Need Expert Advice?Our Gurus Can Help

Ramalingam Kalirajan |10881 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 23, 2025

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 - Jul 17, 2025Hindi

I am 36year old, my monthly salary is 1lakh 50, I don't have any investment at the moment only SBI life 5year plan of 1 lakh each, which is started last year. PNB Metlife 1lakh started this year for 15years. I don't have decipline investment till now. Because I have home loan on 43 lack taken in the year 2016. Personal loan of 10 lakh Gold loan of 9 lakh I have three daughters 12/8/1.6 Wife Homemaker I need help to plan my retirement from the age of 50. As I have health issues because of my night shift. Also want some corpus amts for there higher studies and their weddings

Ans: You're showing great intent by planning early. Starting now will give you time to correct your financial path and build a better future.

Let us now work through your case from a 360-degree financial planning view.

? Income and Expense Pattern

– Your monthly salary of Rs.1.5 lakh is strong at this age.
– But your current EMI outgo is quite high.
– This limits your ability to invest consistently.
– First focus should be to fix your cash flow.
– Your future depends on how well you manage this now.

? Existing Insurance Plans

– SBI Life and PNB MetLife are insurance-cum-investment plans.
– These are not wealth creation tools.
– The returns from such plans are poor, usually less than inflation.
– Since these are recent, surrendering now will minimise loss.
– Reinvest the surrendered money into mutual funds.
– Only do this through a Certified Financial Planner.

? Debt Position Review

– Your home loan of Rs.43 lakh is over 8 years old.
– Personal loan of Rs.10 lakh and gold loan of Rs.9 lakh are heavy burdens.
– Together, your EMIs are eating into your income.
– First, stop taking new loans.
– Then start a repayment strategy with a priority list.

? Loan Repayment Strategy

– Focus on closing personal loan first.
– It likely carries the highest interest rate.
– Then pay off gold loan.
– Try part-payment of home loan each year from bonuses or incentives.
– Avoid restructuring or rollover of loans.
– This gives only short-term relief, long-term pain.

? Emergency Fund Creation

– Keep 4-6 months of expenses as emergency fund.
– Use liquid mutual funds through Certified Financial Planner.
– Never use your children’s money or insurance for emergencies.
– This fund will save you from taking new loans again.

? Medical and Life Insurance First

– Your health issue needs attention in planning.
– Take a separate health insurance policy for yourself and family.
– Avoid depending on company insurance alone.
– Also take a pure term insurance for Rs.1 crore at least.
– It is cheaper and more useful than ULIPs or endowment plans.

? Children’s Education and Marriage Planning

– Your daughters are young. You have time to plan.
– You need separate goals for each child’s education and marriage.
– Use long-term mutual funds via Certified Financial Planner.
– Invest monthly through SIPs in diversified funds.
– Start small, increase every 6 months.
– Use separate SIPs for each goal to track progress.

? Retirement Planning from Age 50

– You have 14 years left till 50.
– This is a good time to build wealth, if planned properly.
– You must aim to retire all loans in next 6 years.
– From then, redirect all EMI money into retirement investments.
– Use diversified equity mutual funds through regular route.
– Always invest through MFD guided by a Certified Financial Planner.

? Why Not Direct Funds?

– Direct funds may seem cheaper due to lower expense ratio.
– But they lack proper guidance.
– You may pick wrong funds or exit early during market fall.
– Regular funds via MFD and CFP give disciplined guidance.
– Helps with periodic rebalancing and behavioural coaching.
– Better long-term outcome than DIY investing.

? Why Not Index Funds?

– Index funds just copy market, no human judgment.
– They fail to protect you during market downs.
– Actively managed funds aim for better returns.
– Professional fund managers help adjust based on risk.
– For important goals like retirement or children’s future, active funds are better.

? Monthly Investment Allocation Plan (Post-Debt Repayment Phase)

– After loan repayment, start SIPs with Rs.40,000 monthly.
– Split across retirement, daughters’ education, and their weddings.
– Review funds every year with your CFP.
– Step-up SIPs by 10% yearly for faster wealth creation.
– Use ELSS only for tax saving, not as a main plan.

? Building Retirement Corpus

– Focus on equity mutual funds in early years.
– Switch slowly to hybrid funds by age 48.
– Ensure you build a corpus for at least 30 years of retirement.
– Don’t depend on pension plans or annuities.
– Keep investments liquid and flexible.
– Use SWP (Systematic Withdrawal Plan) after 50.

? Taxation Aspects

– Equity mutual funds now have new rules.
– LTCG above Rs.1.25 lakh is taxed at 12.5%.
– STCG is taxed at 20%.
– Debt mutual fund gains are taxed as per your income tax slab.
– Plan exits carefully with help from your CFP.
– Don’t exit in panic. That leads to more tax.

? Improving Financial Discipline

– Use auto-debit for SIPs to create discipline.
– Don’t pause SIPs during market crash.
– Instead increase them if possible.
– Track your goals every 6 months.
– Keep family involved in financial awareness.

? Important Reminders

– Cancel any unnecessary expenses and luxury spending.
– Use bonuses for loan prepayment or lump sum investing.
– Don’t invest randomly without a goal.
– Avoid trading, crypto or speculative assets.
– Stay patient and focused on long-term plans.

? What to Do with Surrender Value from SBI Life and PNB MetLife?

– Check surrender value with insurer.
– Take help from Certified Financial Planner for reinvestment.
– Put that amount into debt mutual funds first.
– Then stagger it into equity funds via STP (Systematic Transfer Plan).
– This avoids market timing and gives better returns.

? Role of Certified Financial Planner

– They help you build a full financial roadmap.
– Assist in goal tracking, fund selection, and reviews.
– They also manage risks and improve decision-making.
– Their guidance prevents emotional mistakes during market changes.
– They help create a plan that works even in health issues or emergencies.

? What You Should Not Do

– Don’t depend on insurance for wealth creation.
– Don’t invest without understanding the product.
– Don’t stop investments in fear of market.
– Don’t use credit card or loans for investing.
– Don’t chase returns without a goal.

? Finally

– You are at the perfect stage to take control.
– Prioritise debt reduction in the next 3-5 years.
– Start investing small, build discipline slowly.
– Protect your family with insurance.
– Prepare well for your daughters’ future.
– Secure your own retirement with a long-term strategy.
– Stay committed, consistent, and confident.

You can turn your finances around with the right guidance.

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

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.