(Source: BloombergQuint)

BQPortfolio: Can Pramod Kumar Retire In 10 Years With Rs 1.5 Crore?

BQPortfolio speaks to citizens from across India about their financial goals and helps them access expert advice on how to achieve them.

Pramod Kumar, a 40-year-old resident of New Delhi, aims to retire in 10 years. He anticipates that he’ll need to save Rs 1.5 crore, but isn’t sure.

His rationale is that, in 10 years, he will have paid off the loan he’s taken to buy his second house, and he will also have educated his two young daughters. With that out of the way, his monthly expenses, which currently stand at around Rs 80,000, will drop substantially.

Pramod has already made a good start in putting together the Rs 1.5 crore. He currently has Rs 25 lakh invested in equity mutual funds and stocks. He also has another Rs 20 lakh in the Employees’ Provident Fund and the Public Provident Fund.

Will Pramod be able to set aside the Rs 50 lakh he’s planned for his daughters’ education, pay off the Rs 23 lakh on his home loan, and still have Rs 1.5 crore for retired life? Importantly, will Rs 1.5 crore be enough?

On BloombergQuint’s special show, Portfolio, Dhaval Kapadia, portfolio specialist at Morningstar, helps Pramod plan his finances.