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Ramalingam

Ramalingam Kalirajan  |7742 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 21, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Asked by Anonymous - Jun 21, 2024Hindi
Money

Hi, I'm 27 years old. I have married recently this year. I'm earning 50k per month. In that I'm investing 9k in mutual fund with a 10% top up(2 lakh already invested in mutual funds and 1.25 lakh is invested in direct stock), 15k in rd and 10k in NSC(for tax saving purpose). Can I retire at the age of 40-45 with a substantial corpus?

Ans: Planning for an early retirement at 40-45 years old with a substantial corpus requires a thoughtful and strategic approach. At 27, you have ample time to create a solid financial plan. Your current investments in mutual funds, stocks, recurring deposits, and NSCs (National Savings Certificates) are commendable. However, to achieve your goal of early retirement, a more refined strategy will be necessary. Let’s delve into your financial situation and explore how you can potentially retire early.

Understanding Your Current Financial Position
First, congratulations on your recent marriage and your disciplined approach to saving and investing. You're on the right track with Rs 2 lakh in mutual funds and Rs 1.25 lakh in direct stocks. Your monthly investments show a commendable commitment to building wealth. Let’s review your current investments and income allocation:

Monthly Income: Rs 50,000
Mutual Fund Investment: Rs 9,000 with a 10% annual top-up
Recurring Deposit (RD): Rs 15,000
National Savings Certificate (NSC): Rs 10,000 for tax saving
Direct Stocks: Rs 1.25 lakh already invested
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Analyzing Your Current Investment Strategy
Your investment strategy is diversified across different asset classes. Diversification helps manage risk and provides balanced growth. Let’s analyze each component:

Mutual Funds: Investing Rs 9,000 per month with a 10% top-up is excellent. Mutual funds offer growth potential through diversified portfolios managed by professionals. Actively managed funds can outperform benchmarks and provide superior returns, crucial for early retirement goals.

Direct Stocks: Direct stock investments provide the opportunity for significant returns but come with higher risk. Given your young age, a portion of your portfolio in stocks is advantageous for growth.

Recurring Deposit (RD): RD offers guaranteed returns and is a safe investment. However, the returns are generally lower compared to mutual funds or equities. Balancing safety and growth is key.

National Savings Certificate (NSC): NSC is a good choice for tax-saving purposes. It provides fixed returns and is secure, but like RDs, it has limited growth potential compared to equity investments.

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Importance of Setting Clear Financial Goals
Setting clear financial goals is crucial for planning an early retirement. Determine the lifestyle you want and estimate the annual expenses you’ll need. Factor in inflation, healthcare, and any major life events. Establishing these goals helps in creating a roadmap for your investments and savings.

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Evaluating the Feasibility of Early Retirement
Retiring at 40-45 is ambitious but possible with disciplined planning. Evaluate your future financial needs and desired lifestyle. Early retirement means fewer working years to save and more years relying on your investments.

Consider how much you’ll need annually and for how long. This estimate helps in determining the corpus required to sustain your retirement. Assess your current savings and projected growth to see if you’re on track.

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Maximizing Growth Through Mutual Funds
Mutual funds should play a central role in your investment strategy for early retirement. They offer professional management and diversification. Actively managed funds can outperform benchmarks and adapt to market changes.

Top-Up SIPs: Increasing your SIP by 10% annually is a smart move. It harnesses the power of compounding and increases your investment without major lifestyle adjustments.

Equity Exposure: Maintain a significant portion in equity mutual funds. They offer higher growth potential compared to debt or fixed-income funds. Given your long investment horizon, equities can drive substantial corpus growth.

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Balancing Risk and Return in Direct Stocks
Direct stock investments can yield high returns but come with volatility. Balance your stock investments with your risk tolerance and investment horizon. Consider the following:

Diversification: Spread your investments across various sectors to reduce risk. Avoid concentrating too much in a single stock or industry.

Long-Term View: Focus on long-term growth rather than short-term gains. Patience and holding quality stocks can lead to significant wealth accumulation over time.

