Worried about my diabetes (148 fasting, 220 post lunch) - Seeking advice without medication

Ans: Your fasting blood sugar levels are fine. Your 2 hr post meal blood sugar levels are also within range but can be better controlled.
It might be possible that some of the antidiabetic medications which you take at the time of breakfast might be causing dizziness as side effect.
Your medications need to be reviewed by a physician and there might be a solution.

Dr Chandrakant Lahariya
Centre for Health: The Specialty practice
Safdarjung Enclave, New Delhi

Ans: You need to comprehensive foot examination done.
Anyone who is diabetic (specially type 2), should get comprehensive annual foot examination done for neuropathy and other situations.

Dr Chandrakant Lahariya
Centre for Health: The Specialty practice
Safdarjung Enclave, New Delhi

Ans: I am not clear whether you lost weight without anything or you made an effort to reduce weight.
Are their other associated symptoms? Do you have any pre-existing health issues? What is your height?
If you answer these questions, i would be in better situation to respond.

Also, it might be beneficial to consult a physician for in-person or online advice.


Dr Chandrakant Lahariya
Centre for Health: The Specialty practice
Safdarjung Enclave, New Delhi,

Ans: If you are a male, then your weight for height seems fine. Though, you can definitely benefit by reducing some weight. A better approach would be that you get a body fat analysis done and focus on reducing fat and building muscles.
If you are a female, an ideal weight is height in cm minus 105. In that case, your ideal weight would be 57 kg and you can benefit by weight reduction, more.

Irrespective of what is your gender, Intermittent or time restricted fasting in any form is good. It is a way of restricted eating and thus reducing calories intake. It benefits multiple ways including weight reduction and improving metabolism.
I would also advise that alongside fasting, if you focus on physical activity and some aerobic and resistance exercises, that would also help in building muscles and strength and keeping weight under control.

Dr Chandrakant Lahariya
Centre for Health: The Specialty practice
Safdarjung Enclave, New Delhi,

Ans: You are 64 years old and still earning Rs. 18 lakhs annually. Living on rent for Rs. 21,000 per month seems manageable. You have savings of Rs. 80 lakhs and no other liabilities. With your two daughters married, you and your wife are financially secure in terms of dependents.

You are considering purchasing a house worth Rs. 60 lakhs. This is a significant decision and requires careful evaluation.

Assessing the Need for Purchasing a House
Renting vs. Owning
You are currently paying Rs. 21,000 monthly in rent, which equals Rs. 2.52 lakhs annually. This is a reasonable amount compared to your income of Rs. 18 lakhs per year. Owning a house, however, will bring additional costs such as property tax, maintenance, and repairs. Let's consider the benefits and drawbacks of buying a house at this stage.

Advantages of Renting:
Flexibility to move if needed.
Lower ongoing financial commitment.
Savings can continue to grow and be invested elsewhere.
Advantages of Owning:
Stability and security of owning your home.
No monthly rent payments.
Potential long-term capital appreciation.
Buying a house would use up a large portion of your savings. It might limit your liquidity and leave you with less cash for emergencies or future needs. At your age, liquidity is crucial for managing unforeseen expenses, especially healthcare-related ones.

Liquidity and Emergency Planning
You and your wife need a financial cushion for healthcare and daily living expenses. Though your earnings are good, retirement could be on the horizon. The Rs. 80 lakhs you have saved should be allocated wisely to provide for your post-retirement years.

Buying a house will deplete Rs. 60 lakhs, leaving only Rs. 20 lakhs for other needs. This may not be sufficient for future healthcare, emergencies, or lifestyle expenses.

Investment Potential
House as an Investment Option
While buying a house may seem like a good investment, it is a less liquid asset. If you need cash in the future, selling property may take time. Property prices also fluctuate based on market conditions. In contrast, keeping your savings liquid in mutual funds, fixed deposits, or other financial instruments can offer flexibility and consistent growth.

A Certified Financial Planner would typically advise against locking up too much of your savings in real estate, especially at this age. It may be better to focus on investments that offer liquidity, safety, and steady returns.

