Dear Doctor,I am 70 yrs old, undergone CABG 2007 Nov, now some time prick sensation on the left shoulder behind, is it a point of concern

Ans: Income tax is nil only on income upto Rs.12 Lakhs. Considering an annual income of ?18 LPA as salary income, you’ve to pay tax for the entire 18 Lakhs starting from Rs.0 to Rs.18 Lakhs as per slab rate.
So here the standard deduction of ?75,000 is applicable, resulting in a tax liability of ?1,45,250 under the new tax regime. After including the 4% cess, the total tax payable will be ?1,50,800.
If the income is from sources other than salary, the standard deduction will not be applicable.

Ans: Considering your salary income of Rs.19 LPA as salary income, standard deduction of Rs.75,000 is applicable resulting in tax liability of Rs.1,65,000 according to the new tax regime. Post 4% cess your total tax liability will be Rs. 1,71,600.

Ans: Considering an annual income of ?22 LPA as salary income, the standard deduction of ?75,000 is applicable, resulting in a total tax liability of ?2,31,250 under the new tax regime. After including the 4% cess, the total tax payable will be ?2,40,500. If the income is from sources other than salary, the standard deduction will not be applicable.

Ans: Buying a home is a major financial step. A home loan impacts cash flow and future goals. Careful planning is important before taking a big loan.

Your total family income is Rs. 1.5 lakh per month. You are considering a Rs. 60 lakh loan for 20 years. The EMI will be around Rs. 50,000 to Rs. 55,000 per month.

Let’s analyse if this is the right decision.

Impact of a High EMI
Your EMI will be about 35% of your total income.
This is manageable, but it reduces flexibility.
A large EMI means less money for savings and investments.
Your monthly cash flow may get affected.
A lower loan amount means a lower EMI and better financial flexibility.

Future Expenses to Consider
Your baby’s expenses will increase. Education and medical costs will rise.
Household expenses may increase with inflation.
Lifestyle expenses may grow over time.
You may need to save for retirement early.
A smaller home loan gives more room for future expenses.

Emergency Fund Requirement
You must keep 6 to 12 months of expenses as an emergency fund.
A high EMI reduces the ability to build an emergency fund.
Medical emergencies or job loss can create financial stress.
Ensure your emergency fund is strong before taking a big loan.

Investment and Wealth Creation
You must continue investing for future financial goals.
A high EMI may reduce the ability to invest regularly.
If most of your income goes towards EMI, wealth creation slows down.
Keeping EMI manageable helps in long-term financial growth.

Home Loan Interest Burden
A Rs. 60 lakh loan over 20 years means high interest payments.
The total interest paid may be equal to or more than the loan amount.
A smaller loan means less interest burden and early repayment.
A lower loan amount can help achieve debt-free status faster.

Stability of Income
Your income is stable, but future risks exist.
A job change, career break, or business loss can affect loan repayment.
A smaller EMI helps in managing risks.
Avoid overstretching on EMI to maintain financial stability.

Loan Tenure and Flexibility
A shorter tenure means higher EMIs but less interest paid.
A longer tenure means smaller EMIs but more interest paid.
Prepaying a loan early can reduce interest burden.
Choose a loan tenure that keeps EMI affordable but allows faster repayment.

Alternative Approach
Consider a smaller loan with a higher down payment.
Buy a house that meets your needs but reduces financial strain.
Invest the saved amount in higher-return assets.
Balancing homeownership and investment leads to better financial growth.

Family Financial Security
Ensure adequate health and life insurance before taking a loan.
A home loan is a long-term commitment.
Securing your family financially is more important than a bigger house.
A well-planned loan should not affect your financial security.

Renting vs Buying
Compare the cost of renting a similar house.
If rent is significantly lower than EMI, renting may be better for now.
Buying later with higher savings can reduce loan burden.
A wise decision considers both financial and lifestyle factors.

Finally
A Rs. 60 lakh loan is manageable but may reduce financial flexibility.
A smaller loan can help maintain balance between EMI, savings, and investments.
Ensure emergency funds, insurance, and future expenses are covered before taking a big loan.
Buying a house should not compromise wealth creation and financial security.
Making a practical decision will keep your finances strong in the long run.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

Ans: Difference Between Term and Permanent Life Insurance
Life insurance is important for financial security. It helps protect loved ones in case of an untimely demise. There are two main types: Term Life Insurance and Permanent Life Insurance.

