{"id":395210,"date":"2026-04-24T09:50:05","date_gmt":"2026-04-24T09:50:05","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/395210\/"},"modified":"2026-04-24T09:50:05","modified_gmt":"2026-04-24T09:50:05","slug":"can-we-use-the-freefincal-robo-advisory-tool-to-track-the-progress-of-our-financial-goals","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/395210\/","title":{"rendered":"Can we use the freefincal robo advisory tool to track the progress of our financial goals?"},"content":{"rendered":"

\u201cCan we use the freefincal robo advisory tool to track the progress of our financial goals?\u201d is a question we often get from users and potential users.<\/p>\n

The robo tool, as many readers would know, is a financial planning tool. It automates the process of systematic risk management and suggests a variable asset allocation schedule with step-wise equity reduction. Yes, it can be used to track the progress of our financial goals<\/p>\n

The above features have been demonstrated in several illustrations before. Below is a screenshot of the variable asset allocation schedule and how the expected portfolio return changes. The investment schedule factors into these changes from day one.<\/p>\n

\"Screenshot-from-the-freefincal-robo-advisory-template-showing-the-suggested-asset-allocation-and-change-in-assumed-portfolio-return\"<\/a>Screenshot-from-the-freefincal-robo-advisory-template-showing-the-suggested-asset-allocation-and-change-in-assumed-portfolio-return<\/p>\n

In addition, the tool also provides a detailed retirement bucket strategy implementation plan to generate inflation-protected income after retirement by taking into account up to three different sources of income (pension, rent etc.).<\/p>\n

\"Retirement<\/a>Retirement Buckets Recommend by The Robo Advisory ToolVideo: Features of the Robo tool explainedHow to use the robo tool to track the progress of our financial goals?Example 1:<\/p>\n

Consider a 30-year-old with Rs. 40,000 monthly expenses that will continue in retirement. In addition, he has Rs. 40,000 as annual expenses too (health insurance premium etc,)<\/p>\n

Age he wishes to retire50Years to retirement20Total average monthly expenses (annual\/12)43,333Percentage by which monthly investments can increase each year (until you have accumulated enough for retirement)10%Post-tax return expected from\u00a0 equity investments %10Post-tax return expected from current taxable fixed income %6Rate of return expected from current tax-free fixed income\u00a0 %7<\/p>\n

These percentages can be freely changed by the user at the back-end (settings page).<\/p>\n

We will assume no current investments.<\/p>\n

Inflation before retirement (%)8The assumed life expectancy of the younger spouse (if married)90Inflation during retirement (%)8Years to retirement20Monthly expenses in the first year of retirement2,01,975Years in retirement (until younger spouse reaches age 90)40<\/p>\n

Results<\/p>\n

\u00a0NET corpus required at retirement (assuming money will be invested in different buckets. This is after accounting for the future value of current investments, post-retirement benefits (cells C14-C18 in step 2) any post-retirement income specified in step 2)9,53,63,113The GROSS Corpus required for retirement is (provided only for information. Your investment target is the net corpus above9,53,63,113<\/p>\n

So the target corpus is about Rs. 9.5 Crores.<\/p>\n

The recommended asset allocation is 60% equity for the next eight years and then gradually reducing to 36% at the time of retirement.<\/p>\n

Initial monthly investment required including EPF\/NPS contributions (scroll down to see investment schedule)68,451Percentage by which your monthly investments can increase each year (until you have accumulated enough for retirement)10%<\/p>\n

So these are the results obtained upon the first use of the robo tool.<\/p>\n

One year later, assuming the person has invested as per the schedule and assuming his equity and debt instruments have grown to (including gains) Rs. 4L and Rs. 7 lakhs and Rs. 4 lakhs respectively.<\/p>\n

If we account for this, the required corpus decreases. This is because we have factored in how much the current investment will grow.<\/p>\n

\u00a0NET corpus required at retirement (assuming money will be invested in different buckets. This is after accounting for the future value of current investments, post-retirement benefits (cells C14-C18 in step 2) any post-retirement income specified in step 2)8,26,30,524The GROSS Corpus required for retirement is (provided only for information. Your investment target is the net corpus above8,82,99,179<\/p>\n

The monthly investment required also has decreased.<\/p>\n

Initial monthly investment required including EPF\/NPS contributions (scroll down to see investment schedule)68,081Percentage by which your monthly investments can increase each year (until you have accumulated enough for retirement)10%<\/p>\n

Thus all a user has to do is to redo the calculations with fresh inputs once a year. Taking into account the accumulated corpus, the required target corpus and the investment required will gradually decrease. This is a practical way to find how close we are to achieving our goal. The user can simply copy the above results and paste them on a new sheet to check their progress across years.<\/p>\n

The proof of the pudding is to see the investment amount required gradually decrease. The robo tool offers an accurate way to track the progress of our financial goals. In the above-mentioned new tracker, we will have basic goal tracking features but those are based on simplistic assumptions and is only a ballpark estimate.<\/p>\n

Example 2:<\/p>\n

Consider a 45-year old investor who wants to retire by 50. He wants to know the value of his current corpus. Can he retire now instead of five years from now? (also see video guide below).<\/p>\n

To do this, the user must set the retirement age as 45.<\/p>\n

(a) Suppose he has about 1 Crore in assets about 50% in equity and 50% in debt. The tool would say:<\/p>\n

