Reached ₹5 Crore Corpus - Now What?

You've done it. Whether through years of disciplined investing, a successful business exit, or high-income savings - you've built a ₹5 crore portfolio.

But now comes the real question: What next?

Can you retire? Should you restructure your portfolio? How do you protect what you’ve built and live off it comfortably?

Let’s walk through the big decisions you now face - through the lens of financial planning frameworks used by SEBI-registered advisors and global best practices.

First, Pause and Audit Your Financial Life

Before you change gears, take a full financial health check - just like your doctor would do before changing medication.

Ask yourself:

• Monthly lifestyle cost: Are you spending ₹1L, ₹2L, or more? Break it down into essentials and discretionary expenses.
• Dependents: Are you financially supporting parents, children, or a non-earning spouse?
• Liabilities: Do you have any home loans, personal loans, or business guarantees?
• Non-financial goals: Child’s higher education, international travel, philanthropic goals?

Checkpoint: A ₹5 Cr corpus may feel large, but without clarity on your monthly outflows, it’s just a number.

Is ₹5 Crore Enough to Retire in India?

Short Answer: It depends - on your age, location, lifestyle, and inflation.

Let’s simulate some commonly-used financial planning cases:

Case 1: Age 45, ₹1.5L/month lifestyle, 40-year horizon

• Annual spending = ₹18L
• Inflation assumed = 6%
• Real return = 3% (assuming 9% CAGR portfolio returns)
• Corpus needed: ₹5.5 – ₹6 Cr
  (Calculated using a real rate annuity formula)

Case 2: Age 55, ₹2L/month lifestyle, 30-year horizon

• Annual spending = ₹24L
• Same assumptions
• Corpus needed: ₹4.75 – ₹5 Cr

Framework Used: Safe Withdrawal Rate (SWR) logic + real return modeling

Insight: ₹5 Cr is enough for many - but the result depends on:

• Where you live (metros vs Tier-2 towns)
• How your portfolio is allocated (debt vs equity split)
• How disciplined your spending is

Redesign Your Portfolio for Stability & Income

Once your corpus is built, the game shifts from growth → capital protection + income stability.

Suggested Asset Allocation

Advisor Note: Prefer target maturity funds holding over 35% in G-Secs or PSU bonds, as these may still qualify for indexation benefits post-April 1, 2023. Pure debt funds without this structure now follow slab-based taxation.

Build Sustainable Monthly Income

Living off your corpus? Use a cash flow ladder, not withdrawals based on gut feel.

Popular Income Tools

Diversify sources. A SEBI-registered advisor would typically blend these based on:

• Tax efficiency
• Liquidity needs
• Horizon of each cash flow source

Don’t Let Taxes Eat Your Corpus

Taxes can quietly eat into your monthly income if you don’t plan proactively.

Tax Planning Checklist:

• SWP from Mutual Funds: Only LTCG (>1 year holding) taxed at 10% above ₹1L/year
• FDs & SCSS: Fully taxable at slab rates
• Dividends: Taxable at slab
• Capital Gains Harvesting: Use ₹1L LTCG exemption annually

Tax Arbitrage Ideas:

• Use HUF, spouse, or senior citizen accounts to split income
• Prefer indexation-friendly debt funds over FDs for long horizons (if eligible by structure)
• For <60 age group, consider partial allocation to NPS Tier 2 with low-cost management and tax-deferred growth (though Tier 2 is not tax-exempt)

Scenario Planning: What Could Go Wrong?

A ₹5 Cr corpus is not bulletproof. Here’s what advisors stress-test for:

Most planners run Monte Carlo simulations to model 1,000+ future paths for your portfolio - ask for this if you’re unsure.

Consider Professional Help

When you’re managing ₹5 Cr or more, advisory mistakes are costlier than fees.

Seek:

• Fee-only SEBI-registered advisors (no product commission bias)
• Certified Financial Planners (CFP) with retirement planning experience
• Tools: Ask for SWP backtesting, Monte Carlo reports, withdrawal stress tests

Avoid following portfolio advice from WhatsApp, YouTube, or relatives. Good planning is personalized, not templated.

Actionable Checklist: What to Do After Reaching ₹5 Crore

Sample Cash Flow Table: How ₹5 Crore Can Work for You

→ Total Annual Income: ₹26.8L
→ Monthly Income: ₹2.23L (post-tax may vary based on structure)

Adjust numbers based on your own goals and city of residence. Always run these projections with a financial planner for accuracy.

Want to Validate Your Plan?

Use our FIRE Calculator or Book a SEBI-registered 1-on-1 consultation to explore:

• When you can safely retire
• How to structure your post-retirement portfolio
• How to generate passive income while minimizing taxes

Final Word: From Accumulation to Enjoyment

You’ve done the hard part - earning, saving, staying invested.

Now it’s time to:

• Align your money with your real life goals
• Reduce financial anxiety
• Live with predictability and peace of mind

Your money should now serve you - not the other way around.

Frequently Asked Questions

Q: Is ₹5 Cr enough to retire in India?

Yes, if your lifestyle expectations are modest and inflation is factored in. For Tier-2/3 cities and conservative withdrawal strategies, it’s very workable.

Q: How much monthly income can I get from ₹5 Cr?

At 6% post-tax returns, you can withdraw ~₹2.5L/month (₹30L/year) for ~25–30 years, assuming no shocks or overspending.

Q: Should I invest my ₹5 Cr in mutual funds?

Yes, with a balanced approach. Consider equity (30–40%), debt (target maturity), and SWP-compatible funds - based on risk appetite.

Disclaimer: This content is for educational purposes only and is not investment advice. Please consult a SEBI-registered advisor before making financial decisions.