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Ramalingam

Ramalingam Kalirajan  |2717 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 16, 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 - Apr 11, 2024Hindi
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I am 39 years old. I wish to build a retirement corpus where I can have 1.5 lakh p.m. post retirement and want to save for my child's marriage and higher studies (he is 9 years old right now). My monthly take home pay is 80k. Presently, my monthly investments are 10k in voluntary EPF, two 10K SIPs in two different small cap funds. Also, have a home loan pending for 4.5 lakh. My EPF a/c has a balnce of 31 lakh and MFs have grown to 12 Lakh. My wife also invest 20k p.m. in a index related fund. Please advise. Further, I would also like to know whether it is advisable to invest in NPS also?

Ans: Given your financial situation and goals, here's a suggested investment and savings plan:

Retirement Corpus:

Voluntary EPF: Continue investing in EPF as it offers tax benefits and a secure return. Aim to maximize your contribution to reach your retirement goal.
Mutual Funds: Maintain and diversify your SIPs across different categories like large-cap, mid-cap, and balanced funds to balance risk and potential returns.
NPS: Investing in NPS can be beneficial as it provides an additional avenue for retirement savings with tax benefits. Consider allocating a portion of your monthly investment to NPS for diversification and potential higher returns.
Child's Education and Marriage:

Child Education Fund: Start a separate SIP or invest in a diversified equity fund with a target maturity date aligned with your child's higher education.
Child Marriage Fund: Open a separate investment account or mutual fund SIP specifically for your child's marriage expenses.
Home Loan:

Home Loan Repayment: Continue paying the EMIs for the home loan to clear the debt as scheduled. Consider making partial prepayments whenever possible to reduce the interest burden.
Additional Investments:

Tax-saving Investments: Utilize tax-saving instruments like PPF, ELSS, and NPS to optimize tax savings and boost your investments.
Emergency Fund: Build an emergency fund equivalent to 6-12 months of your living expenses for financial security.
Financial Planning:

Review and Adjust: Regularly review and adjust your investment plan based on changing financial goals, market conditions, and life circumstances.
Consult a Financial Advisor: Consider consulting a financial advisor to create a comprehensive financial plan tailored to your needs, goals, and risk tolerance.
Optimize Expenses:

Reduce Expenses: Identify and eliminate unnecessary expenses to free up more funds for investments.
Increase Savings: Gradually increase your monthly savings and investments to achieve your financial goals faster.
By following this investment and savings plan, you can work towards building a substantial retirement corpus, securing your child's future education and marriage expenses, and achieving your financial goals. Remember to stay disciplined, invest regularly, and consult a financial advisor to guide you through your financial journey.
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 Kalirajan  |2717 Answers  |Ask -

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Sir, I am 41 years old , state govt. class I officer, will retire in 2040. I have a term insurance plan of Rs. 1 Cr. No health facility after retirement. I am currently making SIP of Rs. 30000/- in various MFs and total amount accumulated till date is Rs. 21 Lacks. I am covered under NPS. Present corpus under my NPS is Rs. 51 Lacks. I own a residential plot . I have 02 daughters aged 11 Y & 9 Y. there is Rs. 4 Lakh in my PPF who will mature in 2026 and i am not continuously making contribution in PPF. My Goals are as under:- 1. To build home with approximate amount of Rs. 80Lacs in 2028. 2. Require 25 Lakh for daughter education in 2028 and another 25 Lakh for 2nd kid education in 2031. 3. Want to retire rich with good corpus in hand. My present monthly expenditure is Rs. 50000/- . How much corpus will require to retire and live peacefully. Please suggest investment philosophy and best investment options.
Ans: Given your financial goals and current situation, here's a suggested investment strategy:

Home Construction Fund (2028): Since you aim to build a home by 2028, you'll need to save aggressively for this goal. Consider investing in a mix of equity mutual funds and debt instruments to accumulate the required Rs. 80 lakhs by diversifying your investments.

Education Fund for Daughters (2028 & 2031): Allocate a portion of your savings towards education funds for your daughters. Start separate SIPs or investments earmarked for these goals to accumulate the required Rs. 25 lakhs for each daughter's education by the specified years.

