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Krishna

Krishna Kumar  |330 Answers  |Ask -

Workplace Expert - Answered on Apr 25, 2024

Krishna Kumar is the founder and CEO of GoMoTech, a company that provides strategic consulting in B2B sales, performance management and digital transformation.
Before branching out on his own, he worked with companies like Microsoft, Rediff, Flipkart and InMobi.
With over 25 years of experience under his belt, KK is a regular speaker at industry events and academic intuitions, both in India as well as abroad.
KK completed his MBA in marketing from the Sri Sathya Sai Institute of Higher Learning in Andhra Pradesh and his management development programme from XLRI, Jamshedpur.
He has also completed his LLB from Nagpur University and diploma in PR from Bhavan’s College of Management, Nagpur, where he was awarded a gold medal.... more
santosh Question by santosh on Apr 19, 2024Hindi
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Career

sir 1 am 57 yeas old and try to change my job but because of my age not getting opportunity . Pls. guide me in this connection.

Ans: Hello Mr.Santosh

May I suggest you explore part time/free lancing job. That will give you both opportunity to work and also better control over your time.

All the best.
Career

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Ravi

Ravi Mittal  |226 Answers  |Ask -

Dating, Relationships Expert - Answered on Jun 18, 2024

Asked by Anonymous - Jun 17, 2024Hindi
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Relationship
Hey love Gurus I am 24 year old male. Well educated and decent looking. But i have never had a girlfriend not had i ever kissed a girl. I have also never bothered much on this until my 20 year of age. But now for past year or 2 it has started haunting me a bit because I am scared of what would happen when i get married. I don't have any sort of experience and this scares me. I know it's too early to think of marriage but still I feel low when this topic comes to my mind. Please guide me. I really need a good advice Is it that I am thinking too much?
Ans: Dear Anonymous,

It's totally normal to feel anxious about the future and any relationship to come your way in the future. Here are some advice-

• Be kind to yourself. You are not alone in this. Not everyone moves at the same pace. Some start dating early, some start late. Some have more experience than others. But everyone has to face firsts. While it is natural to feel anxious, with the right partner and at the right timeline, things often tend to work out better than we imagine.
• Focus on building confidence. You are more than your dating experience. Pursue a hobby, socialize, work on developing new skills, work to improve your body and mind. Everything in turn will increase your confidence level.
• Educate yourself. You can read books on anxiety or if you have a clear idea of what about a relationship or what about marriage is making you conscious, you can educate yourself on that part. What is known to us, rarely makes us feel anxious. We mostly fear the unknown.
• For your future first relationship- take it slow. Communicate. What you are comfortable with, what you aren't, communicate everything.
• If your anxiety is interfering with your day-to-day activity, I recommend seeing a professional. It's still early and nipped in the bud, this anxiety will lead to nothing serious. But if you let it take root, it might be more difficult to manage.

Understand that it is okay where you are. Also, as you mentioned, you are too young to worry about it. But since you are already worrying, I am glad that you seeked help.

Best Wishes.

...Read more

Ramalingam

Ramalingam Kalirajan  |3811 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 18, 2024

Asked by Anonymous - Jun 18, 2024Hindi
Money
I am 41 years old with a wife and a daughter. I am investing 1.75 Lacs per month in MF SIP and current value stands at 1 Carore 75 lacs. I have two properties with value of 40 lacs and 80 lacs each. My current salary is 10 lacs a month and my expenses including rent, schooling etc are atound 4 lacs a month. I am based outside India. Nature of my job in the oil and sector is valatile and i have never talen a loan for the same reason. I have at least couple of years work left in the current contract and I will either move to a new country or come back to Mumbai and will try to find a job afterwards, most likely with very less salary compare to my current salary. I would like your advise on my further strategy regarding eventual retirementetc. , my daughter is 7 and my parents back in India are dependent on me. Best Regards
Ans: Strategic Financial Planning for a Secure Future
You have demonstrated a strong financial foundation. Your disciplined approach to investments, combined with prudent financial management, reflects commendable foresight. Let's explore a comprehensive strategy that aligns with your goals and current circumstances.

Current Financial Landscape
You have a solid base with an impressive SIP portfolio worth Rs 1.75 crore. Regular investments of Rs 1.75 lakh per month further strengthen your financial position. Additionally, your properties valued at Rs 40 lakh and Rs 80 lakh add significant assets to your net worth.

