Should I Pursue a Master's in Data Science in Germany After Completing My BTech in IT?

Ans: 87A rebate is not available for special rate income but if taxable income is upto 12 lacs, rebate will be available to the extent of other income which is not taxable at special rate.

In your case, as taxable income is likely to exceed 12 lacs, accordingly, rebate will not be available.

Ans: For salary of 26L, tax liability under new tax regime (after allowing 75000 of standard deduction) will be Rs.3,51,000 as per proposed budget of 2025

Ans: For salary of 45l, tax liability (after allowing 75000 of standard deduction) will be Rs.943800 as per proposed budget of 2025

Ans: I don't know the amount you want to invest.
If the amount is reasonable & you can find suitable Real Estate option, that will be best. Invest in that property, which yields you some returns and is likely to appreciate with the passage of time. It should be readily Salable also, so that the proposal ensures liquidity also.
Other options are Mutual Funds, Equity Shares, NSC, FDR etc. However, Mutual Funds (D-Mat based) may be more suitable in view of returns & easy handling of documents.
Most welcome for any further clarifications. Thanks.

Ans: Please stay put in your investments. Please continue your investment strategy .

Ans: Hello Aaryan,

First of all, thank you for contacting us. To answer your question, yes, you can definitely pursue a degree in Germany after completing your diploma in Computer Science and Engineering. Many universities in Germany offer Bachelor's programs that accept students with a diploma, provided they are recognized as equivalent to the German Abitur, which is the standard university entrance qualification. You may need to check specific university requirements and sometimes complete a preparatory year (called Studienkolleg) if necessary. Choosing to study in Germany is a fantastic idea since the country is home to top-tier universities, and education at public institutions is often very affordable or even free. Private institutions in Germany also offer fantastic Bachelor's programs with a focus on practical, career-oriented education, often with smaller class sizes and innovative teaching methods, providing a personalized learning experience.

For more information you can visit our website: edwiseinternational.com
You can also follow us on Instagram: @edwiseint

Ans: Hello;

There are two types of this children's benefit fund:

1. Investment plan
2. Savings plan

In which of these do you plan to invest and what is your time horizon ?

Please provide these inputs so as advise suitably.

Thanks;

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

Ans: Hello Dear.
If you have cleared the JEE (Main) with the required cut-off, you are eligible for JEE (Adv) 2025.

If you are satisfied with the reply, pl like and follow me, else ask again without any hesitation.
Thanks
Radheshyam