Retirement Corpus: To retire comfortably with a good corpus in hand, you need to estimate your post-retirement expenses. Since your current monthly expenditure is Rs. 50,000, factor in inflation and other lifestyle changes to determine your future expenses. Consider consulting a financial advisor to assess your retirement needs accurately.

Investment Options:

Equity Mutual Funds: Given your long-term investment horizon, continue SIPs in equity mutual funds for wealth accumulation. Choose a mix of large-cap, mid-cap, and multi-cap funds based on your risk tolerance and investment objectives.

Debt Instruments: Since retirement planning involves preserving capital and generating regular income, allocate a portion of your investments towards debt instruments like PPF, debt mutual funds, and fixed deposits to provide stability to your portfolio.

NPS: Continue contributing to NPS to build a significant retirement corpus. Monitor your NPS investments regularly and adjust asset allocation based on market conditions and your risk appetite.


Term Insurance and Health Cover: Ensure adequate coverage for your family's financial security. Consider enhancing your health coverage post-retirement to mitigate medical expenses.

Regular Review: Regularly review your investment portfolio and adjust your asset allocation as needed to stay on track with your financial goals.

It's essential to periodically reassess your financial plan and make adjustments based on changing circumstances, market conditions, and personal priorities. Consider consulting a certified financial planner to create a comprehensive financial plan tailored to your specific needs and goals.

..Read more

Ramalingam

Ramalingam Kalirajan  |2717 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 30, 2024

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Sir, I am 41 years old , state govt. class I officer, will retire in 2040. I have a term insurance plan of Rs. 1 Cr. No health facility after retirement. I am currently making SIP of Rs. 30000/- in various MFs and total amount accumulated till date is Rs. 21 Lacks. I am covered under NPS. Present corpus under my NPS is Rs. 51 Lacks. I own a residential plot . I have 02 daughters aged 11 Y & 9 Y. there is Rs. 4 Lakh in my PPF who will mature in 2026 and i am not continuously making contribution in PPF. My Goals are as under:- 1. To build home with approximate amount of Rs. 80Lacs in 2028. 2. Require 25 Lakh for daughter education in 2028 and another 25 Lakh for 2nd kid education in 2031. 3. Want to retire rich with good corpus in hand. My present monthly expenditure is Rs. 50000/- . How much corpus will require to retire and live peacefully. Please suggest investment philosophy and best investment options.
Ans: Considering your financial goals and current situation, here's a suggested investment philosophy and some investment options:

Short-term Goal - Home Construction (2028):
Continue your SIPs in mutual funds to accumulate funds for the down payment.
Explore additional savings options like recurring deposits or short-term debt funds to supplement your savings.
Medium-term Goals - Children's Education (2028 & 2031):
Allocate a portion of your SIPs towards education-focused mutual funds to build a corpus for your daughters' education.
Consider equity-oriented schemes for higher returns over the long term, but ensure a balanced approach considering the time horizon.
Long-term Goal - Retirement (2040):
Utilize NPS effectively by opting for a diversified portfolio comprising equity and debt to match your risk profile and time horizon.
Continue your SIPs in equity mutual funds for long-term wealth accumulation.
Consider availing voluntary contribution facility in NPS to enhance your retirement corpus.
Healthcare and Insurance:
Since you won't have health facilities post-retirement, consider purchasing a comprehensive health insurance policy to cover medical expenses.
Review your term insurance coverage periodically to ensure it aligns with your family's financial needs.
Real Estate:
Evaluate the potential of your residential plot as an investment asset. Depending on its location and future prospects, it could contribute significantly to your wealth accumulation.
Emergency Fund:
Maintain an emergency fund equivalent to at least 6-12 months' worth of expenses to handle any unforeseen financial challenges.
Financial Planning:
Consult with a Certified Financial Planner to create a personalized financial plan considering your specific goals, risk tolerance, and time horizon.
Regularly review and adjust your investment portfolio based on changing life circumstances and market conditions.
By adopting a disciplined investment approach and diversifying your investments across different asset classes, you can work towards achieving your financial goals and ensure a comfortable retirement.

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |2717 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

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Sir I am currently a student working as pg resident in government college l. My monthly stipend is 70000 of which I want to use 60000 in investment for upcoming future. I want to continue doing it for 3 years and if I get help from yours kind suggestion I will continue to do so. Humbly request you to guide me sir ?
Ans: It's admirable that you're proactive about investing your stipend for future financial security. Let's craft a strategic investment plan to help you achieve your goals.