Earning Rs 10 lakh monthly provides a robust cash flow. With expenses around Rs 4 lakh, you maintain a substantial savings rate. Your approach to avoiding loans in a volatile job market is wise and reflects sound financial judgment.

Family and Responsibilities
Your family's well-being is paramount. With a 7-year-old daughter and parents depending on you, your financial planning must prioritize their security and future needs. Balancing your family's current needs with long-term goals requires thoughtful consideration and careful planning.

Retirement Planning
Assessing Retirement Goals

Retirement planning begins with envisioning your post-retirement life. Consider your desired lifestyle, potential relocation to Mumbai, and a likely reduction in income. Estimating future expenses, including healthcare and lifestyle changes, is crucial.

Building a Retirement Corpus

Given the volatility of your industry and potential income reduction, diversifying your investments is key. Your current SIP in mutual funds is a strong foundation. Increasing this allocation gradually will enhance your retirement corpus.

Exploring Actively Managed Funds

While index funds are popular, actively managed funds may better suit your needs. These funds, managed by experts, aim to outperform the market. They adapt to changing economic conditions, potentially offering higher returns than index funds. Consult a Certified Financial Planner (CFP) to identify funds that align with your risk profile and financial goals.

Regular Investment through MFDs

Investing in regular funds through a Mutual Fund Distributor (MFD) with a CFP credential offers several advantages. MFDs provide valuable insights and personalized advice, aligning investments with your long-term goals. They offer ongoing support and help navigate market fluctuations, ensuring your investment strategy remains robust.

Education Planning for Your Daughter
Estimating Education Costs

With your daughter being 7 years old, planning for her education is essential. Education costs are rising, and preparing for her future expenses, including higher education, is crucial.

Investment Options for Education

Consider dedicated child education funds. These funds are structured to align with educational milestones, offering potential growth tailored to meet future needs. They provide a disciplined approach to saving for your child's education, ensuring funds are available when required.

Systematic Investment Planning

Continue your SIP approach for her education. Set up a separate SIP with a long-term horizon, specifically aimed at her education expenses. This will ensure a steady accumulation of funds, leveraging the power of compounding over time.

Contingency Planning
Building an Emergency Fund

An emergency fund is vital, especially considering the volatility of your job sector. Aim to set aside 6-12 months' worth of living expenses. This buffer provides financial security during unexpected events or job transitions.

Health and Life Insurance

Evaluate your health and life insurance coverage. Adequate insurance ensures financial stability for your family in case of unforeseen circumstances. Given your overseas residence, consider international health coverage options for comprehensive protection.

Managing Dependents' Needs
Financial Support for Parents

Supporting your parents is a noble responsibility. Ensure a steady flow of funds for their needs without compromising your financial goals. Evaluate their medical needs and secure appropriate health insurance for them if not already done.

Estate Planning

Plan for the future by creating a will and ensuring proper estate planning. This guarantees a smooth transfer of assets and reduces legal complexities for your family. Engage a legal expert to draft a will that aligns with your wishes and protects your family's interests.

Navigating Career Transitions
Financial Preparation for Job Changes

Prepare financially for potential career transitions. Save and invest with an eye on the future, ensuring a financial cushion during periods of lower income. Diversifying your income streams and exploring freelance or part-time opportunities can provide additional stability.

Skill Development and Networking

Invest in upskilling and professional development to enhance your employability. Building a strong professional network can open doors to new opportunities. Staying updated with industry trends ensures you remain competitive in the job market.

Strategic Investment Approach
Diversification

Diversification reduces risk by spreading investments across various asset classes. Your current portfolio is heavily weighted in mutual funds and real estate. Consider adding other asset classes, such as bonds or international funds, to balance risk and returns.

Periodic Review and Rebalancing

Regularly review and rebalance your portfolio to align with your changing financial goals and market conditions. A CFP can assist in evaluating your portfolio's performance and making necessary adjustments.

Avoiding Direct and Index Funds

Direct funds might appear cost-effective due to lower fees, but they require active management and market knowledge. Actively managed regular funds, despite higher fees, offer professional expertise and strategic oversight. They adapt to market changes and aim to deliver better returns, justifying the additional cost.

Planning for Relocation
Financial Considerations for Moving

Relocating to a new country or returning to Mumbai involves significant financial planning. Assess the cost of living, housing, and potential income changes. Create a relocation budget to cover moving expenses and initial setup costs.

