Planning to retire at 45? Is a Rs 6-crore portfolio enough to last through your golden years?

Hi, I am a 45-year-old single professional working in IT and planning to exit full-time work in the next 1–2 years. I want to ensure my savings last long and are structured for financial independence. My current assets include ₹3 crore in stocks and mutual funds, ₹1 crore in fixed deposits, ₹1 crore in PF/PPF, and about ₹1 crore in cash, gold and other assets. I own my primary home and have a ₹40 lakh loan on a second home nearing completion. My annual expenses are ₹10–15 lakh. How should I optimally balance the ₹3 crore equity portfolio and ₹1 crore in FDs for long-term sustainability and low stress?

Advice by Siddharth Tamboli, Qualified Financial Advisor at 1 Finance

Thinking about early retirement is a good start, but the real question is sustainability over the next 40–45 years of life. After repaying the ₹40 lakh loan on your second home, you are left with around ₹5.6 crore to invest, and both homes are fully owned. With annual expenses of ₹10–15 lakh, you are drawing only about 2% of your total wealth each year. This is well below the commonly accepted safe limit of 3%. In simple terms, you are already in a very comfortable financial position. This plan does not rely on the stock market delivering extraordinary returns; it only needs markets to behave reasonably over time, something history suggests is a fair expectation.

Your equity investments of roughly ₹3 crore should be kept simple and low-stress. Around 60–70% can be allocated to broad market index funds, with the remaining 30–40% in a good flexi-cap fund. There is no need for sector or thematic funds. This portion of the portfolio is meant to grow steadily over decades, not to generate excitement every few months. Review it once a year, rebalance calmly, and avoid touching it during market corrections. This discipline is what keeps long-term retirement plans on track.

Stability comes from your safer investments. Keep enough money to cover 2–4 years of expenses in liquid funds, fixed deposits, or high-quality debt funds. This ensures you are never forced to sell equities during a market downturn just to meet routine expenses. Your EPF can be treated as a stable, medium-term investment, as it continues to earn interest even after you stop working. PPF, however, should be viewed strictly as long-term money, since withdrawals depend on the age of the account rather than your employment status.

Gold in your portfolio is serving its purpose as insurance rather than a return generator, so holding it through ETFs makes sense. You may also consider allocating a modest portion to REITs or InvITs for income-oriented returns and diversification. If your risk appetite allows, a small exposure to peer-to-peer lending can enhance returns, but it should remain limited given the credit risk involved.

Overall, a balanced allocation of roughly 50% in equities, about 25% in stable debt, and the remaining portion in diversifying assets works well. Before stepping away from active work, ensure your cash and fixed-deposit buffer is fully in place and that your EPF documentation is complete. Financially, the numbers are not just sufficient they are strong. The real challenge now is simple: avoid overthinking, stay disciplined, and let the plan do its work.