Understanding Your Financial Goals
Short-Term Objective (3 Years):
Your primary goal is to invest your monthly stipend over the next three years to build wealth for the future.
This investment horizon allows for a balanced approach that combines growth potential with risk management.
Tailoring an Investment Strategy
Risk Profile Assessment:

As a student with a stable income, you may have a higher risk tolerance, given your long-term investment horizon.
However, it's crucial to strike a balance between risk and return to ensure the safety of your investments.
Diversified Portfolio Allocation:

Consider diversifying your investment across asset classes such as equities, debt, and possibly alternative investments like gold or commodities.
Diversification helps mitigate risk and enhances the potential for long-term growth.
Structuring Your Investment Approach
Equities:

Allocate a portion of your investment towards equities to capitalize on their potential for higher returns over the long term.
Invest in a mix of large-cap, mid-cap, and small-cap stocks or equity mutual funds to diversify your equity exposure.
Debt Instruments:

Allocate another portion of your investment towards debt instruments like fixed deposits, debt mutual funds, or bonds.
Debt instruments provide stability and regular income, making them suitable for risk mitigation.
Systematic Investment Plan (SIP):

Consider investing through a SIP in mutual funds to benefit from rupee-cost averaging and mitigate the impact of market volatility.
SIPs allow you to invest a fixed amount regularly, regardless of market fluctuations, fostering disciplined investing.
Monitoring and Review
Regular Portfolio Review:

Periodically review your investment portfolio to ensure it remains aligned with your financial goals and risk tolerance.
Make adjustments as needed based on changing market conditions or personal circumstances.
Continuous Learning:

Stay informed about financial markets and investment strategies to make informed decisions about your portfolio.
Consider seeking guidance from a Certified Financial Planner to optimize your investment strategy.
Conclusion and Encouragement
Your proactive approach towards investing is commendable and lays a strong foundation for your financial future. By implementing a diversified investment strategy and maintaining disciplined investing habits, you're well-positioned to achieve your long-term financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |2717 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

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Iam 57 years old male. Iam going to retire after 3 yrs. I have invested 2. 5 lakhs in icici balance advantage fund . Can i contine investing or change can you advice
Ans: Evaluating Investment Strategy for Retirement
Understanding Your Current Situation
It's commendable that you're actively planning for your retirement. Let's assess your investment in ICICI Balance Advantage Fund and explore whether it aligns with your retirement goals.

Genuine Appreciation for Retirement Planning
Planning for retirement demonstrates foresight and responsibility towards securing your financial future. It's a crucial step towards achieving financial independence in your golden years.

Assessing Your Investment Choice
ICICI Balance Advantage Fund:
This fund follows a dynamic asset allocation strategy, aiming to balance risk and return by adjusting exposure to equities based on market conditions.
It offers the potential for growth while providing downside protection through tactical allocation.
Evaluating Investment Strategy for Retirement
Investment Horizon:

With retirement on the horizon in three years, your investment horizon is relatively short.
Short-term investment goals typically require a more conservative approach to minimize the impact of market volatility.
Risk Tolerance:

As you approach retirement, preserving capital becomes increasingly important.
Consider reassessing your risk tolerance and shifting towards more stable investment options to safeguard your savings.
Considering Alternatives
Debt Funds:

Debt funds offer lower volatility and can provide steady income, making them suitable for retirement portfolios.
Consider allocating a portion of your portfolio to debt funds to enhance stability and reduce overall risk.
Systematic Withdrawal Plan (SWP):

SWP allows you to systematically withdraw a fixed amount from your investments at regular intervals, providing a steady income stream during retirement.
Explore the possibility of implementing an SWP strategy to meet your income needs post-retirement.
Conclusion and Recommendation
Given your proximity to retirement, it's prudent to reassess your investment strategy and prioritize capital preservation. While ICICI Balance Advantage Fund offers growth potential, it may carry higher risk, which might not align with your current financial objectives.