Health Care and Long-Term Planning
As you and your wife age, healthcare costs will likely rise. Keeping a significant portion of your Rs. 80 lakh savings in easily accessible and growth-oriented investments is essential. Healthcare emergencies or long-term care may arise, and selling a house during such times might not be feasible.

Consider enhancing your health insurance coverage if needed. Also, set aside funds in safe, liquid investments that can be accessed easily during emergencies.

Evaluating Your Current Income and Expenses
You are earning Rs. 18 lakhs annually, which gives you good financial stability. Your current rent of Rs. 21,000 per month is reasonable compared to your income. This leaves you with plenty of room for savings and investments.

Buying a house worth Rs. 60 lakhs may disrupt this balance. You will not only lose liquidity but also face additional expenses like property tax, maintenance, and repairs. Renting, on the other hand, provides flexibility without burdening your finances.

Benefits of Actively Managed Funds over Real Estate
If you are considering investing your Rs. 80 lakhs, actively managed mutual funds can provide better returns and more flexibility than real estate. Actively managed funds have the potential to outperform the market, as professional fund managers can adjust the portfolio based on market conditions.

In contrast, real estate is an illiquid investment and can take time to sell if needed. Moreover, real estate prices can stagnate or even decline in certain areas, making it a less attractive investment compared to mutual funds that offer both growth and liquidity.

Disadvantages of Index Funds
Some people prefer index funds for their low fees, but they are not the best option for everyone. Index funds merely replicate the market performance and may not provide significant returns over inflation in the long run. Actively managed funds, on the other hand, can potentially beat the market and give higher returns, making them more suitable for long-term wealth creation.

Disadvantages of Direct Mutual Funds
You may have considered direct mutual funds because of lower expense ratios. However, these funds do not come with expert advice, which is crucial, especially when managing significant retirement savings.

Investing through a Certified Financial Planner (CFP) and a Mutual Fund Distributor (MFD) provides access to personalized guidance. A CFP will help you balance your portfolio based on your goals, risk appetite, and time horizon. This can make a big difference in managing your wealth efficiently.

Maintaining Financial Independence
Given your age and the absence of any liabilities, it is vital to maintain your financial independence. Your income is good, but in the coming years, you may want to transition into retirement. Financial independence means having enough liquid assets to cover living expenses, healthcare, and unforeseen emergencies without worrying about market fluctuations.

Locking a large portion of your savings in real estate could compromise your financial independence. In contrast, keeping your savings in a diversified portfolio of liquid investments ensures that you can continue to manage your expenses and live comfortably.

Final Insights
Here are some important points for your situation:

Liquidity: Retain liquidity to cover emergencies, healthcare, and lifestyle expenses.

Renting: Renting at Rs. 21,000 per month is affordable and gives flexibility.

Owning a House: Buying a house may limit your liquidity and increase your financial burden.

Investments: Actively managed mutual funds offer better growth and liquidity than real estate.

Healthcare: Consider enhancing health insurance and setting aside emergency funds.

Long-Term Financial Independence: Focus on investments that provide liquidity and steady growth for retirement.

At this stage of life, maintaining financial flexibility and independence should be the priority. Locking your savings into real estate may not be the best decision.

Best Regards,

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

Ans: Your corpus of Rs 70 lakhs, spread across multiple mutual funds from various platforms, is a commendable achievement. You're also continuing to invest through SIPs, which is a disciplined and smart approach. However, having too many mutual funds can dilute the overall performance, making it difficult to track and manage effectively. Let’s evaluate whether you should continue with these funds or look for better alternatives.

Diversification vs Over-Diversification
Diversification is essential in reducing risk, but investing across 11 different fund houses can lead to over-diversification. When you invest in too many mutual funds, especially from similar categories, the portfolio might lose its focus. This can lead to:

Duplication of Holdings: Many mutual funds from different fund houses may have the same stocks in their portfolios, offering no real diversification benefit.

Difficulty in Monitoring Performance: Tracking the performance of so many funds can be challenging, and you might miss out on making timely decisions on underperforming funds.

Diluted Returns: Spreading investments too thin across multiple funds may result in average returns, instead of focusing on the best-performing funds.

