Tuesday, July 5, 2022
Market-Reporter
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
Market-Reporter
No Result
View All Result
Home Spending & Saving

How to invest my retirement corpus to earn monthly income of around Rs 1-1.5 lakh

MtR by MtR
June 15, 2021
in Spending & Saving
0
How to invest my retirement corpus to earn monthly income of around Rs 1-1.5 lakh


I am 64 and retired recently. I want to invest my savings to earn around Rs 1-1.5 lakh per month. I have Rs 1.8 crore in my EPF account. I also have Rs 75 lakh in bank FDs, earning around 5.5 % interest. I also get a rental income of Rs 50,000 a month. I have invested Rs 15 lakh in PMVVY which will give me Rs 9,250 per month for 10 years. Please advise.

Prableen Bajpai Founder FinFix® Research & Analytics replies: You can broadly divide your allocation across three baskets– government schemes, other fixed income products and equity. Although the interest earned on EPF post-retirement is taxable, it is still worthwhile to keep the account given the low-interest-rate environment and withdraw in tranches. In the first phase, make a withdrawal of around Rs 80 lakh. Invest Rs 30 lakh (you and wife) in the Senior Citizens’ Saving Scheme (SCSS) which is offering 7.4%, paid quarterly. Invest another Rs 15 lakh in PMVVY on behalf of your wife. The RBI floating rate bond (7.15% currently, paid biannually) is a good option to ensure automatic readjustment in interest rates. For fixed-income products, since you already have FDs, debt funds can be added to enhance flexibility of withdrawal and tax efficiency. Choose schemes having high-quality portfolios and opt for a Systematic Withdrawal Plan. Around Rs 20-25 lakh should be parked in equity mutual funds (hybrid aggressive, nifty index fund) with a 7–10-year view. Do maintain around Rs 15-20 lakh in a separate liquid fund or sweep-in FDs for contingencies. As interest rates rise, start withdrawing the EPF corpus gradually and allocate between the three baskets. Readjust your portfolio for optimal results over the next one to two years.

Related articles

Small-Cap Pharma Stock Soars 12% on Corporate Announcement – Investing.com India

July 5, 2022

Saving the lives of millions of children not just a ‘political victory’

July 4, 2022

I am 32. I need to build a corpus of around Rs 2.5-3 crore for my retirement at 60. I have been investing Rs 50,000 per year in PPF since 2014. I started investing Rs 50,000 a year in NPS from this year. I have also been investing Rs 2,000 a month in Canara Robeco Emerging Equities, Rs 1,500 in HDFC Balanced Advantage, Rs 3,000 in ICICI Prudential Value Discovery and Rs 3,500 in L&T Midcap Fund. I have Rs 15 lakh as a contingency fund. Will my investments help me achieve the target I have set?

Dev Ashish, Founder, StableInvestor and Sebi-registered investment adviser replies: You have mentioned that you are tagging your PPF, NPS and equity funds to the goal of retirement. But you haven’t mentioned your EPF corpus, which too is generally earmarked for retirement. Despite that, the target of Rs 3 crore for retirement in 28 years seems achievable with current annual investments of Rs 2.2 lakh a year for someone with a balanced-to-moderately aggressive asset allocation. If you can increase your annual investments by 5-10% every 1-2 years, you can easily achieve Rs 3 crore much before the age of 60. Your other goals might also compete for any investible surplus, so it’s up to you to decide whether to accelerate your retirement plan or not. It might be a good idea to eventually have a layer of medical contingency fund in your retirement corpus (by means of additional savings) for those uninsured, non-hospital-in-home medical expenses. As far as fund choices are concerned, they seem alright with one exception. It might be a good idea to have a large-cap index fund (Nifty or Sensex-based like HDFC or UTI’s Nifty50 Index or HDFC Index Sensex Plan) to bring in pure-play large-caps into the portfolio. This index fund can be a replacement for the dynamic allocation or the value fund. Switching from regular to direct plans can increase your returns over time.



Source link

Related Posts

Small-Cap Pharma Stock Soars 12% on Corporate Announcement – Investing.com India

by MtR
July 5, 2022
0

Small-Cap Pharma Stock Soars 12% on Corporate Announcement  Investing.com India Source link

Saving the lives of millions of children not just a ‘political victory’

by MtR
July 4, 2022
0

OPINION: Last week the Supreme Court of the United States handed down a number of rulings reaffirming an originalist interpretation...

Should you invest in a Reit?

by MtR
July 4, 2022
0

Shares of real estate investment trusts (Reits) have delivered decent returns since their listing in the last two years but...

Sea worm oxygen-saving technology may preserve organs before transplants – South China Morning Post

by MtR
July 4, 2022
0

Sea worm oxygen-saving technology may preserve organs before transplants  South China Morning Post Source link

2 ETFs That May Benefit From Increased July 4 Spending

by MtR
July 4, 2022
0

Amid soaring inflation and rising market uncertainty, Americans are taking a breather to enjoy the long July 4 weekend.Around 84%...

Load More
  • Trending
  • Comments
  • Latest

Bank of England tells ministers to intervene on digital currency ‘programming’

June 21, 2021

Tips for checking smoke alarms during daylight saving time

March 12, 2022

GLOBAL MARKETS-U.S. stocks follow Europe up; Treasury yields rise, dollar firm

July 9, 2021
Fed tapering and emerging markets

Fed tapering and emerging markets

June 7, 2021
African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

0
Maxum Foods releases Global Dairy Commodity Update for June

Maxum Foods releases Global Dairy Commodity Update for June

0
Letter: Perpetual bonds can help states fight hunger

Letter: Perpetual bonds can help states fight hunger

0
United Kingdom ETFs Are Riding the Re-Opening Momentum

United Kingdom ETFs Are Riding the Re-Opening Momentum

0

Global Pre-Natal Vitamin Market 2022 to 2028 Analysis by Top Industry Players Merck & Co, Eli Lilly, Sandoz Canada Incorporated, Swisse

July 5, 2022

The global drilling fluids market was estimated to be at

July 5, 2022

MENAP and Turkey-based startups raise $5.1bln in H1 2022

July 5, 2022

Asia Pacific (APAC) Networking Equipment Market Size, Scope and Forecast

July 5, 2022

Recent News

Global Pre-Natal Vitamin Market 2022 to 2028 Analysis by Top Industry Players Merck & Co, Eli Lilly, Sandoz Canada Incorporated, Swisse

July 5, 2022

The global drilling fluids market was estimated to be at

July 5, 2022

MENAP and Turkey-based startups raise $5.1bln in H1 2022

July 5, 2022

Categories

  • Asia
  • Bonds
  • Canada
  • Commodities
  • Cryptocurrencies
  • Currencies
  • Emerging Markets
  • ETFs
  • Europe & Middle East
  • IPOs
  • Latin America
  • Mutual Funds
  • Personal Finance
  • Real Estate
  • Retirement
  • Spending & Saving
  • Stocks
  • U.S. Markets
  • Privacy & Policy
  • About Us
  • Contact Us
  • Advertise with us

© 2021 Copyright Market-Reporter

No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate

© 2021 Copyright Market-Reporter