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Torn Between Stay and Go: Should a 42-Year-Old Financial Pro Move Abroad?

Nayagam P

Nayagam P P  |4100 Answers  |Ask -

Career Counsellor - Answered on Nov 15, 2024

Nayagam is a certified career counsellor and the founder of EduJob360.
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He has a postgraduate degree in human resources from Bhartiya Vidya Bhavan, Delhi, a postgraduate diploma in labour law from Madras University, a postgraduate diploma in school counselling from Symbiosis, Pune, and a certification in child psychology from Counsel India.
He has also completed his master’s degree in career counselling from ICCC-Mindler and Counsel, India.
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MEHARBAN Question by MEHARBAN on Oct 17, 2024Hindi
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Career

Sir, I am a 42 years old financial professional and having 18 years experience. Now I am well settled in India but having some liabilities such as housing loan etc and responsibility of my two kids. I always wanted to move abroad (Europe) for a better life. Now if I leave for abroad, I have not idea whether can I get settled over there ? it can also disturb my present financial position. Kindly guide what should I do?

Ans: Meharban Sir, Thank you for your question. I have responded to a similar question recently. You may check my answer here
If you are looking for more details, I would be happy to assist/guide you. All the BEST for Your Prosperous Future.

To know more on ‘ Careers | Education | Jobs’, ask / follow Us here in RediffGURUS.
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Ramalingam

Ramalingam Kalirajan  |7967 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 15, 2025

Asked by Anonymous - Feb 15, 2025Hindi
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We are a family of three (me + my parents). I am 30 and have no plans on getting married. Will explore spirituality and try to be a social worker after working for 2-3 more years. We have a corpus of Rs. 1.1 cr invested in FDs. The interest generated (Rs. 8,00,000 p.a.) is withdrawn monthly and used for daily expenses. Please tell me - 1. How long can my corpus last if we keep withdrawing the same amount each year? 2. Is there a need to add more money in corpus? 3. How will inflation hurt and play a role?
Ans: Your situation is well-structured, and your financial discipline is impressive. Let’s break down your concerns step by step.

1. How Long Will the Corpus Last?
You have Rs 1.1 crore in fixed deposits (FDs).

Your annual withdrawal is Rs 8 lakh, covering living expenses.

The duration your corpus lasts depends on the FD interest rate and inflation.

If the interest earned matches your withdrawals, the corpus remains intact.

But if expenses rise due to inflation, the corpus may start depleting.

If inflation is higher than your FD interest rate, the corpus will shrink faster.

Over time, this gap can significantly reduce your savings.

Without additional earnings or reinvestment, depletion becomes inevitable.

A detailed cash flow analysis is necessary for exact projections.

2. Is There a Need to Add More Money?
Your current strategy works well for now.

But inflation will increase expenses each year.

FD interest rates may also decline in the future.

A 25-year time frame requires careful planning.

If expenses rise but income stays the same, your corpus may not last.

Having an extra financial buffer is always good.

You may need to add funds over time to sustain withdrawals.

Consider a mix of investment options for better returns.

Balancing risk and stability is key for long-term security.

3. The Role of Inflation
Inflation reduces the value of money over time.

What costs Rs 50,000 today may cost Rs 1 lakh in 15-20 years.

If expenses double, your withdrawals must also double.

But your FDs may not generate enough interest to support this.

Over time, the real value of your corpus declines.

This means either increasing your corpus or reducing expenses.

Investing in assets that beat inflation can help.

A financial plan with regular reviews is necessary.

4. Fixed Deposits – Strengths and Weaknesses
FDs offer stability and guaranteed returns.

But they may not keep up with inflation in the long run.

Tax on FD interest further reduces net earnings.

Interest rates fluctuate and may decline in the future.

Over-reliance on FDs can erode wealth over time.

A diversified investment plan is essential.

5. Alternative Investment Strategies
You can explore better investment options alongside FDs.

Actively managed mutual funds have the potential for higher returns.

Debt mutual funds offer stability with tax efficiency.

Some portion in balanced hybrid funds can manage risk well.

Conservative investment in gold can hedge against inflation.

Having multiple sources of income is always better.

Choosing the right mix of investments is crucial.

6. Steps to Strengthen Financial Security
Review expenses and identify areas for cost-cutting.

Maintain an emergency fund for unexpected needs.

Consider reinvesting some interest earnings to grow the corpus.

Diversify investments instead of relying only on FDs.

Keep track of inflation and adjust withdrawals if needed.

Reassess the financial plan every year.

7. Impact of Taxes on Your Income
FD interest is fully taxable as per your income slab.

High taxation reduces the effective return on FDs.

Some alternative investments offer better tax efficiency.

Choosing tax-efficient options helps preserve more wealth.

8. Planning for Spiritual and Social Work Phase
After 2-3 years of work, your income may stop.

Your corpus must fully support expenses post-retirement.

Ensuring a steady income source is essential.

Passive income streams like dividend-yielding investments can help.

Reducing lifestyle costs can make funds last longer.

Proper financial discipline is crucial for long-term sustainability.

9. Final Insights
Your financial setup is strong, but long-term risks exist.

Inflation, tax impact, and lower FD rates can hurt corpus longevity.

A well-diversified portfolio will offer better security.

Regular financial reviews help in adjusting to changing needs.

Adding funds to your corpus ensures stability for the future.

Prudent planning today ensures a worry-free tomorrow.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

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MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Feb 15, 2025

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NEET, Medical, Pharmacy Careers - Answered on Feb 14, 2025

Asked by Anonymous - Feb 13, 2025Hindi
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Hello there, I'm 20 years preparing for neet but I'm not confident to get mbbs seat what alternative is there for me I'm so confused and stressed.Will it be ok if I do bsc in biotechnology and Mba in healthcare data science ? Can I succeed in this pathway Help plz
Ans: Hi,
Health-related courses are a great choice for a promising future. If you've completed your +2 with PCB (Physics, Chemistry, Biology) or PCMB (Physics, Chemistry, Mathematics, Biology), there are many courses available to you, both with and without a NEET score.
Courses Available with NEET Score:
- MBBS (Bachelor of Medicine, Bachelor of Surgery)
- BDS (Bachelor of Dental Surgery)
- BAMS (Bachelor of Ayurvedic Medicine and Surgery)
- BHMS (Bachelor of Homeopathic Medicine and Surgery)
- BNYS (Bachelor of Naturopathy and Yogic Sciences)
- BUMS (Bachelor of Unani Medicine and Surgery)
- BVSc (Bachelor of Veterinary Science)

Courses Available without NEET:
Health-Oriented:
- B.Pharm (Bachelor of Pharmacy)
- Pharm D (Doctor of Pharmacy)
- BSc Nursing (Bachelor of Science in Nursing)
- BSc MLT (Bachelor of Science in Medical Laboratory Technology)
- BPT (Bachelor of Physiotherapy)
Non-Medical:
- BSc Agriculture (Bachelor of Science in Agriculture)
- BSc Horticulture (Bachelor of Science in Horticulture)
- BSc Sericulture (Bachelor of Science in Sericulture)

There are many more courses available as well. Ultimately, it's up to you to decide which course suits you best. If you need any further assistance, please share your details, and I would be happy to help you with recommendations.

BEST OF LUCK

POOCHO. LIFE CHANGE KARO!

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