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Ramalingam

Ramalingam Kalirajan  |8377 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 11, 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 - May 10, 2024Hindi
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Hi sir, I am 29 year old, IT professional. My in-hand salary is around 3.2 lakhs per month. I invest around 1.7L through SIP in mutual funds (large cap, mid cap and 20k per month in small cap). My mutual fund corpus is at 33L. I also have foreign stocks of 2 Crores in a single company. My monthly expenses include, EMI for an apartment of 35k, and a top up loan EMI on that for 19k, and rest 30k for other expenses. Totally, I have 60L in home loan. I'm currently married and living in that apartment. I also have another land worth 1.2 Crore (I used the top up loan here). Apart from all these, I have an emergency fund of 6L. I want to retire by having a corpus of 10 Crore. How do you recommend I go about doing that? And at what age can i retire by? Do you any suggestions on my portfolio?

Ans: It's impressive to see your dedication to financial planning at such a young age. Let's assess your current situation and chart a path towards your retirement goal.

Firstly, congratulations on building a substantial mutual fund corpus and investing in foreign stocks. Diversification is key to managing risk, and your investments reflect a balanced approach towards wealth creation.

Considering your monthly expenses and liabilities, including EMIs for your apartment and land, it's essential to ensure that your investment strategy aligns with your long-term financial goals.

To retire with a corpus of 10 Crore, we'll need to calculate the required monthly savings and investment returns. Based on your current investments and expenses, we can estimate a suitable savings target to achieve your retirement goal.

Given your age and income level, you have a significant advantage in accumulating wealth over time. By continuing to invest diligently and maximizing your savings, you can accelerate the growth of your investment portfolio.

As a Certified Financial Planner, I recommend reviewing your investment portfolio periodically to ensure it remains aligned with your risk tolerance and financial objectives. Consider diversifying your investments further to mitigate risk and optimize returns.

Moreover, explore options for tax-efficient investments like Equity Linked Savings Schemes (ELSS) and National Pension System (NPS) to enhance your savings potential and tax benefits.

Retirement planning is a long-term journey, and the age at which you can retire will depend on various factors, including your desired lifestyle, investment returns, and inflation rates. By working closely with a Certified Financial Planner, you can develop a personalized retirement plan and track your progress towards your goal.

In conclusion, with disciplined saving, prudent investing, and expert guidance, you can retire comfortably and achieve financial independence at a relatively young age.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
Asked on - May 12, 2024 | Answered on May 12, 2024
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Hi sir, Thank you for detailed reply. Would you recommend me to close out the loan or ilet it stay invested in either the foreign RSU stock or in Mutual Funds? Currently I'm paying around 8.5% interest on my loan of 60L. Also do you recommend a financial planner/advisor for me?
Ans: onsidering your situation, it's vital to weigh the options thoughtfully. Your loan bears a substantial interest rate of 8.5%, a considerable expense.

One option is to close out the loan using your investments. This would eliminate the debt burden, freeing up your finances for other purposes. However, it's essential to assess the potential returns on your investments against the interest you're paying on the loan.

Alternatively, you could retain your investments and continue servicing the loan. This strategy hinges on the performance of your investments outpacing the loan interest rate. It's a calculated risk that demands a thorough evaluation of your investment portfolio and its potential growth.

For a CFP, you can reach out to us using the below website.

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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Ramalingam

Ramalingam Kalirajan  |8377 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 07, 2024

Asked by Anonymous - May 07, 2024Hindi
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Hi, I am a 35y old single Male. My target is to retire at 50 with a corpus of 25 Crores. Currently, the worth of my portfolio is 1.25 Crore with 75 lakhs in MFs, 25 lakhs in NPS, 10 lakh in PPF, 10 lakh in SGB and about 5 lakhs in Cash and Stocks. My monthly investment is 90k in MFs and annual investment in PPF and SGB is 1.5 lakhs each. I have a 2Bhk house in Pune and my after-tax salary is 2 lakhs/month. My company takes care of my accommodation and my regular monthly expenses are about 50k/month. Do you want to suggest any other plans or am I doing alright keeping my goal in mind? Currently, the MFs are weighted about 50% Small cap, 25% Mid and flexi cap and 25% Large cap.
Ans: Your dedication to financial planning is commendable, especially with a clear retirement goal in mind. Let's delve into your current situation and discuss potential adjustments:

Your current portfolio allocation seems well-diversified, with a significant portion invested in mutual funds, NPS, PPF, SGB, and some cash and stocks. This mix offers a balance of growth and stability.

Your monthly investments and annual contributions to PPF and SGB reflect a disciplined savings approach. It's crucial to maintain this consistency to achieve your retirement target.

Your 2BHK house in Pune is an asset that adds to your net worth and provides security. It's great that your company covers your accommodation expenses, easing your financial burden.

With your after-tax salary and monthly expenses, you have a surplus for investments, which is a positive sign. It's essential to ensure that this surplus is utilized efficiently towards your retirement goal.

Considering your goal of accumulating a corpus of 25 Crores by the age of 50, it might be beneficial to reassess your asset allocation strategy. While your current allocation is diversified, you may want to tilt it slightly towards more conservative options as you approach retirement age.

Given your aggressive investment approach, you might consider gradually shifting towards a more balanced portfolio with a higher allocation to large-cap and balanced funds, which are comparatively less volatile.

Additionally, exploring other investment avenues such as direct equity, debt funds, or alternative investments could further diversify your portfolio and potentially enhance returns.

Regularly reviewing your portfolio's performance and rebalancing it as needed is crucial to stay on track towards your retirement goal.

Overall, you're on the right track with your financial planning efforts. Continue with your disciplined approach, stay informed about market trends, and seek professional advice if needed to optimize your portfolio further.

Keep up the excellent work, and with persistence and smart decision-making, you're well-positioned to achieve your retirement target!

