ASK OUR PLANNERthe Equity allocation of your
overall portfolio. As Equities
can be very volatile over the
short term, any significant
negative movement can hurt
the longevity of your corpus, as
you strive to meet your
recurring expenses and ensure
portfolio growth at the same
time. The exact % allocation for
Equity & Fixed Income will be
determined basis several
factors: existing portfolio
breakup, inflated adjusted post-
retirement expenses, recurring
or one-time income sources,
life expectancy etc. In general,
you should not have more than
4 0% exposure to Equity at your
retirement.
It is important for a retiree to
devise an efficient withdrawal
strategy from the available
corpus, to manage the dual
objective of portfolio growth
and stability, simultaneously.
We recommend investors to
start a SWP (Systematic
Withdrawal Plan) from debt
oriented mutual funds to meet
immediate regular income
needs, after arriving at proper
asset allocation. Some
traditional debt instruments like
Pradhan Mantri Vaya Vandana
Yojana & Senior Citizen Savings
Scheme can also be useful, on
case to case basis. A
comprehensive retirement plan
will take into consideration near
term & long term requirements,
evaluate your post-retirement
cash flow & provide optimal
investment & withdrawal
recommendations. To know
more about this, you may write
to us at [email protected].Q. I want to purchase a house and I
have a budget of Rs. 50 lakhs, the
property is approx. 45 lakhs. I am
confused that should I purchase the
property with cash or go for a loan?
Which is a better option please
advise?- Manish Agarwal
A. Opting for a Home Loan and
by what amount is entirely
dependent on how much own
funds you have, apart from the
down payment. Lenders
generally require at least 20%
of the purchase price upfront
from the borrower: you should
at least bring Rs. 9 lakh (20% of
4 5 lakh) from your own funds. If
you can't shell out more than
th e d o w n p a y m e n t