I am 46 and have 4.7 CR in various savings instruments. Can I retire now?

[Ramesh]

I am 44 years old and seriously considering retiring now. Over the years, I have managed to build a decent financial cushion. ₹1.2 crore in fixed deposits, ₹80 lakhs in EPF, ₹2.08 crore in mutual funds, and ₹64 lakhs in stocks. My house is fully paid off, which definitely eases a lot of financial pressure.

I have an 11-year-old daughter and securing her future, especially her education, is a top priority for me. My lifestyle is fairly simple and I don't foresee any extravagant spending in the coming years.

Given these assets and my responsibilities, is it realistic and wise to retire at this point in life?

[Anita]

Absolutely, you can retire now 

From what you shared, your total savings come to around ₹4.72 crore (₹1.2cr FD + ₹80L EPF + ₹2.08cr MF + ₹64L stocks). That's a solid foundation.

If you move most of that into good mutual funds and start a Systematic Withdrawal Plan (SWP), assuming a 10% return, you can comfortably withdraw about ₹2.1L per month or around ₹1.85L after taxes. And the best part is, you can increase that by ₹20k every year to keep up with inflation. This setup can easily last you 40+ years.

Now, for your daughter assuming school fees are around ₹1.2L per year, you will spend about ₹9L till she finishes school. For college, maybe around ₹25L if she does engineering in a good Indian college. Add another ₹30L for marriage, and you are looking at roughly ₹64L total.

So, a smart move would be to park ₹64L separately in a mutual fund just for her. It will grow with inflation and be ready when needed.

Then, put the remaining ₹4 crore into MFs and start that SWP. You will get around ₹1.6L per month post-tax and you can increase it by ₹15k annually to keep pace with expenses.

Make sure you have solid health insurance. Don't skip on that. And after that, enjoy your life! Watch movies, travel, buy what makes you happy. You have earned it!

Honestly, ₹1.6L per month without rent or loan burdens sounds more than enough to live comfortably today.

[saad]

Let's break it down simple and easy – starting with your 4.72 crore investment.

🟢 Round 1: First 5 years after retirement

Split your money into two parts:

* Part 1: Take out your monthly expenses for the next 5 years.
  Say ₹1.5L/month × 12 months × 5 years = ₹90L.
  Park this in a money market fund with an SWP (Systematic Withdrawal Plan). This will give you peace of mind for monthly needs.

* Part 2: The remaining ₹3.7Cr – invest it in an 80:20 equity:debt portfolio.
  Now here is the trick – reduce equity by 20% every year and shift that to debt.
  By end of 4 years, you'll be fully in debt. If the market does decent (say 10% average returns), this ₹3.7Cr could grow to around ₹6.2Cr in 5 years. 🎯

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🟡 Round 2: After 5 years

Your money is now ₹6.2Cr. But hey, inflation! ₹1.5L/month may not be enough.

Assume expenses have gone up by 5% every year. Now you'll need around ₹2L/month, so keep ₹1.2Cr aside for the next 5 years.

The rest ₹5Cr? Invest it the same way as Round 1.

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🟠 Round 3: After next 5 years

This ₹5Cr might grow to around ₹8Cr (again assuming 10% growth). Take out ₹1.5Cr for expenses, invest the balance ₹6Cr again the same way.

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🔴 Round 4: And so on...

Now that ₹6Cr grows to maybe ₹11Cr... pull out ₹2Cr for your next 5 years' expenses, and invest ₹9Cr again.

Repeat this method. Your money keeps growing, you're beating inflation, and living stress-free!

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🎉 Bonus tip 🎉

Retirement is not just about chilling, pick up a hobby, do some part-time work or freelancing. Keeps your mind sharp and body active too. 💪