Should I Choose IIT Naya Raipur ECE or CBIT IT for my son?

Ans: Current Financial Snapshot

You are 38 years old and married.

You have no children or loans.

Own land worth Rs. 2 crore.

PF balance is Rs. 15 lakh.

Monthly expenses are around Rs. 50,000.

You own a home, so no rent burden.

Planning to retire now, relying on PF for 4-5 years.

Key Retirement Planning Considerations

You need funds to last 30-40 years.

Inflation will increase your living costs.

Healthcare costs may rise with age.

A stable income source is essential.

Phase 1: Using Your PF Wisely

Your PF can cover expenses for 4-5 years.

Don’t exhaust PF fully; keep an emergency reserve.

Invest a part of PF in liquid mutual funds for better returns than savings accounts.

Maintain 6-12 months' expenses in a savings account for emergencies.

Phase 2: Monetizing Your Land

Selling the land after PF depletes is practical.

Consider the land’s potential appreciation before selling.

If selling, ensure the sale covers at least 20-25 years of expenses.

Avoid partial sales unless the land can be divided legally.

Investment Strategy Post Land Sale

Diversify Investments

Allocate funds across equity mutual funds, debt funds, and fixed deposits.

This mix balances growth and stability.

Equity Mutual Funds for Growth

Invest 40-50% in actively managed equity mutual funds.

These funds help fight inflation over the long term.

Debt Funds for Stability

Invest 30-40% in debt mutual funds.

They offer better returns than FDs with tax efficiency.

Fixed Deposits for Safety

Keep 10-15% in FDs for assured returns and emergencies.

Systematic Withdrawal Plan (SWP)

Use SWP from mutual funds for regular income.

This approach provides stable cash flow and tax benefits.

Managing Monthly Expenses

Ensure investment income covers Rs. 50,000 monthly expenses.

Adjust expenses periodically based on inflation.

Review the budget annually to stay on track.

Health and Medical Planning

Buy comprehensive health insurance if not already covered.

Increase coverage as you age to cover rising medical costs.

Consider critical illness insurance for added protection.

Emergency Fund

Keep an emergency fund equal to 1 year’s expenses.

Invest this in a savings account or liquid mutual fund.

This fund handles unexpected situations without disturbing investments.

Inflation Impact and Adjustments

Inflation will reduce the purchasing power of money.

Regularly review and adjust investments for inflation.

Equity mutual funds help in beating inflation effectively.

Tax Planning

Plan investments to minimize tax liability.

Use tax-efficient mutual funds under Section 80C if applicable.

Consult a tax expert annually to stay updated with tax rules.

Lifestyle Considerations

Consider part-time work or hobbies generating passive income.

This can reduce financial pressure and keep you engaged.

Volunteering or pursuing interests improves mental well-being post-retirement.

Reinvestment Strategy

Reinvest surplus returns to grow your corpus.

Don’t keep large idle funds in savings; invest wisely.

Review investments regularly with a Certified Financial Planner.

Potential Risks and Mitigation

Longevity Risk

Ensure your funds last 30-40 years.

Regularly review financial plans to adjust for life expectancy.

Market Risk

Diversify investments across asset classes.

Don’t panic during market volatility; stay invested long-term.

Health Risk

Adequate health insurance is non-negotiable.

Maintain a health emergency fund separately.

Psychological Preparation

Retirement is a significant lifestyle change.

Maintain social connections and active routines.

Stay mentally and physically active to enjoy retirement.

Reviewing Your Plan Regularly

Review your financial plan annually.

Adjust based on changes in expenses, market returns, or personal goals.

Reassess with a Certified Financial Planner periodically.

Finally

Your PF can support initial retirement years.

Selling the land can fund the next 30-40 years.

Diversified investments ensure growth and stability.

Regular reviews help stay on track with your retirement goals.

Prioritize health insurance and emergency funds for safety.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Ans: Hi,
unfortunately you cannot do that.

Ans: Hello Anonymous,
Each person has different fitness levels. So the exercises prescribed depends on your body type, current fitness levels, any disease like blood pressure/diabetes you have.
Usually it is good to do walks for 40-45 minutes, if possible light strength and balance training would be good too. Yoga can help at any age to stay fitter as it works on the inner organs too.
There are so many 70 plus people who are so fit that they run marathons.
It would be good to take 1 session with a fitness trainer or physiotherapist who can understand the current health status and guide towards the exercises.

Ans: Hello Sunil,
Have you done your blood tests recently? If Vitamin D3, B12 or iron levels are low there could be more fatigue. So please get those parameters checked and accordingly you can know the cause and get it rectified.

Ans: Your tax liability under new tax regime, would be as under :
Total Rs.75,000.00 (0-4 lakhs Nil, 4-8 lakhs Rs.0.20 lakhs (@5%), 8-12 lakhs Rs.0.40 lakhs (@10%), 12-13 lakhs Rs.0.15 lakhs (@15%).
Most welcome for any further clarifications. Thanks.

Ans: In view of your Income, I feel there is not much scope for tax savings, effecting your tax liability, specifically under new tax regime.
Most welcome for any further clarifications. Thanks.

Ans: Your I.Tax liability would be Nil, if your Income during the F/year 2025-26 is Rs.12.75 from Salary only.
Most welcome for any further clarifications. Thanks.

Ans: Considering your total taxable income of Rs.12,18,000.00 for the F/Y 2025-26, your tax liability would be Rs.18,000.00 only.
Most welcome for any further clarifications. Thanks.

Ans: Tax slabs are there to calculate IT in all cases. There after eligible Tax Rebate would be given, if applicable. Tax Income falling above this limit of Rs.12,00,000.00, would be covered under Marginal Tax Relief. Cases, where even marginal tax Relief is not applicable, tax calculation would be made form these tax slabs, starting from Rs.4,00,000.00 on wards.
Hope this clarifies.
Most welcome for any further clarifications. Thanks.