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Reassessing Safe Investments: RD and NSC
Recurring Deposits and NSCs provide stability but offer limited growth. Evaluate if these investments align with your goal of early retirement. Consider the following adjustments:

Reduce Allocation: Gradually reduce the proportion of your income allocated to RDs and NSCs. Redirect those funds towards higher growth options like mutual funds or equities.

Tax Efficiency: While NSCs provide tax benefits, explore other tax-efficient investment options that offer better growth potential, such as ELSS (Equity Linked Savings Scheme) mutual funds.

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Exploring Additional Investment Options
To achieve early retirement, consider expanding your investment horizons. Besides mutual funds and stocks, other options could include:

Balanced Funds: These funds invest in a mix of equity and debt, providing growth with some level of stability. They’re ideal if you want to balance risk and return.

International Funds: Diversifying into global markets can provide exposure to growth opportunities outside India. This reduces reliance on the Indian market alone.

Retirement-Specific Funds: These funds are designed to grow steadily while preserving capital, tailored for long-term retirement planning.

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Importance of Emergency Fund and Insurance
Having an emergency fund and proper insurance coverage is crucial. These provide financial security and protect against unexpected expenses. Consider the following:

Emergency Fund: Maintain 6-12 months of expenses in a liquid fund. This ensures you can handle emergencies without dipping into your investments.

Insurance: Adequate health and life insurance protect your family and your financial goals. Ensure you have sufficient coverage for unforeseen events.

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Importance of Regular Portfolio Review and Rebalancing
Regularly reviewing and rebalancing your portfolio ensures it aligns with your goals and market conditions. This involves:

Performance Monitoring: Track the performance of your investments against your goals. Adjust as needed to stay on track.

Rebalancing: Shift funds between asset classes to maintain your desired allocation. This keeps your portfolio balanced and aligned with your risk tolerance.

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Role of a Certified Financial Planner (CFP)
A Certified Financial Planner (CFP) can provide invaluable guidance in your early retirement journey. They offer personalized advice and help navigate complex financial decisions. Benefits include:

Goal Setting: A CFP helps clarify and set realistic financial goals based on your situation.

Investment Strategy: They design and implement a tailored investment strategy to achieve your goals.

Regular Reviews: CFPs conduct regular portfolio reviews and suggest adjustments to keep you on track.

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Tax Efficiency and Planning
Effective tax planning is essential for maximizing your retirement corpus. Consider the following:

Tax-Advantaged Investments: Explore investments that provide tax benefits, such as ELSS or PPF (Public Provident Fund).

Long-Term Capital Gains: Take advantage of favorable tax rates on long-term investments to reduce your tax liability.

Tax Planning with a CFP: A CFP can help structure your investments in a tax-efficient manner, enhancing your net returns.

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Staying Disciplined and Focused
Achieving early retirement requires discipline and focus. Stick to your investment plan and avoid common pitfalls:

Avoiding Market Noise: Ignore short-term market fluctuations and focus on your long-term goals.

Consistent Investment: Regularly invest and top-up your SIPs. Consistency is key to building wealth over time.

Avoid Emotional Decisions: Don’t let emotions drive your investment decisions. Stay rational and stick to your strategy.

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Embracing the Power of Compounding
Compounding is a powerful tool in wealth creation. Your SIP top-ups and consistent investments harness this power. Here’s how to maximize it:

Start Early: You’ve already started investing at 27, which is excellent. The earlier you start, the more you benefit from compounding.

Reinvest Returns: Reinvest any returns or dividends to boost your corpus. This accelerates growth over time.

Stay Invested: Long-term investments allow compounding to work its magic. Avoid withdrawing funds prematurely.

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Adapting to Life Changes
Life changes like marriage, children, or career shifts can impact your financial plan. Be flexible and adapt your strategy as needed. Consider:

Revising Goals: Regularly review and update your retirement goals based on your changing circumstances.

Adjusting Investments: Modify your investment strategy to align with new financial responsibilities or opportunities.

Seeking Guidance: Consult with a CFP during significant life events for personalized advice and planning.