Should You Move to Fixed Deposits?
Fixed deposits (FDs) are safe investments, but they might not be the best option given your long-term goals. Here are a few reasons why:

Lower Returns: FDs generally offer returns that barely beat inflation. Over the long term, inflation could erode the purchasing power of your savings in an FD.

Taxation: The interest earned on FDs is fully taxable as per your income tax slab, which reduces the post-tax returns further.

While FDs provide safety, they do not offer the growth potential of mutual funds, especially equity mutual funds, which are critical for wealth accumulation over time.

Optimizing Your Mutual Fund Portfolio
Instead of withdrawing from all your current mutual funds, a better approach would be to streamline and optimize your portfolio. Here’s how you can do it:

Review Fund Performance: Identify the underperforming funds in your portfolio and consider exiting them. Compare their performance with similar funds and the benchmark. If a fund consistently underperforms, it may be time to switch.

Focus on Actively Managed Funds: Actively managed funds often outperform passive options like index funds because fund managers can make tactical decisions based on market conditions. By reducing the number of funds and focusing on well-managed, high-performing funds, you can improve your overall returns.

Avoid Index Funds: While index funds might seem attractive due to their low expense ratios, they simply mimic the market and may not provide superior returns in the long run. Actively managed funds give you the benefit of professional fund management, which is crucial for navigating volatile markets.

Regular Funds vs Direct Funds
If you’re investing in direct mutual funds, you may save on expenses, but there’s a catch. Direct funds require constant monitoring and adjustment. Investing through a Certified Financial Planner using regular funds provides professional advice, portfolio rebalancing, and strategic adjustments, ensuring your investments align with your financial goals.

Expert Guidance: A CFP can help you choose the right funds based on your risk profile and goals, which is especially important when consolidating your portfolio.

Performance Monitoring: A CFP regularly tracks your portfolio and makes necessary changes, which is crucial in achieving long-term goals.

Taxation of Mutual Funds
It’s essential to keep in mind the new capital gains taxation rules on mutual funds:

Equity Mutual Funds: Long-term capital gains (LTCG) above Rs 1.25 lakh are taxed at 12.5%. Short-term capital gains (STCG) are taxed at 20%.

Debt Mutual Funds: For debt funds, both LTCG and STCG are taxed as per your income tax slab.

Since you plan to build wealth over time, ensure your portfolio is structured to maximize tax efficiency.

Focus on Goal-Based Investing
Before making any decisions about whether to withdraw or switch investments, it’s essential to align your portfolio with your financial goals. Ask yourself:

What is your investment horizon? If your goals are long-term (more than five years), equity mutual funds remain the best option. For short-term goals, consider debt funds or hybrid funds.

What is your risk tolerance? If you can tolerate market fluctuations, equity-heavy mutual funds are ideal. Otherwise, a balanced approach with some debt allocation will offer stability.

What are your liquidity needs? If you need liquidity in the near term, ensure that your portfolio has a mix of liquid or short-term debt funds that can be easily redeemed.

Rebalancing Your Portfolio
To achieve optimal results, consider rebalancing your portfolio:

Reduce the Number of Funds: Consolidate your investments into a few high-quality funds. Aim for 5-6 funds across different categories (large-cap, mid-cap, multi-cap, and hybrid). This will simplify tracking and improve performance.

Review Asset Allocation: Ensure your portfolio maintains an appropriate balance between equity and debt. If you’re nearing retirement, you may want to increase the debt component to reduce volatility.

Exit Underperforming Funds: If a fund has consistently underperformed for over two years, consider switching to a better-performing option. Regular monitoring and review are essential.

Emergency Fund and Contingency Planning
It’s also vital to maintain a sufficient emergency fund. This fund should be kept in liquid assets, such as liquid mutual funds or short-term debt funds, rather than FDs, to ensure easy access and better post-tax returns.

Health Coverage and Insurance
Review your health and life insurance coverage as part of your overall financial plan. Having adequate coverage ensures that medical emergencies don’t derail your financial goals. If you hold LIC, ULIPs, or investment-cum-insurance policies, consider surrendering them and reinvesting the proceeds into mutual funds for better returns and flexibility.

Finally
Here’s a summary of what you can do next:

Streamline your mutual fund portfolio by reducing the number of funds.

