How to Maximize my Father’s retirement savings with moderate risks ?

POSTED BY vinay singh ON November 24, 2013 7:56 pm COMMENTS (15)

Hi,

I am trying to plan for my father’s retirement which is 15 years away.Currently he has around ~4L in EPF and ~3.75L in VPF.

His monthly savings:

1) RD of 5000 to complete in 2015.maturity-236000

2) VPF -8000/m

3) EPF deduction- ~3000/m.

He has some loans which will get cleared in 2 years time and he would have additional 10000/m to save.The loans are at ~6-7% interest.

I have started his sip in FIBCF(3000) and SBI emerging business (2000) as of Now.I am already investing in below funds for my retirement so have included these two to provide diversification also.

1) HDFC equity-5K

2) ICICI pru dynamic-5K

3) HDFC short term opportunities-5K

4) IDFC premier equity-5K

All are growth options.Unfortunately ,I don’t have the option for going direct in these funds due to our locations which don’t have easy access to diff. fund houses.

Can you please suggest me a way to maximise his retirement savings with moderate risks.I am expecting to reach like ~1.2-1.5 Cr.

15 replies on this article “How to Maximize my Father’s retirement savings with moderate risks ?”

  1. ashalanshu says:
    November 30, 2013 at 8:48 pm

    Dear Vinay, to protect that thing, one should transfer the profits from super performing to average performing asset in a brilliant year like 2007. 🙂

    thanks

    Ashal

    Reply
  2. ashalanshu says:
    November 29, 2013 at 10:29 am

    Dear Vinay, OK, Go ahead.

    thanks

    Ashal

    Reply
    1. vinay singh says:
      November 29, 2013 at 6:11 pm

      Thanks Ashal,
      Feeling a bit confident now..With all these ..just have to hope that markets don’t do a “2008” at that time when we actually need the money 🙂

      Reply
  3. ashalanshu says:
    November 26, 2013 at 11:13 am

    Dear Vinay, in that case the short fall is roughly 1-1.5 Cr. Rs. only. Which can be got easily from the other savings.

    thanks

    Ashal

    Reply
    1. vinay singh says:
      November 26, 2013 at 9:18 pm

      Dear Ashal,
      That’s what i am looking for .As of now,i intend to run this sip for 2 years and once the loans are cleared,I will put that money also in 80:20 ratio in these two funds.
      Also ,i will put that RD amount in the HDFC short term.
      Is this the right way to go? Any corrections?

      Thanks
      Vinay

      Reply
  4. ashalanshu says:
    November 25, 2013 at 1:18 pm

    Dear Vinay, 2 or 2.5 Cr. target is OK. Now check how much your father get as PF money as well as leave encashment and gratuity etc. as retirement benefit? This ‘ll help to calculate what is the short fall?

    thanks

    Ashal

    Reply
    1. vinay singh says:
      November 25, 2013 at 2:25 pm

      Dear Ashalanshu,
      It has come around ~90L in total.(including VPF at same rate)

      Thanks
      Vinay

      Reply
  5. vinay singh says:
    November 25, 2013 at 12:25 pm

    Dear Ashalanshu,
    Rs: 15000:
    @60 with 9%-55K
    @65 with 9%-84k
    @70 with 9%-1.3L
    @75 with 9%-2L
    Also ,I checked with Aegon religare and Pattu’s retirement calculator and both are giving me a figure around ~2.5 crores.However,ICICI is showing me a very low figure ~66 lakhs ..not sure why there is so much diff. It seems they are not years after retirement in consideration.
    All has been calulated with 9% inflation ,pre and post retirement and a return on avg of 10% ,all combined.

    With the current status ,i don’t think we will be able to reach 2.5 crores.So ,i am looking for ways to get the best which we can manage from here.
    Thanks
    Vinay

    Reply
  6. vinay singh says:
    November 25, 2013 at 11:50 am

    Dear Ashalansu ,Please ignore the earlier response.It got repeated due to some browser issues.
    For next part of earlier question.If he is retired now,the expenses will be high as he is going through some medical treatment which has costed around 3-5 lakhs and has been paid completely by the company.
    Normal expenses will be similar though.
    For next question,I will get the details and update here.

    Reply
  7. ashalanshu says:
    November 25, 2013 at 11:39 am

    Dear Vinay, now simplify the calculation yourself. what ‘ll be his inflated mly expenses @ age 60, 65, 70, 75….. for the rate of inflation you think ‘ll be there from here onwards.

    Thanks

    Ashal

    Reply
  8. ashalanshu says:
    November 25, 2013 at 10:03 am

    Dear Vinay, post retirement ‘ll he live in a rented house or in own house? What ‘ll be possible mly expense today, if he is retired?

    Thanks

    Ashal

    Reply
    1. vinay singh says:
      November 25, 2013 at 11:29 am

      Dear Ashalanshu, . We have our own house in my native place which can be used in emergency but he may live in the house which i am planning to buy in a year or two. So most probably ,he won’t be living on rent .

      Reply
    2. vinay singh says:
      November 25, 2013 at 11:44 am

      Dear Ashalanshu, for next part of earlier question. We have our own house in my native place which can be used in emergency but he may live in the house which i am planning to buy in a year or two. So most probably ,he won’t be living on rent .

      I will get the details and update here.

      Reply
  9. ashalanshu says:
    November 25, 2013 at 7:53 am

    Dear Vinay, what is the mly expense figure for your father?

    Thanks

    Ashal

    Reply
    1. vinay singh says:
      November 25, 2013 at 9:05 am

      Hi Ashal,
      Thanks for your response.
      As my father is currently living in a company provided house , His monthly expense is around 15000.No major short term goals .

      Reply

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