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Final Insights
Planning for early retirement at 40-45 is ambitious but achievable with disciplined saving and strategic investing. Your current investments are a strong foundation. To enhance your chances of success, consider reallocating funds from lower-growth options like RDs and NSCs towards higher-growth mutual funds and equities.

Regular portfolio reviews and rebalancing, along with guidance from a Certified Financial Planner, will keep you on track. Embrace tax-efficient strategies and the power of compounding. Stay focused, adapt to life changes, and remain disciplined. With these steps, you can build a substantial corpus and enjoy a fulfilling early retirement.

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Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |7742 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 14, 2024

Asked by Anonymous - Jul 30, 2024Hindi
Money
I am 35 years of age. have a corpus of 55 lakhs. I am married but No kids. Wife has savings of 20 lakhs. I have a home in tier 3 city. Can i retire with this amount if my monthly expenses are 40K
Ans: You’ve done well by building a significant corpus at 35. It's commendable to think about retiring early. However, early retirement comes with challenges. We must assess your situation from multiple angles to give you a clear picture.

Understanding Your Current Financial Situation
Corpus Overview: You have Rs. 55 lakhs. Your wife has Rs. 20 lakhs. Together, this makes a total of Rs. 75 lakhs.

Home Ownership: You own a home in a Tier 3 city. This is an asset but might not provide regular income unless rented out.

Monthly Expenses: Your current monthly expenses are Rs. 40,000. This is reasonable, but inflation can change this over time.

Evaluating Early Retirement Possibility
Life Expectancy Consideration: At 35, you likely have a long retirement ahead. If you retire now, you might need to sustain yourself for 50+ years.

Inflation Impact: Inflation can erode purchasing power. Assuming 7% inflation, your current Rs. 40,000 monthly expenses might double in 10-12 years.

Corpus Depletion Risk: A corpus of Rs. 75 lakhs might seem sufficient now, but over 50+ years, it may deplete quickly due to inflation and living expenses.

Income Generation: Without an active income stream, relying solely on your corpus might be risky. Investments that generate regular income can help mitigate this risk.

Potential Income Sources Post-Retirement
Mutual Funds: Investing in actively managed mutual funds can provide better returns than FDs. These funds, managed by experts, can outperform index funds by identifying growth opportunities.

Dividend Yield Funds: These funds focus on companies that pay regular dividends. This can provide a steady income stream to support your monthly expenses.

Debt Instruments: Consider debt funds or bonds for stability. These instruments provide regular income and are less volatile than equities.

Systematic Withdrawal Plan (SWP): An SWP in mutual funds allows you to withdraw a fixed amount monthly. This can help manage your monthly expenses without depleting your corpus too quickly.

Planning for Inflation and Healthcare Costs
Inflation-Protected Investments: Investing in assets that grow faster than inflation is crucial. Equity mutual funds, especially actively managed ones, can offer this growth potential.

Healthcare Costs: As you age, healthcare costs will likely rise. Ensure you have adequate health insurance. Also, consider creating a separate corpus for medical emergencies.

Emergency Fund: Maintain a liquid emergency fund equivalent to 6-12 months of expenses. This provides a buffer for unexpected costs.

Considering Future Life Changes
Potential Family Expansion: While you don’t have kids now, this might change. Children come with additional financial responsibilities, such as education and healthcare.

Housing Costs: Your home in a Tier 3 city might have lower maintenance costs now. However, if you decide to move to a larger city, costs might increase.

Lifestyle Adjustments: Early retirement often requires lifestyle adjustments. If your expenses increase, your corpus might not suffice. It’s important to plan for potential lifestyle changes.

Creating a Sustainable Withdrawal Strategy
Safe Withdrawal Rate: Financial planners often recommend a 4% withdrawal rate. This means withdrawing 4% of your corpus annually. For Rs. 75 lakhs, this is Rs. 3 lakhs annually, or Rs. 25,000 monthly. This is below your current Rs. 40,000 monthly expenses, suggesting the need for a larger corpus or additional income streams.