Both serve different purposes. Let’s analyse their features, benefits, and suitability.

Definition and Purpose
Term Life Insurance offers coverage for a fixed period. If the policyholder passes away within this period, the nominee gets the sum assured.
Permanent Life Insurance provides coverage for the entire lifetime. It also has an investment or savings component.
Cost and Affordability
Term insurance is much cheaper. It provides only pure life cover.
Permanent insurance is costly. It includes life cover and an investment component.
For those looking for maximum coverage at a lower cost, term insurance is better.

Premium Structure
Term insurance has fixed and affordable premiums. Premiums remain constant throughout the policy term.
Permanent insurance has high premiums. A part of it goes towards building cash value.
If the goal is cost efficiency, term insurance is the preferred choice.

Maturity Benefits
Term insurance has no maturity benefit. If the insured survives the term, there is no payout.
Permanent insurance builds cash value. This can be withdrawn or borrowed against.
Those looking for pure protection should opt for term insurance.

Investment Component
Term insurance does not have an investment feature. It is purely for protection.
Permanent insurance acts like an investment. It grows in value over time.
However, returns on permanent insurance are often lower than other investments.

Flexibility in Coverage
Term insurance allows coverage for a specific term, such as 10, 20, or 30 years.
Permanent insurance covers the insured for life.
For those wanting lifelong coverage, permanent insurance is an option.

Liquidity and Borrowing Facility
Term insurance has no cash value. It cannot be used for loans.
Permanent insurance builds cash value. This can be borrowed against if needed.
However, borrowing reduces the final payout to nominees.

Returns on Investment
Term insurance provides no returns. It only offers financial security.
Permanent insurance gives returns, but they are lower than mutual funds.
Instead of permanent insurance, investing in mutual funds can provide better growth.

Tax Benefits
Term insurance premiums qualify for tax deductions under Section 80C.
Permanent insurance also qualifies for 80C deductions. Additionally, the maturity amount is tax-free under Section 10(10D).
Both options offer tax benefits. However, term insurance is more cost-effective.

Who Should Choose Term Insurance?
Individuals looking for high coverage at a low premium.
Young professionals with dependents.
Those who prefer separate investment and insurance planning.
For most people, term insurance is the best choice.

Who Should Choose Permanent Insurance?
Individuals looking for lifelong coverage.
Those who need a cash-value component.
People who want a forced savings mechanism.
However, better investment options exist outside of permanent insurance.

Common Myths About Life Insurance
"Term insurance is a waste of money."
Reality: It provides financial security at an affordable cost.
"Permanent insurance gives better returns."
Reality: Mutual funds and other investments usually offer higher returns.
"Investing in insurance is smart."
Reality: Insurance should be for protection, not wealth creation.
Final Insights
Term insurance is affordable and effective for protection.
Permanent insurance is expensive and offers lower returns.
For financial growth, separate investment in mutual funds is better.
It is best to consult a Certified Financial Planner for personalised advice.
Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

Ans: Hello Jayesh.
What is the point in sacrificing extra 4-5 years just for JEE (Adv)? Are you sure that all IITans are very happy with their jobs and careers? As per the latest research, around 90% of IITans do not work in the field in which they have taken the degree. Are the other B.Tech. students are not happy in their life who completed their degrees from other reputed colleges. It seems that you are either too crazy to do B.Tech. only from IIT or somebody has given you the wrong feedback or done the wrong counseling with you. As I suggested earlier, follow the same without any hesitation. There is no other way to enter into IIT as you are thinking. Repeating 10th or 12th with a different name will create a lot of problems with your career and a police case may be filed against you for misguiding the Govt institutions. Avoid this for your future upcoming career. It is not like that only IIT is the path to success. You can choose other path also as per your liking. I think you need one-to-one personal counseling. It would be better to contact your local counselor who can hear you better. Best luck for your upcoming future.
If satisfied, please like and follow me.
If dissatisfied with the reply, please ask again without hesitation.
Thanks.

Radheshyam

Ans: Your plan to construct residential apartments using an overdraft loan against your equity and mutual fund investments is ambitious. You have strong assets, but leveraging them comes with risks. Let’s analyze your plan and explore alternatives.

