Creating a financial Portfolio for Retirement

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Creating a financial Portfolio for Retirement

A survey is conducted in couple of IT industry around financial portfolio, and we realized that there are lack of knowledge in most of the IT Employees about how to create a financial portfolio.

Well this article will help you in creating the financial portfolio for retirement. Any member has following needs:-

  1. Food
  2. Shelter
  3. Cloth
  4. Health
  5. Society

You might have planned for Food, Shelter & Cloths, but you needs to consider the health & Society, as major chunk of money will go against these 2 items. Health Insurance is mandate and needs to be started at early age, such that everything is covered and there is no exclusions. It will cost around Rs. 20,000 yearly for a member age ~ 60 years.

Considering today 1 Lac will provide you Rs. 7,350 annually, which means you needs to have ~3 Lac deposited in bank account to generate the Interest which can pay off the Medical premium.

Considering your monthly expenditure of Rs. 30,000 to fulfill the #1,#2 & #3 needs then it requires close to ~4 * 12 Lac. Little confusing, well You need to have 12 different FD’s, each FD amount is 4 Lac, such that annuity will pay you monthly expenses.

Saying above things, you need to have cash portfolio of ~51 lac to fulfill your needs as of today. Now question comes how to generate this much hard cash at the time of retirement to fulfill daily needs.

  1. Every employer invests handsome amount in EPF, don’t withdraw the money. Considering your age is 25 years, and Annual Salary of 10 Lac and retirement age of 50 years then You will be able to get you will be able to get ~1.5 Cr at the time of retirement, considering 8% growth every year. Calculated using Economics tools
  2. Buy the heath Insurance today, You can buy it from Adviser or directly from Online Portal, Prefer to buy from adviser as he can help in clearing your doubts. I have bought my health policy from ICICI Advisor, you can also get in touch with him @ 9900031871 (Nitin Gupta).
  3. Buy the Term Plan, to make sure in case something happened bad to earning member then family should be able to run the Business, 1 Cr will cost ~9000 per annum.
  4. Buy the home, this will help in reducing the monthly expenditure in long term
  5. Invest in diverse portfolio
    1. Mutual Funds using SIP (35%) … Create Account
    2. Direct Stock Market (20%)………..Create Account
    3. Bank Deposit (30%)…………………Refer here to get the Bank details
    4. Gold & Commodity (15%)………….Create Account

In case you are not able to get ~50-60 Lac of hard cash then look for annuity, where bankers will provide the monthly pension. 1 Lac will provide ~763 per month considering annuity for 20 years & inflation rate at 5% & interest rate at 7%.


All the calculates are done as of Today, but you needs to consider an inflation of ~ 5-6% every year.

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