Balancing Growth and Safety: A mix of equity and debt investments can provide growth while protecting your capital. This balance is crucial for long-term sustainability.

Regular Portfolio Review: Your portfolio should be reviewed regularly with a Certified Financial Planner. This ensures it remains aligned with your goals and market conditions.

Alternative Considerations Before Retirement
Part-Time Work: Consider part-time work or freelancing. This can supplement your income and reduce the strain on your corpus. It also keeps you engaged and active.

Delaying Retirement: If possible, delaying retirement by a few years can significantly boost your corpus. This allows more time for your investments to grow and reduces the number of years you need to fund.

Building Passive Income: Look into building passive income streams. This could include rental income if you have additional property or royalties from creative work.

Investing Your Corpus Wisely
Avoid Real Estate as an Investment: Real estate is illiquid and might not provide regular income. Focus on financial instruments that offer liquidity and regular returns.

Actively Managed Funds Over Index Funds: Index funds track the market and don’t offer the potential for outperformance. Actively managed funds, guided by experts, can identify and capitalize on growth opportunities.

Regular Funds vs. Direct Funds: Direct funds might have lower costs, but they require active management by you. Investing through a Certified Financial Planner in regular funds can provide better guidance and monitoring.

Preparing for the Long-Term Future
Retirement Corpus Growth: Your current corpus might not be sufficient for the next 50 years. Invest in growth-oriented assets to ensure your corpus grows over time.

Tax Planning: Efficient tax planning can help you retain more of your income and returns. This includes choosing tax-efficient investment options and utilizing available deductions.

Legacy Planning: If you wish to leave a legacy for your family, consider estate planning. This includes creating a will and ensuring all your financial accounts have proper nominations.

Building a Robust Healthcare Plan
Comprehensive Health Insurance: Ensure you have comprehensive health insurance that covers hospitalization, critical illnesses, and other medical expenses.

Top-Up Plans: Consider a top-up health insurance plan to enhance your coverage. This is a cost-effective way to ensure you’re covered for larger medical bills.

Long-Term Care Planning: As you age, long-term care might become necessary. Plan for this by setting aside funds or investing in insurance plans that cover long-term care.

Final Insights
Early retirement at 35 is an ambitious goal. While your current corpus is substantial, it may not be enough to sustain you for the next 50+ years without careful planning and wise investments. Consider balancing your desire for early retirement with the need for financial security. This might involve delaying retirement, supplementing your income, or investing more aggressively in growth-oriented assets. Regularly reviewing your financial plan with a Certified Financial Planner will ensure that you stay on track and adapt to any changes in your life or the market.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Money
Milind

Milind Vadjikar  |947 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 15, 2024

Asked by Anonymous - Oct 14, 2024Hindi
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Money
I am 38 years old, I have a corpus of 60 Lacs invested in Mutual fund, I have a property of 2 cr that I am willing to sell, can I retire at 40 I am earning a salary of 85k monthly and NPS of 12 Lacs , I dont have kids as of now, I am planning to have one, will it be advisable to retire?
Ans: Hello;

You may sell the property and invest the sale proceeds (2 Cr) and current MF corpus(60 L) into equity savings fund (moderate risk) for 2 years.

After 2 years it may grow into a corpus of 3.05 Cr.

If you do an SWP at 3% then you may expect monthly income of 76.25 K

If you withdraw NPS, 80% corpus will yield you an annuity income 4.8 K per month. Corpus will remain in equity savings fund so that it can grow to beat inflation. But in case of market drawdowns the returns from this may get affected.

So your consolidated monthly income will be 81.05 K.

Another option is you may buy immediate annuity for your corpus of 3.05 Cr and expect a monthly payout of around 1.06 L(post tax). Here the risk is corpus will remain same and not grow with inflation.

So this plus annuity from NPS will yield you total monthly income of 1.11 L.

