consider hiring professional care services. This ensures you receive proper care without affecting your son's career.
Family Discussions: Have an open discussion with your son about your needs. Explore solutions together that balance his career and your care.
Evaluating Your Portfolio
PPF and FD: These provide safety and stable returns. Continue maintaining them for risk-free growth.
Shares under PMS: Ensure your portfolio is well-managed. Regular reviews can enhance returns and manage risks.
Mutual Funds: Diversify your mutual fund investments. Opt for a mix of equity and debt funds to balance growth and safety.
Managing Home Loan
Repayment: Evaluate options to repay the home loan early. This reduces financial stress and interest burden.
Rental Income: Use your rental income to support loan repayments or reinvest in safer assets.
Final Insights
Your financial position is stable with diverse assets. Asking your son to retire might not be the best solution. Consider professional care and open family discussions. Ensure your investments are well-managed and balanced for future needs.
Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
