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Ramalingam

Ramalingam Kalirajan  |7290 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 03, 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
shakti Question by shakti on May 11, 2024Hindi
Money

I am 40 year old, unmarried. I have ancestral porperty in which I live. I have savings of about 30 lacs . 7 lcs in equity rest in FDs. I was working in corporate, then ran a startup. Which failed and eroded all my capital, but thankfully I have cleared all debt and have no debt on me. I do have a retal income of 12k, a couple of small plots of about 30 lacs put together an health insurance of 25 lacs... my income is very inconsistent ... last year i made 3 lacs.. year before that i earned 30 lacs... what should i dom

Ans: Evaluating Your Financial Situation and Future Planning

You have shown remarkable resilience in managing your finances. Clearing all your debts after a startup failure is commendable. Let's delve into your current financial situation and explore ways to secure a stable financial future.

Current Financial Landscape
Your financial assets and income sources include:

Savings: Rs 30 lakhs, with Rs 7 lakhs in equity and the rest in fixed deposits.

Rental Income: Rs 12,000 monthly.

Plots: Two small plots valued at Rs 30 lakhs collectively.

Health Insurance: Coverage of Rs 25 lakhs.

Your income has been inconsistent, with earnings varying significantly over the past two years.

Analysing Income Inconsistency
Your income fluctuates due to the nature of your work. This inconsistency can pose challenges in financial planning and achieving long-term goals. Let's address these challenges with a structured approach.

Stabilising and Growing Your Income
A steady income stream is crucial for financial stability. Here are some strategies to consider:

Diversify Income Sources
Relying on a single income source can be risky. Explore multiple income streams to mitigate this risk. For example, freelance consulting, part-time jobs, or passive income from investments.

Skill Enhancement
Invest in skill development. Enhancing your skills can lead to better job opportunities and potentially higher and more consistent income.

Investment Strategy
Your current investment portfolio includes equity and fixed deposits. While these are good, a more balanced approach could yield better returns.

Equity Investments
You have Rs 7 lakhs in equity. Equities can offer high returns but come with risks. Consider diversifying within equities to include a mix of blue-chip stocks and growth stocks.

Fixed Deposits
Fixed deposits offer safety but lower returns. Explore other investment options that balance safety and returns, such as debt mutual funds.

Actively Managed Funds
Actively managed funds can potentially offer higher returns than index funds. These funds benefit from professional management and have the flexibility to adapt to market changes.

Property and Real Estate
You own ancestral property and two small plots valued at Rs 30 lakhs. While real estate provides value, it’s not always the best investment due to liquidity issues.

Utilising Property for Income
Consider generating income from your existing properties. Renting out unused portions or developing them for rental purposes can provide a steady income stream.

Health Insurance
Your Rs 25 lakhs health insurance provides a safety net. Ensure the coverage is adequate for potential medical expenses and consider increasing it if necessary.

Emergency Fund
An emergency fund is crucial for unexpected expenses. Allocate funds to build or maintain an emergency reserve, ideally covering 6-12 months of expenses.

Retirement Planning
Although you are unmarried, planning for retirement is essential. Consistent investments and a diversified portfolio can ensure a comfortable retirement.

Systematic Investment Plans (SIPs)
Consider increasing your SIP contributions. Regular and disciplined investments in SIPs can leverage compounding, enhancing your retirement corpus over time.

Diversifying Investments
Diversify your investments across different asset classes. This strategy spreads risk and can improve returns, ensuring a balanced portfolio.

Tax Efficiency
Optimise your investments for tax efficiency. Utilise tax-saving instruments and strategies to reduce your tax liability, thus increasing your net returns.

Professional Guidance
Seeking advice from a Certified Financial Planner can provide personalised strategies tailored to your financial situation and goals. They can help you navigate complex financial decisions.

Monitoring and Adjusting Your Plan
Regularly review your financial plan. Adjust your strategies based on changes in your income, market conditions, and financial goals.

Future Goals and Financial Security
Securing a stable financial future involves setting clear goals and following a structured plan.

Clear Financial Goals
Define your financial goals clearly. Whether it's buying a new property, investing in your business, or planning for retirement, clarity helps in planning effectively.

Consistent Savings and Investments
Maintain consistent savings and investment habits. This discipline is key to achieving long-term financial security.