But is pertinent to inform you about some risks of early retirement especially when you are planning to expand your family:

1. Kid's education inflation risk

2. Time in retirement will be around 40 years(life expectancy assumed as 80 years)so general inflation risk.

3. Healthcare inflation risk

4. Lifestyle sustainence risk.

5. Unless you pursue alternate vocation or profession to keep yourself occupied and generate additional income, you may suffer with "devil in empty mind" syndrome.

Think about all these issues and arrive at a suitable decision in consultation with your near and dear ones.

Do ensure you have adequate term life cover with suitable riders and also adequate healthcare cover for entire family.

Happy Investing!!

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

..Read more

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Ramalingam

Ramalingam Kalirajan  |7742 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 21, 2025

Asked by Anonymous - Jan 20, 2025Hindi
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Money
Hello sir, I am 35yo with 2 (4yo, 1yo) children. Can I retire now, with following corpus: mutual fund and stocks : 3.5 crore, lands: 50 lakh, PF&PPF: 80 lakh, FD: 25 lakh, SGB &Gold:50 lakh. Currently doesn't own any house. Monthly expense is around 1 lakh.
Ans: Your corpus and monthly expenses show a solid foundation. Retirement at 35, however, requires careful assessment. Let’s analyse your situation step by step.

Current Financial Assets and Allocations

Mutual Funds and Stocks: Rs 3.5 crore

This is a significant part of your corpus. Equity investments offer high growth potential.

Lands: Rs 50 lakh

Real estate investments are illiquid. Consider them only for long-term growth or inheritance.

PF and PPF: Rs 80 lakh

These provide stability and assured returns. These are good for meeting long-term goals.

Fixed Deposit: Rs 25 lakh

FDs are low-risk and ensure liquidity. This is beneficial for emergencies.

SGB and Gold: Rs 50 lakh

Gold is a strong hedge against inflation. It also offers diversification.

Monthly Expense Analysis

Your monthly expense of Rs 1 lakh equates to Rs 12 lakh annually.

Accounting for inflation, this expense will grow over time. Planning for this is crucial.

Core Observations

Your total corpus is Rs 5.55 crore. This is substantial for your age.

Inflation and rising expenses over time will impact your corpus.

Without a house, rent becomes a recurring expense. Factor this into your calculations.

You have no guaranteed income sources post-retirement.

Key Areas of Improvement

Housing

Consider buying a house if feasible. Owning a house ensures stability and reduces rent.

Do not invest excessively in real estate as it is illiquid.

Corpus Utilisation

Avoid over-reliance on equity investments for withdrawals. Equity is volatile in the short term.

Use a mix of debt and equity for regular withdrawals.

Children’s Education and Marriage

Both are major financial goals. Plan dedicated investments for these.

Use long-term instruments for education and marriage funds.

Emergency Fund

Maintain an emergency fund of at least 12 months of expenses.

Keep it in liquid funds or high-yield savings accounts.

Recommended Financial Strategies

Asset Allocation

Diversify your portfolio across equity, debt, and gold.

Maintain 60% equity, 30% debt, and 10% gold as a starting point. Adjust as needed.

Mutual Fund Investments

Continue with actively managed funds. These can outperform index funds in emerging markets like India.

Avoid direct funds if you lack time or expertise. Regular funds offer advisor support and insights.

Debt Investments

Increase debt allocation for stability. Consider high-quality debt mutual funds.

Ensure these align with your withdrawal needs.

Tax Planning

Monitor tax implications of mutual fund withdrawals.

LTCG from equity funds above Rs 1.25 lakh is taxed at 12.5%.

Plan withdrawals to minimise tax liabilities.

Insurance Needs

Ensure adequate health insurance for your family. Cover at least Rs 25 lakh for each member.

Check if you have term insurance. Secure Rs 2-3 crore coverage for your family’s financial safety.

Inflation and Lifestyle Adjustments

Inflation can erode your purchasing power. Plan investments to counter inflation.

Avoid lifestyle inflation. Stick to essential expenses wherever possible.

Income Generation Options

Systematic Withdrawal Plans (SWP)

Use SWP from mutual funds for regular income.

Choose hybrid funds for better stability and returns.

Rental Income

Invest part of your corpus in commercial properties.

