I retired six months ago and have Rs 50 lakh as my retirement settlement. I want Rs 50,000 to come to me each month from this fund for my life in retirement. Can you suggest a plan?
If you have never invested in mutual funds, you should use the opportunity to make an investment in a balanced fund
I retired six months ago and have Rs 50 lakh as my retirement settlement. I want Rs 50,000 to come to me each month from this fund for my life in retirement. Can you suggest a plan?
Renu Riwari, Mumbai
You need to put this money into an investment that pays out Rs 6 lakh every year to pay you Rs 50,000 each year. If you could take a lesser portion of this corpus for the time being and increase your outflows after a few years, you will give it the necessary scope to earn some returns to pay you later. If you have never invested in mutual funds, you should use the opportunity to make an investment in a balanced fund to start with. This way, you will be able to have a mix of capital appreciation on the corpus and also at the same time be able to redeem the money you need each month.