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Where should I invest 30 lakh and 20K per month?

Dhirendra Kumar advises how one should plan retirement at the age of 55

I want to invest about Rs 20,000 every month from now. My age is now 55. Also, I have about Rs 30 lakh. Please suggest me.
- Pratyanshu Mohapatra

I am assuming that you are planning for your retirement. Investing 20,000 a month means that you are able to invest about Rs 2.4 lakh a year. And if you are planning to retire at the age of 60, you still have five years to go. So, that will be about Rs 12.5 lakh principal yet to be contributed, besides the Rs 30 lakh that you have.

I would say that this Rs 30 lakh is a very important amount. You shouldn't be taking chances with this. But at the same time, not taking chances will make sure that you don't have enough corpus for retirement. Your goal should be to have so much money that if you start 6-8 per cent of annual withdrawal from your corpus during retirement, then that money should last for a lifetime. You will have to do some kind of estimation in terms of how much income you would need during your retirement. And target that money.

I don't know whether this money has already been invested in any market-linked plan or is lying in your bank account. If it has already been invested in a market-linked investment, fine, let it be there. If you have never invested in any market-linked investment before, go for a balanced advantage fund. But spread the money over the next 30-36 months. Don't invest at one go. Similarly, you can use a balanced advantage fund to invest Rs 20,000 every month. They are pretty conservative.

However, if you have invested in any market-linked plan, then after five years, you won't need all the money at one go. So, mount an SWP depending on how much income you need from that investment. I think a market-linked investment is necessary to make sure that you are able to support inflation-beating income requirements after retirement.

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