What steps should I take to build the ideal retirement corpus?

What steps should I take to build the ideal retirement corpus?

I work in the IT industry and have plans to retire in the next 10 years. I have already planned for my daughter’s education and kept ₹50 lakh aside for this. I have also invested in two properties that are valued at ₹1.2 crore today, and on which I will be paying EMIS (equated monthly installments) of ₹34,000 for three more years. Other than this, I have ₹12 lakh in mutual funds (MFS) and ₹10 lakh in my provident fund account. I not only want to retire with adequate money for my post-retirement life, but I also want to travel every year for the first seven years, for which I will need ₹5 lakh every year. Kindly help me in planning for this. Which funds can I invest in?

—Name withheld on request. for your annual post-retirement travel plan. Hence, you can consider a goal amount of ₹3.5 crore for your retirement.

You will have to factor in investments in real estate and plans to use it for retirement. As real estate is subjective and growth rates differ based on location and other factors, you must try to evaluate your prospective growth and rental income if you plan to retain these investments.

Your present MF portfolio could help accumulate ₹37 lakh if it grows at an average of 12% per year, and provident fund of ₹20 lakh. Equity MFS can work better as you have 10 years to build the corpus. Some you can consider are Parag Parikh Flexicap, ICICI Prudential Bluechip Fund, HDFC Large & Mid Cap Fund, Nippon India Growth Fund and 360 One Focused Equity Fund.


Courtesy: Mint. Dt. 6th June 2024

No Comments

Give a comment