Risk Management
Manage risks through diversification and insurance. Adequate health and life insurance can protect you from unforeseen financial burdens.

Building a Financial Cushion
Create a financial cushion to protect against income fluctuations. This cushion can provide stability and peace of mind during uncertain times.

Long-Term Wealth Creation
Focus on long-term wealth creation through strategic investments. A balanced portfolio with a mix of equity, debt, and other instruments can provide growth and security.

Conclusion
Your journey has had its challenges, but your resilience is inspiring. With a strategic approach, disciplined investments, and professional guidance, you can achieve financial stability and growth.

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  |7290 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 13, 2024

Money
I am Swapnil Joshi. Age 43. I am working in Ad agency in Mumbai. I am from Mumbai.I own a house on Ghodbunder Road which is rented out at 15000 per month. Monthly maintenance 3700. My income is gross 12 lacs per annum. I have approx 1 cr Mutual fund portfolio with 52500 sip. 2500 cash sip and 50000 swp, via existing, funds in portfolio. I have few FD, around 3 to 4 lacs. Around 7 lacs in liquid fund, which is used as pledge for option trading. It gives me around 5.5% growth and also around 1500 to 2000 per month via options income. I have LIC policy, which will get matured by next 5 years. It will give me around 15 lacs as final sum assured. My monthly expense is around 50000. I had booked a home at Pune in 2015, but builder is in jail. Loan is on my and my wife's name. Loan is of 20 lacs but money paid to builder is 12 lacs. Since last 8 years work has stopped. So interest liability including principle for Loan is around 16 lacs by now. I have not paid any EMI yet as property is in dispute, but my cibil is affected due to the outstanding loan on my name. I am married and I have a son, who is in 8th standard. My wife is working as freelance with monthly income around 35000. Currently I am staying with my father. My current stay is owned by my father and eventually it will be owned by me. I have elder brother who is in US as a citizen. He owns his own house in nearby vicinity near me. I want to know, how much funds I need to have to maintain my life style when i am around 50 years of age and suggestions u would give to have better income via existing income.
Ans: Current Financial Situation and Analysis
Mr. Swapnil, thank you for sharing your detailed financial background. Your current situation includes a variety of assets and income streams, giving you a stable base. However, there are some areas where strategic adjustments could improve your financial health and future security.

Let's break down your financial picture:

Monthly Income: You earn Rs 1 lakh per month. Your wife contributes Rs 35,000 per month. Together, your total gross monthly income is Rs 1.35 lakh.

Mutual Funds: You have a Rs 1 crore mutual fund portfolio, with a Rs 52,500 monthly SIP, Rs 2,500 cash SIP, and a Rs 50,000 SWP.

Fixed Deposits: You have Rs 3-4 lakhs in fixed deposits.

Liquid Fund: You hold Rs 7 lakhs in a liquid fund, used as collateral for option trading. It yields 5.5% and around Rs 1,500-2,000 monthly from options trading.

Real Estate: You own a house on Ghodbunder Road, which is rented out at Rs 15,000 per month. After maintenance, you net Rs 11,300.

Loan Situation: You have an unresolved loan issue related to a property in Pune, with a total outstanding liability of Rs 16 lakhs. This affects your CIBIL score.

Insurance: You hold an LIC policy maturing in five years, with a final sum assured of Rs 15 lakhs.

Family: You are married with a son in the 8th standard, and you reside in your father's house, which will eventually be yours. You also have an elder brother living nearby in his own home.

Expenses: Your monthly expenses are around Rs 50,000.

Evaluating Your Income and Expenses
Your current income is sufficient to cover your expenses, but your savings and investment patterns need some fine-tuning to ensure long-term financial stability.

Mutual Fund Portfolio: Your Rs 1 crore mutual fund portfolio is a strong asset. However, you might want to reassess the funds you are invested in, especially if some are underperforming. Actively managed funds, especially those curated by a Certified Financial Planner, can often outperform passive funds in the long run, especially in the Indian market where the dynamics can be more volatile.

SWP Strategy: The Rs 50,000 SWP is a good way to generate a steady income. But be cautious; withdrawing too much can deplete your corpus faster than anticipated, especially if market conditions are unfavorable. Consider reducing the SWP or ensuring that the funds you withdraw are from low-risk or conservative growth funds to protect your capital.

