विशेषज्ञ की सलाह चाहिए?हमारे गुरु मदद कर सकते हैं
Ramalingam Kalirajan |8235 Answers |Ask -Follow
Mutual Funds, Financial Planning Expert - Answered on Jan 11, 2025
Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Question by Dharmesh on Jan 10, 2025
How I should I generate 75000 per month income increasing at 5 % every year with mix of equity and debt.
Ans: Understand Your Financial Goal
You need Rs. 75,000 monthly income in the first year.
The income should increase by 5% annually to combat inflation.
A mix of equity and debt investments can help achieve this goal.
Step 1: Estimate Required Corpus
Calculate the corpus required to generate Rs. 75,000 per month.
Consider safe withdrawal rates for long-term sustainability.
Include the impact of 5% annual increase in income needs.
Step 2: Allocation Between Equity and Debt
1. Equity for Growth
Allocate 60%-70% of your corpus to equity mutual funds.
Equity helps combat inflation and grows your wealth over time.
Choose a mix of large-cap, flexi-cap, and mid-cap funds for diversification.
2. Debt for Stability
Allocate 30%-40% of your corpus to debt mutual funds.
Debt investments provide stability and regular income.
Consider short-term bond funds or corporate bond funds for steady returns.
Step 3: Use a Systematic Withdrawal Plan (SWP)
1. Regular Monthly Income
Use SWP from mutual funds to get Rs. 75,000 monthly.
SWP lets you withdraw fixed amounts periodically from your investments.
2. Manage Inflation Adjustment
Increase the SWP amount by 5% every year.
This ensures your income keeps pace with rising costs.
3. Tax Efficiency
Equity SWPs are more tax-efficient due to favourable capital gains taxation.
Long-term capital gains (LTCG) above Rs. 1.25 lakh are taxed at 12.5%.
Debt fund SWPs are taxed as per your income tax slab.
Step 4: Portfolio Rebalancing
1. Maintain Allocation Ratio
Rebalance your portfolio every year to maintain equity and debt allocation.
Sell over-performing assets and reinvest in under-performing ones.
2. Reduce Risk Gradually
Shift more funds to debt as you age or near your financial goal.
This safeguards your principal while ensuring stable returns.
Step 5: Choosing the Right Funds
1. Actively Managed Equity Funds
Avoid index funds as they don’t offer active performance management.
Actively managed funds can generate better returns in dynamic markets.
2. Professional Guidance for Fund Selection
Regular plans with Certified Financial Planner guidance are beneficial.
Direct funds lack expert support, leading to potential missteps.
3. Debt Funds for Predictable Returns
Short-term and corporate bond funds are good options for debt allocation.
Avoid riskier debt funds to preserve capital.
Step 6: Emergency Reserve and Insurance
1. Emergency Fund
Set aside six months of expenses as an emergency reserve.
Keep this fund in liquid or ultra-short-term debt funds for quick access.
2. Adequate Insurance
Ensure you have adequate health and life insurance coverage.
This safeguards your family from financial burdens in unforeseen situations.
Step 7: Periodic Review and Monitoring
1. Annual Portfolio Review
Review your portfolio’s performance annually with a Certified Financial Planner.
Check if your income and growth objectives are on track.
2. Adjust for Market Changes
Adjust SWP amounts or reallocate investments based on market trends.
Ensure the portfolio remains aligned with your financial goals.
Step 8: Tax Planning
1. Plan Withdrawals to Minimise Tax
Limit withdrawals from equity funds to stay under LTCG exemption limits.
For debt funds, structure withdrawals to reduce tax impact.
2. Invest in Tax-Saving Instruments
If eligible, invest in tax-saving mutual funds (ELSS) for additional benefits.
This adds to your wealth creation while reducing tax liability.
Step 9: Long-Term Wealth Creation
1. Retain Growth Component
Avoid withdrawing the entire equity growth.
Let a part of the equity investment compound over time.
2. Build a Legacy
Ensure your investments are structured to pass on wealth to heirs.
Use nominations and wills to simplify inheritance.
Finally
Generating Rs. 75,000 monthly income with a 5% annual increase is achievable.
A balanced mix of equity and debt ensures growth and stability.
Regular review, disciplined withdrawal, and expert guidance will keep you on track.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
You need Rs. 75,000 monthly income in the first year.
The income should increase by 5% annually to combat inflation.
A mix of equity and debt investments can help achieve this goal.
Step 1: Estimate Required Corpus
Calculate the corpus required to generate Rs. 75,000 per month.
Consider safe withdrawal rates for long-term sustainability.
Include the impact of 5% annual increase in income needs.
