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How should a retiree with Rs 1 crore invest his money?

Dhirendra Kumar explains the factors to consider while devising an investment strategy to generate regular income

How should a person retiring today with Rs 1 crore allocate and invest his money?
- Rishi Agrahari

It depends on how much income you require. And whether you have any other source of getting regular income like pension or rental income. First and foremost, estimate your standard monthly income requirement from this corpus and the adhoc income requirement that you would probably require on an annual basis. Plan your investment depending on this input. Greater risk will have to be assumed if the income requirement is substantial. Suppose you can generate an annual return of 9-12 per cent by investing in a diversified manner and an appropriate asset allocation. In that case, even if you consume 6 per cent every year, you will not only have a monthly income of around Rs 50,000 but would also have some return left to protect the worth of your capital and provide higher income in future. It requires careful planning, but I feel you can do this yourself by applying these thoughts. Do invest in a diversified equity portfolio and ensure that you don't invest all the money meant for equities in one go.

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