Need Expert Advice?Our Gurus Can Help

Ans: Hello;

No that is not correct however people should avoid making retirement corpus estimate based on some thumb rules floating on social media which can be dangerous to your financial well-being and health.

If you have "adequate resources" of inflation indexed income, such as:

1. SWP from a hybrid mutual fund
2. Rental income from residential or commercial property
3. Inflation indexed annuity income

In addition to interest income, dividend income, pension, if any, self occupied house plus separate provisions for kids higher education and some emergency fund for health issues apart from adequate healthcare insurance for the family.

This can work for many people.

The key thing is people who are in late 30s/early 40s have a burnout feeling due to toxic work culture in most Indian establishments and also having created some corpus are eager to exit the rat race without proper due diligence.

Such people may try to pursue alternate vocation or profession to remain engaged, keep earning and also get out of the rat race after careful consideration and planning.

Best wishes;
X: @mars_invest

Ans: Hello;

Based on the given information, my view is your decision to purchase new flat is not correct from fiscal prudence standpoint.

It is preferable that you close all outstanding loans before getting into retirement.

Based on given information, you may have a corpus of around 1 Cr+, 8 years from now plus two flats.

Best wishes;

Ans: Hello;

In any insurance adequate disclosure is essential to get a thorough underwriting check and risk acceptance.

Once insurance company agrees to insure with the disclosures then chances of claim rejection are remote.

You may escalate the matter with Compliance Officer of the insurance company, insurance ombudsman or IRDAI for an amicable settlement, if possible.

You may also check with organisations such as "beshak.org" for any possible help in the matter.

Best wishes;

Ans: Hello;

In 2005 during merger of JVS and JSW, conversion ratio was 1:16, i.e. 16 shares of JSW for every 1 share of JVS, therefore 200x16=3200 shares.

In 2017 JSW split its share in the ratio of 1:10 so no. of shares held: 10x3200= 32000 shares of JSW as on today.

Best wishes;

Ans: Hello;

Request you to kindly be specific about the type of claim and type of discrepancy.

This will help us to respond suitably.

Thanks;

Ans: Hello;

My suggestion would be to begin with a RD and a NPS account.

If these are not suitable then she may opt for mutual funds(balanced advantage funds to beginwith).

Price should never be a criteria to buy a stock. It's valuation, growth prospects and governance record should be the key criteria.

If she is insistent on stock sip then she may consider Tata power, L&T and ITC.

The entry levels and stop losses should be ascertained from a sebi registered research analyst.

Best wishes;

Ans: Hello;

You may compare policies as offered by different insurers as per your requirement, online, on web aggregator platforms like policybazaar, insurancedekho, policyx, turtlemint etc.

Or else you may visit individual insurer's website to study their product features but this can be cumbersome.

Another option is to seek help from an insurance advisor.

Almost all big companies offer term plans that can meet your requirements. For eg SBI Life e-shield next, HDFC life click to protect super, ICICI Pru life iprotect super, LIC new jeevan amar term plan etc.

Best wishes;

Ans: Hello;

What is your current age and risk profile type?

Please clarify.

Thanks;

Ans: Hello;

Please elaborate your job history after September 2008 with EPF/EPS contribution/membership status.

Thanks;

Ans: Hello;

Send a reminder notice to the banks seeking time bound implementation of the Court order.

Either they may be preparing to appeal against the lower court order or it may be just a case of procedural delay.

Await their feedback before escalating to the court.

Best wishes;

Ans: Hello;

Sell some of your asset like land, gold or vehicle to repay the loan on priority.

Don't borrow to repay existing loans. Restructure the loans or seek a moratorium till you get a job.

Borrow funds from family and friends explaining your mistakes and promise to repay once you get another job.

Keep in mind the old saying to cut your cloth as per your size and act accordingly.

Best wishes;

Ans: Hello;

Look at claim settlement ratio, capital adequacy, preferably listed on bourses, strong parentage and riders on offer.

LIC, SBI Life, HDFC life, ICICI Pru life, Bajaj Allianz Life are some of the good companies to consider.

It is not advisable to go for term plan with return of premium at policy maturity(excluding taxes) since it's a costly proposition.

Also the incremental premium you pay for return of premium option if invested in mutual funds may yield better returns.

Some companies are offering zero cost term insurance which you need to carefully evaluate before signing up.

Best wishes;

Ans: Hello;

Depends on type of insurance, types of riders required, cost preference and sum assured being considered.

Best wishes;

Ans: Hello;

In 2012 when these two companies merged agreed swap ratio was 1:72.

I.e. 1 share of JSW Steel for every 72 shares of Nippon Ispat. The balance 18 shares of Nippon Ispat will be paid in cash as per the market price prevailing during the merger.