Ensure this aligns with your liquidity needs and risk profile.

Freelance or Part-Time Work

Consider light work for additional income. It can extend your corpus.

Use your skills to generate flexible income streams.

Monitoring and Review

Review your portfolio annually. Adjust allocations as goals evolve.

Work with a Certified Financial Planner for periodic checks.

Final Insights

Retirement at 35 is ambitious but achievable with meticulous planning. Your current corpus is strong, but consider the following:

Plan for inflation, children’s needs, and healthcare costs.

Diversify investments and secure guaranteed income sources.

Avoid premature decisions. Evaluate thoroughly before retiring.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

..Read more

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Ravi

Ravi Mittal  |518 Answers  |Ask -

Dating, Relationships Expert - Answered on Jan 31, 2025

Asked by Anonymous - Jan 22, 2025Hindi
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I’m 36M, I met a girl in my office, who works in the same department. It was love at first site for me, but I was scared to tell her that. As time passed, I used to strike some casual conversations with her or her team to connect with her and there were some clear signs that she liked me, for example, she would call me or text me why I’m not talking to her if I didn’t message her for some time (a week) or she would ask me if I was coming to office as we were working Hybrid if not she would also not come to office. But she always refused to come out with me for a movie or date/meet saying she had a very strict family and cannot come out other than office. I used to think that this was a real thing. But all this went on until her birthday arrived. I got some gift to give her on her birthday only to know that she suddenly stopped talking to me, no replies to my messages, calls or anything. At first, I was bit concerned if there was any problem or if she was in any trouble. But little did I know it was not the case at this time. After few (many) attempts trying to reach her. I though maybe she could be busy or something and I understood may be if I did not disturb her, she might call back. Time went on I again met her after 4 or 5 months in Office with no contact. By this time, I had already realised there was something wrong and she had already lost interest in me. But still I felt like I wanted to have a closure on this and I went on and gave the gift and proposed her, that is when she told me that she was in a relationship with some other person for 4 years. This blew my mind to pieces, as I was thinking why would someone shows any sort of interest on someone when they are already in relationship with some other person. I tried to move away from her after this incident, but fate we still are working in the same department and that I have to see her more often than not. I still have strong feelings for her, but I cannot show this to her and worst act normal. Whenever I see her, I want to talk to her and If I talk to her, I fall for her again and again. But she is happy and casual about all this as if there was not casualty in whole of this thing. Even now she asks me if I’m coming to office so that she could meet me. So, through all this, I have some questions 1. Why does a women show any sort of Interest on someone else when she is already in a relationship, so she can use me as a options and throw away when done 2. How do I move on, as I did not love her for some superficial features, rather I really liked her character, and that is the worst as I feel like I’ll never be able to find anyone like her in my life. Feeling down for a long time now. I’m already 36, feels like all the doors have closed for me.
Ans: Dear Anonymous,
I understand that you are hurt and upset, and rightfully so. You thought she liked you but turns out, she is with someone else. It's a good enough ground to be upset. But I want you to understand one thing- you thought; she never gave you verbal confirmation. You assumed it all. So to answer your first question- all of her interest in you might have been friendly. It is difficult for me to say it with confidence because I have not seen any of this while it happened; I am only hearing your version of it. But my guess is that she thought of you as a friend or maybe, for a while there, she might have had feelings for you, but then realized that she was committed and pulled herself back. Again, all of these are my assumptions. We do not know the truth. Only she does. The next time, whenever you think someone likes you, get verbal confirmation before you act on it.

I understand that whether she showed friendly interest and you mistook it for romantic interest or she actually showed romantic interest and ghosted you, your pain remains the same because everything was real and romantic from your end. I suggest that you focus on yourself. It's unfortunate that you have to see her every day, but so be it. Take it one day at a time. Stick with your friends in your office. Find some hobby that makes you happy and when you are ready to move on, be open to finding love. I understand that this experience was bad, but it won't be the same way every time.

Best wishes.