..Read more

Ramalingam

Ramalingam Kalirajan  |8377 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 19, 2024

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Hello Team, I am 39 yrs old and currently have 40 lakhs in mutual fund and doing a SIP of 1lakh 10 k monthly, i have shares around 15 lakhs and around 22 lakhs in crypto and 14 lakhs in PF. Currently i have 13 lakhs home loan, 4.5 lakhs car loan and also bought a new house where 1.9 cr loan will be taken. My plan is to sell the current house which will fetch me 1 cr so ideally 90 lakhs loan will remain in future. Please advise me how can i retire at 45 with corpus of 5 to 6 cr.
Ans: Frst, congratulations on building a substantial investment portfolio and planning for your financial future. Managing diverse investments and loans can be challenging, but with strategic planning, your goals are achievable.

Current Assets and Liabilities
Let's summarise your financial standing:

Mutual Funds: ?40 lakhs
SIPs: ?1.10 lakhs monthly
Shares: ?15 lakhs
Cryptocurrency: ?22 lakhs
Provident Fund (PF): ?14 lakhs
Home Loan (Existing): ?13 lakhs
Car Loan: ?4.5 lakhs
New Home Loan: ?1.9 crores (expected to reduce to ?90 lakhs after selling the current house)
Evaluating Your Retirement Goal
You aim to retire at 45 with a corpus of ?5 to ?6 crores. Given your current age of 39, you have six years to build this corpus.

Managing Existing Loans
Current Home Loan
You plan to sell your current house for ?1 crore, which will help reduce your new home loan to ?90 lakhs. This is a sound strategy to lower your debt.

Car Loan
The car loan of ?4.5 lakhs is relatively small. Consider paying it off early if possible, as this will reduce your monthly outflows and save on interest.

Investment Strategy
Mutual Funds and SIPs
You have ?40 lakhs in mutual funds and a monthly SIP of ?1.10 lakhs. This disciplined approach will significantly contribute to your retirement corpus.

Continue Your SIPs: Maintaining your SIPs is crucial. Consider increasing the SIP amount if your income allows, as this will accelerate your corpus growth.

Actively Managed Funds: Focus on actively managed funds with a consistent performance record. These funds aim to outperform the market and can help achieve your target returns.

Equity Investments
You have ?15 lakhs in shares. Equities can provide high returns over the long term, but they are volatile.

Diversification: Ensure your equity portfolio is diversified across sectors to manage risk.

Regular Review: Monitor your equity investments and rebalance your portfolio as needed to align with market conditions.

Cryptocurrency
Cryptocurrency investments worth ?22 lakhs are high-risk. While they can offer substantial returns, the volatility is significant.

Limit Exposure: Consider limiting your exposure to cryptocurrencies to avoid excessive risk.

Reallocate Gains: If there are substantial gains, consider reallocating some of these funds to more stable investments.

Retirement Corpus Calculation
Estimating Required Returns
To achieve a corpus of ?5 to ?6 crores in six years, you need to focus on high-growth investments while managing risks.

Compound Growth
Your existing investments and monthly SIPs will grow significantly due to compounding. Here’s a simplified approach:

Mutual Funds and SIPs: With aggressive and balanced mutual funds, aim for an annualised return of 12-15%.

Equities and Crypto: While high-risk, these can offer returns above 15%, but exposure should be managed carefully.

Debt Management
Reducing Loan Burden
Pay Off Small Loans: Clear the car loan and any other small debts to reduce financial stress.

New Home Loan: Focus on prepaying the new home loan. Reducing this loan early will significantly lower your interest burden and increase disposable income for investments.

Professional Guidance
Consulting a Certified Financial Planner (CFP) can help tailor your investment strategy. A CFP can provide personalised advice, monitor your portfolio, and make necessary adjustments.

Regular Monitoring and Rebalancing
Review Portfolio: Regularly review your investment portfolio to ensure alignment with your retirement goals.

Rebalance Investments: Periodically rebalance your investments to manage risk and optimise returns.

Conclusion
With disciplined investing, strategic debt management, and professional guidance, retiring at 45 with a corpus of ?5 to ?6 crores is achievable. Focus on high-growth investments, manage risks, and regularly review your portfolio to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8377 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 16, 2024

Asked by Anonymous - Oct 15, 2024Hindi
Money
Am 41 yr old , earning 10-15 lakh per month with 2.5 lakh expense and 80 k emi which will b closed in 2 yrs , my asset 5 Cr asset in real estate ( 3 flat and 2 land ) , 50 lakh FD , total 2 lakh monthly mutual month investment now mutual fund total portfolio reached 60 lakh And around 1 Cr liquidabale high risk high return investment ( 20% earning diversified) Have 2 LIC one maturing in 2026 mature amount 25 lakh Another in 2030 30 lakh I wish to retire after 10 yrs Need retirement corpus of 20-25 Cr Am in right path ?
Ans: At 41 years old, with a monthly income of Rs 10-15 lakh and a desire to retire in 10 years with a corpus of Rs 20-25 crore, it’s essential to evaluate your current financial status thoroughly. You have already built a significant base of assets, but fine-tuning your strategy is crucial to ensure you reach your ambitious retirement goal.

Let’s break down your financial scenario step by step, assess if you are on the right track, and offer suggestions for improvement.

Your Financial Snapshot
Income: Rs 10-15 lakh per month
Monthly Expenses: Rs 2.5 lakh
EMI: Rs 80,000 per month, which will close in 2 years
Assets:

Real Estate: Rs 5 crore (3 flats and 2 plots)
Fixed Deposit: Rs 50 lakh
Mutual Fund Portfolio: Rs 60 lakh, with Rs 2 lakh monthly SIPs
High-Risk Investments: Rs 1 crore with 20% annual returns
LIC Policies: Rs 25 lakh maturing in 2026 and Rs 30 lakh maturing in 2030
Retirement Corpus Goal: Rs 20-25 crore in 10 Years
You aim to retire with Rs 20-25 crore in 10 years. It is an ambitious but achievable goal, given your income and current assets. However, the challenge lies in aligning your investments in a way that generates the necessary growth, with a balance between risk and returns. Here’s an evaluation of where you stand today and what adjustments may be needed.