Evaluating Local Investment Opportunities

Understand the financial landscape of your new location. Explore local investment opportunities and adapt your investment strategy to align with the local economy and market conditions. Consult a CFP familiar with international financial planning to navigate these changes effectively.

Tax Planning and Compliance
International Tax Considerations

As an expatriate, understand the tax implications of your investments and income in both your current country and India. Stay compliant with tax regulations in both jurisdictions to avoid legal complications.

Optimizing Tax Efficiency

Explore tax-saving investment options available to NRIs. Strategic investment planning can minimize tax liabilities and maximize returns. A CFP can provide guidance on optimizing your tax strategy based on your unique situation.

Long-Term Wealth Accumulation
Leveraging Compound Growth

Continue leveraging the power of compounding through your SIPs. Long-term, disciplined investing in mutual funds builds substantial wealth over time. Focus on maintaining regular investments and increasing contributions as your financial situation allows.

Exploring High-Growth Opportunities

Consider allocating a portion of your portfolio to high-growth opportunities. Equity mutual funds and sector-specific funds can offer higher returns, aligning with your long-term growth objectives. Balance these with more stable investments to manage risk effectively.

Final Insights
Your financial journey is commendable. You have laid a strong foundation through disciplined investing and prudent financial management. As you navigate the complexities of career transitions, family responsibilities, and future planning, maintaining a strategic and diversified approach is crucial.

Continue your SIPs, diversify your portfolio, and prioritize long-term goals. Regularly review your financial plan with a Certified Financial Planner (CFP) to ensure it aligns with your evolving needs. Your dedication to financial security and growth will ensure a prosperous future for you and your family.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |3811 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 18, 2024

Asked by Anonymous - Jun 18, 2024Hindi
Money
Hi, Am 50 yrs old and my wife is 49..we both earn around 4.80 lacs p.a. We have invested around 1 Cr in MF, 1.5 Cr in FDs, 2 investment properties worth 2 Cr, 50 lacs in Equity shares, 50 lacs in ULIPs and 1 Cr in PF. Our estimated requirements are around 1.5 Cr in kids education, 50 lacs in kids marriages and monthly income of around 2 lacs after we leave jobs in another 2 yrs..pls suggest a suitable plan.
Ans: Setting the Stage for Your Comprehensive Financial Plan

At 50 years old, you and your wife have done exceptionally well in building a diverse and robust portfolio. With a combined annual income of Rs 9.6 lakhs, you have substantial investments across mutual funds, fixed deposits, equities, ULIPs, provident funds, and real estate. You’ve built a strong financial foundation, with investments totalling over Rs 6 crore. Now, as you approach retirement and have specific goals for your children’s education and marriage, it’s crucial to refine your strategy for the next phase of your financial journey.

Assessing Your Current Financial Position

Your investment portfolio is impressive and well-diversified, reflecting a careful approach to wealth building.

Breakdown of Your Investments:
Mutual Funds: Rs 1 crore
Fixed Deposits (FDs): Rs 1.5 crore
Investment Properties: Rs 2 crore
Equity Shares: Rs 50 lakhs
Unit-Linked Insurance Plans (ULIPs): Rs 50 lakhs
Provident Fund (PF): Rs 1 crore
Your asset allocation spans across different classes, offering a mix of growth and stability. This is a commendable strategy, balancing risk and return.

Evaluating Your Financial Goals

You have set clear financial goals:

Children’s Education: Rs 1.5 crore
Children’s Marriages: Rs 50 lakhs
Post-Retirement Monthly Income: Rs 2 lakhs
Prioritizing and Planning for Education and Marriage
Funding your children’s education and marriages is a top priority. Setting aside Rs 1.5 crore for education and Rs 50 lakhs for marriage expenses requires careful planning.

Children’s Education: The cost of education is substantial and increasing. Allocating Rs 1.5 crore ensures your children have the best opportunities. Given the time frame, a combination of safe and growth-oriented investments is ideal.

Children’s Marriages: Setting aside Rs 50 lakhs for marriages provides for significant expenses without strain.

Planning for Retirement Income

You aim to retire in 2 years and require Rs 2 lakhs monthly to maintain your lifestyle.

Assessing Current and Future Needs
Given your extensive assets, you are well-positioned to generate this income. Evaluating your current income streams and potential returns is essential.

Strategies for Generating Monthly Income
Fixed Deposits (FDs): With Rs 1.5 crore in FDs, you have a source of stable, albeit lower, returns. Consider shifting some funds to higher-yield options for better returns while maintaining liquidity.

