How to invest 40 lakhs for retirement corpus in 20 years

Personal finance
1

Hello everyone,

I’m 42 years old, married, with a 10-month-old baby. My wife also earns, and we’ve already started a Sukanya Samriddhi Yojana (SSY) for our daughter. I also have ₹10L in my PPF account.

I’ve set aside ₹10L as an emergency fund and currently have ₹40L parked in my savings account. My monthly household expenses are about ₹70,000, and I manage to save around ₹60,000 every month.

Recently, I spoke with a financial advisor from HDFC. He suggested that since I don’t need the ₹40L immediately, I could move it to a liquid fund and do a Systematic Transfer Plan (STP) of ₹1L per month into HDFC mutual funds. He also recommended starting a SIP of ₹50,000/month alongside.

Using retirement calculators, I’ve estimated that I would need a corpus of around ₹6 crore at retirement.

Does this sound like a reasonable strategy to you? Would love to hear your thoughts, suggestions, or alternate approaches.

Thanks in advance!

2

Nothing wrong with SIP/STP or HDFC mutual funds, but stay away from bank relationship managers and regular funds. They are only driven by commissions and will make all sorts of false promises to get your money.

What you need is a SEBI registered fee only financial advisor. They will charge a one time upfront fee rather than lifelong commissions (which is the case for regular funds). Since they don’t work on commissions their advice is un-biased and more cost-effective in the long run.

https://www.feeonlyindia.com/