Should I pursue an IPMAT from IIM Ranchi or a BMS from Delhi University?

Ans: Appreciate your clarity and discipline with money. You are far ahead of many at your age. You already have a strong income, valuable assets, and good savings habits. Now let’s look at a complete 360° view of how to reach Rs. 10 crore target by 60.

We’ll go step by step with each area of your financial life.

Income and Cash Flow Overview
Monthly income of Rs. 3 lakhs is very healthy.

Loan EMIs total around Rs. 1.19 lakhs, approximately 40% of income.

Household expenses are just Rs. 30,000 – very efficient.

SIPs of Rs. 35,000 are a great start, but more growth investment is needed.

Scope exists to steadily increase investments each year.

Savings of Rs. 13 lakhs (FD + cash + savings) gives a solid buffer.

Actionable Insight:
Maintain a detailed monthly budget tracking income, expenses, EMIs, and surplus. Review it quarterly to stay in control.

Loan Repayment Strategy
Home loan of Rs. 38 lakh with Rs. 50,000 EMI and reduced tenure to 12 years – good progress.

Car loan of Rs. 8 lakh with Rs. 19,000 EMI.

Rs. 69,000/month in loan EMIs is manageable at your income level.

Recommendations:

Don’t rush to close home loan if interest is below 9% – you get tax benefits.

Prioritise closing the car loan if interest rate is high – it's not tax beneficial.

Avoid using FD or gold for loan repayment unless it’s an emergency.

Emergency Fund Evaluation
Rs. 10 lakh in cash + Rs. 3 lakh in savings is already strong.

With Rs. 15 lakh in FD, total emergency reserve is Rs. 28 lakh.

That’s more than sufficient; no need to expand emergency fund further.

Use sweep-in FD or split across multiple banks for liquidity and safety.

Insurance Assessment
Rs. 30 lakh health insurance is adequate – continue maintaining this.

Term insurance of Rs. 50 lakh via ULIP is too low.

Ideal cover should be around Rs. 4 crore (12x annual income).

Recommendations:

Take an independent term insurance plan of Rs. 3.5 crore.

Continue existing health cover.

Evaluate surrender of ULIP and LIC if returns are low (generally ~5%).

Redirect those premiums (Rs. 2.65 lakh annually) to mutual fund SIPs.

Investment Portfolio Review
Monthly Investments:

Rs. 35,000 into mutual funds (multi-cap, flexi-cap, small-cap, etc.)

Annual Contributions:

Rs. 1 lakh into PPF

Total Investment Corpus:

Rs. 50 lakh in mutual funds

Rs. 15 lakh in FD

Rs. 30 lakh in gold

Rs. 10 lakh in cash

Rs. 3 lakh in savings

Positives:

Strong equity exposure for long-term growth.

Balanced support from gold and FD.

Suggestions for Improvement:

Increase SIPs annually by at least 10%.

Limit small-cap exposure to 10-15%.

Gradually move from FD to debt mutual funds for better returns and tax-efficiency.

Surrender low-return policies (LIC, ULIP) and reinvest in growth-oriented funds.

Continue PPF contributions for safe, tax-free returns.

Realistic Path to Rs. 10 Crore by Age 60
You are 43 now, with 17 years to invest.

Current investment corpus is around Rs. 1.08 crore.

With Rs. 35,000 SIP, you might reach Rs. 2.5–3 crore by 60 – not enough.

To Reach Rs. 10 Crore Goal:

Gradually increase SIPs to Rs. 1 lakh/month in 5 years.

Reinvest proceeds from surrendering LIC/ULIP (Rs. 2.65 lakh annually).

Redirect EMI amounts (car loan, etc.) once loans are closed.

Make lump sum additions from bonuses or surplus income.

Mutual Fund Taxation Notes
From 2024, equity LTCG above Rs. 1.25 lakh taxed at 12.5%.

Short-term equity gains taxed at 20%.

Debt fund gains taxed as per slab.

Advice:

Avoid frequent withdrawals.

