Home > Career > Question
Need Expert Advice?Our Gurus Can Help

CDS OTA: What Career Options After 10 Years?

Pradeep

Pradeep Pramanik  | Answer  |Ask -

Career And Placement Consultant - Answered on Aug 19, 2024

Pradeep Pramanik is a career coach, placement consultant and director at Fast Track Career Consultants, which provides career counselling, soft skills training and placement consultancy services.
Pradeep, who hails from Bhagalpur in Bihar, has worked in the pharmaceutical industry for 15 years in sales, marketing, training and product management roles in companies like Lupin Pharmaceuticals, Elder Pharmaceuticals and Ranbaxy Laboratories.
During his tenure in the pharma industry, he has worked in different states including Bihar, Jharkhand, Andhra Pradesh, Telangana, Karnataka, Maharashtra, Tamil Nadu and West Bengal.
In 1998, he launched Fast Track Career Consultants with the aim of helping youngsters find jobs through the right career counselling, training and placement services.
They also offer HR analysis and appraisal services.
Over the years, he has been invited by management and engineering institutions to discuss education and employment policies, entrepreneurship, soft skills and emerging careers in India.
He has published four books on career counselling and contributed articles to print publications.... more
Asked by Anonymous - Jul 17, 2024Hindi
Listen
Career

Sir, I'm interested in the Army through CDS OTA. Assuming I don't qualify for permanent commission after my initial service, what career options would be available to me following the 10-year period (including the potential 4-year extension)?

Ans: Dear ,

As You know NDA and CDS are tough exams to get into defence services , CDS OTA is the training wing for Army officers. Any one having completed short service or permanent service in defence are always sought after Human resource who are welcomed in most banks / public sector companies , Security servce providers/ Logistic companies , steel and power plants or large mfg companies in Admin or in their Security deptt to manage as managers or Sr officers . Many State owned corporations often publish requirements to hire Ex defence officers so don't worry .
Career

You may like to see similar questions and answers below

Latest Questions
Ramalingam

Ramalingam Kalirajan  |6937 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 04, 2024

Money
As on today my investments as follows: 1.2 Cr Equity Market, MFI 2.28 and I have to pay one instalment of 10L to SBI Life pension scheme and expected return 1.4 L per month. My age is 59 years. Medical Insurance is around 50 L.My loan liability is zero. I have house but i promised to my wife, i will rebuild house selling other existing house. I have one set of twins and both are sons. One is Germany got job after completion of PG in engineering and other one in Canada, still lookin for good Job. My responsibility to get my sons marriage and marriage expenses. Recently I started final investment on wife name SBI Life pension scheme and four more years to completed. My question is can i retire and enjoy life.
Ans: Starting retirement with a well-rounded financial plan is achievable at this stage. At 59 years, with your thoughtful investments and zero liability, you’re in a good position. However, certain adjustments may enhance security and stability for your family. Let’s look at a detailed retirement strategy tailored for you.

Assessing Your Current Financial Position
You’ve built a strong foundation with diverse investments. Here’s a breakdown of your assets and responsibilities:

Equity Investment: Rs 1.2 crore. This portfolio can provide growth for the long term, supporting retirement.

Mutual Fund Investment: Rs 2.28 crore. Mutual funds are an excellent source for long-term wealth preservation and growth.

SBI Life Pension Scheme: Expected return of Rs 1.4 lakh per month. This monthly income provides a consistent cash flow during retirement.

Medical Coverage: With Rs 50 lakh in health insurance, you are well-prepared for medical needs.

Debt-Free Status: Zero loan liability gives you financial flexibility and reduces monthly obligations.

Real Estate Plans: You aim to rebuild your current house by selling another property, ensuring a more comfortable home for you and your wife.

Evaluating Your Monthly Income Needs in Retirement
At retirement, it’s essential to estimate your monthly expenses. Your expected pension income is Rs 1.4 lakh per month. It is helpful to:

Estimate Fixed Expenses: This includes groceries, utilities, insurance premiums, and general living costs. Estimate around Rs 40,000–50,000 monthly.

Account for Medical and Emergency Funds: Medical expenses can rise with age. With health insurance, you’re well-covered, but maintaining an emergency fund specifically for out-of-pocket expenses is wise.

Include Leisure and Travel Expenses: Retirement should include enjoyment. Set aside an amount for travel, hobbies, and entertainment.

With an expected pension income of Rs 1.4 lakh per month, you should be able to comfortably meet your monthly expenses and maintain a good lifestyle.

Important Financial Considerations for Retirement
Let’s address key areas that will provide greater financial security and flexibility:

1. Rebalancing Your Investment Portfolio
While equity is excellent for long-term growth, gradual reallocation toward safer assets like debt funds will provide stability.

