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
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.
Related News Articles
Private Equity Investment in Indian Real Estate Grows to USD 3.9 Billion in 2024
Private equity (PE) investment in India's real estate sector surged to USD 3.9 billion (INR 329 billion) from January to September 2024, reflecting strong investor confidence in the market.
DLF Q2 Results: Profit Surges 128% to Rs 1381 Crore, Revenue Climbs 48%
DLF, India's leading real estate developer, has announced its Q2 results, showcasing a significant jump in both profit and revenue. The company's strong performance underscores its market leadership and robust business strategy.
Chembur's Real Estate Market on the Rise: Infrastructure and Connectivity Drive Growth
Chembur's transformation into a premium residential hub in eastern Mumbai
Davos 2025: Developing Navi Mumbai as the 'Third Mumbai' to Offset High Real Estate Costs
Chief Minister Devendra Fadnavis acknowledges that Maharashtra has lost business opportunities to Bengaluru and Hyderabad due to high real estate costs. However, he is confident that the development of Navi Mumbai as a 'Third Mumbai' will help balance the
Mumbai's Real Estate Market: Is the Boom on Hold? What the Recent Drop in New Projects Means for Buyers
In the bustling Mumbai Metropolitan Region (MMR), the real estate market has always been a key driver of housing growth. However, the latest quarter has seen a significant dip in new project launches, raising questions about the future of this dynamic mar
India's Real Estate Thrives in 2024: Growth, Innovation, and Broker Recognition
In 2024, India's real estate sector witnessed remarkable growth across office spaces, residential markets, and investment. The industry's resilience and adaptability have once again solidified its position as a key driver of the Indian economy.