Need opinion on loan OD against equity & SWP for repayment.

[cingo]

Hello,
I need some opinions/advice/guidance in the following matter.
I am 68 yrs old and I have invested 40Lakh in various equities & 50Lalk in Equity based M/F’s since last 14 years.
Current market value is around 1.8crore & 1.6crore respectively & it may grow by 20% CAGR as per my assumption in the next 7 years and total market value may hit around 10crore mark.
I have a land property valued 3crore where I am planning to build a 5 floor residential apartment on it.
For this I need a fund around 2crores for construction & I am planning to raise funds from overdraft loans against my Equity shares & M/F at the rate 10.35%.approx .
I do not have any other source to raise the required funds as I am retired now and I do not have any other liabilities.
I am planning SWP of 10lacs every year to repay interest on OD.
I wish that I would be able to pay off any loans and OD WITHOUT having to sell any apartment/unit.
Will this be possible? Is there any other way?
I need some opinions/advice/guidance
Thanks

 

[KK001]

Hello,
I need some opinions/advice/guidance in the following matter.
I am 68 yrs old and I have invested 40Lakh in various equities & 50Lalk in Equity based M/F’s since last 14 years.
Current market value is around 1.8crore & 1.6crore respectively & it may grow by 20% CAGR as per my assumption in the next 7 years and total market value may hit around 10crore mark.
I have a land property valued 3crore where I am planning to build a 5 floor residential apartment on it.
For this I need a fund around 2crores for construction & I am planning to raise funds from overdraft loans against my Equity shares & M/F at the rate 10.35%.approx .
I do not have any other source to raise the required funds as I am retired now and I do not have any other liabilities.
I am planning SWP of 10lacs every year to repay interest on OD.
I wish that I would be able to pay off any loans and OD WITHOUT having to sell any apartment/unit.
Will this be possible? Is there any other way?
I need some opinions/advice/guidance
Thanks

 

[sauravkumar]

Hello,
I need some opinions/advice/guidance in the following matter.
I am 68 yrs old and I have invested 40Lakh in various equities & 50Lalk in Equity based M/F’s since last 14 years.
Current market value is around 1.8crore & 1.6crore respectively & it may grow by 20% CAGR as per my assumption in the next 7 years and total market value may hit around 10crore mark.
I have a land property valued 3crore where I am planning to build a 5 floor residential apartment on it.
For this I need a fund around 2crores for construction & I am planning to raise funds from overdraft loans against my Equity shares & M/F at the rate 10.35%.approx .
I do not have any other source to raise the required funds as I am retired now and I do not have any other liabilities.
I am planning SWP of 10lacs every year to repay interest on OD.
I wish that I would be able to pay off any loans and OD WITHOUT having to sell any apartment/unit.
Will this be possible? Is there any other way?
I need some opinions/advice/guidance
Thanks

Sir first of all Congratulations on taking sensible finance decision earlier and building this corpus!!👍👍

At the age of 65+ you should allocate most of the fund in debt market instruments instead of equity.

Definitely you should consider and use SWP. But think about the amount you actually need to fulfill your requirements.

Note there is one saying which most market expert knows - Increase Debt Market investment with age and reduce exposure in Equity.

If your age is 65+ then atleast 2/3 money should be invested in Debt Market.😀😀

 

[anujdit]

At age of 65+, it is not wise to invest in property however it will be good to have money in hand. It will be better keep the land or make 1-2 apartments only. You will not be able to liquidate Property, Shares and MF that soon (after OD).