Here's how you should plan your retirement

Below is the verbatim transcript of Nath's interview with CNBC-TV18.

Caller Q: I am about to retire in a short period of time, maybe two-three years, so I was thinking of investing about Rs 8,000 a month. I am not looking for any risky investments?

A: People, who are about to retire, one of the challenges they always face is how not to outlive their wealth.

As you said you have only two-three years for retirement and you want to save around Rs 8,000 and you also said that you do not mind putting that for seven-eight years probably you can take a bit of exposure to equities. However, more importantly, I would ask you to look at your total savings that you have and then accordingly you may look at allocating 15-20 percent of those savings towards equity and balance should be put into fixed deposit. For the simple reason that that 20 percent into equity will give you a little higher return than what a normal fixed income investment will provide.

Second thing is that, you may live for another 20-30 years, god willing and if you have an expense of Rs 10,000 then probably you need to have Rs 20-25 lakh of wealth with you. If you have less than that then probably you need to cut down some of your expenses and you may need to work for a little more.

In short, of this Rs 8,000 per month that you want to invest, a little bit of money can go into equity, more importantly the total wealth that you have, you should look at investing 15-20 percent into equities and the balance into fixed income.