Further in 2017 JSW Steel split its share at 1:10 ratio.

So you may have 10 shares of JSW Steel.

Best wishes;

Ans: Hello;

What is the retirement income you expect?

Are there any financial goals that need to be funded before/after retirement?

Any loans?

Please clarify.

Thanks;

Ans: Hello;

Just summarizing your assets available for generating retirement income:

1. Domestic FD: 2 Cr
2. Gold(3 Kg) valued at~:2.64 Cr
3. Jewellery valued at~:2 Cr
4. Flat1: 3 Cr
5. Flat2: 1.5 Cr
6. Land: 1.5 Cr
7. Overseas House: 6 Cr
8. Overseas FD: 12 Cr
9. Self occupied property: 18 Cr
10. Stock & AIF: 1.8 Cr
Total: 50.44 Cr
(Gold price considered: 88 K per 10 gm)
However we can subtract assets at serial no. 3, 7 and 9 from this and we get a corpus of 24.44 Cr. The 44 L may be kept aside for transaction costs, taxes etc.

It is advisable that you sell the flats in India offering low rental yield and also physical gold and the land property.

Now the corpus of 24 Cr may be split into two parts:
20 Cr may be invested in MFs for SWP at 5% yielding post tax income of around 7.3 L per month.

4 Cr may be used to buy immediate annuity from a life insurance company. Assuming 6% annuity rate you may expect a post tax monthly income of 1.4 L.

So your post tax monthly income may be:
7.3+1.4+2*=10.7 L as desired.
*Rental from overseas House

Since the kid's higher education is not finding place here I suggest you work for few more years, while putting this retirement income plan in place, for funding their higher education.

Best wishes;
X: @mars_invest

Ans: Hello;

Mutual fund scheme may be recommended based on your financial goal(corpus to be acquired), risk appetite, financial profile and time horizon.

Almost all brokerage firms and Fintech companies have apps for mutual fund investment however I would recommend MF Central or mycams/Kfinkart.

Happy Investing;

Ans: Hello;

For withdrawing EPS you need to put in minimum 6 months of service.

You may have furnished composite claim form online for withdrawal which will get rejected due to short service as mentioned.

You need to furnish only form 19 to the EPFO to get the PF amount withdrawn.

If this doesn't work then you may raise a grievance in the EPFiGMS portal.

Best wishes;

Ans: Hello;

Answers to your queries are as given below:

1. EPF partial withdrawal will have No impact on EPS.
The estimated monthly EPS pension seems okay.

2. Your assumption about net EPF corpus available to you after 58 is correct, in principal.

Best wishes;

Ans: Hello;

A person may take multiple term insurance policies but he needs to inform the other insurer about his existing life insurance policies.

This will ensure that the insurer provides you additional insurance in line with your increased requirement and also claims are not dishonored later for suppression of facts.

Also people need to understand that insurers do a Human Life Value(HLV) Assessment. Human life is invaluable and no amount of money or other riches can compensate for the loss of it.

HLV tries to predict your earnings over your lifetime.

And since insurance is a protection intended to make good the financial damage caused due any loss or mishap,
no matter how much life insurance you buy, insurers will assess your HLV and make claim payment in accordance with the same irrespective of sum assured.

Do not be under the impression that if you hide your previous term policy from the new insurer then they won't know about it.

The way we can find out everything about insurance companies online similarly with a simple search they may get all details pertaining to client's financial activities including of course life insurance policies.

Nobody would want their family to run long drawn legal cases with insurance companies behind them.

Therefore it is best to keep it plain and simple with one adequate term insurance cover.

Many companies offer term life cover in which you may enhance the sum assured at certain life stages.

Benefit is you get enhanced cover for increased responsibilities without going through underwriting check again.

Do a study of claim settlement ratio over a span of years, capital adequacy, reputation, cost, riders on offer and go for the one which suits your requirement or else consult an insurance advisor.

It is better to buy term cover with accident benefit and critical illness riders.

Best wishes;

Ans: Hello;

It is okay if you are quite sure that the 10 L sum kept aside for medical emergencies, if any, will not be consumed for some other need.

This is what typically happens and then may encounter health criticality without funds for it.

You may shop around online and also check with government general insurance companies.

Hopefully GST council expedites it's decision to eliminate or reduce GST applicable on health insurance.

In my view, it is better to have a health insurance cover and deploy your funds to generate optimal returns.

Ultimately it is your choice/preference.

Best wishes;

Ans: Hello;

Your lumpsum (3 L), monthly sip(20 K) and PPF (5 K/pm) may grow into a sum of 2 Cr in 20 years from now onwards, which goes towards your first goal.

While the NPS monthly contribution (10 K) towards retirement goal is significantly lower to fulfill target (5-6 Cr).