Focus on actively managed funds for long-term wealth creation.

Avoid FDs for long-term goals due to their lower returns and tax inefficiency.

Consolidate and optimize your portfolio with the help of a Certified Financial Planner.

Maintain a balanced approach between equity and debt based on your risk tolerance.

Ensure your investments align with your financial goals and liquidity needs.

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

Ans: Your current financial position is strong, with a diversified portfolio across various asset classes. The regular monthly savings and rental income provide a steady foundation. As your liabilities will end in 2028, the reduction in debt payments will significantly increase your investable surplus.

The goal of generating Rs 2 lakh per month post-retirement income (as per current cost of living) requires careful planning, especially considering inflation and future needs. Based on your current situation, we can create a comprehensive investment strategy to help you achieve this goal within the next five years.

Let’s evaluate each part of your financial plan.

Monthly Savings
You are already investing Rs 50,000 in mutual fund SIPs, Rs 20,000 in NPS, Rs 5,000 in Sukanya Samriddhi Yojana (SSY), and Rs 40,000 in Provident Fund (PF). These regular investments will play a crucial role in achieving your retirement goal. Your monthly rental income of Rs 80,000 is also significant.

Here are insights for each investment:

Mutual Fund SIPs: SIPs are a good long-term investment strategy, especially for wealth accumulation. Consider reviewing your portfolio and focusing on funds with a consistent track record of performance. Actively managed funds may offer better growth opportunities than index funds.

NPS (National Pension Scheme): NPS is tax-efficient and gives you a good balance between equity and debt. However, withdrawals are partially taxable. You should continue this contribution, as it helps create a retirement corpus, but ensure you align it with your risk tolerance.

SSY (Sukanya Samriddhi Yojana): SSY is a great tax-saving option for your daughter’s future needs. However, it offers relatively low returns compared to equities. Continue contributing, but ensure this aligns with your overall financial goals.

PF (Provident Fund): PF contributions are essential for building a safe, debt-based retirement corpus. You may want to continue these contributions, as they provide stability.

Rental Income
You are earning Rs 80,000 per month from your residential and commercial properties. This income will be a valuable component of your post-retirement strategy. However, since rental income may fluctuate, it’s essential to have a diversified investment portfolio to ensure a steady income stream.

Existing Assets
Your current assets include:

Provident Fund (Rs 20 lakh)
NPS (Rs 20 lakh)
SSY (Rs 8 lakh)
These are solid base investments, but to reach your target of Rs 2 lakh per month post-retirement, additional investments in equity-based instruments and other options are necessary.

Strategy for Achieving Rs 2 Lakh Post-Retirement Income
To generate Rs 2 lakh per month post-retirement income, the focus should be on wealth accumulation for the next five years, followed by a structured withdrawal strategy.

Increase Equity Exposure for Higher Returns
Mutual Funds: Actively managed funds provide the potential for higher returns over the long term compared to index funds. Consider increasing your allocation to diversified equity mutual funds or multi-cap funds. You can continue with your SIPs but regularly review their performance. A Certified Financial Planner can help in selecting the right funds.

Direct vs Regular Funds: If you are currently investing in direct funds, you might not be getting the benefit of expert guidance. Regular funds through a Certified Financial Planner (CFP) give you access to professional advice, portfolio reviews, and timely adjustments, which can make a significant difference in achieving your retirement goals.

Debt Funds and Conservative Options
Debt Mutual Funds: These funds can provide a stable income post-retirement. However, the returns are taxed according to your income tax slab, which can reduce the net gain. Debt mutual funds are a good complement to your equity investments, providing a safer growth avenue.

PF & NPS: Continue with these contributions, as they provide tax benefits and form a part of your debt allocation. However, keep in mind that NPS withdrawals are partially taxed. You should aim to create a balance between tax efficiency and liquidity.

Retirement Corpus Calculation (Estimated)
Assuming you need Rs 2 lakh per month (Rs 24 lakh per year) and accounting for inflation over the next 10-15 years, you will need a significant corpus. To generate Rs 24 lakh per year at a 6% withdrawal rate, you would need approximately Rs 4-5 crore at retirement.