Assessing Your Current Assets
Real Estate: Rs 5 crore
You have invested Rs 5 crore in real estate, including three flats and two plots. While this is a substantial amount and adds to your wealth, there are some key considerations:

Liquidity: Real estate is generally illiquid. Selling property can take time, and real estate prices fluctuate based on market conditions. This makes it a less reliable source of immediate funds during retirement.
Cash Flow: Unless these properties are generating rental income, they won’t contribute to your regular cash flow in retirement. Rental income can supplement your retirement, but it’s unpredictable and subject to market dynamics.
Investment Perspective: For retirement planning, liquid and growth-oriented investments are more suitable. Real estate, while a valuable asset, may not provide the steady returns you’ll need during your retirement years.
Mutual Fund Portfolio: Rs 60 lakh + Rs 2 lakh Monthly SIP
Your Rs 60 lakh mutual fund portfolio is a strong foundation. With a monthly SIP of Rs 2 lakh, you are investing in a growth-oriented vehicle. Let’s assess its potential:

Growth Potential: Assuming a conservative 12% annual return over the next 10 years, your mutual fund portfolio could grow significantly. In 10 years, this could potentially accumulate Rs 4-5 crore. However, to reach your retirement target of Rs 20-25 crore, you’ll need to increase your SIPs gradually.
SIP Top-Up Strategy: One of the best ways to ensure your mutual funds keep pace with your retirement goal is by increasing your SIP contributions annually. With rising income and the closure of your EMI in two years, you can redirect these funds toward increasing your SIPs.
High-Risk Investments: Rs 1 crore (20% returns)
You’ve allocated Rs 1 crore to high-risk, high-return investments with a 20% return expectation. While this is impressive, relying too much on high-risk investments for retirement can be problematic.

Risk Consideration: High returns come with high risk. As you get closer to retirement, it’s essential to reduce exposure to volatile investments. You don’t want to jeopardize your retirement corpus by holding too much in high-risk instruments.
Rebalance Gradually: Over time, you should consider moving a portion of these funds into more stable, diversified mutual funds or hybrid funds. This way, you can safeguard your retirement corpus while still aiming for growth.
Fixed Deposit: Rs 50 lakh
A Rs 50 lakh fixed deposit provides security, but it won’t help you grow your corpus significantly.

Low Returns: FDs typically offer lower returns compared to other investment options. Over the long term, inflation erodes the purchasing power of FD returns.
Alternative Options: You might want to explore safer mutual fund categories, such as debt mutual funds, which offer better returns and tax efficiency than FDs.
LIC Policies: Rs 25 lakh in 2026 and Rs 30 lakh in 2030
You have two LIC policies maturing in 2026 and 2030, which will provide you with Rs 55 lakh.

Low Yield: Traditional LIC policies often provide returns lower than equity or mutual fund investments. While they offer security, the returns might not align with your retirement goal.
Post-Maturity Strategy: Once these policies mature, reinvest the proceeds into growth-oriented mutual funds or other higher-return instruments. This can boost your corpus further during the final stretch of your retirement planning.
Evaluating Your Progress
You have an excellent foundation for achieving your Rs 20-25 crore retirement corpus. Here’s a summary of your current progress:

Real Estate: Rs 5 crore (not a liquid retirement asset)
Mutual Funds: Rs 60 lakh with Rs 2 lakh monthly SIPs
High-Risk Investments: Rs 1 crore, growing at 20% per annum
Fixed Deposit: Rs 50 lakh
LIC Policies: Rs 55 lakh maturing in 2026 and 2030
The key areas of improvement include increasing your SIPs, reducing reliance on high-risk investments, and finding alternatives to low-yield investments like FDs and LIC policies.

Recommendations for Growth and Stability
Increase SIP Contributions
To meet your retirement goal, consider increasing your SIP contributions over time. This will help your portfolio grow faster.

Top-Up SIP Strategy: You could increase your SIP by 10-15% each year. For example, after your EMI closes in two years, you can divert the Rs 80,000 into additional SIPs. This strategy helps ensure your investments keep pace with inflation and your growing income.
Diversify High-Risk Investments
Your Rs 1 crore in high-risk investments is providing excellent returns, but you should not rely too heavily on it for your retirement corpus.

Reduce Exposure Over Time: As you near retirement, begin shifting a portion of these funds into more stable mutual funds or hybrid funds. This will reduce volatility in your portfolio while still providing growth.
Balanced Approach: A balanced approach with a mix of equity and debt mutual funds can provide both growth and stability. Aim for a portfolio that gradually becomes more conservative as you approach your retirement date.
Reconsider Fixed Deposits
Fixed deposits are safe but offer limited growth.

Shift to Debt Mutual Funds: You may want to move part of your FD savings into debt mutual funds, which can offer better returns and are more tax-efficient. Debt funds, particularly those with low credit risk, can provide stability and liquidity while outperforming FDs.
LIC Maturity Reinvestment
Once your LIC policies mature, reinvest the proceeds wisely.

Reinvest in Growth Funds: After 2026 and 2030, when your LIC policies mature, consider reinvesting the Rs 55 lakh into diversified mutual funds. This will help accelerate the growth of your retirement corpus during the final years of your working life.
Focus on Tax Efficiency
Your portfolio should also consider tax efficiency, particularly as you approach retirement.

Equity Mutual Funds: Gains above Rs 1.25 lakh are taxed at 12.5%. Plan your withdrawals accordingly to minimise taxes.
Debt Mutual Funds: Gains in debt mutual funds are taxed according to your income slab. These can still be more efficient than FDs due to indexation benefits over the long term.
Regular Review and Adjustments
Retirement planning is not a one-time exercise. You should regularly review and adjust your portfolio.