You may take either of following steps to enhance chances of building desired retirement corpus (5-6 Cr) by 60 years.

Monthly contribution to NPS should be increased to 60 K.

Start another monthly sip for 40 K for 25 years towards retirement goal fulfillment.

Returns assumed from various investments:
Mutual funds: 10%
PPF: 7%
NPS: 8%
These are purposely considered to be on moderate side.

Coming to your portfolio, I am assuming you are okay with an aggressive risk profile for 15-20 year horizon.

You may have following fund types and allocation:

Flexicap type mutual fund: 25%
Large cap type mutual fund: 25%
Multicap type mutual fund: 25%
ELSS or Value Fund: 25%

You already have 3 of the 4 fund types mentioned above. You may continue with them but review their performance annually.

For the multicap fund type you may select any fund from the top quartile in this category.

For the 40 K sip recommended for your retirement planning, you may continue with above fund types with 20% allocation and add one thematic fund from new technology sector for balance 20%.

Reiterating that this recommendation is assuming aggressive risk profile.

If your risk appetite is different then you may consult an MFD for suitable changes.

Best wishes;
X: @mars_invest

Ans: Hello;

It is good to note that you are curious to know about investments at an early age.

Keep expenses worth 6 months as emergency fund.

Have a term insurance cover in which you can extend amount of cover based on life stages.

Use NPS for your retirement planning.

For all other financial goals such as:
1. Funds for Marriage
2. Home purchase down payment corpus build
3. Vacation planning
4. Car purchase
5. Children's education

You may plan SIPs of various durations into type of mutual funds that are in sync with your risk appetite, financial profile and time horizon.

Mutual funds can be used to invest in various asset classes such as domestic equity, international equity, debt, gold, real estate etc.

Some social security scheme subscription is also desirable (PPF/EPF).

Also carry good healthcare insurance if you are not in government employment.

Please feel free to revert for any other doubts.

Best wishes;

Ans: Hello;

Instead of investing in physical silver, you may invest in silver mutual funds/ETFs.

This will not require any safe deposit locker, making charges and GST.

You may sell it whenever you want.

Also it pegged to the price of physical silver in India.

Best wishes;

Ans: Hello;

You may be able to achieve 1 Cr corpus in the following manner;

1. Do a flat monthly SIP of 50 K for 10 years.

2. Begin with a monthly sip of 15 K and step it up every year by 30% minimum.

Other option is to do a flat monthly sip of 20 K for 17 years to achieve 1 Cr.

A modest return of 10% is considered.

Also your funds need a complete rejig for which you may get in touch with a MFD.

Best wishes;
X: @mars_invest

Ans: Hello;

With your current sip of 51 K you may be able to achieve a corpus of 2.13 Cr in 15 years time frame. (Assuming modest return of 10%).

You may use partial withdrawal from NPS/EPF, if any, and LIC policy proceeds to prepay the home loan.

Best wishes;

Ans: Hello;

How much is the approx current market value of your house?

What is the age of your grand children?

Please clarify.

Thanks;

Ans: Hello;

Please sort out the matter between your DP and yourself regarding original share certificates.

I don't think photocopies of share certificates will help.

Which company stock and NCD are you referring to?

Please clarify.

Thanks;

Ans: Hello;

What is your current age?

How much monthly income do you expect from your policies?

Isn't there a policy surrender clause?

Please clarify.

Thanks;

Ans: Hello;

We do not track stocks listed on nasdaq so won't be able to comment on it.(Picocela: PCLA)

Best wishes;

Ans: Hello;

You may consider opening account for your major son in SBI, BOB, PNB or Canara Bank.

Best wishes;

Ans: Hello;

To the best of my knowledge, Govt has stopped soliciting new applications under PMVVY since 31st March 2023.

Best wishes;

Ans: Hello;

Answer to your question would be probably yes but it comes with a whole list of terms and conditions which the lady has to fulfill so as to receive the pension.

You may check Karnataka Govt pension office or website for further details.

Best wishes;

Ans: Hello;

In debt market keep one golden rule in mind:

Return of Capital is more important than Return on Capital.

DHFL was a AAA rated NCD before it suddenly went into bankruptcy. Similar is the case with bonds of private, co-operative banks, nbfcs and credit societies.

The rate on MIS may be lower but you can sleep peacefully because your money is safe(sovereign rating).

Never chase returns but safety of capital in debt instruments.

Best wishes;

Ans: Hello;

There are many funds that allow Rs. 500 as monthly sip.

However your risk appetite, financial profile and time horizon will determine the type of fund to be invested, into which the sip has to initiated.

You may use online apps such as Groww, paytm money, Kuvera etc to make mutual fund investments online.

Best wishes;

Ans: Hello;

Definitely the part of amount should be utilised to fulfill her home loan.