Use ultra-short term or debt funds for short- to medium-term needs.

Fund Selection Guidelines
Avoid direct funds unless you manage the portfolio yourself.

Use regular plans through a certified financial planner for guidance.

Avoid index funds if you seek alpha and personalized management.

Stick to a blend of active multi-cap, flexi-cap, and large-cap funds.

Suggested Asset Allocation
60% – Equity mutual funds

15% – Debt mutual funds

10% – Gold (already in place)

10% – Emergency fund (FD + cash)

5% – PPF

Annual Portfolio Rebalancing Recommended

Year-Wise Action Plan
Year 1–2:

Repay car loan using surplus or gold if needed.

Surrender LIC and ULIP; shift Rs. 2.65 lakh to mutual funds.

Take new term plan of Rs. 3.5 crore.

Increase SIPs to Rs. 50,000/month.

Year 3–5:

Redirect closed EMIs (Rs. 19,000) to SIPs.

Gradually move FD into debt mutual funds.

Add lump sum investments from annual bonuses.

Year 6–10:

Continue SIPs at Rs. 1 lakh/month.

Keep gold as is.

Rebalance asset allocation annually.

Final Insights
You are on the right track.

No need to sell gold or break FD prematurely.

Gradually increase SIPs and equity exposure.

Maintain emergency reserve.

Improve term cover and simplify insurance portfolio.

Avoid panic, follow the strategy, and review annually.

With this approach, you can confidently build Rs. 10 crore or more by 60 and ensure financial independence.

With better planning and yearly reviews, you will secure a strong retired life.

 

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

Ans: You have shown good awareness by questioning its future benefit.

Let us now evaluate it in a detailed and practical way.

We will assess all aspects for a full 360-degree view.

Understanding the Nature of Your Policy
This is a traditional LIC pension plan.

It is not a market-linked policy. Returns are low and fixed.

It offers guaranteed benefits but lacks flexibility and growth.

It was purchased in 2008 for Rs. 7 lakhs sum assured.

It matures in March 2028. That’s just 3 years away.

After maturity, it offers annuity or pension.

Monthly pension is based on annuity rates, which are very low today.

The actual value from such pension might disappoint you.

Even if you get pension till lifetime, the amount will stay the same.

It will not beat inflation over time.

This makes the policy less useful in your retirement years.

Current Scenario: What You Might Receive
Once policy matures in 2028, you’ll get a lump sum or pension.

If you choose annuity, the monthly income may be very small.

The pension from Rs. 7 lakhs maturity value can be less than Rs. 3,000/month.

This is too low to be useful for long-term needs.

It also lacks growth or tax efficiency.

You may pay tax on the pension amount also, if applicable.

Assessing the Continuation Option
You are just 3 years away from maturity.

Surrendering now will give you a lower amount.

LIC pays a surrender value, not full maturity value.

After paying premiums for over 15 years, surrender now is not smart.

The loss on surrender at this late stage is not justifiable.

Better to wait till maturity in 2028.

What Should You Do at Maturity in 2028?
Do not choose pension or annuity from LIC.

The returns will not support inflation-adjusted expenses.

Take the entire maturity amount as lump sum.

Reinvest it in better instruments after that.

Avoid reinvesting in traditional insurance plans again.

Prefer mutual funds or hybrid instruments based on your age, risk, and goals.

What If You Need Money Now?
If you urgently need money, you can consider surrender now.

But you may lose substantial benefits by doing this.

Surrender value depends on tenure, premium paid, and bonus.

For policies this old, surrender may still fetch 50%-60% of expected value.

But maturity is so close now that waiting is more practical.

Better Alternatives to LIC Pension
Mutual funds offer better growth and flexibility.

They can beat inflation in the long run.

You can choose from different fund types based on your risk level.

Actively managed funds have potential to outperform average returns.

Regular funds through a Certified Financial Planner provide guidance and review.

They help in keeping your portfolio aligned with goals.

You also get hand-holding during market cycles.