Key Observations
You have Rs. 3 crore land value, which is a significant asset.
Your investments have grown well:
Equities: Rs. 1.5 crore (invested Rs. 40 lakh over 44 years).
Mutual Funds: Rs. 1.6 crore (invested Rs. 45 lakh over 14 years).
Total investment corpus: Rs. 3.1 crore.
You need Rs. 2.5 crore for construction.
You are considering an overdraft (OD) loan against securities at 10.35% interest.
You plan an SWP of Rs. 10 lakh per year to service the loan interest.
You expect your investments to grow to Rs. 10 crore in 7–8 years.
Evaluation of Your Plan
Loan Strategy Risks

High Interest Cost: At 10.35% interest, a Rs. 2.5 crore OD loan will have an interest cost of Rs. 25.87 lakh per year.
SWP May Not Be Enough: Rs. 10 lakh SWP per year will only cover about 40% of interest. The shortfall may require additional withdrawals.
Market Volatility: Your investments may not always perform as expected. A market downturn can affect your ability to repay the loan.
Margin Calls: If markets fall significantly, the lender may demand additional security or partial repayment.
Alternative Strategies
A. Loan Against Property (LAP) Instead of OD Loan

A Loan Against Property (LAP) at 8–9% interest would be cheaper than 10.35% OD loan.
Since you own land worth Rs. 3 crore, you can get 50–60% LTV (Rs. 1.5–1.8 crore).
Combine this with a smaller OD loan (Rs. 70 lakh–1 crore) to reduce interest burden.
B. Staggered Construction with Phased Funding

Instead of borrowing Rs. 2.5 crore upfront, consider building in phases.
Start with 2–3 floors using lower debt and rental pre-sales for funding.
C. Joint Venture with a Developer

Partner with a real estate developer who funds construction in exchange for a share of profits.
This reduces your financial risk and eliminates the need for a high-cost loan.
D. Selling a Small Portion of Land Instead of Borrowing

Instead of selling an apartment unit later, sell a small portion of land now to raise funds.
This avoids interest costs and maintains your control over remaining property.
Final Insights
Your plan is aggressive but risky due to high loan interest and market uncertainties.
A combination of Loan Against Property + Small OD Loan is better than relying fully on OD.
Consider phased construction, developer partnerships, or partial land sale to reduce debt.
Ensure your SWP plan is sustainable and accounts for market fluctuations.
Would you like help evaluating a detailed financial model for these scenarios?

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

Ans: You have a well-diversified portfolio across gold, RD, FD, stocks, and mutual funds.
Your mutual fund SIPs total Rs. 12.2K per month, spread across different categories.
Your stock market investment is Rs. 78K, which is a good start.
Gold SIP and RD offer stability but may not provide high growth.
Evaluating Your Financial Goal
You want to achieve Rs. 1 crore, but the timeline is not mentioned.
Your SIPs and stock investments will compound over time.
If you invest consistently and increase SIPs, you can reach Rs. 1 crore faster.
Steps to Reach Rs. 1 Crore
Increase SIP Contributions
Your current SIP of Rs. 12.2K per month can be increased gradually.
If possible, raise your SIP by 10% every year.
This will take advantage of compounding and market growth.
Review and Rebalance Your Portfolio
Your portfolio has sectoral and small-cap funds, which are high risk.
Consider a balance of large-cap, flexi-cap, and mid-cap funds.
Avoid thematic funds as they may underperform in some phases.
Reduce Low-Yielding Investments
RD and small finance bank FD provide safety but not high returns.
Instead, allocate more to mutual funds or a debt fund for stability.
Continue Stock Market Investments
Investing in direct stocks can give higher returns if done wisely.
Invest only in fundamentally strong companies with long-term growth potential.
Consider keeping 5-10% of your portfolio in direct stocks.
Emergency and Risk Management
Ensure you have an emergency fund covering 6-12 months of expenses.
If not, set aside some money in a liquid fund or savings account.
Get adequate health insurance and a term life cover if dependents exist.
Final Insights
Achieving Rs. 1 crore depends on consistent investments and market growth.
Increase SIPs every year and maintain a balanced portfolio.
Reduce low-yield investments and focus on long-term wealth creation.
Regularly review and adjust investments based on performance.
Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

Ans: Hello;

Continue to live in the flat till retirement and then sell it, would be my suggestion.

Even if the property gets older, the location commands premium over time.

Also as apartments get older, prospect of redevelopment is quite possible which may provide you with new flat with bigger area and more features thereby increasing selling prospects.

Best wishes;
X: @mars_invest