However for tax liabilities and avenues to save them, if possible, should be discussed with a CA/tax advisor.

Best wishes;

Ans: Hello;

You will need a corpus of around 10 Cr to generate post-tax monthly income of 2 L+ thru SWP(3%).

Home loan has to be settled before getting into retirement through own savings and accruals.

A provision of 50 L-1 Cr for daughter's(13 years from now) higher education considering burgeoning education inflation in India, not captured by WPI or CPI index, is desirable.

Best wishes;

Ans: Hello;

You are well on course to achieve your target. Appreciate your commitment towards building a retirement corpus early.

Funds look good but please review their performance annually vis-a-vis category average and benchmark for risks and returns.

As you cross 50, taper down equity allocation gradually to 10% at 58.

As you approach retirement move your gains to safe avenues to avoid getting impacted by market volatility.

Best wishes;

Ans: Hello;

If it is an RBI regulated lending agency then you may lodge your grievance with ombudsman at RBI.

They can intervene to restructure the loan considering your job loss and illness.

Best wishes;

Ans: Hello;

I do not recommend doing an SWP at more then 3% and doing so on a 3 Cr corpus just about gives a post tax monthly income of 65 K with no scope for any buffer.

You should aim for a corpus of atleast 4 Cr. This will help you in two ways:

1. It will provide higher disposable monthly income in your hands

2. It may take 6-7 years to accumulate so the time in retirement will be comparatively lesser.

Also do keep an emergency fund worth 8-10 months regular expense coverage and ensure adequate healthcare insurance for yourself and your family now which may be continued in retirement.

Lastly, the portfolio must be more oriented towards large cap and hybrid funds for 6-7 years.

Best wishes;

Ans: Hello;

You may hold ~10% of your portfolio in the form of gold fund/ETFs for diversification and risk mitigation.

Also do annual review of your funds vis-a-vis category average and benchmark for risks and returns.

Buy an adequate term life insurance cover for yourself.

Rest looks quite good.

Ensure steady passive income source and own house before you get into business.

All the best for your business endeavours.

Best wishes;

Ans: Hello;

I recommend that you start sip in a multi asset allocation type mutual fund.

It will ensure exposure to commodities (gold), debt as well as equity.

There are many good funds in this category. You may select any fund from the top performance quartile in this category.

Happy Investing;

Ans: Hello;

Your choice of funds looks okay for now however do not fail to review their performance vis-a-vis category average and benchmark for risks & returns every year.

Happy Investing;

Ans: Hello;

Request you to please provide context of the previous conversation for better clarity.

Thanks;

Ans: Hello;

Nobody can predict market bottom however if you have a system in place to increase bets in your high conviction stocks at every major fall, it should help.

In an era of innovative disruption be very careful of the stocks you select on your own.

Do a thorough research on your identified stocks or seek help from a sebi registered research analyst else invest in mutual funds systematically in line with your time horizon and risk appetite.

I am not convinced about the future prospects of the stocks you referred for medium term.

Best wishes;

Ans: Hello;

Maybe you should convince your kid to take up a job and do phd simultaneously by explaining your financial situation.

Don't repent over whatever has happened but you need to stay firm and strong.

People should always keep in mind that business is business afterall and it may fail due to whatever reasons so while planning business entry keep some corpus separate which will keep kitchen fire burning irrespective of business failure.

Remember KFC founder Colonel Sanders after failing in his personal and professional life, struck gold with idea of KFC at ripe age of 62 and was a multimillionaire by the time he retired(~73).

Best wishes;

Ans: Hello;

You may sale some of your asset to repay the loan.

Except home loan, no other loan is worth it except maybe education loan or some emergency.

Also make sure at NO time the total loan EMIs don't exceed 35-40% of your net monthly income.

Also make sure to have 6 months of regular monthly expenses as emergency fund.

You may seek help of family and friends to repay the loan and return back to them whenever feasible.

Check if restructuring of the loan is possible to lessen EMI burden but lengthen the repayment period.

If possible your spouse may take up some job till the loan is repaid.

While managing personal finances always keep in mind the age old saying, cut your cloth according to your size.

Best wishes;

Ans: Hello;

Self PF contribution 12% of Basic +DA=720/-

Employer contribution to PF 3.67% of Basic+DA=~220/-

Total PF contribution per month=~940/-

Best wishes;

Ans: Hello;

It is recommended that you close personal loans first and then opt for home loan.

All loan EMIs shouldn't exceed 35-40% of your in-hand monthly income.

Best wishes;

Ans: Hello;

EPS closes at 58 but you may keep contributing to pf as long as you stay in active employment.

You will get interest on all your contributions. No need to worry.

Ensure entire 12% of employer contribution is credited to your pf account.

Best wishes