Why Not Go for Direct Funds?
Direct funds don’t give personal advice or guidance.

You have to select, monitor, and switch funds by yourself.

There is no accountability or rebalancing support.

One wrong move can harm long-term returns.

With regular funds via a CFP-backed Mutual Fund Distributor, advice is included.

Portfolio planning, annual reviews, and switching strategies are provided.

Emotional discipline and goal planning are included.

Taxation Impact
The maturity amount from LIC is usually tax-free under Section 10(10D).

But if you opt for pension, the monthly income may be taxable.

Tax laws may change in future, affecting annuity more.

Mutual funds offer better tax-adjusted post-retirement income options.

After maturity, equity mutual funds have new tax rules.

Long-term gains above Rs. 1.25 lakh are taxed at 12.5%.

Short-term gains are taxed at 20%.

Debt funds are taxed as per your income slab.

Retirement Planning Insights
You should not depend on this LIC policy for retirement.

The expected pension is too low to cover expenses.

Retirement needs inflation-adjusted and growing income.

One-time payout from LIC in 2028 can be a bonus.

But long-term monthly income needs investment in growth-oriented tools.

Mutual funds with SWP (Systematic Withdrawal Plan) give better options.

You can decide how much to withdraw and when.

This gives more control than fixed pension.

Assessing Overall Financial Planning
Do you have enough health insurance for retirement?

Is there an emergency fund in place already?

Have you created a will or nomination for all assets?

Are you invested in PPF, EPF, or NPS for retirement?

Are your mutual fund SIPs aligned with retirement and other goals?

Do you and your spouse both have term insurance?

Is there a proper review of existing insurance-linked products?

If You Hold Other LIC or Insurance-Investment Plans
Do a full review of all policies.

If you hold ULIP, endowment, or money back plans, assess their usefulness.

Most of these policies offer low returns.

After maturity of LIC Tarang, avoid reinvesting in similar plans.

If you have other LIC or investment insurance policies, they must be evaluated.

Consider surrendering such policies if they are not near maturity.

Reinvest surrender value into mutual funds through a CFP-backed MFD.

Final Insights
Continue the LIC Tarang policy till maturity in 2028.

Do not opt for pension from it. Take lump sum instead.

Reinvest that amount in mutual funds via a CFP-guided strategy.

Pension from LIC annuity is not useful in real-life inflation scenario.

Do a complete financial check-up covering insurance, emergency fund, and investments.

Align all future investments to your retirement and other life goals.

Work with a Certified Financial Planner for a customised strategy.

Review your portfolio every year with proper advice and changes.

Build long-term wealth using disciplined and goal-oriented investment plans.

Avoid emotional decisions. Be consistent and practical.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: The order of preference should be

ECE in NIT Raipur

ECE in NIT Silchar

CSE in IIIT Kottayam

CSE in IIIT Una

CSE in IIIT Sonepat

Ans: Hello dear.
If possible prefer CSE @ Manipal Jaipur. Best of luck to you.
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Radheshyam

Ans: Hello Dhana
Possibly your son may get admission to Jaipur. Yes he can get better IIITs than mentioned. Keep close eye on the counseling process and fill the options very carefully. Best of luck to your son.
Follow me if you like the reply. Thanks
Radheshyam

Ans: He may get Mining/Metallurgy (Other State)

Ans: If you want the best brand and placement: Try for VIT AP or VIT Bhopal Mechanical Engineering campus seats, as Vellore is unlikely with your son's rank.

If you prefer a better chance at admission with good placements and can manage higher fees: Choose Amrita Bangalore Mechanical Engineering.

NIT/IIIT Mechanical is not feasible with current rank. Still it is advisable to participate in JoSAA Counselling Process by filling out maximum number of choices. Also please try for any other reputed colleges in AP with JEE Score. All the best for your son's admissions!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

Ans: Hello dear.
If possible, prefer AIMI in SRM. Best of luck to you.
Follow me if you like the reply. Thanks
Radheshyam

Ans: Not so good