My spouse and I earn Rs 60 lakh annually. How should I plan my retirement with a sum of 5 crore after 5 years?

I have been working as an IT professional for the last 10 years in Pune. I want to plan my retirement with a sum of Rs 5 crore in the next 5 years (by 2028). Currently, I am making Rs 40 lakhs per annum and my wife is earning Rs 20 lakhs per annum. We have our flat in Pune (the outstanding loan of that house is Rs 10 lakh). Approximately Rs 10,000 monthly EMI

We have other investments: 1 Residential plot in Pune (no loan on that). 3 BHK flat in Indore - (outstanding loan of 16 lakh) approx 20k monthly EMI. I also bought 3 plots (worth 40 lakh) at my native place. (I took a personal loan to buy this, and now almost all loans are paid off)

I do invest in Mutual funds through SIP. My Monthly SIP is now around 60k. Earlier, it was less, but in the last 6 months, I boosted it up to 60k, and the portfolio is worth 15 lakh now (including both me and my wife).

I made some investments in stocks worth 5 lakhs. All I want to know is what I should keep and what not. If MF is the way, please suggest how much I should put in SIP and how much in other ways.

Reply by Raj Khosla, Founder and MD - MyMoneyMantra.com

To create a retirement corpus of 5 crores in the next 5 years, you need to have a well-structured plan in place which may require you to increase your savings rate significantly.

Firstly, review your current finances and your existing liabilities. Create an emergency fund equivalent to at least 3-6 months of your expenses by investing in FD’s, Debt Mutual Funds or RD’s.

You have already defined your retirement goal; however, do consider factors like your retirement lifestyle, inflation, and post-retirement expenses like healthcare.

It is recommended to continue your SIPs in mutual funds, and with your aggressive retirement goal, you need to increase your monthly SIP amount in line with your savings and expenses. Diversify your portfolio by investing in large-cap, mid-cap, and small-cap funds and for a lump sum amount available for investment, consider investing in mutual funds through the Systematic Transfer Plan (STP) route.

You have multiple real-estate investments and this should be a source of regular monthly income and capital appreciation in the long term. Rent out your properties and consider investing rental income in diversified equity mutual funds through the SIP route.

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Ensure you have a family floater health plan which takes care of your medical emergency needs pre and post-retirement. Regularly review and re-balance your investment portfolio and make adjustments as needed with the help of a financial advisor who can create a personalised retirement plan.

(Views expressed by the investment expert are his/her own. E-mail us your investment queries at askmoneytoday@intoday.com. We will get your queries answered by our panel of experts.)