Debt mutual funds offer consistent returns with less volatility than equity. Consider shifting a portion from equity into debt funds over time.

This reallocation ensures that your portfolio is balanced, with equity providing growth and debt offering capital protection.

2. Finalising Pension Plans
The SBI Life pension scheme with Rs 1.4 lakh per month is an excellent choice for predictable income. However, confirm the tax implications on these monthly payments, as pension income is taxable.

To manage taxes, consider reinvesting any surplus in tax-efficient options like senior citizen saving schemes.

3. Marriage and Other Family Responsibilities
Supporting your sons’ weddings is a future financial goal. Keep a dedicated investment for this purpose, separate from retirement funds.

You could create a conservative mutual fund investment, dedicated to funding these family responsibilities. Debt funds or balanced advantage funds could serve this need well.

4. Medical Insurance and Contingency Planning
At 50 lakh, your health insurance offers robust coverage. Review it periodically to ensure it includes necessary provisions, such as international coverage if needed.

Additionally, set aside a liquid emergency fund. It’s useful for medical expenses not covered by insurance, ensuring peace of mind.

5. SBI Life Pension and Alternative Options
It’s crucial to assess the liquidity of your pension investment. Pension plans sometimes limit early withdrawals, making flexibility limited.

Mutual funds offer better liquidity and flexibility. They allow you to adjust or withdraw as per market conditions and financial needs. Reevaluate the pension scheme if liquidity is a priority.

Benefits of Actively Managed Funds Over Index Funds
While index funds may have low fees, they don’t adapt to market changes. Actively managed funds are more suitable for achieving higher returns in your diversified portfolio. Professional fund managers can:

Adjust the portfolio based on market trends, maximizing returns.

Focus on sectors with higher growth potential, unlike index funds which passively follow the market.

Final Thoughts: Is Retirement Feasible Now?
Given your assets and structured plans, you’re on the right path for a fulfilling retirement. However, consider a few steps to strengthen your position:

Monitor Expenses and Investment Growth: Periodically review both. Ensure that your expenses remain in line with investment growth and returns.

Seek Portfolio Review Every Year: A Certified Financial Planner can help you optimise your investments for changing economic conditions. This regular review ensures continued alignment with retirement goals.

Prepare for Inflation: Over time, inflation will impact living costs. Your equity exposure can provide some protection against inflation.

With these steps in place, you can transition smoothly into retirement and enjoy financial security.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |6937 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 04, 2024

Listen
Money
Sir Nameste, Me and my wife from small town working earning 1.13lakh per month, we have 3 loans 1. Icici 10 lakhs @12.39 (2.30 lakhs remaining to closed by september 25) 2. Sbi loan 1.6 lakh just started @ 12.46% 3. LIC loan 2.20 lakh @9% We are government employees both so investment in NPS is aprox 20,000/month We are also investing 19000/month in LIC We had also aquired 2 no. Of land in our locality, (loans are taken for this purpose) Our EMI is aprox 26000/month, and monthly expenses is 53000, we are dipositing all our excess money to our loans so that it all can be closed by 2025 september. Sir what should be my approach to build a house with in next 5 years.
Ans: Assessing Your Current Financial Situation
Your combined monthly income is Rs 1.13 lakh, a solid base for building assets.

You have three active loans with a current EMI of Rs 26,000, which includes loans for land purchase.

Monthly expenses are Rs 53,000, while Rs 19,000 is allocated to LIC premiums, and Rs 20,000 goes to NPS.

You plan to close all loans by September 2025, and currently focus all excess funds towards these debts.

Evaluating Loan Repayment Strategy
Your focus on loan repayment is a wise step. Clearing these high-interest loans will free up monthly cash flow.

Prioritise the SBI loan at 12.46% interest after closing the ICICI loan, as it has a higher rate than the LIC loan.

Once these loans are cleared, your EMI obligation will reduce, allowing you to redirect funds toward home building and investment goals.

Strategic Steps Towards Home Building in 5 Years
Step 1: Plan a Dedicated Savings Fund
Begin a dedicated "Home Building Fund" once the loans are paid off by September 2025. This will give you two years of free cash flow before the home construction goal.

Estimate the cost for building your house. Allocate monthly contributions based on the required budget over 5 years, adjusted for inflation.

A balanced mutual fund or an SIP in a multi-cap fund could be beneficial for growing this fund with moderate risk.

Step 2: Review Existing LIC Policies
Rs 19,000 monthly in LIC may not yield optimal returns. Consider the role of these policies in your overall portfolio.