Fixed Deposits and Liquid Funds: Your FDs and liquid funds offer safety but limited growth. Given your risk tolerance and financial goals, you might want to reallocate some of these funds into higher-yielding debt instruments or even conservative mutual funds. The liquid fund used for option trading is a smart strategy for liquidity and income, but the returns are modest. You could explore other low-risk options that provide better returns without locking your money away.

Real Estate Rental Income: The rental income from your Ghodbunder Road property contributes Rs 11,300 per month after maintenance. While this is stable, it might not keep pace with inflation over time. Consider reviewing the rent periodically to ensure it remains competitive with market rates. Also, factor in potential property tax increases or additional maintenance costs in your future planning.

Addressing the Loan Issue
The unresolved loan related to the Pune property is a significant concern, especially as it affects your CIBIL score. A poor CIBIL score can limit your access to credit in the future and lead to higher interest rates.

Action Steps:
Legal Consultation: Consider consulting a property lawyer to explore legal options for resolving this dispute. Your goal should be to minimize further financial damage and possibly recover some of your initial investment.
Debt Resolution: If possible, negotiate with the lender to settle the outstanding loan. This could involve paying off the loan at a negotiated amount to clear your name from the dispute.
Future Planning: Income at Age 50
You’ve asked how much you’ll need to maintain your lifestyle when you’re 50. Here’s a broad framework:

Current Lifestyle: Your monthly expenses are Rs 50,000. Assuming a moderate inflation rate of 6%, your monthly expenses could double by the time you turn 50. You may need around Rs 1 lakh per month to maintain your current lifestyle.

Target Corpus: To generate Rs 1 lakh per month, you’ll need a retirement corpus that can provide this income without depleting your principal. Based on conservative estimates, you might require a corpus of around Rs 2-2.5 crores by the time you turn 50. This assumes a mix of safe investments with moderate returns.

Recommendations for a Better Income Stream
To improve your income streams and ensure long-term financial security, consider the following strategies:

Increase SIP Contributions: If possible, gradually increase your SIP contributions. Regularly review and rebalance your portfolio with the help of a Certified Financial Planner. They can help you optimize your returns by investing in funds that align with your risk tolerance and financial goals.

Review Insurance Policy: Your LIC policy will mature in five years, giving you Rs 15 lakhs. Consider whether this amount could be better utilized in a diversified investment portfolio. If the returns from the policy are low, it might be wise to surrender and reinvest the proceeds.

Explore Debt Mutual Funds: Since you have some fixed deposits, consider moving a portion into debt mutual funds. They typically offer better returns than FDs while maintaining a similar risk profile. This could be a good way to boost your income while keeping your capital relatively safe.

Reduce SWP if Necessary: If you’re relying heavily on your SWP, it may be wise to reduce withdrawals slightly to preserve your corpus. Consult with a Certified Financial Planner to adjust your SWP based on your portfolio’s performance.

Plan for Your Son’s Education: Given your son’s age, you should start planning for his higher education expenses. Begin by estimating the costs and then setting aside a specific portion of your investments towards this goal. Education inflation is high, and it’s crucial to have a dedicated fund.

Enhance Your Wife’s Income: If your wife’s freelance income is consistent, consider setting up a systematic investment plan (SIP) in her name. This not only helps with wealth accumulation but also provides her with financial security.

Final Insights
Mr. Swapnil, your financial journey is on the right track, but some strategic adjustments are needed. Focus on optimizing your current investments, resolving your loan issue, and planning for future expenses like your son’s education and your retirement. By doing so, you’ll be well-prepared to maintain your lifestyle at age 50 and beyond.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Money
Ramalingam

Ramalingam Kalirajan  |7290 Answers  |Ask -

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

Asked by Anonymous - Aug 14, 2024Hindi
Money
I am 49 years old and my wife is a home maker... I have two sons ..Elder one is doing graduation and second one is in 11th Class.... I have investments worth Rs 44 Lakhs jointly in the name of Self and wife... I had invested Rs.15.50 Lakhs in 2010 and had purchased a plot whose current market value is Rs 1.20 Crore... Other than this I do not have any other investments... 10 years back I had a monthly income of Rs 1 lakh per month which has now reduced to Rs 60 K per month.... I am a living in a parental house( Market Value is around Rs 2 CR) alongwith my parents which is gifted to me.. Kindly advise.
Ans: You have a strong foundation, with investments worth Rs 44 lakhs and a plot valued at Rs 1.20 crore. Living in a parental house gifted to you, with a market value of Rs 2 crore, provides a significant security net. However, your monthly income has decreased from Rs 1 lakh to Rs 60,000, and you have two sons, one in graduation and the other in 11th class. It's essential to plan carefully for the future, especially considering the educational expenses and your retirement.

