Advice for retirement corpus

Personal finance
1

Hello everyone,

I am a 42 years male with a 38 year old wife and a 6 month baby. I earn Rs 1,30,000 per month and I have a salary structure with a 10% cut (retainer basis).

My current investments are:

  1. PPF for 15 years= 1.5 lakh per year

  2. Sukanya Samriddhi Yojana = Rs 1.5 lakh per year

  3. Health insurance = Rs 32,000 per year

  4. LICs worth Rs 15,000 per year.

  5. FDs worth 10 lakh (Emergency fund)

  6. SIP = Rs 5000/ month

My monthly expenditure is Rs 75,000/month and I have around Rs 40 lakhs sitting in my bank account.
I think I will retire by 60 years (can extend it to 65 years if required). I need the retirement corpus till 85 years (at least 80 years). I have tried different retirement calculators available.

  1. From my salary I can invest Rs 20,000/ month. From the corpus of Rs 40 lakhs, how do I invest? Do I invest another Rs 20,000/ month this corpus monthly or is there any way out. Please help me as I might be short of money here.

My excel sheet for calculations here = Retirement planner - Google Sheets

Thank you in advance.

Ram

2

My advice would be to find a good financial advisor and seek professional help.
Do not rely on strangers for your financial planning.

3

Thank you for your reply. Any suggestions for good financial planner?

4

Few points:

  • I agree with Akash - dont rely on advice from strangers online. You might start getting lot of inbox messages here from strangers here saying they can make xx% for you bla bla. Ignore them all. They are 100% scams and will definitely sink your money.
  • Stick to well known financial advisor firms - or maybe look for good mutual funds to invest in.
  • If you chose mutual funds - invest only in “direct” category funds - not “regular” category funds. The expenses in regular funds are much higher and you would lose a lot of money in the long run. The higher expense is a cut that goes to the broker/agent so they will try to sway you to go the regular fund route. Say no and stick to it.
  • Look for financial advisors who are a fixed amount based fee - not percent based. They will eat into your profits and growth.
  • I would not recommend investment advice from broker firms like Motilal Oswal etc - they say they will make profits but their charges are so high that you will end up in net losses. They all save their a** with a disclaimer that the markets can go in any direction and they are not responsible for your loss - but would love full responsibility for your profits.
  • Do your own research as well before investing. You may end up starting a bit slower, but you will be in a confident position knowing that your money is in a good place.
  • If you want to park big amounts for a short term, then debt funds are pretty good. I personally had a big amount parked in a liquid fund for the last 4 months while i figured out what to do. While i did my analysis, the money was safe and growing (even though it grew at a slow pace, it was still better than zero). Recently moved them from liquid funds to debt funds - better returns there and same level of liquidity.
  • FDs are good, but don’t rely on them. They have a very poor rate of return - and barely beat inflation. Liquid funds and other debt instruments have much better returns and almost same level of liquidity.
  • Explore the different sites and offerings of Zerodha - Kite/Coin/Console etc. Lots to see and learn there.
  • Stay a million miles away from future and options. They are the quickest way to losing every penny. Even if the advisor says that they are low risk bla bla, ignore. They are the riskiest and wont take a day to zero out the capital. On the flipside they can 10x the capital too, but there is no guarantee of the 10x, but definitely big chance of 0x.

A bit about me - i am also in a similar boat like you - earning from job, but not sure what to do and how to invest. I have sums parked in debt funds and gradually doing my own fundamental and technical analysis of stocks/ mutual funds to buy/sell. It might take some time, but I know what i buy/sell, and they will be what I have faith in and in which the market has faith in.

You can DM me if you any questions or just want to chat - but sorry I can’t give investment advice. I can only share what I have learned from my experience. I started looking into and managing my finances last year, and its been a real ride. I saw your excel spreadsheet, and I can tell you are a finance nerd like me lol

1 Like
5

Nothing crazy your investment avenues are pretty limited fd, bonds, equities and mfs. You need ask yourself what return you want and accordingly allocate, no financial planner can guarantee anything, people overthink and over optimise keep it simple and you need to have peaceful sleep and not get stressed with the investment you are making

1 Like
6

Hello,
Thank you for the details you shared. I want to DM you but unable to do so.

7

Sent you a DM