Hike SIP amounts by 10% every year to retire early

economictimes.indiatimes.com:

Amit Sareen is saving for his children’s education and retirement. Here’s what the doctor advises:

PORTFOLIO CHECK-UP

• Has been investing in a mix of equity, hybrid and debt funds for the past 8-9 years.
• Regular investment and aggressive allocation have helped build a sizeable corpus.
• Most funds in the portfolio are good and should be continued.
• Some underperforming schemes need to be dumped.
• Early retirement at 55 requires a big corpus.
• Rental income from holiday home can support retirement.
• Too little in fixed income. Start a PPF account to give stability to portfolio and build tax-free corpus.
• Buy term life insurance of at least Rs.2 crore to safeguard all financial goals.

Note from the doctor

• Child’s education goal is close. Reduce risk by gradually shifting to fixed income.
• Don’t invest in too many funds. A mix of 6-7 funds is enough for diversification.
• Review investments and rebalance at least once in a year.
• Reduce risk when goal is near so that you don’t miss the target.

WRITE TO US FOR HELP
If you want your portfolio examined, write to etwealth@timesgroup.com with 'Portfolio Doctor' as the subject. Mention the following information:

• Names of the funds you hold.
• Current value of the investment.
• If you have SIPs running in any of them.
• The financial goals for which you invested.
• How much you need for each financial goal.
• How far away is each goal.