Struggling to Choose: Which University is Best for Me?

Ans: Banks may reject opening a savings account for an HUF consisting only of a husband and wife because, under Hindu law, the wife is not considered a coparcener in the HUF. A coparcener is someone who has birthright ownership in the HUF property, which traditionally includes male members. While the wife is a member of the HUF, she does not have the same rights as a coparcener, leading to the bank's refusal.

For an HUF account, it typically requires the presence of a coparcener, such as a child.

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

Ans: The level of blood sugar you have indicated are suggestive of diabetes mellitus type 2 and the metformin you are taking is clearly insufficient.

Ofcourse, need to have more dietary modifications and increased physical activity. Get body weight within normal range (please see previous answer if you wish to understand more).

Please do following:
1. A comprehensive blood test. Specially when people have diabetes, there are chances of high Bp, deranged lipid profile. and other blood parameter changes.
2. Please get HbA1c done along with fasting adn 2 hr after breakfast blood sugar levels.
3. Your medications need to be increased as currently, the sugar levels are high. There is a concept called, legacy effect. which essentially mean a tight and early control in blood sugar results in better diabetes outcome in long run. The Hba1c should be less than 7, preferably around 6.5% to reduce the possibility of macro and microvascualr complications of diabetes.
4. Do charting of your blood sugar level for some time, with Glucometer. May consider CGMs (Continuous Glucose monitoring), which provides 14 day reading for every five minutes of sugar level in once body. This may help a physician to suitably modifiy your medication.
5. Visit a physician with above set of information.

Best wishes,
PS: In such queries, mentioning age, duration of diabetes, BMI/Body Fat, height, weight and BP can help in providing more personalised information.

Ans: Raise a grievance with EPFO. They will offer you suitable solution to this problem.

Ans: Hello;

Please consider following aspects before considering retirement from 9 to 5 regular job:

1. Do you have your own house?
2. Do you have a family to support, if yes the expenses will multiply manifold apart from inflationary hikes, are you prepared to handle this?
3. What alternate vocation or profession you plan to pursue in lieu of regular job so as to keep yourself engaged, not necessarily for money, but to keep mind and body occupied towards a passion/profession?

You need to seek answers to these for your own contentment.

Now coming back to your query, you may do a monthly sip of 2.5 L in pure equity mutual fund. This may yield you a corpus will of 2.73 Cr after 6 years.

The existing MF corpus(2 Cr) will grow into a sum of 4.16 Cr in 6 years. (13% return assumed on all pure equity MF investments)

PF corpus of 35 L will grow into a sum of 55.54 L in 6 years. 8% return considered.

The stock/crypto corpus may grow into a sum of 41.93 L in 6 years. 9% return assumed.

FD may grow to 1.58 Cr after 6 years. 7%return assumed.

So cumulative corpus after 6 years will be: 273+416+158+41.93+55.54=~9.44 Cr.

This corpus if you invest in an equity savings type mutual fund(low to moderate risk)and do an SWP at the rate 3% per year it will translate into post tax monthly income of 1.65 L.

Agri/rental income will be a bonus.

I hope you have sufficient term life cover with suitable riders and also health care cover for yourself and family.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

Ans: Shishir,
Your age and other comorbidities/health issues you may have are not clear to me. How much you weigh and your height etc are not known).
However, please remember that anti-hypertensive medications are always supportive to lifestyle modification. Please do following:
1. Get a comprehensive blood test done which should include lipid profile, kidney function test and thyroid profile etc.
2. Ensure your weight is within normal range: for male, ideal weight is height in cm- 100 . for example, if you are 170 cm then your weight should be 170-100 or 70 kg. Thus enusre you have weight in normal range.
3. Do lifestyle modifications. eat healthy- fruits and vegetables, reduce salt in diet and walk at least 30 min per day for atleast 5 days a week. No more than 2 days of break.
4. Monitor BP twice in a day and prepare a chart for 10 days.

Based upon this information, a personalised lifestyle modification can be done.

With this information, and for your routine check up, visit your physician on regular basis.

Ans: you can still dmat it, the only thing is that you cannot sell it if it is in physical form.

Ans: first contact the registrar which is Kfintech with the folio number and ask them for the process of duplicate share certificates, once you receive the same dmat it with the help of your broker.

Ans: no

Ans: At 56, you have five years to plan for a peaceful post-retirement life. Your goal of achieving Rs 60,000 in monthly expenses is realistic and achievable with proper financial planning. The focus should be on creating a balance between safety, income, and growth.

Since you are self-employed, consistent and reliable cash flow will be essential during retirement. Systematic Withdrawal Plans (SWPs) are a great way to generate a regular income while allowing your investments to grow.

Let’s explore your options in detail.

Importance of Having a Financial Strategy
When planning for retirement, a good strategy should aim at protecting your wealth while ensuring steady returns. You don’t want to take unnecessary risks, but you also want your money to keep growing. A Certified Financial Planner can help design a strategy tailored to your specific situation.

Before diving into SWP plans, you need to evaluate your current financial position.

