—Name withheld on requestYour asset allocation, with an 85:15 equity-to-debt ratio, is commendable for long-term growth, particularly given your systematic investment plans (SIPs) in diversified mutual funds. To optimize your portfolio for your children's education and your retirement, consider the following strategies. For education goal planning, your estimated requirement of ₹3 crore today is projected to increase to approximately ₹5.92 crore in 8 years, assuming a 7% inflation rate.
To mitigate risks, shift the required corpus for education ( ₹5.17 crore, the discounted value of ₹5.92 crore in the sixth year) to debt investments two years before the goal. This conservative strategy aims to grow the corpus steadily by 7% annually, ensuring that by the beginning of the eighth year, you will have ₹5.92 crore for your international education goal. For retirement planning, to earn ₹1.5 lakh per month inflation-adjusted post-retirement, target a corpus of ₹15-16 crore, assuming retirement at 60, a life expectancy of 85 years, and post-retirement inflation of 6%.
Continue your current investments and, at the age of 58, transition 70% of your equity corpus to debt investments, utilizing a systematic transfer plan (STP) strategy for withdrawals. Incorporate your EPF, PPF, and NPS contributions effectively to supplement your retirement corpus. Maintain your monthly SIPs in large, mid, and small-cap index funds to ensure diversification and growth.
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