I am used to take medicines for depression / pain in brain from a qualified doctor. I am now 77plus aged with moderate health take medicines for Thyroid pressure , in addition . Recently I was asked to take blood test for Creatinine and urine . It was creatinine value 2 and urine within range . I was asked to avoid fish , egg & chicken daily rather at alternate days . After 3 months creatinine value came down t0 1.2 . I do regular free hand exercise and medicines . Should I continue the same medicines for next 6 months or change it ? I am following diet as said . Is there any chance of kidney infection in near future ? With all medicines I take I am quite fit but feel disturbed to take so many tablets since long time . Dr your advice is necessary .

Ans: It's commendable that you're planning for your financial future. Achieving a corpus of 50 lakhs by the time you reach 55 is a realistic goal with proper planning and disciplined investing. Given your income and expenses, investing in mutual funds can be an effective way to grow your wealth over the long term. Here's a suggested approach:
1. Start with SIPs: Since you have a monthly surplus after expenses, consider starting Systematic Investment Plans (SIPs) in mutual funds. SIPs allow you to invest a fixed amount regularly, enabling you to benefit from rupee cost averaging and the power of compounding.
2. Choose Equity Mutual Funds: Given your long-term investment horizon of 20 years, you can afford to invest predominantly in equity mutual funds, which have the potential to deliver higher returns over the long term compared to debt funds.
3. Diversify Your Portfolio: Opt for a diversified portfolio of equity mutual funds across different categories, such as large-cap, mid-cap, and multi-cap funds. Diversification helps spread risk and optimize returns. Choose funds with a proven track record of consistent performance and experienced fund managers.
4. Consider ELSS Funds: Equity Linked Savings Schemes (ELSS) offer the dual benefit of potential returns and tax savings under Section 80C of the Income Tax Act. Since you're aiming for long-term wealth creation, ELSS funds can be an excellent option to consider.
5. Regular Review: Monitor the performance of your mutual fund investments regularly and review your portfolio at least once a year. Make adjustments as needed based on changes in market conditions, fund performance, and your financial goals.
6. Seek Professional Advice: Consider consulting with a Certified Financial Planner who can provide personalized guidance tailored to your specific financial situation and goals. They can help you create a customized investment plan and navigate the mutual fund landscape effectively.
Remember, investing requires patience, discipline, and a long-term perspective. Stay focused on your goal of building a corpus of 50 lakhs by the time you reach 55, and with consistent investing and prudent decision-making, you can work towards achieving financial security and independence.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: It's great that you're thinking about your financial future at such a young age. Building a corpus of 5 Crores by the time you turn 50 is an ambitious but achievable goal with careful planning and disciplined investing. Here's a plan to help you reach your target:

Increase Investment Amount: Since you're already investing in equity funds and SIPs, consider increasing your investment amount gradually as your income grows. Aim to maximize your contributions towards long-term wealth creation.
Diversify Your Portfolio: While equity funds offer the potential for high returns, diversifying your portfolio across different asset classes can help manage risk. Consider allocating a portion of your investments to debt funds, real estate, and other avenues based on your risk tolerance and financial goals.
Review and Rebalance: Regularly review your investment portfolio and rebalance it as needed to ensure it remains aligned with your financial objectives. Monitor the performance of your funds and make adjustments based on market conditions and changes in your personal circumstances.
Explore Other Investment Opportunities: Look for additional avenues to grow your wealth, such as investing in tax-saving instruments like ELSS funds, PPF, or NPS. These options offer tax benefits along with the potential for long-term capital appreciation.
Seek Professional Guidance: Consider consulting with a Certified Financial Planner who can provide personalized advice tailored to your specific financial situation and goals. They can help you create a comprehensive financial plan and guide you towards achieving your target of 5 Crores by the age of 50.
Remember, achieving your financial goals requires discipline, patience, and a long-term perspective. Stay focused on your objectives, and with the right investment strategy, you can work towards building a substantial corpus for your future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: I commend your goal of building a corpus of 50 lakhs within the next year. It's a challenging but achievable target given your financial situation. Here's a plan to help you reach your goal:

Firstly, let's leverage your existing cash in hand of 10 lakhs. This amount can serve as the foundation for your investment journey.

Next, considering your monthly income of 1.6 lakhs, we can allocate a portion towards systematic investment plans (SIPs) in mutual funds.

SIPs offer the advantage of disciplined investing, allowing you to invest a fixed amount regularly over time, regardless of market fluctuations.

Given your investment horizon of one year, it's crucial to focus on relatively low-risk options to preserve capital while aiming for reasonable returns.

Avoiding direct equity or high-risk investments would be prudent, as they may subject your capital to significant market volatility and potential losses.

Instead, consider investing in debt mutual funds or balanced funds, which offer a balance of safety and potential for growth.

While actively managed funds may have slightly higher expense ratios compared to index funds, they offer the advantage of professional fund management and potential outperformance in volatile markets.

Regularly review your investment portfolio and make adjustments as needed to stay on track towards your goal.