Considering your retirement timeline, I recommend exploring more conservative options such as debt funds and implementing a systematic withdrawal plan to ensure a steady income stream post-retirement. Consult with a Certified Financial Planner to tailor an investment strategy that suits your retirement goals and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |2717 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

Asked by Anonymous - May 20, 2024Hindi
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Hello sir, I'm investing in quant small cap fund(5000 pm) and Aditya Birla Sun life PSU equity(10000pm), how much corpus should I expect after 2 or 3 years.
Ans: Assessing Potential Corpus Growth in 2-3 Years
Understanding Your Investment Strategy
It's great to see your commitment to investing and building wealth for your future. Let's analyze the potential corpus growth based on your current investments.

Compliments on Your Investment Initiative
Your proactive approach to investing is commendable. With careful planning and disciplined execution, you can achieve your financial goals effectively.

Analyzing Investment Horizon and Portfolio
Investment Horizon:

You're targeting a corpus growth within 2-3 years, indicating a short to medium-term investment horizon.
Short-term goals typically require a more conservative investment approach to mitigate risk.
Investment Allocation:

Currently, you're investing in two funds: Quant Small Cap Fund and Aditya Birla Sun Life PSU Equity.
These funds cater to different segments of the market, providing diversification.
Evaluating Potential Corpus Growth
Quant Small Cap Fund:

Small-cap funds are known for their potential for high returns but also carry higher risk.
Given the short investment horizon, anticipate moderate to high fluctuations in returns.
Aditya Birla Sun Life PSU Equity:

PSU equity funds primarily invest in stocks of public sector enterprises, offering stability but moderate growth potential.
Expect relatively lower volatility compared to small-cap funds.
Factors Influencing Corpus Growth
Market Performance:

Equity markets' performance significantly impacts the growth of your investment.
Economic conditions, corporate earnings, and geopolitical factors influence market movements.
Fund Performance:

Past performance of the selected funds provides insight but doesn't guarantee future returns.
Monitor fund performance regularly to assess its alignment with your goals.
Expected Corpus Growth Range
Quant Small Cap Fund:

Considering the high-risk nature of small-cap funds, anticipate a potential growth range of 10-15% annually.
Over 2-3 years, this could translate to a cumulative growth of 20-45%.
Aditya Birla Sun Life PSU Equity:

PSU equity funds typically offer more stability with potential growth in the range of 8-12% annually.
Over 2-3 years, expect a cumulative growth of approximately 16-36%.
Conclusion and Recommendation
Given the investment horizon of 2-3 years, it's crucial to balance risk and return expectations. While small-cap funds offer higher growth potential, they also come with increased volatility. PSU equity funds, on the other hand, provide stability but moderate growth.

Considering your risk tolerance and investment objectives, a combination of both funds can provide a balanced approach to corpus growth. Regularly review your portfolio's performance and adjust your investment strategy as needed to stay on track towards your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |2717 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

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Sir, my son is now 27 years old and would like to invest approx Rs. 10,000- 12,000 per month for the next 15-20 years and an approximate increase of 10-15% per year. Kindly suggest which type of investment should be planned in addition to any other suggestion's which would create a substantial monthly income after 20 years taking into consideration the money value and inflation
Ans: That's a fantastic plan for your son. Starting investments early creates a solid financial future. Let's explore some options to build a good monthly income after 20 years:

Building a Strong Investment Portfolio:

Diversification is key: Invest in a mix of asset classes like Equity (stocks), Debt (bonds), and Hybrid (mix of equity and debt) to manage risk and target long-term growth.
Consider Equity Mutual Funds: Actively managed Equity Mutual Funds can potentially generate good returns over the long term. They are professionally managed by experts.
Investing for Growth and Beating Inflation:

Systematic Investment Plan (SIP): Regular monthly investments (SIP) of Rs. 10,000-12,000 with a planned 10-15% annual increase is a smart approach. It inculcates discipline and leverages rupee-cost averaging.
Long-term horizon: A 20-year investment timeframe allows for market fluctuations to even out, focusing on long-term growth that outpaces inflation.
Planning for Future Income:

Goal-based investing: While aiming for monthly income, consider your son's future goals like retirement or higher studies. Tailor the investment mix accordingly.
Review and Rebalance: Regularly review the portfolio performance and rebalance allocations if needed to maintain the desired asset class mix.
Getting Professional Advice:

Talk to a CFP professional: A Certified Financial Planner can create a personalized investment plan for your son, considering his risk tolerance and financial goals.
Investment planning is crucial: A CFP can help navigate different investment options and choose the ones that best suit your son's needs.
Remember: Consistent investing, diversification, and professional guidance are key to building a strong financial future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |2717 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