Step 2: Allocation Between Equity and Debt
1. Equity for Growth
Allocate 60%-70% of your corpus to equity mutual funds.
Equity helps combat inflation and grows your wealth over time.
Choose a mix of large-cap, flexi-cap, and mid-cap funds for diversification.
2. Debt for Stability
Allocate 30%-40% of your corpus to debt mutual funds.
Debt investments provide stability and regular income.
Consider short-term bond funds or corporate bond funds for steady returns.
Step 3: Use a Systematic Withdrawal Plan (SWP)
1. Regular Monthly Income
Use SWP from mutual funds to get Rs. 75,000 monthly.
SWP lets you withdraw fixed amounts periodically from your investments.
2. Manage Inflation Adjustment
Increase the SWP amount by 5% every year.
This ensures your income keeps pace with rising costs.
3. Tax Efficiency
Equity SWPs are more tax-efficient due to favourable capital gains taxation.
Long-term capital gains (LTCG) above Rs. 1.25 lakh are taxed at 12.5%.
Debt fund SWPs are taxed as per your income tax slab.
Step 4: Portfolio Rebalancing
1. Maintain Allocation Ratio
Rebalance your portfolio every year to maintain equity and debt allocation.
Sell over-performing assets and reinvest in under-performing ones.
2. Reduce Risk Gradually
Shift more funds to debt as you age or near your financial goal.
This safeguards your principal while ensuring stable returns.
Step 5: Choosing the Right Funds
1. Actively Managed Equity Funds
Avoid index funds as they don’t offer active performance management.
Actively managed funds can generate better returns in dynamic markets.
2. Professional Guidance for Fund Selection
Regular plans with Certified Financial Planner guidance are beneficial.
Direct funds lack expert support, leading to potential missteps.
3. Debt Funds for Predictable Returns
Short-term and corporate bond funds are good options for debt allocation.
Avoid riskier debt funds to preserve capital.
Step 6: Emergency Reserve and Insurance
1. Emergency Fund
Set aside six months of expenses as an emergency reserve.
Keep this fund in liquid or ultra-short-term debt funds for quick access.
2. Adequate Insurance
Ensure you have adequate health and life insurance coverage.
This safeguards your family from financial burdens in unforeseen situations.
Step 7: Periodic Review and Monitoring
1. Annual Portfolio Review
Review your portfolio’s performance annually with a Certified Financial Planner.
Check if your income and growth objectives are on track.
2. Adjust for Market Changes
Adjust SWP amounts or reallocate investments based on market trends.
Ensure the portfolio remains aligned with your financial goals.
Step 8: Tax Planning
1. Plan Withdrawals to Minimise Tax
Limit withdrawals from equity funds to stay under LTCG exemption limits.
For debt funds, structure withdrawals to reduce tax impact.
2. Invest in Tax-Saving Instruments
If eligible, invest in tax-saving mutual funds (ELSS) for additional benefits.
This adds to your wealth creation while reducing tax liability.
Step 9: Long-Term Wealth Creation
1. Retain Growth Component
Avoid withdrawing the entire equity growth.
Let a part of the equity investment compound over time.
2. Build a Legacy
Ensure your investments are structured to pass on wealth to heirs.
Use nominations and wills to simplify inheritance.
Finally
Generating Rs. 75,000 monthly income with a 5% annual increase is achievable.
A balanced mix of equity and debt ensures growth and stability.
Regular review, disciplined withdrawal, and expert guidance will keep you on track.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Asked on - Jan 11, 2025 | Answered on Jan 11, 2025
Listenमैं अब 75 लाख डेब्ट फंड में और 75 लाख इक्विटी फंड (मल्टीकैप) में, 25 लाख FD और लिक्विड फंड में, 25 लाख HDFC बैलेंस एडवांटेज में 2 साल के लिए निवेश करूंगा और फिर SWP के जरिए 5 प्रतिशत की बढ़ोतरी के साथ 75000 करूंगा। क्या यह ठीक है?
Ans: आपकी योजना में अच्छा विविधीकरण है, लेकिन 2 साल की समयावधि के लिए, इक्विटी जोखिमपूर्ण हो सकती है। 5% वृद्धि वाला SWP दीर्घकालिक आवश्यकताओं के लिए आदर्श है। अपने वित्तीय लक्ष्यों, जोखिम सहनशीलता और कर दक्षता के साथ संरेखण सुनिश्चित करने के लिए किसी प्रमाणित वित्तीय योजनाकार या MFD से परामर्श करें।
सादर,
के. रामलिंगम, एमबीए, सीएफपी,
मुख्य वित्तीय योजनाकार,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
सादर,
के. रामलिंगम, एमबीए, सीएफपी,
मुख्य वित्तीय योजनाकार,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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