Annual Review: Sit down with a Certified Financial Planner each year to review your progress. This ensures that your investments are on track and that you’re making the necessary adjustments based on market conditions and personal changes.
Rebalancing: As your mutual fund portfolio grows, periodically rebalance between equity and debt to ensure your portfolio remains aligned with your risk tolerance and retirement goals.
Projecting Your Retirement Corpus
Based on the current investments and a disciplined approach to increasing your SIPs, you are likely to accumulate between Rs 15-18 crore in 10 years. Achieving Rs 25 crore will require higher risk-taking or an extension of your retirement timeline by a few years.

However, your diversified portfolio, combined with regular reviews, can still provide you with a comfortable retirement if managed well.

Finally
You are on a strong path to retirement with your existing assets and investment plan. However, to ensure you reach your goal of Rs 20-25 crore, consider the following:

Gradually increase your SIPs to boost your mutual fund portfolio.
Diversify your high-risk investments over time to reduce volatility.
Move away from low-yield options like FDs, and reinvest LIC maturities into higher-growth funds.
Review your investments annually with a Certified Financial Planner to stay on track.
By following this strategy, you can confidently build a retirement corpus that ensures a secure and comfortable retirement.

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

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |8377 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2025

Money
Sir I am confused about my retirement. Though not fully retirement but want to work easy and joyfully. I know I will get those kind of work. Age 53, earning 3.5 lac/month. Son settled in US. No liability and zero debt. Own house another 2 apartment giving rent 53k/monthly. Medical insurance Lacs. Term plan 50 lacs. PPF saving 32 lacs till now 2 more yrs to go. Equity 4 cr. Giving dividend 3.5 lacs annually (average) 60 lac fixed diposite, Gold value 15 lacs purlely investment purpose. ( Gold Average purchase price 45k). Property from parents 2.5 Cr.(In future) I purchase new home for self living paid 55 lacs as down payment. Still need to pay 1.2 cr. In next 30 months. Once I move to new house will rented out current house(expected rental income will be 90k after 3 years) + monthly dividend 35k + 70k salary (considering opt for easy job) Current Monthly expenses 80k. Should I sold one property keep it for remaining payment of new home. Is that wise decision ? Or continue job till new home payment done? Vimal
Ans: Dear Vimal,

You have built strong financial stability over the years.

You deserve appreciation for staying debt-free and planning wisely.

Your equity, PPF, and property portfolio reflect mature financial discipline.

Still, let’s assess this in depth and help you move toward your relaxed work life.

Below is a 360-degree guidance based on your inputs.





Your Income Sources (Now and Future)

Present salary is Rs. 3.5 lakh per month.



Rental income from two flats is Rs. 53,000 per month.



Dividend income from equity is about Rs. 3.5 lakh per year (Rs. 29,000/month).



After moving into your new home, current home rental may give Rs. 90,000/month.



After shifting to a light job, you expect Rs. 70,000/month as salary.



So, future income = 90,000 (rent) + 70,000 (job) + 29,000 (dividend) = Rs. 1.89 lakh.



Current expenses = Rs. 80,000/month.



You will still have a decent surplus post-retirement-style job.





Your Outgoing: New Home Payment Responsibility

You already paid Rs. 55 lakh as down payment.



Rs. 1.2 crore needs to be paid in 30 months.



That means around Rs. 4 lakh/month for the next 2.5 years.



This is a significant commitment. Needs careful handling.





Option 1: Sell One Property to Fund the New Home

This is the most practical way to reduce stress.



You are already earning rental income from two apartments.



One apartment sale can easily fund the remaining Rs. 1.2 crore.



Property sale proceeds are tax-free if reinvested into a residential house.



Selling now gives you mental peace. No pressure from large EMI-type outgo.



You can invest the balance (if any) from the sale wisely.



It gives you room to semi-retire without worry.





Option 2: Continue Current Job Till Home Payment Ends

You may be able to finish payment from salary and investment withdrawals.



But this will need Rs. 4 lakh/month for 30 months.



That’s higher than your salary of Rs. 3.5 lakh/month.



This will force you to draw from equity or FDs.



That may disrupt compounding and long-term retirement goals.



Mentally and physically, the pressure may not allow a joyful job switch.



You may have to keep working longer just to compensate the shortfall.



Hence, this is not ideal if peace of mind is priority.





Your Equity Portfolio Strategy

You hold Rs. 4 crore in equity. That’s a strong number.



You’re getting Rs. 3.5 lakh as dividends. Approx 0.9% yield.



You must ensure your funds are in well-managed, actively managed mutual funds.



Avoid index funds. Index funds cannot protect during market crashes.



They lack fund manager insights. They blindly copy indices.



Active funds, with skilled managers, adjust strategies based on market shifts.



It’s better to invest in regular plans through MFDs who are CFP certified.



They track performance, suggest portfolio changes, and offer annual reviews.



Direct funds don’t offer advisory or review support.



That leads to unmanaged risk. And missed opportunities.





Your PPF and Fixed Deposit Planning

You have Rs. 32 lakh in PPF. Maturity is in 2 years.



PPF gives tax-free returns. You can continue it in 5-year blocks if needed.



Rs. 60 lakh in FD is good for liquidity and emergencies.



FD interest is taxable. Consider partial shift to hybrid mutual funds for better post-tax returns.



But keep 1–2 years of expenses in FD always.



Emergency fund must be untouched even after home payment.





Gold as Investment

You hold Rs. 15 lakh in gold. Purchased at Rs. 45,000 average.



Current price is higher. Gold acts as hedge against inflation.



Keep gold as long-term hold, but don’t add further for investment.



Returns from gold are not consistent. Use equity for long-term growth.





Medical and Life Insurance Review

You have Rs. 25 lakh health cover. That is good.



Post retirement, premium may rise. Review portability to senior citizen plan if needed.



Term cover of Rs. 50 lakh is fine as you have no liabilities.