Assess Your Current Financial Situation
Income and Savings: You may already have existing savings or investments. It’s important to know how much you have saved so far. This will give you an idea of the corpus you will need to sustain a Rs 60,000 monthly income.

Risk Appetite: At this stage in life, taking excessive risk isn’t advisable. A balanced approach focusing on moderate risk and consistent returns works best.

Inflation Adjustment: Keep in mind, Rs 60,000 per month today may not hold the same value five years from now due to inflation. Consider inflation-adjusted returns when planning for your future.

Debt-Free Lifestyle: It’s crucial to ensure that you are debt-free by the time you retire. This will reduce financial strain and make it easier to meet your monthly expenses.

Advantages of SWP Over Traditional Fixed Income Plans
Regular Income Stream: SWP allows you to withdraw a fixed amount at regular intervals. You can set it up for monthly withdrawals, ensuring a steady income.

Tax Efficiency: With new tax rules, SWP withdrawals are taxed only on the capital gains part. This is more tax-efficient compared to Fixed Deposits or other fixed-income options where the entire interest income is taxed.

Flexibility: Unlike annuities or fixed income products, SWPs offer flexibility. You can increase or decrease the withdrawal amount as per your needs.

Growth Potential: The remaining part of your investment continues to stay invested in the market. This gives your corpus the potential to grow, thus helping you beat inflation.

Why Avoid Index Funds for Retirement?
Though index funds are passive in nature, they may not be the best fit for your retirement needs. Here's why:

No Active Management: Index funds track a specific market index and do not adapt to market fluctuations. Active management ensures that your portfolio is rebalanced based on market conditions, offering better downside protection.

Potentially Lower Returns: While index funds may have lower fees, actively managed funds could provide better returns over time due to professional fund management, especially when market corrections occur.

Disadvantages of Direct Funds
Many investors opt for direct funds to save on commission costs. However, direct funds might not always be suitable for everyone:

Lack of Guidance: Investing in direct funds means you won’t get the guidance of a Certified Financial Planner. A professional can help in selecting the right funds, monitoring your portfolio, and making timely changes based on market conditions.

Complexity: You may lack the expertise to select and manage the funds properly, which could lead to suboptimal returns. A CFP with an MFD license can actively manage your investments and help you achieve your goals.

Types of SWP Plans to Consider
There are different types of mutual funds that can generate regular income through SWPs:

Equity-Oriented Hybrid Funds: These funds invest in a mix of equity and debt instruments. They offer the potential for moderate growth while ensuring stability through debt investments. Equity exposure helps in beating inflation over the long term.

Debt Mutual Funds: For someone who prioritizes safety, debt mutual funds are an excellent choice. They provide stable returns, though they may not offer the same growth potential as equity-oriented funds. The advantage of debt funds is that they are less volatile.

Balanced Advantage Funds: These funds dynamically adjust the allocation between equity and debt based on market conditions. They aim to provide stable returns in both bullish and bearish markets, making them ideal for retirees looking for balanced risk exposure.

Creating a Reliable SWP Strategy
Diversification: Your investment should not be limited to a single type of fund. By spreading your money across equity, hybrid, and debt mutual funds, you can balance risk and reward. This ensures you have a stable monthly income while allowing for growth.

Investment Horizon: Since you are planning for a peaceful retirement in five years, it’s important to focus on the long-term horizon. While short-term volatility can be a concern, the long-term benefits of compounding and market growth will play in your favor.

Withdrawal Rate: It’s important to set a sustainable withdrawal rate. Withdrawing too much too soon can deplete your corpus quickly. A Certified Financial Planner can help you calculate the optimal withdrawal rate based on your financial needs and goals.

Rebalancing Your Portfolio: Over time, market conditions change, and your portfolio allocation might deviate from your initial plan. Rebalancing your portfolio annually helps maintain the desired risk level. This can improve long-term returns.

Managing Your Taxes
LTCG Tax on Equity Mutual Funds: The tax rate on Long-Term Capital Gains (LTCG) above Rs 1.25 lakh is 12.5%. This means your SWP withdrawals are relatively tax-efficient as compared to other investment options.

STCG Tax: Short-Term Capital Gains (STCG) from equity funds are taxed at 20%. Hence, it’s better to stay invested for the long term to reduce the tax burden.

Debt Mutual Fund Taxation: For debt funds, both LTCG and STCG are taxed based on your income tax slab. It’s important to consider this while planning for your post-retirement income.

Final Insights
Your goal of achieving Rs 60,000 monthly for a peaceful life after five years is absolutely achievable. SWP from a mix of equity and debt funds will give you the regular income you need, with tax benefits and growth potential.

The key is to plan well, diversify your portfolio, and work with a Certified Financial Planner who can help you stay on track. Avoid direct funds and index funds due to their limitations. Regular monitoring and portfolio adjustments are critical for ensuring a consistent flow of income, without eroding your capital.

Finally, keep your financial plan flexible. Life is unpredictable, and having a flexible plan will allow you to adjust your withdrawals and investments as needed.

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