{"id":449,"date":"2015-08-24T12:18:34","date_gmt":"2015-08-24T12:18:34","guid":{"rendered":"http:\/\/www.myassetsconsolidation.com\/investment-advisory\/?p=449"},"modified":"2015-08-24T12:18:34","modified_gmt":"2015-08-24T12:18:34","slug":"a-retirement-plan-for-a-retiree","status":"publish","type":"post","link":"https:\/\/myassetsconsolidation.com\/blog\/a-retirement-plan-for-a-retiree\/","title":{"rendered":"Financial solution for a retired."},"content":{"rendered":"

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I am 52 and have opted for voluntary retirement. My wife, 49, who is employed, is eligible for a fixed pension of ?15,000.<\/b><\/p>\n

Her retirement benefits such as EPF will be minimal since we withdrew money recently for buying a house. My wife\u2019s employer will cover hospitalisation costs, post-retirement too. Please suggest an investment plan for me to deploy my retirement benefits.<\/b><\/p>\n

Baskaran<\/i><\/p>\n

Your wife\u2019s pension being a fixed one, you may likely feel shortfall in later years as expenses shoot up due to inflation. So you need a way to earn inflation beating returns early on to build a large corpus to supplement the pension. One way to do that is to add a dose of equity to your portfolio.<\/p>\n

At the time of your wife\u2019s retirement in nine years, the monthly expense for the two of you (as your daughter will be married) will likely be ?50,000, assuming 7 per cent inflation. If inflation stays at those levels, to meet expenses till your wife turns 85, you need a corpus of ?1.4 crore, earning 1 per cent more than inflation. For this you need a corpus of ?1.4 crore, earning 1 per cent more than inflation to meet monthly expenses till your wife turns 85.<\/p>\n

Out of your retirement settlement amount of ?52 lakh, set aside ?11 lakh for your daughter\u2019s marriage. Invest the balance in a portfolio that earns 8.5 per cent annually (balanced fund with 70:30 debt and equity), after nine years, it will be ?85 lakh.<\/p>\n

Invest ?11 lakh in an FD and use the interest for daughter\u2019s college fee. The insurance maturity of ?4 lakh will together meet the marriage expenses.<\/p>\n

Your portfolio may face a shortfall later and you can consider availing the reverse mortgage facility.<\/p>\n

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(This article was published on August 23, 2015)<\/div>\n

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