You may not need high life cover now. But keep it till age 60.





Future Inheritance Planning

You expect Rs. 2.5 crore from parents in future.



That gives you an additional safety net.



But don’t factor that in for immediate planning.



Plan your new home payment only from current assets.



Future inheritance can support long-term family needs or gifting.





Should You Sell Property or Not? Final Suggestion

You want to move to relaxed work life now.



You are financially ready for it.



But new home payment is a big roadblock.



Selling one rental property today is wise.



It clears the Rs. 1.2 crore due. No stress.



You still keep one rented apartment + old house rent in future.



You get tax-efficient, regular passive income from rentals + dividends.



You reduce risk of liquidating mutual funds or breaking FD.



Equity keeps compounding peacefully. Retirement fund stays safe.



You can then choose a job that brings peace, not pressure.



There’s no need to wait 30 months to relax.





Final Insights

Sell one rental flat now. Use proceeds to close new home payment.



Keep equity untouched. Let it grow for next 10–15 years.



FD should be used only for emergencies. Not home purchases.



Review medical cover annually. Ensure portability at 60+.



Let PPF mature. Reinvest matured PPF as per goals.



Move towards less-stress work as planned. No need to delay it.



Enjoy your financial freedom. Your discipline earned this comfort.



Review your portfolio with a Certified Financial Planner every year.



Ensure estate plan is in place for future asset transition.



Keep one goal clear — peace of mind and simplicity.



Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Dr Shakeeb Ahmed

Dr Shakeeb Ahmed Khan  |157 Answers  |Ask -

Physiotherapist - Answered on May 15, 2025

Health
I have developed slip discs between my L4-L5 and L5-S1 position of back bone. The problem was detected in 2010. Now I am 60 years old. Occasionally I am facing sciatic pain issues during which I need to be in bed rest. Please suggest some remedies including the do's and don't'd. Thank you
Ans: Dear Mr Skt. Thank you for your query.

As a physiotherapist, I understand how challenging slip discs (L4-L5 & L5-S1) can be, especially with recurring sciatic pain. Managing this condition requires a combination of professional physiotherapy and consistent home care. Physiotherapy is crucial, it helps reduce pain without surgery, prevents recurrence by strengthening core and spinal muscles, and improves mobility for long term relief. I strongly recommend attending 10-15 physiotherapy sessions at a nearby clinic, where you’ll receive manual therapy, targeted exercises (like McKenzie extensions or Williams flexions, depending on what eases your pain), sciatic nerve glides, and postural training. These sessions will also teach you safe exercises to continue at home, such as gentle stretches and strengthening.

At home, avoid forward bending, heavy lifting, or prolonged sitting/standing, take breaks every 30 minutes. Use a lumbar support pillow while sitting and sleep in a back-friendly position (either on your side with a pillow between your knees or on your back with a pillow under your knees). Staying active with controlled movements is key, but avoid high-impact activities like jumping.

Commit to the initial physiotherapy sessions, then maintain your exercises regularly at home. Consistency is vital for recovery and preventing flare ups. Wishing you a quick recovery! Stay patient and diligent your efforts will make a difference.

...Read more

Ramalingam

Ramalingam Kalirajan  |8377 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2025

Asked by Anonymous - May 15, 2025
Money
Dear Sir, I am 32 years old. I have multiple loans, details below - Auto loan -> outstanding amount 16 lakh -> emi 40k - Auto loan top up -> outstanding amount 3 lakh -> emi 14k - Over Draft Loan 1 -> 38 lakh -> emi 47k - Over Draft Loan 2 -> 10 lakh -> emi 12k - Personal loan 1 -> outstanding amount 4 lakh -> emi 12k - Personal loan 2 -> outstanding amount 5 lakh -> emi 17k My monthly in hand income is 1,88,750/- My monthly expenses - Sending 15k to my parents - Rent 30k - Monthly Expenses 50k I live in Hyderabad. My savings - 1 lakh in Mutual funds, will mature in December - 11 lakh in EPF - 3 lakh in NPS How can get out of this. EMI is huge and very hard to manage all.
Ans: You are 32 years old, staying in Hyderabad. Your monthly income is Rs. 1,88,750. But your EMI pressure is very high. You also have some decent long-term savings. Your question shows responsibility and the right mindset. That’s a good start.

Let’s now assess your situation fully and see step-by-step solutions.

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Understanding Your Current Financial Structure

You are paying six EMIs.

?

Total EMI amount is Rs. 1,42,000 per month.

?

Your other monthly expenses are Rs. 95,000. That includes rent, groceries, parents.

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Your total monthly outgoing is about Rs. 2,37,000.

?

Your in-hand income is Rs. 1,88,750.

?

That means, every month, you are in a negative cash flow of around Rs. 48,000.

?

This cannot continue for long.

?

You must act immediately. Else the pressure will only grow.

?

You also have savings of Rs. 11 lakh in EPF and Rs. 3 lakh in NPS.

?

Mutual fund of Rs. 1 lakh will mature by December.

?

These are helpful, but not enough for short-term rescue.

?

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Break Down of All Existing Loans

Auto loan of Rs. 16 lakh – EMI Rs. 40,000

?

Auto top-up loan of Rs. 3 lakh – EMI Rs. 14,000

?

Overdraft loan 1 of Rs. 38 lakh – EMI Rs. 47,000

?

Overdraft loan 2 of Rs. 10 lakh – EMI Rs. 12,000

?

Personal loan 1 of Rs. 4 lakh – EMI Rs. 12,000

?

Personal loan 2 of Rs. 5 lakh – EMI Rs. 17,000

?

Together, this is too much EMI burden for your income level.

?

Action is required to reduce EMI burden fast.

?

?

Immediate Action Plan to Handle Debt Load

Do not take any new loans at all.

?

This includes credit card EMI and BNPL schemes too.

?

Sit with a Certified Financial Planner and create a debt priority list.

?

