If my current investments are enough to meet retirement life

Thanks for writing to us. Do not take our suggestions as financial advise.

We have following to suggest -

1. You have 30 Lakhs worth of liabilities but you have not mentioned if the EMI of these different liabilities will be over by the time you retire or they will still continue.

2. Even though, you have mentioned your salary as Rs 75,000 + Rental income Rs 23,000, you have not mentioned what is your monthly expenses? This would have helped us in knowing your monthly household expenses post retirement after taking into account inflation.

3. Therefore, we can assume that your current net monthly income is Rs 69,000 (Salary Rs 75,000 + Rental income Rs 23,000 - EMIs Rs 29,000)

4. Since the details you have provided is incomplete we are assuming that post retirement you will have 3 income streams - 1) the rental income of Rs 23,000 2) Pension Rs 38,000 3) Income from retirement corpus of Rs 50 Lakhs.

5. Suggestion - 1) By retirement your car loan will be NIL as we assume car loans are given for maximum period of 5 years 2) Pay off the balance personal loan at retirement from your current savings and mutual fund investments. 3) Therefore, we can assume, you are left with paying 2 Home Loan EMIs totalling Rs 18,000 monthly.

5. Therefore, to maintain the current level of your net income of Rs 69,000, you will have to pay off first the balance home loan amount on retirement (current loan amount is Rs 20 Lakhs).

6. Suggestion - Pay off the balance home loan amount (we are assuming it to be around 15 lakhs at the time of your retirement) from your retirement corpus of Rs 50 Lakhs.

7. How to earn Rs 69,000 per month (the current net income). You will have pension income of Rs 38,000 + Rental Income of Rs 23,000. The two makes it to total Rs 61,000. Therefore, you need to earn only Rs 8,000 from the balance retirement corpus of Rs 35 Lakhs. It is very easy as you can put a large part of it in bank FD or mutual fund MIPs/ debt funds (depending upon your risk profile) and the rest in liquid funds as emergency corpus.

We think, you will easily be able to sustain your post retirement life.

However, the above is a very rough sketch as we have limited information. Due to limited information, we have also not accounted the inflation, we have not discussed how you are going to meet your medical expenses.. if you have enough health cover for you and your spouse or not. Do you have any other liabilities your goals to meet and so on. Making a financial plan is a vast exercise and if you are interested you should contact a competent financial planner, sit and discuss with him your current and future requirements and plan accordingly.

Hope we could help you upto some extent in this direction. Thanks for writing to Advisorkhoj.