...Read more

Relationship
Ravi

Ravi Mittal  |518 Answers  |Ask -

Dating, Relationships Expert - Answered on Jan 31, 2025

Asked by Anonymous - Jan 25, 2025
Relationship
Hi..., I feel in love with a muslim girl. I wasn't planned, it just happened I love her exactly the way she is, unconditionally, deeply, endlessly. For the last six years, Six years of loving her without expecting anything in return, without asking for anything but the chance to admire her from a distance. Every smile, every word, every little thing about her has been etched into my heart like poetry. I never saw her religion or background—only her beautiful soul. My love for her has always been pure, unconditional, and endless. It’s not about possessing her, it’s about cherishing her, even if it means keeping my feelings hidden all this time. But six years is a long time, and my heart is heavy with this love that I’ve kept inside. Should I finally tell her what I feel? Should I risk everything to let her know how much she means to me, even if it changes everything? Love knows no boundaries, no religion, no rules—it just is. But society doesn’t think the same way. What would you do if you were in my place? After six years of love, how do you decide what’s right for the person you love?
Ans: Dear Anonymous,
It does not matter what anyone else would do in your place or what society thinks. All that matters is what you think and want to do. If you have genuine feelings for her, what's stopping you from expressing them to her? If you don't tell her, how would you know if everything is going to change for the good or bad? Do as your heart wants. After all, you are not harming anyone.

Best wishes.

...Read more

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Ramalingam

Ramalingam Kalirajan  |7742 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 31, 2025

Asked by Anonymous - Jan 31, 2025Hindi
Money
Hello Sir, I am a 36 years old man, father of 2 (5y & 2y), Our income is 40Lacs pa post tax addition to that we have a rental income of 50K pm, our monthly expense is around 40K which is taken care by rents. Doing a SIP of 2.5 lac with total investment of 28L , have a RD of 25 L, ULIP -10L, Gold- 50L, I want to be financially independent in next 10 years. No loan , no credit cards., Has a medical policy of 25L. Emergency fund of 10L. Please advice how i can achieve financial independence in next 10 years.
Ans: 1. Understanding Your Financial Position
You are 36 years old with a goal of financial independence in 10 years.

Your annual post-tax income is Rs 40 lakh, with an additional rental income of Rs 50,000 per month.

Your monthly expenses are Rs 40,000, which are fully covered by rental income.

Your current investments include:

Rs 2.5 lakh SIP per month
Rs 28 lakh in mutual funds
Rs 25 lakh in RD
Rs 10 lakh in ULIP
Rs 50 lakh in gold
Rs 10 lakh emergency fund
You have no loans or credit cards, which is a strong financial position.

Your health insurance is Rs 25 lakh, which is good but may need a review later.

2. Defining Financial Independence
Financial independence means having passive income that covers all expenses.

You need enough wealth to generate returns that sustain your lifestyle.

Your target should be to build a portfolio that provides stable income after 10 years.

3. Optimising Your Current Investments
Mutual Funds – Increase Allocation
Your Rs 2.5 lakh SIP is excellent, but it needs active management.

Actively managed funds provide better returns than index funds.

Direct mutual funds lack professional management. Investing through an MFD with CFP credential helps maximise returns.

Maintain a mix of large-cap, mid-cap, and hybrid funds for stability and growth.

Recurring Deposit (RD) – Shift to Growth Assets
Rs 25 lakh in RD earns lower returns compared to equity.

Consider shifting RD funds gradually into mutual funds for better compounding.

Keep only a portion in fixed-income instruments for stability.

ULIP – Consider Surrendering
ULIPs mix insurance with investment, which reduces returns.

Surrendering and reinvesting in mutual funds can improve returns significantly.

Keep insurance separate from investments for better wealth creation.

Gold – Maintain a Balanced Allocation
Rs 50 lakh in gold is a significant portion of your portfolio.

Gold is good for diversification but does not generate passive income.

Consider reducing gold exposure and reallocating to growth-oriented assets.

4. Asset Allocation for Financial Independence
A well-diversified portfolio ensures long-term stability and wealth growth.