Pay off the highest EMI burden with smallest balance first.

?

Personal loan 2: EMI Rs. 17K for only Rs. 5L loan.

?

If you can close this, it will ease pressure by Rs. 17K.

?

Similarly, personal loan 1 is Rs. 4L but EMI is Rs. 12K.

?

Focus on clearing these two personal loans first.

?

You can consider part-withdrawing EPF to close one of these.

?

EPF partial withdrawal is allowed for repayment of loans.

?

It is better to close a high interest loan than keep EPF untouched.

?

Do not touch NPS now. It is not liquid and meant for retirement.

?

The mutual fund maturing in December can also help close part of another loan.

?

Avoid touching EPF entirely for now. Use only if no other option.

?

If possible, sell one of your vehicles and close auto loan or top-up.

?

This is tough. But temporary sacrifice helps long-term relief.

?

?

Restructuring Strategy for Existing Loans

Approach your bank for loan restructuring.

?

This is allowed in hardship cases by RBI guidelines.

?

You can request to increase tenure of personal loans.

?

That will reduce EMI and ease cash outflow monthly.

?

You can also consider consolidating all loans into one.

?

A debt consolidation loan may give lower EMI burden.

?

Approach bank where you have salary account.

?

Show all EMI proofs and request for consolidation or top-up loan.

?

Use that single loan to clear all smaller EMIs.

?

This is not new debt, only better restructuring.

?

?

Budget Correction and Expense Reduction

Your current household expense is around Rs. 50,000.

?

Plus rent and parents' support, total fixed cost is Rs. 95,000.

?

Review your monthly lifestyle budget very sharply.

?

Cut down online subscriptions, eating out, shopping.

?

Even saving Rs. 5,000 a month helps in EMI pressure.

?

Rent is Rs. 30,000. See if you can shift to slightly cheaper house.

?

Even Rs. 5,000 rent cut helps monthly flow.

?

Request parents to allow break in support for 6 months.

?

Or reduce support to Rs. 5,000 temporarily.

?

Explain situation openly. This is temporary.

?

These all together can give Rs. 10,000 to Rs. 15,000 cash flow.

?

?

Start Emergency Fund, Even Small Amount

You don’t have any liquid emergency fund right now.

?

Begin with saving just Rs. 1,000 or Rs. 2,000 per month.

?

Keep this in savings account or sweep FD.

?

Do not lock this in PPF or NPS.

?

Emergency fund gives you mental peace and confidence.

?

?

No New Investment Until Loans Are Handled

You already have EPF and NPS. That is enough for now.

?

Do not start new SIPs or gold chits until EMI load reduces.

?

Mutual fund maturity in December must go to debt closure.

?

Re-start new investments only after EMI comes below Rs. 70K.

?

That is your comfort level based on income.

?

?

Rebuild Credit Score Gradually

If you miss EMIs, your credit score will drop fast.

?

Restructuring loan is better than missing EMI.

?

Closing small loans improves credit score steadily.

?

Keep 100% payment record after restructuring.

?

?

Don’t Use Credit Cards for Loans Again

Do not take loan on credit card.

?

Interest is very high and can trap you quickly.

?

Pay credit card in full. No minimum due payment method.

?

?

Emotional and Mental Health is Also Important

Loan stress can cause worry and anxiety.

?

You are trying to handle the situation. That is good.

?

Talk to someone in family or trusted friend.

?

Keep your mental strength high. That helps decisions.

?

Every month, even 1 step ahead is progress.

?

?

Final Insights

You are facing heavy loan pressure, but solutions exist.

?

Prioritise high EMI, low balance loans first.

?

Restructure loans with bank. Try consolidation option.

?

Use EPF partial withdrawal only as backup plan.

?

Sell unused vehicle if required to reduce auto loan.

?

Pause all new investments for now.

?

Cut budget wherever possible.

?

Begin tiny emergency fund.

?

Mental peace and clarity will help you handle this better.

?

Follow this plan for 12 months and review again.

?

Things will improve. Stay focused.

?

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

...Read more

Ramalingam

Ramalingam Kalirajan  |8377 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2025

Money
Sir i ihv home loan 16 Laks emi 15k monthly salary 1 laks . Other income after monthly expenses from my wife business 50 k
Ans: You and your wife are managing your finances well. Having a home loan with stable income is good. With Rs. 1 lakh salary and Rs. 50,000 monthly surplus from your wife’s business, you are in a strong position to plan long-term wealth. Let me give you a full assessment of your situation and steps to move forward smartly.

  
Understanding Your Current Financial Position

Your EMI is Rs. 15,000 monthly for a Rs. 16 lakh home loan.

  

Your monthly salary is Rs. 1 lakh, which gives good monthly cash flow.

  

Your wife contributes Rs. 50,000 monthly after her business expenses.

  

You have a total monthly income of Rs. 1.5 lakhs.

  

This gives a strong foundation for financial growth and long-term planning.

  

Smart Loan Management Strategy

Rs. 15,000 EMI is only 10% of total family income.

  

This is within a safe EMI limit. Keep paying it on time.

  

Don’t rush to prepay the loan aggressively. Instead, invest surplus smartly.

  

Keep 2–3 months’ EMI as emergency backup in a liquid fund.

  

Build Emergency Reserve First

Your priority should be to save 6 months’ family expenses.

  

Keep this emergency money in a separate bank account or liquid mutual fund.

  

This gives peace of mind if income is delayed or an emergency comes.

  

Don’t mix emergency fund with your investments.

  

Build Protection with Insurance

Take a pure term life cover of 15 to 20 times your yearly income.

  

Choose a term policy only, not investment-cum-insurance plans.

  

Avoid endowment or ULIP policies. They give low returns.

  

Take a family floater health policy for Rs. 10 to 15 lakhs.

  

Also take a personal accidental insurance policy.

  

Savings and Investments – Smart Allocation

Your monthly savings potential is high. Use it with planning.