If these are traditional or endowment policies, they typically offer low returns. Switching to term insurance and investing the rest in mutual funds could enhance your wealth-building potential.

Consult a Certified Financial Planner (CFP) for an analysis of the LIC policies to determine if a shift would benefit your long-term goals.

Step 3: Explore NPS and Additional Investments
NPS is a good retirement tool with Rs 20,000 monthly contribution, but it may not support short-term goals like home building.

Post-loan, consider a diversified mutual fund SIP to grow your funds for the next 5 years, aiming for inflation-adjusted returns.

A combination of large-cap and multi-cap funds offers stability with moderate growth, which is suitable for a 5-year timeline.

Structuring Finances for Future Goals
Step 4: Create an Emergency Fund
As government employees, your jobs are stable, but emergencies can occur. Aim for 3-6 months of expenses saved in a liquid or short-term debt fund.

This fund prevents disruption to your goal-oriented savings if sudden expenses arise.

Step 5: Regular Review and Adjustment
Review your investments annually with a Certified Financial Planner to ensure they align with your timeline and goals.

Assess any rise in construction costs or changes in your financial situation. Regular adjustments ensure you stay on track without compromising other financial priorities.

Finally
Your disciplined approach to clearing loans and managing monthly contributions is commendable. A focused investment strategy after loan repayment will allow you to grow the funds needed to build your house in 5 years. Maintain an emergency fund, optimise insurance, and regularly review your investments to ensure a steady path toward your home-building goal.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |6937 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 04, 2024

Money
Hello sir , I am 40 years old , I have below investment. No EMI No Loan. FD - 60 lacs. Mediclaim - 15 lacs ( 20K per year) NPS - 50K Per year ( Since last 5 years) PPF - 150K Per Year ( Since Last 5 years) I am investing in below mutual funds through SIP. ( 32K Total) - Since last 3 Years ICICI balanced Advantage 2K HDFC Balanced Advantage 3K Tata Midcap and Largecap 3K Nippon India Small Cap 2K Motilal Midcap 2K ICICI Prudential Commodities 5K Quant Small Cap 5K HDFC Top 100 5K Parag Parikh Flexi 5K Is it good funds for long terms ( Horizon of 8/10 years) ? My income is arround 1.80 lac monthly , no home loan and emi. Shall I increase my SIP and my concern is 60 lacs is in FD ..Please suggest.
Ans: Your financial journey appears strong, with a clear focus on a balanced investment approach. Here’s a comprehensive review of your investments and a few suggestions on how you can further enhance your portfolio.

FD Investment: Evaluating Returns and Diversification
Having Rs. 60 lakh in fixed deposits ensures liquidity and safety, which is beneficial for short-term needs. However, FDs offer limited growth potential due to moderate interest rates, which are typically lower than inflation over the long term. This could affect your purchasing power in the future.

Consider diversifying a portion of the FD funds into options with better long-term returns, such as debt mutual funds or balanced funds. These alternatives can provide capital protection with a slightly higher growth potential than FDs. Debt mutual funds can be more tax-efficient than FDs, especially over extended investment periods.

Mediclaim Coverage: Ensuring Comprehensive Health Protection
Your existing health insurance coverage of Rs. 15 lakh is a good start. With rising healthcare costs, especially during retirement, this might need a boost over time.

If you haven't considered it already, a top-up or super-top-up health policy could be beneficial. It can increase your coverage at a minimal cost, providing greater security against medical emergencies.

National Pension System (NPS): Steady Retirement Planning
Contributing Rs. 50,000 yearly to NPS is a wise move as it provides additional tax benefits and builds a retirement corpus. The lock-in until retirement ensures disciplined savings.

Given your age, consider reviewing your NPS asset allocation between equity, corporate debt, and government bonds. This can help you maintain a balance between growth and stability, especially as retirement nears. Additionally, the NPS tier I account provides tax benefits that can complement your other investments.

Public Provident Fund (PPF): Reliable Long-Term Growth
Your PPF contributions of Rs. 1.5 lakh annually over the past five years are commendable. PPF is one of the most secure investment options for long-term goals due to its tax-free returns and government backing.

Continue with these contributions. PPF works well as a wealth-building tool, especially when held to maturity (15 years), as it compounds tax-free. This aligns well with your retirement planning.

Mutual Fund Portfolio: Assessing Fund Choices and SIPs
You have a well-structured mutual fund portfolio, investing Rs. 32,000 monthly. The diversity in fund types indicates a strong approach to long-term growth, but a few adjustments can maximize returns and stability.