Remember, consistency and patience are key to achieving your financial objectives. Stay committed to your investment plan, and you'll be closer to building the corpus you desire.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Investing for retirement at a young age is a smart financial decision. Let's calculate how much money you would need by retirement and how much you should invest monthly to achieve that goal.

Determining Retirement Corpus:
Estimate your desired retirement corpus based on your expected expenses during retirement. Consider factors like inflation, lifestyle preferences, healthcare costs, and other financial obligations.
Assuming a moderate estimate of future expenses, let's say you aim for a retirement corpus of 5 Crores.
Calculating Monthly Investment:
Use a retirement calculator or financial planning software to determine the monthly investment required to reach your retirement corpus.
Assuming an annual return of 10% on your mutual fund investments (which is a reasonable long-term average for equity investments), we can calculate the monthly investment required.
With a 30-year investment horizon, the power of compounding will work in your favor. By starting early, you can invest smaller amounts monthly to achieve your goal.
For example, if you aim for a retirement corpus of 5 Crores and assuming a 10% annual return:
Using a financial calculator or formula, the monthly investment required would be approximately 22,000 INR.
Regular Review and Adjustments:
Periodically review your investment strategy and adjust your contributions based on changes in your financial situation, investment performance, and retirement goals.
As your income increases or expenses decrease over time, consider increasing your monthly investments to accelerate your progress towards your retirement goal.
By consistently investing in mutual funds over the next 30 years and staying committed to your long-term financial plan, you can work towards achieving a comfortable retirement.

Remember, while this calculation provides a rough estimate, individual circumstances may vary. Consulting with a Certified Financial Planner can provide personalized guidance tailored to your specific financial goals and help you create a comprehensive retirement plan.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Considering your risk appetite and investment horizon, moving 50 lakhs from your mutual fund (MF) portfolio to a Portfolio Management Service (PMS) requires careful evaluation.
Here are some points to consider before making a decision:
1. Risk and Volatility: PMS typically offers a more concentrated portfolio with higher exposure to individual stocks compared to mutual funds. While this can potentially result in higher returns, it also comes with increased risk and volatility. Ensure that you're comfortable with the higher level of risk associated with PMS, especially given your moderate risk appetite.
2. Track Record and Expertise: Before opting for a PMS, thoroughly research and evaluate the track record, expertise, and investment philosophy of the PMS provider. Look for consistent performance over various market cycles and assess their ability to generate returns in line with your expectations.
3. Fees and Charges: Understand the fee structure of the PMS, including management fees, performance fees, and other charges. Compare these costs with the expenses associated with your mutual fund investments to ensure that the potential benefits justify the additional expenses.
4. Diversification: Consider the impact of reducing diversification by moving a significant portion of your portfolio to PMS. Diversification helps mitigate risk by spreading investments across different asset classes and securities. Ensure that the PMS portfolio aligns with your overall asset allocation strategy and risk management goals.
5. Investment Horizon: While you mention a holding capacity of 3-5 years, it's essential to align your investment horizon with the PMS strategy. Some PMS strategies may have longer investment horizons, and exiting prematurely could hinder your ability to realize potential returns.
6. Review and Monitoring: Continuously monitor the performance of your PMS portfolio and stay informed about changes in the market environment and the PMS strategy. Be prepared to reassess your investment decision periodically and make adjustments as needed to stay on track towards your financial goals.
As a Certified Financial Planner, I recommend discussing your decision with a financial advisor who can provide personalized guidance tailored to your individual circumstances and investment objectives. They can help you weigh the pros and cons and make an informed decision that aligns with your financial goals and risk tolerance.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: It's never too late to start saving and investing, even at 55 years of age. Let's outline a plan to help you accumulate 25 lakhs in the next 5 years:
1. Assess Current Finances: Begin by evaluating your current financial situation, including income, expenses, assets, and liabilities. Understanding your financial baseline will help in setting realistic savings goals.
2. Create a Budget: Develop a monthly budget that accounts for all your expenses, including essentials like utilities, groceries, and medical expenses. Identify areas where you can potentially reduce spending to increase savings.
3. Emergency Fund: Prioritize building an emergency fund equivalent to at least 6-12 months of your living expenses. This fund will provide a financial cushion for unexpected expenses or emergencies, ensuring you don't dip into your savings prematurely.
4. Investment Strategy: With a 5-year timeframe, consider a combination of savings and investment avenues to achieve your goal of accumulating 25 lakhs. Since you have a relatively short investment horizon, focus on low to moderate risk options with potential for growth.
5. Systematic Investment Plan (SIP): Start a monthly SIP in mutual funds or other investment vehicles that align with your risk tolerance and financial goals. Consider diversified equity funds for growth potential, balanced funds for stability, and debt funds for capital preservation.
6. Additional Income Streams: Explore opportunities to increase your income through part-time work, freelancing, or utilizing any specialized skills or hobbies you may have. Even a small additional income can significantly boost your savings over time.
7. Minimize Expenses: Continuously review your expenses and look for ways to minimize discretionary spending. Cut back on non-essential purchases and focus on living within your means to maximize savings.
8. Regular Review: Periodically review your financial progress and adjust your savings and investment strategy as needed. Monitor the performance of your investments and make any necessary changes to stay on track towards your goal.
9. Seek Professional Guidance: Consider consulting with a Certified Financial Planner who can provide personalized advice tailored to your specific situation and goals. They can help you create a comprehensive financial plan and navigate the investment landscape effectively.
By following these steps and staying disciplined in your approach, you can work towards achieving your target of saving 25 lakhs in the next 5 years, securing your financial future.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: Here's how you can complain against the organization that allegedly opened an institutional trading account for you without your consent:

1. File a Complaint with the Broker:

Start by directly contacting the broker's customer care department. Lodge a formal complaint about the unauthorized opening of an institutional account.
Request them to rectify the situation and close the account immediately.
Keep a record of your complaint, including the date, time, and reference number (if provided).
2. Approach Regulatory Bodies:

If the broker doesn't address your complaint satisfactorily, you can escalate it to the Securities and Exchange Board of India (SEBI). SEBI is the regulatory body for the Indian stock market.
You can file a complaint online on the SEBI SCORES portal (https://scores.gov.in/) or by post/email.
SEBI will investigate your complaint and take necessary action against the broker if they find any wrongdoing.
3. Stock Exchange Grievance Redressal Mechanism:

If the broker is a member of a stock exchange (NSE or BSE), you can also file a complaint with their grievance redressal mechanism.
Each exchange has a dedicated portal for filing complaints.
4. Legal Action:

As a last resort, you can consider legal action against the broker. This might be a more complex and time-consuming route, so consulting a lawyer specializing in financial matters is recommended.
Documents to Keep Handy:

Any communication you had with the broker regarding the account opening (emails, SMS, call recordings, etc.)
Account opening documents (if you have any)
Proof of your identity and residence
Remember:

Act promptly. The sooner you file a complaint, the better the chances of resolving the issue effectively.
Keep detailed records of all your communication and actions taken.
By following these steps, you can take action against the organization and potentially get the unauthorized account closed.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: Here's a breakdown of the tax implications for your mother's situation:

Sale of Flats:

The sale proceeds from selling the flats will likely be considered a capital gain. Since she received these flats in exchange for her land, the cost price for calculating the capital gain will be the cost of the original land.
Tax Treatment:

Long-Term Capital Gains (LTCG): If your mother held the flats for more than 2 years before selling, the capital gains will be considered LTCG. For senior citizens (over 60 years), LTCG from the sale of any type of capital asset (including land or buildings) is exempt from tax.

Short-Term Capital Gains (STCG): If she held the flats for 2 years or less, the gains will be considered STCG. However, there's no separate capital gains account required for seniors.

Exemption for Senior Citizens:

The good news is that since your mother is a senior citizen, LTCG from the sale of the flats is exempt from tax irrespective of whether she opened a capital gains account or not.
Recommendations:

It's advisable to consult a tax advisor for a more personalized assessment. They can consider factors like the specific holding period of the flats, any applicable exemptions, and filing requirements for senior citizens.
Additional Points:

Even though LTCG is exempt, it's still recommended to maintain records of the original land cost, sale proceeds, and ownership period for future reference.
If the sale proceeds are significant, tax implications on other income sources might need to be considered while filing the ITR.
I hope this clarifies the situation!

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: You're right, there seems to be a misunderstanding regarding the TDS deduction on your Jeevan Asha-II policy maturity amount. Here's a breakdown:

TDS on Maturity: Generally, for pre-2014 ULIPs and traditional endowment plans like Jeevan Asha-II, maturity proceeds are exempt from tax if the annual premium doesn't exceed 20% of the sum assured. In your case, the premium amount seems to be well below the 20% limit.

Possible Reasons for TDS: There could be a few reasons for the TDS deduction:

Technical Error: An error in LIC's system might have triggered the TDS deduction.
Change in Rules: While the rule generally applies to pre-2014 policies, there might have been a specific clarification or change applicable to your policy.
Recommendations:

Contact LIC: Get in touch with LIC's customer care or your agent. Explain the situation and the relevant tax rule. Request clarification on the reason for TDS deduction and explore the possibility of a refund if it was an error.
Tax Return Filing: While filing your Income Tax Return (ITR), you can mention the maturity amount received, the TDS deducted (Rs. 16,180), and the exemption clause applicable to your policy (premiums below 20% of sum assured). This will help you claim the deducted TDS amount if it wasn't justified.
Calculating Your Tax Liability:

Since the maturity amount is likely exempt from tax, you don't need to calculate any additional tax liability on it (assuming you haven't received any taxable bonuses). However, your total income for the year will determine your tax bracket (30% in your case) and the tax applicable to your other income sources.

Remember: For specific advice on your situation and the possibility of an LIC error or rule change, consulting a tax advisor familiar with LIC policies and tax rules for pre-2014 plans might be helpful.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in