Retirement Ready: How a Disciplined Approach Secured this CEO's Future

Mumbai-based Kartik Sharma's disciplined approach to investing has helped him secure his retirement future. With a high savings rate and a well-diversified portfolio, he's on track to achieve his goals.

Retirement PlanningInvestingMutual FundsDisciplined ApproachFinancial PlanningReal Estate MumbaiJul 10, 2024

Retirement Ready: How a Disciplined Approach Secured this CEO's Future

Real Estate Mumbai:Kartik Sharma, a 52-year-old CEO of a global media company, is a shining example of how a disciplined approach to investing can secure one's retirement future. With a well-diversified portfolio and a high savings rate, Sharma is confident that he'll achieve his retirement goals.

Sharma's investment journey began in the early 2000s, but it wasn't until he sought the help of a financial advisor that he started to see real progress. Today, his portfolio consists of 34 mutual funds, with a 74% allocation to equities and 26% to debt.

The equity portion of his portfolio is further diversified into large-cap, flexi-cap, large and mid-cap, and international funds. The debt allocation is split evenly between liquid and illiquid debt, with the liquid portion reserved for annual family travel and contingency requirements.

Sharma's high savings rate of 70% has been instrumental in helping him achieve his goals. He invests 70% of his income in mutual funds through monthly systematic investment plans (SIPs), with the remaining 30% for household expenses.

Despite being eight years away from retirement, Sharma has already reached 100% of his corpus target for his son's education. He's also planning for annual vacations and has set aside funds for upgrading their car.

Sharma's disciplined approach to investing is complemented by his aversion to debt and unnecessary spending. He doesn't have any outstanding loans and avoids credit cards. Instead, he keeps a simple and easy-to-track financial life.

Growing up in the pre-liberalization era has also shaped Sharma's thinking. He believes that getting more material things doesn't necessarily add to more happiness. Instead, he focuses on living a simple life and saving for the future.

Sharma's story is a testament to the power of disciplined investing and the importance of having a clear financial plan. By adhering to his approach, he's successfully navigating his retirement planning journey and is well on track to achieving his goals.

Frequently Asked Questions

What is Kartik Sharma's investment strategy?

Sharma's investment strategy consists of a 74% allocation to equities and 26% to debt, with a diversified portfolio of 34 mutual funds.

How does Sharma achieve his high savings rate?

Sharma achieves his high savings rate of 70% by investing 70% of his income in mutual funds through monthly SIPs and keeping a simple and easy-to-track financial life.

What is Sharma's approach to debt?

Sharma avoids debt and has a loan-free house. He believes that loans are bad for you and has ingrained this idea from a young age.

How does Sharma plan for his retirement goals?

Sharma plans for his retirement goals by setting aside funds for annual vacations, upgrading their car, and saving for his son's education. He also has a sizeable life insurance cover and health cover.

What is the key to Sharma's successful retirement planning journey?

The key to Sharma's successful retirement planning journey is his disciplined approach to investing, high savings rate, and avoidance of debt and unnecessary spending.