Corpus necessary to provide inflation-protected income for the first 15Y in retirement. This amount includes an emergency corpus for about 13.3 Lakhs\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,24,83,733Total amount in currently in hand\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,00,00,000You will not be able to generate an indexed pension, in addition to regular pension (if any), please consider buying an annuity with your corpus keeping at least the sum mentioned (cell C36) above as emergency corpus<\/p>\n

So the user knows how much more he has to accumulate. He can set the retirement age as 46, 47 etc. to find out how much more he has to invest.<\/p>\n

(b) Suppose we increase the existing corpus to 75 Lakhs in equity and 75 Lakhs in debt and set the retirement age back to 45. The current equity: debt asset allocation will not influence the recommendations.<\/p>\n

Corpus necessary to provide inflation protected income for first 15Y in retirement.This amount includes an emergency corpus for about 13.3 Lakhs\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,24,83,733Total amount in currently in hand\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,50,00,000\u2018excess\u2019 corpus available for investment\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 25,16,267Corpus required to provide inflation protected income after the first 15Y in retirement to remainder of your lifetime\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,55,40,667<\/p>\n

For a person who is still working this is enough to say that they are not yet ready to quit! For someone who has stopped working, this is bad news. The tool would further say:
\u201cThe required corpus (cell B39) is too high. You may need to buy an annuity with your corpus at some stage in your life. Please consult a trusted SEBI registered fee-only financial planner, who charges a flat fee to review this case*\u201d. Most advisors would also concur with this view and recommend an annuity with some stash for emergencies and a drastic reduction in expenses.<\/p>\n

*The tool recognises that there are many grey areas in retirement planning and a human advisor may be necessary for these. Whether they would do a better job or not is an unknown though. Any user who appreciates commonsense should appreciate the results.<\/p>\n

If the user is not happy with these results, a DIY bucket strategy sheet is available to design their own retirement bucket (not recommended at low corpus levels).<\/p>\n

(c)\u00a0 Suppose the user has assets of about 3 crores, then the tool is finally happy and outputs a retirement bucket strategy. This means the user is ready to retire.<\/p>\n

This is a snippet of the full message. All return assumptions can be varied. In addition, there is a DIY bucket strategy sheet available.<\/p>\n

Retirement BucketsAmount to be invested in each bucketIncome bucket (100% liquid fixed income) to provide income in retirement with a return of 6 % p.a. This will ensure income for the first 15 years in retirement\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,19,05,373low risk bucket with 50 % fixed income (rest equity) expeced to grow at a rate of 9 % p.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 73,13,253medium risk bucket with 30 % fixed income (rest equity) expeced to grow at a rate of 9 % p.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 53,03,464High risk bucket with 0 % fixed income (rest equity) expeced to grow at a rate of 10 % p.a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 39,77,910<\/p>\n

Thus the robo tool can be used to judge how soon a user is ready to retire by changing the retirement age and current asset and income sources.<\/p>\n

Video GuideHow to use the Robo Advisory Tool to check if you are ready to retire<\/p>\n

Do share this article with your friends using the buttons below.<\/p>\n

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About The Author \"Pattabiraman<\/a>Dr M. Pattabiraman<\/a> (PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras<\/a>. He has over 13 years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X)<\/a>, LinkedIn<\/a>, or YouTube<\/a>. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing<\/a> (CNBC TV18) for DIY investors. (2) Gamechanger<\/a> for young earners. (3) Chinchu Gets a Superpower!<\/a> for kids. He has also written seven other free e-books<\/a> on various money management topics. He is a patron and co-founder of \u201cFee-only India<\/a>,\u201d an organisation promoting unbiased, commission-free, AUM-independent investment advice. Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions!<\/a> \u21d0 More than 3,500 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition!! Watch the first lecture for free!\u00a0 One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence. Increase your income by getting people to pay for your skills!<\/a> \u21d0 More than 800 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner seeking more clients through online visibility, or a salaried individual looking for a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you. (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!\u00a0 \u00a0 Our book for kids: \u201cChinchu Gets a Superpower!\u201d is now available!<\/a>\"Both<\/a>Both the boy and girl-version covers of “Chinchu Gets a superpower”. Most investor problems can be traced to a lack of informed decision-making. We made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about?\u00a0As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So, in this book, we meet Chinchu, who is about to turn 10. The narrative revolves around what he wants for his birthday and how his parents plan for it, as well as teaching him several key ideas of decision-making and money management. What readers say!\"Feedback<\/a>Feedback from a young reader after reading Chinchu gets a Superpower!Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. – Arun. Buy the book: Chinchu gets a superpower for your child!<\/a> How to profit from content writing<\/a>: Our new ebook is for those interested in getting a side income via content writing. It is available at a 50% discount for Rs. 500 only! Do you want to check if the market is overvalued or undervalued? Use our market valuation tool<\/a> (it will work with any index!), or get the Tactical Buy\/Sell timing tool<\/a>! We publish monthly mutual fund screeners <\/a>and momentum, low-volatility stock screeners<\/a>. About freefincal & its content policy. Freefincal is a News Media organisation dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News<\/a>. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence\/data. Contact Information: To get in touch, please use our\u00a0contact form<\/a>. (Sponsored posts or paid collaborations will not be entertained.) Connect with us on social media Our publications<\/p>\n

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