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Ramalingam Kalirajan |6986 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 02, 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 02, 2024Hindi

Hi, i am 31 yesrs now and have invested around 10,00,000.00 in stocks. I am investing around 15k per month for retirement plan of Tata AIA i.e for 7years and returning amount will be at 50years. 17k per month in bajaj Allianz for 5 years and returning will be at age of 40. And 25k per month in axis mutual funds returning will be in 3 years.These investments i have started form nearly 10months back. My expences will be 1 lakh a month. I am newly married now just about a month back and have debt of 4lakhs for gold purchase but i can manage in 1 year EMI payments. So what should i do to retair by 45 to 50 years maximum

Ans: Congratulations on your recent marriage and proactive approach to financial planning! To retire comfortably by the age of 45 to 50 years, it's essential to continue your disciplined saving and investment approach while managing your debt effectively. Here's a suggested plan of action:

Reevaluate Insurance Policies:
Reconsider your contributions towards Tata AIA and Bajaj Allianz policies, as they may not offer optimal returns for your retirement goals. Consider consulting with a financial advisor to explore exit options and minimize further contributions.
Explore Mutual Fund Exit Strategies:
Assess the exit options for the Tata AIA and Bajaj Allianz policies to potentially redirect those funds into more efficient investment avenues.
Investigate the possibility of systematic withdrawal plans (SWP) in mutual funds to provide a regular income stream during your retirement years.
Optimize Mutual Fund Investments:
Redirect the funds from the insurance policies towards more suitable investment options, such as mutual funds with a diversified portfolio of equity and debt securities.
Continue investing in Axis Mutual Funds with a focus on achieving short-term financial goals, but ensure alignment with your overall investment strategy and risk tolerance.
Manage Debt Strategically:
Prioritize paying off your gold purchase debt within the agreed-upon timeframe to avoid unnecessary interest payments.
Explore opportunities to optimize your debt repayment plan and allocate any surplus funds towards debt reduction to achieve financial freedom sooner.
Review Financial Plan Regularly:
Regularly review your financial plan to track progress towards retirement goals and make necessary adjustments based on changes in your financial situation and market conditions.
Seek guidance from a Certified Financial Planner to develop a comprehensive financial plan tailored to your specific needs and aspirations.
By reassessing your insurance policies, optimizing mutual fund investments, managing debt strategically, and seeking professional financial advice, you can work towards achieving your retirement goals more effectively and efficiently.

Asked on - May 02, 2024 | Answered on May 02, 2024

Hai sir , I am really thankful for your kind wishes and the suggestion you have provided for my future retaining plan. Actually in Bajaj Alianz plan after investing 17k a month for 5 years(10,00,000 aprox) i would get around 50lakhs after 10th year I.e when I turn 40 I am tracking the fund and it is proving 20% returns until now In Tata AIA I am investing 15k a month for 7 years (12,00,000.00 aprox) and at the time I reach 50 they will give 2lakhs pension per month or 3crs lumpsum and fund is going with 8% returns. These are the details for those investment plans. So, you are suggesting that they may not provide the final amounts as they promois and because of that you want me to exist them. Or you want me to reduce the burden of those plans and invest in other modules.

Ans: I'm glad you found the suggestions helpful, and I appreciate your trust in sharing your investment details. My suggestion to consider exiting those plans stems from factors like potential discrepancies between expected and actual returns, high charges, and lack of transparency. Poor performance could also be a concern.

Redirecting your investments to options with more transparent fees, better performance track records, and lower charges may offer greater potential for reaching your financial goals. Ultimately, it's about ensuring your investments align with your long-term financial objectives and provide the best possible returns with minimal risks and costs.

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