Your asset allocation can be:

60% in equity mutual funds
20% in debt funds and bonds
10% in gold and other assets
10% in liquid funds for short-term needs
Adjust allocation every year based on market performance.

5. Passive Income Strategy
Your goal is to generate passive income through investments.

SIPs will build a strong equity base over the next 10 years.

A mix of mutual funds and debt instruments will provide steady cash flow.

Rental income already covers monthly expenses, which is an advantage.

After 10 years, your investments should generate returns covering all financial needs.

6. Emergency Fund and Insurance Review
Emergency Fund
Your Rs 10 lakh emergency fund is good.

Keep this amount in liquid funds or fixed deposits for easy access.

Maintain at least six months of expenses as a backup.

Health Insurance
Your Rs 25 lakh health cover is decent, but medical costs rise over time.

Consider increasing coverage to Rs 50 lakh if affordable.

Ensure it covers critical illness and long-term care needs.

7. Retirement and Children’s Education Planning
Retirement Planning
Financial independence should include a secure retirement plan.

Your investments will continue growing even after achieving independence.

Keep investing to ensure financial security beyond the next 10 years.

Children’s Education
Education costs will rise significantly over time.

Start a dedicated investment plan for your children’s higher education.

Equity mutual funds with a long-term horizon will help meet this goal.

8. Tax Efficiency and Wealth Preservation
Efficient tax planning ensures you maximise post-tax returns.

Long-term capital gains tax is lower on equity investments.


Regularly review your tax liability to optimise investment returns.

9. Monitoring and Adjusting the Plan
Review your portfolio every six months.

Rebalance investments if market conditions change.

Keep track of financial independence progress based on wealth accumulation.

10. Final Insights
Your financial position is strong, and your goal is achievable.

Shifting from low-return assets to equity will help in long-term wealth creation.

Active management of investments will ensure better returns and financial security.

Keep insurance separate from investments to avoid lower returns.

A disciplined approach to investing and spending will lead to financial independence.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

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Hi what business can I start with 20000rs?
Ans: Hello Mr. Anuj,
Starting a business in India with a budget of ?20,000 is entirely possible with strategic planning, local market research, and minimal infrastructure. Whether you prefer a home-based model, freelancing, or product-based business, several viable options can generate steady income. Here’s a detailed guide to ten promising business ideas tailored for the Indian market.

Online Reselling via Dropshipping
Dropshipping allows you to sell products without holding inventory. Popular categories include eco-friendly products, ethnic jewellery, and mobile accessories. Profit margins range from 30–50%, but success depends on social media marketing and supplier reliability.

Freelancing Services
If you have skills in content writing, graphic design, or video editing, freelancing can be a lucrative option. A laptop and internet connection are the only real requirements. Building a strong online presence on LinkedIn or Fiverr can help secure consistent clients.

Home Tutoring/Coaching
With increasing competition in academics, home tutoring is a stable business. Charging ?1,000–2,000 per student per month ensures recurring income. The demand peaks during exam seasons, making it a great long-term option.

Event Decoration
Event decoration, especially in Tier-2 and Tier-3 cities, is a creative and profitable business. Specializing in birthday parties, anniversaries, and wedding decor can help build a niche. However, the business is seasonal.

Customized Printing
Selling custom-printed T-shirts, mugs, and gifts online is a trendy business. With social media marketing, you can attract college students and young professionals who love personalized products. However, printer maintenance costs should be considered.

Key Tips for Success
Legal Compliance: Register as a sole proprietorship for hassle-free operations.
Smart Marketing: Use WhatsApp Business, Instagram Reels, and Google My Business for cost-effective promotions.
Cost Control: Rent equipment (e.g., cloud kitchens) instead of buying to minimize overheads.
Customer Feedback: Focus on refining offerings based on customer preferences.
Start Small, Scale Later: Test your business model before making large investments.
With careful planning, minimal investment, and the right strategy, starting a business with ?20,000 in India is not only possible but also profitable. Choose a business aligned with your skills and local market demand, and take the first step toward entrepreneurship today!

...Read more

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