Mutual Funds: Rs 1 crore in mutual funds offers growth potential. Actively managed funds can outperform and help achieve higher returns. Aligning these funds with your risk tolerance and income needs will maximize benefits.

Equity Shares: Rs 50 lakhs in equity shares provide significant growth potential. Equities, though volatile, can generate high returns over time. A well-managed portfolio with regular reviews is key.

Provident Fund (PF): Your Rs 1 crore in PF is a reliable source for post-retirement income. It offers safety and consistent returns. Ensuring optimal use of this fund will support long-term financial stability.

Unit-Linked Insurance Plans (ULIPs): Rs 50 lakhs in ULIPs mix insurance and investment. Evaluating the performance and cost of these plans is crucial.

Refining Your Investment Strategy

Optimizing your current investments is vital for meeting your goals. Here’s how to fine-tune your strategy:

Rebalancing Your Portfolio
Regularly rebalance your portfolio to align with your changing risk appetite and financial goals.

Equity Allocation: Given your retirement proximity, a conservative approach is advisable. However, retaining some equity exposure is important for growth.

Debt Allocation: Increase your debt investment to secure stable, lower-risk returns. This can be achieved through debt mutual funds or safe instruments like FDs and PF.

Mutual Funds: Focus on actively managed funds. These funds, driven by skilled managers, have the potential to outperform. Direct funds lack professional guidance and may not meet your expectations.

Ensuring Liquidity and Emergency Fund

Having liquid assets and an emergency fund is essential, especially as you near retirement.

Liquidity Management
Ensure a portion of your assets are in liquid forms. This provides flexibility to meet immediate needs or take advantage of investment opportunities.

Emergency Fund
Maintain an emergency fund covering 6-12 months of expenses. This safeguards against unexpected events without disrupting your investment strategy.

Tax Efficiency in Retirement Planning

Tax-efficient strategies can enhance your post-retirement income. Here are ways to optimize your tax liability:

Maximizing Tax Benefits
Utilize all available tax exemptions and deductions. Investments in tax-saving instruments under Section 80C, 80D, and others can reduce your taxable income.

Tax-Efficient Withdrawals
Plan your withdrawals to minimize tax impact. Structured withdrawals from PF, ULIPs, and capital gains on mutual funds and equities can lower your tax burden.

Reviewing Insurance and ULIPs

Your ULIPs mix insurance with investments. Given the costs and returns, evaluate if they still serve your needs.

Evaluating ULIPs
ULIPs often come with high charges and lower returns compared to mutual funds. Assess the performance and consider redeeming if they underperform.

Insurance Needs
Ensure adequate life and health insurance coverage. As your financial situation evolves, adjust your coverage to protect against unforeseen risks.

Strategizing for Your Investment Properties

Your investment properties are valuable assets but are less liquid.

Managing Investment Properties
Real estate provides rental income and capital appreciation but lacks liquidity. Consider the role these properties play in your overall strategy. Focus on maintaining them or plan for eventual liquidation if needed.

Rental Income
Leverage rental income to support your retirement. It provides a steady cash flow to meet your monthly expenses.

Creating a Sustainable Withdrawal Strategy

A sustainable withdrawal strategy ensures your funds last throughout your retirement.

Safe Withdrawal Rate
Adopt a withdrawal rate that balances longevity and income needs. A common approach is the 4% rule, but customize it based on your specific requirements.

Structured Withdrawals
Plan withdrawals from different asset classes to maintain a balance between growth and security. Start with lower-risk assets and gradually tap into higher-risk investments.

Regular Reviews and Professional Guidance

Regularly reviewing your financial plan ensures it remains aligned with your goals.

Annual Financial Reviews
Conduct annual reviews of your portfolio. This keeps your investments aligned with your evolving financial needs and market conditions.

Certified Financial Planner (CFP) Guidance
Consulting a CFP provides professional insights tailored to your situation. They help optimize your strategy, address complex issues, and ensure long-term success.

Final Insights

You have built a strong financial base with diverse investments. As you prepare for retirement, refining your strategy is essential to meet your specific goals for education, marriage, and monthly income.

Continue leveraging your assets effectively. Focus on optimizing your portfolio, maintaining liquidity, and planning tax-efficient withdrawals. Your disciplined approach and clear objectives will guide you towards a secure and fulfilling retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...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.

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