Additional Investments
To bridge the gap between your current savings and your retirement goal, consider the following:

Increase SIPs: As your liabilities reduce in 2028, you can increase your SIPs. An increase in SIPs by Rs 30,000 to Rs 40,000 per month over the next five years could substantially enhance your retirement corpus.

NPS Contribution: Increasing your NPS contribution to the maximum allowed limit will help boost your retirement savings in a tax-efficient manner.

Balanced Approach: A 60:40 equity-to-debt ratio could work well for you. This ensures that you are taking advantage of market growth while still having a stable portion of your portfolio in safer instruments.

Rental Property Considerations
Your rental income is an important source of cash flow, but property maintenance and other costs could reduce your net income over time. Therefore, it's crucial not to rely solely on rental income for post-retirement. Diversifying into financial assets that are easier to liquidate can provide more flexibility.

Tax Efficiency
Post-retirement income is subject to taxation, so it's essential to optimize your portfolio for tax efficiency.

Mutual Fund Taxation: Long-term capital gains (LTCG) above Rs 1.25 lakh in equity mutual funds are taxed at 12.5%. Short-term capital gains (STCG) are taxed at 20%. For debt mutual funds, both LTCG and STCG are taxed as per your income tax slab.

NPS Withdrawal Tax: Remember that 60% of NPS withdrawals are tax-free, but 40% must be used to purchase an annuity, which is taxable.

Structuring your withdrawals to minimize tax impact will be a key component of your retirement plan.

Emergency Fund and Medical Coverage
Ensure that you maintain an emergency fund equivalent to at least 6 months of your expenses. Additionally, your health insurance should be robust, given that healthcare costs are rising. You may also want to review your existing policies to ensure they provide adequate coverage.

Finally
To achieve your goal of Rs 2 lakh per month post-retirement, you need to:

Increase your SIPs and focus on actively managed mutual funds.

Maximize your NPS and PF contributions for a stable retirement base.

Diversify into both equity and debt instruments for balanced growth and stability.

Consider the tax implications of withdrawals and aim for tax-efficient strategies.

Review your portfolio regularly with the help of a Certified Financial Planner to ensure you remain on track.

Best Regards,

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

Ans: Current Financial Situation: Assets and Liabilities Overview
Assets
Government Sovereign Bonds: Rs. 1.6 crores
EPF: Rs. 71 lakhs
PPF: Rs. 50 lakhs
Shares (Reliance): Rs. 1.2 crores
Mutual Funds: Rs. 1.2 crores
Liabilities
Home Loan: Rs. 35 lakhs
Annual LIC Premium: Rs. 6 lakhs
Kids’ School Fees: Rs. 4 lakhs annually
Monthly SIP in Mutual Funds: Rs. 3 lakhs
You have substantial assets, and your current liabilities are manageable. However, considering early retirement is a big decision. It needs careful evaluation from all angles.

Evaluating Early Retirement
Current Income and Expenses
Your take-home salary is Rs. 3.5 lakhs monthly, and you invest Rs. 3 lakhs into mutual funds. This leaves Rs. 50,000 for other expenses, including home loan EMI, LIC premiums, and children's school fees. Retirement would mean losing this income and relying solely on your investments and savings.

Importance of Liquidity and Cash Flow
While your assets are strong, much of your wealth is tied up in long-term investments like Sovereign Bonds, EPF, and PPF. These assets are good for the future but may not offer immediate liquidity. Once you retire, you will need liquidity for regular expenses.

It’s important to note that while your Mutual Funds (Rs. 1.2 crores) and Shares (Rs. 1.2 crores) are liquid, they are subject to market volatility. You might need to draw from these assets for both short- and long-term goals, making it necessary to plan carefully to avoid depleting them prematurely.

Evaluating Long-Term Needs
Children's Future Expenses
Your kids are young, at 5 and 2 years old. You will need to consider long-term expenses such as:

School fees, which could increase.
College education, which could be significant.
Wedding costs, which are substantial in India.
You will need a dedicated fund to cover these future costs while ensuring that your lifestyle does not suffer in the present.

Ongoing Liabilities
Home Loan: With a Rs. 35-lakh home loan, the EMI is an ongoing expense. You must account for this in your financial planning post-retirement.