  

Allocate 40% of monthly savings in mutual fund SIPs.

  

Use regular funds through a Certified Financial Planner for guidance.

  

Don’t invest directly. Direct funds give no advice or human help.

  

Regular funds through certified planners give better discipline and performance.

  

Choose a mix of diversified flexi-cap, large-cap, and mid-cap funds.

  

Prefer actively managed mutual funds. They beat markets long-term.

  

Avoid index funds. Index funds copy market returns with no alpha.

  

Index funds don’t protect during market falls. Actively managed funds do.

  

PPF for Safe and Long-Term Goal

Invest some money in PPF for long-term goals like retirement.

  

PPF is safe, gives tax-free returns, and builds discipline.

  

Lock-in works as an advantage for retirement corpus.

  

Invest every year to get compounding benefit.

  

Child’s Future Planning (If You Have or Plan Children)

Start early planning for future education and marriage.

  

Use equity mutual funds for long-term growth needs.

  

Use SIPs in child’s name to build long-term corpus.

  

Tag each SIP with the goal name like “Daughter's College Fund”.

  

Don’t Ignore Retirement Planning

Begin investing for retirement from today. Don’t delay.

  

SIP in mutual funds + PPF + NPS is good mix.

  

NPS gives tax benefit and helps save for retirement.

  

Invest monthly to benefit from compounding effect.

  

Don’t stop SIPs even during market corrections.

  

Avoid Gold Chits and Risky Options

Gold chit funds are risky and unregulated.

  

Instead, invest in sovereign gold bonds or gold mutual funds.

  

They are safe, give interest, and are tax-friendly if held till maturity.

  

Be Careful With Lifestyle and Expenses

Monitor your monthly spending. Track online purchases like Amazon bills.

  

Avoid using credit cards for EMI or unnecessary shopping.

  

Keep personal expenses within 20% of income.

  

Create a monthly budget and review it monthly.

  

Don’t Chase Fancy Investment Schemes

Don’t invest in Ponzi schemes or unknown chit funds.

  

Don’t fall for schemes promising fixed high returns.

  

Stick to tested options with long history like mutual funds, PPF.

  

Avoid investments without proper documentation and transparency.

  

Estate and Will Planning

Prepare a basic will to name your dependents as nominees.

  

Update all nominations in mutual funds, insurance, and bank accounts.

  

This avoids family disputes and smooths financial transition.

  

Tax Planning Tips

Use Section 80C for PPF, ELSS, and life insurance.

  

NPS gives extra Rs. 50,000 deduction under 80CCD(1B).

  

Use health insurance to claim under Section 80D.

  

Take help from a Chartered Accountant if taxes are complex.

  

Keep Financial Records Properly

Maintain separate folders for insurance, mutual funds, PPF, loans.

  

Store soft copies and passwords safely.

  

Share the location of these records with your spouse.

  

This ensures peace of mind during any emergency.

  

Investing Should Be Goal-Based

Don’t invest blindly. Link each investment to a specific goal.

  

Short-term goals: use liquid or short-term funds.

  

Medium goals: use hybrid funds or balanced advantage funds.

  

Long-term goals: use diversified equity funds and PPF.

  

MF Taxation Updates to Know

Equity fund gains above Rs. 1.25 lakh are taxed at 12.5% LTCG.

  

STCG on equity is now taxed at 20%.

  

Debt fund gains are taxed as per your income slab.

  

File taxes properly to avoid notices later.

  

Systematic Investment Review Is Must

Review SIPs every year with your planner.

  

Rebalance your portfolio if one type of fund grows too much.

  

Avoid switching funds often. Stick to plan for long term.

  

Don’t stop SIPs during market dips. Stay consistent.

  

Reinvest Any Windfall Wisely

If you receive bonus or gifts, don’t spend all.

  

Put them in your emergency fund or increase your SIPs.

  

Build wealth slowly and steadily. Avoid shortcuts.

  

Plan for Future Life Milestones

Save for child’s birth, education, your retirement, and family medical needs.

  

Review your goals every year and adjust investments accordingly.

  

Don’t follow friends blindly. Your goals are different.

  

Finally

You are already ahead by having home loan and family income of Rs. 1.5 lakh.

  

You have manageable EMI and a good monthly surplus.

  

Create a written financial plan with proper goals.

  

Avoid emotional investments. Focus on logic and long-term growth.

  

Stay patient. Wealth grows slow, not overnight.

  

Work with a Certified Financial Planner to guide and monitor progress.

  

You will reach your goals with discipline and clear direction.

  

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |8377 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2025

Money
Im 30years old woman, I lost my father 4 yrs back, after that I took the responsibility and I have been taking care of my family Im earning 1.20L per month, I have home loan of 34L , (emi 37k 12yrs left) I don't have any other debts ,2 months back I started investing in RD,PPF,NPS,SIP AND GOLD CHITS( everything 20% of salary) I have personal expenses, like en, groceries,gas,amazon bill ) I don't have any huge amount in saving since I started all my investment 2 months back Am I following the correct saving rule or do I need to invest on anything and reduce my expenses) I don't have any jewel, I need to save some money for my marriage Can you please guide me
Ans: You are showing great courage and commitment. Managing everything on your own and still thinking about savings is truly inspiring.

Let us look at your finances from a 360-degree view and guide you clearly.

?

Current Income and Expense Overview

You are earning Rs. 1.20 lakhs per month.

?

Home loan EMI is Rs. 37,000 every month.

?

You have essential personal expenses: groceries, gas, bills.

?

You have started investing in RD, PPF, NPS, SIP, and gold chits.

?

You are investing 20% of your salary every month.

?

This is a good start. You are doing many things right already.

?

Appreciation of Your Actions

You have started investing early. That’s a smart decision.

?

You are balancing loan EMI and savings at the same time.

?

You are saving for your marriage goal. That is responsible thinking.

?

You are investing in different products. You are not keeping money idle.

?