Reviewing Balanced and Hybrid Funds
You’re investing in both ICICI and HDFC Balanced Advantage funds. These hybrid funds are useful for moderating risk, offering a blend of equity and debt.

For an 8-10 year horizon, balanced funds provide stability and moderate growth, which aligns well with your goals. However, ensure that these funds consistently meet your return expectations compared to other funds in the hybrid category.

Small and Midcap Funds: Assessing Growth Potential
Small and midcap funds in your portfolio, such as Quant Small Cap and Motilal Midcap, offer growth but come with higher volatility. Over 8-10 years, these funds can potentially yield high returns, given India’s growth story.

Review the performance of small-cap and midcap funds periodically. It’s beneficial to continue with small cap funds if your risk tolerance allows. Small caps can deliver excellent returns but require patience as they go through market cycles.

Sectoral and Thematic Funds: Weighing Commodities Exposure
Sector-specific funds, like the ICICI Prudential Commodities fund, can add concentrated exposure. These funds can generate strong returns in favorable conditions but may underperform in other periods.

Keep a close eye on the performance and market conditions. If you feel the commodities sector may underperform or add unnecessary risk, you might consider rebalancing this amount to more diversified funds.

Large Cap and Flexi Cap Funds: Ensuring Stability and Flexibility
Investments in HDFC Top 100 and Parag Parikh Flexi Cap provide stability and diversification. These funds cover top-performing large-cap companies and offer flexibility in market exposure.

Continue with these funds, as they create a stable foundation within your equity portfolio. Large-cap and flexi-cap funds offer better risk-adjusted returns, especially over long periods.

Consider Increasing SIPs for Accelerated Wealth Growth
With a monthly income of Rs. 1.80 lakh and no debt, your capacity to invest further is strong. Increasing your SIPs by even Rs. 5,000–10,000 monthly can significantly boost your corpus over the next 8-10 years.

You could allocate additional SIPs toward existing diversified funds or explore other categories like balanced advantage funds, which blend risk management with growth.

Taxation Strategy: Optimizing Post-Tax Returns
Equity Mutual Funds: For equity funds, long-term capital gains (LTCG) above Rs. 1.25 lakh are taxed at 12.5%. If you redeem any funds, consider staggering withdrawals over different financial years to minimize tax impact. Short-term capital gains are taxed at 20%, so holding investments for the long term is more tax-efficient.

Debt and Hybrid Mutual Funds: If you move any funds from FDs to debt mutual funds, be mindful that both long-term and short-term capital gains from debt funds are taxed based on your income tax slab. However, debt funds may still offer better tax-adjusted returns compared to FDs, especially over longer periods.

Final Insights
Your current investment strategy is strong, diversified, and largely aligned with long-term growth goals. With no loans or liabilities, you’re well-positioned to make additional investments. Here are key takeaways for further growth:

Diversify Your FD Holdings: Move a portion of FDs to debt mutual funds for better tax efficiency and returns over time.

Increase SIP Contributions: Consider gradually increasing your SIP contributions to maximize the growth potential of your portfolio.

Periodic Review: Regularly review the performance of sectoral and small-cap funds to ensure they align with your financial goals.

Boost Health Coverage: Consider a top-up health insurance plan for additional coverage at a reasonable cost.

By consistently evaluating and adjusting, you’re set to achieve a well-rounded, growth-focused portfolio with minimized risk exposure.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |6937 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 04, 2024

Listen
Money
Hi Sir, i want to get a PA policy, but maximum insurers are giving about 20-25 lkh only. I think thats too small. So is it an allowed practice if I take 25 lkh x 3 policies =75 lkh with same or different insurers. Plz advise.
Ans: It's sensible to look for a higher Personal Accident (PA) cover, especially if you want ample financial protection. Yes, taking multiple policies from the same or different insurers is indeed allowed, provided you disclose all existing policies when applying for new ones. This approach lets you reach your goal of Rs 75 lakh coverage.

Here are a few points to consider:

Disclose All Policies: While taking multiple policies, always inform each insurer about your existing PA covers. This ensures transparency and helps avoid complications at claim time.

Avoid Policy Duplication for Benefits: Ensure that any specific benefits or riders you need aren’t duplicated across policies if they won’t provide added value, as this can increase premiums without enhancing coverage meaningfully.

Check Aggregate Claim Limits: Some policies have aggregate limits on certain types of claims. Ensure that your policies don’t collectively restrict your total coverage for critical incidents, like total disability.

Consider Family Coverage if Needed: Some PA policies offer family coverage options, which might be more efficient than individual policies.

Multiple PA policies can be a practical strategy to get higher coverage. You can proceed with this approach confidently, knowing that it aligns with common practices and provides the protection level you desire.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x