—Name withheld on request.
Having a balanced life where you can enjoy today while saving for tomorrow is important. Hence, it is better to have a plan in place for all these objectives. At present, you are both investing ₹60,000 for your goals like your son’s education and retirement. The remaining ₹40,000, which effectively comes close to ₹5 lakh every year, you are keeping aside for your travel and vacation. With a ₹60,000 investment per month, at the end of 10 years, i.e., when your son is 16, you will have a corpus of ₹1.33 crore, which can easily take care of the education goal.
If the remaining amount of ₹33 lakh continues to stay invested for your retirement, this amount along with the subsequent monthly investment will be able to reach the corpus of ₹1.49 crore at the age of 55, assuming a 12% per annum rate of return.
Along with this, you have your present mutual fund portfolio of ₹27 lakh, which can become ₹1.85 crore at retirement. The PF without considering additional investment as the amount is not available should add ₹57 lakh more. So, the total corpus for retirement across all would be close to ₹3.92 crore. If we consider 6% inflation, this corpus is good enough to take care of ₹56,000 per month at current expenses for 35 years after your retirement.
If you are comfortable with this monthly amount, then you can continue with the way you are saving and investing. However, if you feel it is less, then you should relook at the investment ratio and finetune from the overall investment and spending perspective.
Harshad Chetanwala is a certified financial planner and co-founder of MyWealthGrowth.com.
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