Still, let us go deeper and assess each point with a professional view.

?

Loan Situation

Rs. 37,000 EMI is almost 30% of your salary.

?

That is manageable. But avoid taking any more loans.

?

Do not increase EMI even if income grows. Use the extra to save.

?

You can consider prepaying small amounts in future to reduce interest.

?

But never disturb emergency savings to pay loan faster.

?

Investment Structure Review

Let’s go step by step.

?

Recurring Deposit (RD)

RDs give low interest. Returns are taxable.

?

This can be used only for short-term goals.

?

You can keep a small RD. But avoid big allocation here.

?

RD is not wealth creation tool. It is only for parking money safely.

?

?

Public Provident Fund (PPF)

This is a good long-term saving.

?

Safe and backed by government. Interest is tax-free.

?

Lock-in is 15 years. So, don’t expect early liquidity.

?

It is ideal for retirement or long-term safety.

?

Keep investing here, but with patience.

?

National Pension Scheme (NPS)

NPS is good for retirement planning.

?

Long lock-in. Withdrawals are restricted.

?

Partial withdrawal is allowed, but only under specific reasons.

?

Investment is mostly into equity and debt.

?

Returns are market linked. Not guaranteed.

?

Tax benefits are there. But you will be taxed on annuity at retirement.

?

You can continue this. But don’t over-invest here.

?

Systematic Investment Plan (SIP)

SIP is excellent for wealth creation.

?

It gives better returns over long term.

?

Market fluctuations are handled by monthly investing.

?

SIP in regular mutual funds through a Certified Financial Planner gives guidance.

?

Actively managed funds perform better than index funds.

?

You also avoid wrong fund selection by getting proper advice.

?

SIP must be continued for 10+ years to get best results.

?

Gold Chits

Gold chit is not transparent.

?

Returns are not clear. Also not regulated well.

?

You may not get full benefit in emergencies.

?

You can buy gold for marriage. But go for digital gold or gold mutual funds.

?

These are regulated and more liquid.

?

Chit-based schemes may delay your goals.

?

So, reduce or stop gold chit. Redirect to SIP or gold mutual fund.

?

Emergency Fund Planning

You must build a basic emergency fund.

?

This is for health, job loss, urgent family needs.

?

Keep 4–6 months of expenses in a savings or liquid fund.

?

Don’t touch this for other goals.

?

You can build it slowly over 6–9 months.

?

Saving for Marriage

First, fix a tentative timeline. Example: 2 or 3 years.

?

Decide how much you want to save for it.

?

Use short-term debt mutual fund or hybrid mutual fund.

?

Don’t use PPF or NPS for this. You can’t withdraw early.

?

SIP for marriage goal should be in a suitable fund category.

?

Keep this goal-specific. Don’t mix it with retirement plan.

?

Also don’t use credit card or personal loan to fund wedding.

?

Expense Management Ideas

You are already managing expenses. But do a review again.

?

List every monthly fixed and variable expense.

?

Try to reduce subscriptions, impulse online shopping, and food delivery.

?

Give every rupee a role. Budgeting gives you more power.

?

You can try “50-30-20” model in future.

?

That is 50% for needs, 30% for wants, 20% for savings.

?

But in your case, 30% savings is even better.

?

Do You Need to Save More?

Yes. But do it in a balanced way.

?

Don’t stop all spending. Don’t skip self-care.

?

Slowly increase savings when income grows.

?

Even Rs. 1,000 extra per month makes difference in long run.

?

Avoid gold chits and RDs to make better use of money.

?

Do You Need to Invest in Other Things?

You are already covering all investment types.

?

Just refine your choices.

?

Avoid high-cost or unregulated schemes.

?

Don’t fall for insurance-linked investments unless you need protection.

?

Term insurance is enough. Don't mix insurance with investment.

?

Get guidance from a Certified Financial Planner before choosing new funds.

?

Insurance Planning

You did not mention life or health insurance.

?

Take term insurance for at least 15 times your income.

?

You must have personal health insurance. Not just employer cover.

?

These protect your savings and investments.

?

Premiums are cheaper when you are younger.

?

Tax Planning Check

You are investing in PPF and NPS. These give tax benefits.

?

SIP in ELSS fund can also give tax deduction.

?

You can get Rs. 1.5 lakh deduction under Section 80C.

?

Section 80CCD(1B) allows Rs. 50,000 more for NPS.

?

Use these fully to reduce tax and save more.

?

Goal-Based Approach Needed

Don’t just invest randomly. Fix your goals.

?

Short-term: Marriage in 2–3 years.

?

Medium-term: Emergency fund in 1 year.

?

Long-term: Retirement, maybe child planning later.

?

Assign funds based on goal length.

?

This way, no last-minute pressure will come.

?

Avoiding Common Mistakes

Don’t take loans for gold or marriage.

?

Don’t break PPF or NPS midway.

?

Don’t stop SIPs in a market fall. Stay invested.

?

Don’t invest in unverified chit schemes.

?

Don’t take insurance with return promise. Pure term is better.

?

Mindset and Motivation

You are doing better than you think.

?

Starting investments early gives you more time benefit.

?

Being consistent is more important than amount.

?

Stay focused on your goals. Don’t compare with others.

?

Give time for your investments to grow.

?

Track and Review

Every 6 months, review your plan.

?

Check fund performance and adjust if needed.

?

Continue SIPs for long-term. Don’t skip months.

?

Track net worth every year. It shows your progress.

?

Get help from a Certified Financial Planner when goals increase.

?

Finally

You have made a very strong start. Your direction is right.

?

Now you just need more clarity, structure, and patience.

?

Avoid any emotional or risky decisions. Stick to goal-based investing.

?

Give priority to emergency fund and marriage goal in next 2–3 years.

?

Review gold chit and redirect to mutual funds.

?

Don’t chase returns. Focus on safety, consistency and clarity.

?

You will reach your goals with peace of mind.

?

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

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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