LIC Payments: Rs. 6 lakh annually for LIC is a significant cost. Consider if this policy aligns with your retirement goals. LIC policies generally offer lower returns compared to mutual funds. You may want to discuss with a Certified Financial Planner if surrendering the policy and investing elsewhere is a better option.

Monthly SIP: While a Rs. 3-lakh SIP is a great long-term investment strategy, will you be able to sustain this after retirement? You need to evaluate if this amount can be reduced to manage cash flow better.

Market Risks and Volatility
A large portion of your assets is in shares and mutual funds. These are subject to market risks. While these investments generally grow over time, you may face periods of market downturns, which could impact your retirement corpus.

Also, it's important to consider capital gains taxes when withdrawing from these investments. Long-term capital gains (LTCG) on equity mutual funds above Rs. 1.25 lakh are taxed at 12.5%. Short-term capital gains (STCG) are taxed at 20%. These taxes will affect the returns on your mutual fund investments when you withdraw them.

Assessing the Benefits of Actively Managed Mutual Funds
Disadvantages of Index Funds
If you hold index funds, it’s important to understand the drawbacks. Index funds are passively managed and aim to replicate the market index. They do not outperform the market and are limited in scope for beating inflation or generating significant returns. In contrast, actively managed funds, handled by professional fund managers, can outperform the market by investing in sectors and companies with higher growth potential.

Actively managed funds can adjust to market conditions, making them a better option for long-term wealth generation. It's advisable to shift focus toward these funds for better returns in the future.

Regular Funds vs Direct Funds
If you have been investing in direct funds, consider the following disadvantages:

Direct funds lack personalized advice, which is critical, especially post-retirement.
Investing through a Certified Financial Planner (CFP) and a Mutual Fund Distributor (MFD) can give you expert guidance and timely advice. They help in asset allocation, reviewing your portfolio, and ensuring your investments align with your retirement goals.
Regular funds come with a slightly higher cost but offer the advantage of professional support, which can optimize your returns in the long run.

Future Planning: Children's Education, Lifestyle, and Healthcare
Children’s Education and Weddings
You should set aside funds specifically for your children’s higher education and weddings. Consider investing in child education plans or balanced mutual funds that provide growth over time. This will ensure that you do not have to liquidate your other investments prematurely.

Maintaining Lifestyle
After retirement, you will need to maintain a balance between enjoying life with your children and ensuring financial security. Your current investments in government bonds, EPF, and PPF are good but not sufficient for daily expenses. You will need to draw from your liquid investments wisely, ensuring that your lifestyle remains comfortable while your assets continue to grow.

Healthcare
As you approach retirement, healthcare becomes a key concern. Ensure that you have comprehensive health insurance in place for both yourself and your family. Unexpected medical expenses can quickly deplete your retirement funds, so a good health cover is essential.

Final Insights
While your asset base is strong, retiring now may not be the most financially prudent decision, especially with young children and significant liabilities. Here are key takeaways:

Liquidity: You need more liquidity to cover monthly expenses without disturbing your long-term investments.

Children’s Education: Plan a dedicated fund for their education and weddings.

Home Loan: Focus on paying off your home loan before considering early retirement.

LIC Policy: Consider surrendering or reducing your annual Rs. 6-lakh LIC premium and reinvesting in high-growth mutual funds.

Retirement Planning: Continue working for a few more years to strengthen your financial position and ensure a worry-free retirement.

Early retirement is tempting but requires careful planning to ensure that your wealth continues to grow while meeting all your future needs.

Best Regards,

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

Ans: Hi, I noticed you have provided your NEET score, but you didn't mention any other details. Based on your score, I assume you are interested in pursuing a career in medicine rather than dentistry. Have you analyzed why you scored average in NEET? Which subjects do you need to improve in to clear NEET? Do you think it's possible to achieve a better score if you take the exam for the fourth time? I suggest you analyze this and discuss it with your dad to see if you can come to a decision.

Additionally, your dad mentioned that you can also consider taking the civil service exam. However, this exam can only be taken after completing your degree. You need to decide on the right degree course that will prepare you for the civil service exam, so you don't have to prepare for fresh later.

all the best.