1. Whats the right age to start planning for retirement?

 

Good question. Like most things in life…the earlier that you start, the better off you

will be. If you invest Rs. 1500 per month from age 18 you will have Rs. 70 Lakhs,

but if you start at age of 50, you will have Rs. 290,270 – BOTH at age 60. This is

the power of  time on  your portfolio!

 

 

  1. What should one keep in mind when planning for retirement?
  2. Start early
  3. Invest in equities
  4. Stay calm and take a 20-30 year view.

 

VIEWER QUERIES

  1. ARAVIND ANNAMALI

Retirement  DECEMBER 2019

Fund :            Rs. 80 lakhs.

  1. a) 30 lakhs in Ultra Short Term fund  /Liquid fund and withdraw Rs. 15,000 every month.
  2. b) 20 lakhs in BALANCED Fund  and withdraw Rs. 10000  PM after two years i.e.  from  May 2022
  3. c) 15 lakhs in Multicap and withdraw Rs. 10,000 PM  after fourth years   i.e. from May 2024
  4. d) 15 lakhs  in Midcap  fund and withdraw Rs. 10,000 PM after sixth years       i.e from May 2026

The objective is to have  regular increased  income  i.e. Rs. 15,000 for first  two years, Rs25,000  from third years

and   Rs.35,000  from fifth years and Rs 40,000 from seventh years onwards  to meet projected increase in expenditure on account of inflation etc.

Please  advise whether  my  investment plan as detailed above is good if not your suggestions.

Also please suggest good  SWPs under various schemes  as detailed in a) to d) above.

IT WILL WORK. KEEP WITHDRAWING FROM UST FUND (1) FOR 5 years. After that time transfer some money

from balanced fund (2) to the UST fund. Similarly keep withdrawing from box b, c and d and put it in box a. Which

means even if you have to withdraw more DO it from box (a). This UST will be funded by box b,c, and d.

 

  1. KARAN BUTA

I am 28 years old, working at an MNC as an marketing executive for the last  years and I have

heard a lot about people retiring at 40, traveling the world with their savings. Is this truly

possible through money mgmt, especially, if i am living only on a salary income?

  1. NOT very practical. Assuming that at age 40 your expenses are Rs. 5L per annum..you will need Rs. 30 crores!!

Now tell me whether it is possible!

  1. N. PARTHA

What are the best schemes to invest in if i want to retire in 15 years?

I earn a annual salary of 19 lacs and I live in Chennai. I try to save at least 40% of my salary every year and i am working for the last 12 years. I currently have savings accounts, FDs never invested in share markets

You will need to invest about 80% in equities – a dramatic U turn for a person who has

invested 100% in debt. I would suggest you should get an adviser. There is just too much

at stake – your Retirement – and it should be handled by a professional and not risked by an

amateur – even it you are the amateur is you yourself !!

 

 

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  1. NOT very practical. Assuming that at age 40 your expenses are Rs. 5L per annum..you will need Rs. 30 crores!!

    Why 600 times corpus?

  2. Sir – For 5L annual expense and a life expectancy of 80; KARAN BUTA will need (5% inflation, 7% bond income) a corpus of 1.35-1.40cr and not 30cr!

  3. every time you mentioned start to early. But please write those who already miss the bus and are in their 40’s and earning 40k monthly. I always see the examples of earning more than 10 L annually or 20 L annually.

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