Asked by Anonymous - May 07, 2024Hindi
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Hi, I have a query regarding health insurance. I have 2 policies from different providers. 1 policy has copay clause. Can I claim the copay amount from the other provider?
Ans: Claiming Copay from Another Health Insurance Policy
That's a good question! Unfortunately, you cannot claim the copay amount you pay under one health insurance policy from another provider. Here's why:

Copay is a fixed amount you share with your first insurer for covered medical expenses. It reduces your premium but requires you to pay upfront.
Each insurance policy works independently. They only cover your expenses as per their terms and conditions.
Here's how things work:

You file a claim with the insurer that has the copay clause.
They approve the claim amount after deducting the copay amount.
You pay the copay directly to the hospital or yourself (depending on the policy).
Alternatives to Consider:

Choose plans without copay: If copays are causing trouble, consider switching to plans with higher premiums but no copay requirement.
Increase coverage limits: If your current plans have low coverage limits, explore options with higher limits to minimize out-of-pocket expenses.
Speak to a CFP Professional:

A Certified Financial Planner can review your health insurance plans and suggest options that better suit your needs. They can also help you understand coverage details and claim procedures.

Remember: It's important to choose health insurance plans that complement each other and provide comprehensive coverage.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |2717 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

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Im 62 year old and retired person. I am looking for health insurance policy for me and my wife who is 52 year old and housewife. I am suffering from high BP, Cervical and Lumber spondylitis, knee osteoarthritis, IBS and taking medicines for last 10-12 years. My wife has hypothyroidism, spondylitis and diabetes Please suggest better health insurance policy. Also suggest whether individual or family policy will be better Regards
Ans: I understand you're looking for a good health insurance plan for you and your wife. That's a smart decision, especially considering your health conditions. Let's break it down to help you choose the best option:

Understanding Pre-existing Conditions:

Your existing health conditions (BP, spondylitis, etc.) are called pre-existing conditions. These might affect your policy options and premiums.
Individual vs. Family Plan:

Family plan: Covers you and your wife together under one plan. It can be cheaper, but coverage limits get shared.
Individual plans: Separate plans for each of you. More flexibility, but might cost slightly more overall.
Considering Your Needs:

Pre-existing condition coverage: Look for plans that cover pre-existing conditions after a waiting period (if any).
Hospitalization coverage: Choose a plan with sufficient coverage for hospitalization expenses.
Medicines: Check if the plan covers medicines you take regularly.
Finding the Right Plan:

Talk to a CFP professional: A Certified Financial Planner can assess your needs and recommend suitable plans from different insurers.
Compare plans online: Many insurance companies offer online plan comparisons. Look for plans that cover pre-existing conditions and have good network hospitals in your area.
Here's a quick tip: Since your wife is younger and has a different health profile, individual plans might be better. This allows you to get customized coverage based on your specific needs.

Remember: Don't hesitate to ask questions! Choosing the right health insurance is important, and a CFP professional can guide you through the process.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |2717 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

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Hi team, I have a health insurance since 2011. No claims as of now. I don't have BP or Diabetes as of now. the insurance company is NIA. What if in due course of time i develop some lifestyle ailment like BP or diabetes and it goes unchecked. will it affect my claims after that?
Ans: That's a great question! It's fantastic that you've been proactive with your health and maintained good health so far. Let's break down how pre-existing conditions and health insurance claims work:

No Claims and Pre-existing Conditions:

Good news! Having no claims history generally looks good to insurance companies. It shows you've been responsible with your health.
Pre-existing conditions are medical conditions you have before buying health insurance. These might affect your coverage or premiums in the future.
Lifestyle Ailments and Claims:

Lifestyle diseases like BP and diabetes can develop over time. If they go unchecked, they might become pre-existing conditions.
The impact on claims depends on your specific policy and when the condition developed. Some plans have waiting periods for pre-existing conditions. This means you might have to wait a certain time before coverage kicks in for those conditions.
Here's what you can do:

