My CTC in India is 1900000 per annum. I have got a job offer of 1300KWD in Kuwait. But I cannot take my family with me. Is this a good offer? What should I do?

Ans: It's wonderful to hear that you're considering pursuing your passion for social work! Let's assess your financial situation to see if it supports your decision.

With a monthly expense of 50,000 rupees and no pending loans, you seem to have a manageable lifestyle. Your family corpus of 3 crores, including fixed deposits, mutual funds, and shares, provides a strong financial foundation.

Considering your daughter's upcoming marriage, allocating 40 lakhs from your corpus for the wedding is a thoughtful gesture. However, it's essential to ensure that this withdrawal doesn't significantly impact your long-term financial security.

Your small pension of 10,000 rupees per month adds to your income stream, albeit modestly. While it may not cover all your expenses, it can contribute towards your monthly needs.

Given your financial position and your desire to pursue social work, leaving your job with a current CTC of 30 lakhs is feasible. However, it's essential to have a detailed financial plan in place to ensure you can sustain your lifestyle and continue your social work without financial strain.

Before making the transition, consider consulting with a Certified Financial Planner to evaluate your retirement income sources, investment portfolio, and potential income-generating opportunities in social work. They can help you create a comprehensive financial plan that aligns with your goals and aspirations.

Remember, pursuing your passion for social work can be immensely rewarding, both personally and professionally. With careful planning and prudent decision-making, you can embark on this new chapter of your life confidently.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: NO Pratik Sir. Not at all advisable to leave a PSU Job. Please continue with the same. All the BEST for Your Bright Future.

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Ans: Your financial standing is impressive, but assessing whether it's sufficient for a family of 8 in a city like Mumbai requires a closer look at each asset and its potential growth or liquidity.

Fixed Deposits: Rs. 2 Crores
Fixed deposits provide a stable but relatively low return on investment. At around 6%-7% interest, this generates approximately Rs. 12 to 14 lakhs annually. However, given the inflation rate, the real value of this investment may not grow significantly over time. Therefore, while it’s secure, you might want to explore options that yield higher returns without compromising liquidity, especially for long-term needs.

Equity Investments: Rs. 3 Crores
With Rs. 3 crores in equity, you have a high potential for growth. Equities generally outperform inflation and fixed deposits over time, especially in a long-term horizon. Assuming an average return of 10%-12% per annum, your equity portfolio can generate substantial wealth over time. However, the volatility of equity markets means that you should have a clear risk strategy in place. Given your family’s age mix, maintaining a balanced portfolio with some exposure to debt might be worth considering to protect against market fluctuations.

Jewelry: Rs. 1.5 Crores
While gold and jewelry are valuable assets, they do not generate regular income and may not provide liquidity unless sold. However, they act as a good hedge against inflation and economic uncertainty. You could consider them as a fallback or emergency asset rather than part of the regular financial strategy.

Real Estate: Two Flats in Mumbai
Real estate is a significant asset, particularly in Mumbai, where property values tend to appreciate well over time. You already have one flat generating rental income, which is great. It’s important to assess whether the rental yield is competitive with other investment opportunities, as real estate can sometimes have low rental returns compared to its value. Also, you should periodically review the property market for opportunities to optimize this asset.

Living Expenses for a Joint Family
Mumbai is an expensive city, and for a family of 8, your living costs could be significant. Healthcare, daily expenses, lifestyle costs, and emergencies all need to be considered. Given that several family members are either retired or dependent, you’ll need to ensure that your investments generate enough cash flow to cover ongoing expenses.

Income from Abroad: Son in the US
Your son earning $90,000 annually is a major financial support, assuming he contributes to the household. His income can help meet any shortfalls in day-to-day expenses or cover larger family needs like healthcare or property maintenance. However, depending too heavily on external income may create financial vulnerability, particularly if circumstances change.

Future Financial Planning: Key Considerations
Retirement Needs: Since 6 out of 8 family members are either retired or housewives, ensure your current financial assets cover healthcare costs, emergencies, and inflation-adjusted living costs.

Liquidity: Ensure you maintain sufficient liquidity. Fixed deposits and equity portfolios are good, but always keep a cash buffer for emergencies, especially for medical expenses.

Wealth Preservation: You may want to rebalance your equity portfolio periodically to reduce risk as family members age. A Certified Financial Planner can help you manage this transition smoothly.

Diversification: While you have a well-diversified asset base, ensure that your investments match your family’s risk tolerance and future needs.

Final Insights
Your financial situation is strong, but it needs to be managed wisely for long-term security. Periodic rebalancing, ensuring liquidity, and maintaining a stable cash flow from assets like real estate and fixed deposits will be crucial.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: Current Financial Status
EPF and PPF:

EPF: Rs 1.2 crores
PPF: Rs 50 lakhs
Mutual Funds and Fixed Deposits:

Mutual Funds: Rs 60 lakhs
Fixed Deposits: Rs 50 lakhs
Other Investments:

Various other sources: Rs 75 lakhs
Real Estate:

Three flats in Mumbai worth Rs 6+ crores
Two flats are let out
Health Insurance:

Adequate health insurance coverage
Monthly Expenses Requirement
Expenses:

Monthly requirement: Rs 1.25 lakhs
Evaluation of Current Corpus
Total Corpus:

Total financial assets: Rs 3.55 crores (EPF, PPF, Mutual Funds, FDs, other sources)
Income from Real Estate
Rental Income:

Take two flats for a constant monthly income. The exact rental income should, therefore, be computed for an accurate valuation of the same.
Retirement Planning Observations
Diversification:

Your corpus is diversified very well across various asset classes.
Stability and Growth:

Fixed deposits and PPF provide stability.
Growth comes from mutual funds.
Liquidity:

There should be sufficient liquidity to take care of your monthly expenses and other emergencies.
Recommendations
Investment Strategy:

A portion of your corpus should be invested in balanced mutual funds for growth.
Run adequate fixed deposits for stability and liquidity.
Income Generation:

Maximize the rental income of the flat by letting them at competitive rates.
Invest in dividend-paying mutual funds for generating regular income.
Health Insurance:

Review and ensure health insurance to the extent that it may be necessary with regard to potential medical expenses.
Emergency Fund:

Ensure an emergency fund of 6-12 months of expenses in a liquid fund.
Tax Efficiency:

Plan your investments such that it reduces tax on income that will be generated or withdrawn.
Your current corpus appears sufficient to take care of your retirement needs. Adopt a balanced approach that gives equal emphasis on growth and stability. Maximize the rental income and maintain liquidity for any emergencies. Periodically review and realign your investments in line with your goals.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in