Meet Mr. Joshi, a 56-year-old employee who has
always been prudent about money. With no pension benefits available to him, Mr.
Joshi began thinking about his retirement years early in life. His wife, a
homemaker, and his two well-settled children have always been his pillars of
support. Now, with his responsibilities mostly fulfilled, he wants to ensure
his post-retirement years are financially secure and worry-free.
Mr. Joshi had the foresight to start planning early. In his
late 30s, he began setting aside part of his income into fixed deposits and
recurring deposits—stable, low-risk options that suited his risk appetite at
the time. While these instruments offered safety, they weren’t enough to beat
inflation in the long run.
Enter his niece, Priya, a Personal Finance Professional, who gradually
helped him rethink his strategy. Over time, she guided him to diversify his
investments into mutual funds, starting with hybrid funds and then
equity-oriented schemes. Thanks to Priya's steady hand, Mr. Joshi built an
investment portfolio tailored to long-term wealth creation, risk management,
and liquidity.
Let’s walk through how his proactive planning and balanced
investment strategy helped lay the foundation for a stress-free retirement.
1. Determining Retirement Objectives
Mr. Joshi always envisioned a retirement where he could
maintain his current lifestyle, travel occasionally, and be financially
independent without burdening his children. He also wanted to be prepared for
medical expenses and unexpected needs.
2. Estimating Post-Retirement Expenses
One of the most critical steps in retirement planning is
forecasting future expenses. Mr. Joshi currently spends around ₹60,000 per
month. At a 6% inflation rate, this figure could easily touch ₹1 lakh monthly
and gradually increasing much beyond that six digit figure over the years.
By having a detailed budget in mind he was able to assess how
much retirement corpus would be needed to sustain him and his wife for at least
25–30 years post-retirement.
3. Achieving Financial Independence
With a clear picture of his goals and future expenses, Mr.
Joshi focused on building financial independence. Early investments in bank
deposits laid the foundation. But the real growth came from his disciplined
SIPs in hybrid and equity mutual funds, initiated in his early 40s with
guidance from his niece.
For example, his ₹25,000 monthly SIPs in equity funds over the
past 15 years have grown into a sizeable corpus, supplementing his PPF and
provident fund accumulations. Today, he’s on track to retire with a diversified
portfolio that offers both growth and income stability.
4. Minimizing Taxes
Efficient tax planning has helped Mr. Joshi keep more of his
returns. He’s focused on tax-saving avenues under Section 80C during his
working years and plans to rely on instruments like Senior Citizens' Savings
Scheme (SCSS) and Systematic Withdrawal Plans from his hybrid funds for
post-retirement cash flow.
To sum up, Mr. Joshi’s story is proof that retirement planning
doesn’t have to be stressful—especially when started early and done with
discipline. By setting clear goals, investing smartly under good advice, and
thinking long term, he has created the freedom to enjoy life on his own terms.
The content made available in this article is for general informational purposes only. While every effort has been made to ensure the accuracy and completeness of the content, it should not be considered as a substitute for professional consultation.
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