Maintain a Healthy Lifestyle: This is key! Keep up the good work by eating healthy, exercising, and getting regular checkups.
Review your Policy Wording: Look at the section on pre-existing conditions and waiting periods. If unsure, call your NIA customer service for clarification.
Talk to a CFP Professional: A Certified Financial Planner can help you review your health insurance coverage and see if it aligns with your future health needs.
Remember: Early detection and management of lifestyle diseases can make a big difference. Taking care of your health now can benefit you in the long run, both physically and financially.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |2717 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

Asked by Anonymous - May 05, 2024Hindi
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How should senior citizens cope with increase in health insurance premiums? How can I get this offline or online?
Ans: Here are some strategies senior citizens can use to cope with rising health insurance premiums:

Reduce policy costs:

Shop around and compare plans: Don't automatically renew your current plan. Get quotes from different insurance companies to see if you can find a more affordable option with similar coverage.
Increase deductible: Consider raising your deductible (the amount you pay out of pocket before insurance kicks in). This lowers your premium but means you'll pay more upfront for covered medical expenses.
Choose a co-pay plan: Opt for a co-pay plan where you share a fixed cost for covered services with the insurer. This can reduce your premium compared to plans without a co-pay.
Consider a Health Maintenance Organization (HMO): HMO plans typically have lower premiums but restrict your network of doctors.
Explore alternative coverage options:

Government-sponsored plans: Depending on your location, there might be government-sponsored healthcare programs for seniors, like Medicare (US) or Pradhan Mantri Jan Arogya Yojana (PMJAY) (India).
Employer-provided plans: If you're still working, inquire about your employer's health insurance plans for retirees.
Manage healthcare expenses:

Preventive care: Prioritize preventive care like checkups and screenings to potentially avoid costlier medical issues down the line.
Negotiate medical bills: Don't be afraid to negotiate medical bills with providers. You might be surprised by the savings you can achieve.
Prescription drug assistance: Explore programs that offer discounted or free medications for seniors.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |2717 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

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I am 36 yrs , working as a educator in govt college getting in hand 80k/month ,sip of 4500 ,pls suggest best investment plan for children higher education and corpus of 2 cr till 55
Ans: Planning for Your Children's Higher Education and Building a ?2 Crore Corpus
Understanding Your Goals and Current Financial Situation
Congratulations on prioritizing your children's education and financial security. With your dedication and a well-structured plan, achieving a corpus of ?2 crore by the age of 55 is feasible.

Compliments on Your Responsible Approach
Your commitment to securing your children's future education is commendable. Your proactive approach to financial planning will undoubtedly benefit your family in the long run.

Evaluating Investment Options
SIP Investment:

Currently investing ?4,500 per month.
Consider increasing SIP amount gradually to align with your target corpus.
Income and Expenses:

Monthly in-hand income: ?80,000.
Assess your monthly expenses to identify surplus funds for investment.
Investment Horizon and Risk Profile:

Goal: Achieve ?2 crore corpus by age 55.
With a long-term horizon, a balanced approach with moderate risk is advisable.
Tailored Investment Strategies
Education Fund for Children:

Open a dedicated education fund for each child.
Allocate a portion of your monthly surplus towards these funds.
Diversified Investment Portfolio:

Consider a mix of equity, debt, and hybrid mutual funds.
Aim for a diversified portfolio to mitigate risk and optimize returns.
Systematic Investment Planning (SIP):

Increase SIP contributions annually to align with your financial goals.
Regularly review and rebalance your portfolio as needed.
Tax-Efficient Investments:

Explore tax-saving investment options like ELSS funds to optimize tax benefits.
Utilize tax-saving instruments effectively to maximize returns.
Emergency Fund Provision:

Maintain a separate emergency fund equivalent to at least 6-12 months of expenses.
Ensure liquidity to cover unforeseen expenses without impacting your investment corpus.
Monitoring and Reviewing Your Plan
Regular Portfolio Review:

Assess your portfolio's performance at least annually.
Make adjustments based on changing market conditions and financial goals.
Education Fund Tracking:

Monitor the growth of your children's education funds.
Adjust contributions as necessary to ensure they remain on track.
Financial Advisor Consultation:

Consider consulting a certified financial planner periodically.
Get personalized advice on optimizing your investment strategy.
Conclusion
By adopting a disciplined approach to investing and gradually increasing your SIP contributions, you can achieve your goal of building a ?2 crore corpus for your children's education and your retirement. Stay focused, review your progress regularly, and make informed decisions to ensure financial security for your family's future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...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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