People

Your Financial Plan

Suresh Parthasarathy | Updated on January 15, 2018 Published on March 26, 2017


I work in a bank and am retiring in May 2017. My wife is a pensioner. My younger daughter will get married this year. My medical expense is ₹20,000 per month. Can I continue my SIP and is it possible to live comfortably till our life expectancy?

R N Acharya

Although you are liberal with your monthly expenses, you can still meet them during your lifetime. Hold on to your equity investments for the long term and withdraw through systematic withdrawal plan.

Assuming that your monthly expense increases at 7 per cent annually due to inflation, when you turn 70, it will be ₹2.2 lakh and at 80, it will be ₹4.37 lakh. It will be a challenge to meet your monthly needs with the rental income and the returns from the fixed deposits. Retain your equity assets and use them to meet the shortfall in the monthly expense. Withdraw 3 per cent per annum from it. If the portfolio earns 11 per cent return, at the age of 85, your equity portfolio will be worth ₹6.1 crore. If market delivers abnormal returns, book profits and rebalance the portfolio.

If your spouse is not good at managing the equity assets, after 10 years, move a chunk of the equity assets to debt. Since I am suggesting you withdraw from equity, you can stop your SIP after retirement. This will reduce your monthly needs. Write a Will for all the assets, for easy transmission.

The writer is a SEBI-registered investment advisor and founder, myassetsconsolidation.com

Send your queries to blinefp@gmail.com

Read further by subscribing to

The Hindu Businessline

What You'll Get

  • Web + Mobile

    Access exclusive content of the Hindu Businessline across desktops, tablet and mobile device.


  • Exclusive portfolio stories and investment advice

    Gain exclusive market insights from the Hindu Businessline's research desk.


  • Ad free experience

    Experience cleaner site with zero ads and faster load times.


  • Personalised dashboard

    Customize your preference and get a personalized recommendation of stories based on your intrest.

This article is closed for comments.
Please Email the Editor