Evaluating Investment Portfolio
Your investment portfolio of Rs 44 lakhs is a good start, but diversification and growth are essential.

1. Analyze Current Holdings
Review your existing investments. If they're heavily concentrated in one asset class or lack diversification, it could limit growth.

2. Consider Equity Exposure
Equity investments can offer higher returns over the long term. If your current portfolio lacks equity exposure, consider reallocating some funds to diversified mutual funds. They offer growth potential and can help in building a retirement corpus.

3. Debt Investments
Ensure a portion of your portfolio is in debt instruments for stability. Debt funds or fixed deposits can provide a regular income with lower risk, especially considering your reduced monthly income.

4. Balance Risk and Reward
At 49, balancing risk is crucial. Avoid high-risk investments that could jeopardize your capital, but also avoid overly conservative options that may not outpace inflation.

Planning for Your Sons' Education
With your elder son in graduation and the younger one in 11th class, education expenses are imminent.

1. Estimate Education Costs
Calculate the likely costs for both sons' education. This includes tuition fees, living expenses, and any potential overseas education costs.

2. Allocate Funds
Designate specific portions of your current investments for each son's education. A mix of equity and debt investments can provide growth while preserving capital.

3. SIPs for Regular Contributions
If not already in place, consider starting Systematic Investment Plans (SIPs) in mutual funds. They allow you to contribute regularly towards your sons' education while benefiting from market growth.

4. Education Loans
If the costs exceed your current savings, explore education loans. They can help manage cash flow without disrupting your retirement plans.

Retirement Planning
With your income reduced and retirement approaching, planning is critical.

1. Calculate Retirement Corpus
Determine the amount needed to maintain your lifestyle post-retirement. Consider factors like inflation, healthcare costs, and longevity.

2. Increase Equity Allocation
Given your age, a balanced approach with a tilt towards equity can help grow your retirement corpus. Mutual funds with a mix of equity and debt could be suitable.

3. SWP for Regular Income
Post-retirement, consider a Systematic Withdrawal Plan (SWP) from your mutual fund investments. This provides a regular income stream while keeping your capital invested for growth.

4. Consider Health Insurance
Ensure you and your wife have adequate health insurance coverage. Medical emergencies can erode your savings quickly.

Disadvantages of Index and Direct Funds
1. Index Funds
Index funds, though low-cost, track the market passively. They don't offer flexibility in adjusting to market conditions. This lack of active management can lead to suboptimal returns, especially in volatile markets.

2. Direct Funds
Direct funds save on commission costs but lack professional guidance. Investing through a Certified Financial Planner (CFP) ensures expert advice and regular reviews, which is crucial for someone nearing retirement.

Liquidating the Plot
Your plot, valued at Rs 1.20 crore, is a significant asset.

1. Evaluate Selling the Plot
If your sons’ education or retirement needs demand more liquidity, consider selling the plot. This can provide funds for investing in diversified instruments to meet your financial goals.

2. Reinvesting Proceeds
The proceeds from selling the plot could be invested in a combination of mutual funds and fixed-income securities. This strategy can help in generating a regular income and growing your retirement corpus.

3. Tax Considerations
Selling the plot will attract capital gains tax. Explore options like reinvesting in specified bonds or real estate to save on taxes.

Utilizing the Parental House
Your parental house, valued at Rs 2 crore, is another significant asset.

1. Renting a Portion
If feasible, consider renting out a portion of the house. This could provide additional monthly income to supplement your Rs 60,000 income.

2. Reverse Mortgage
In the future, a reverse mortgage could be an option. This allows you to receive regular payments against the value of the house, without losing ownership.

Final Insights
Your financial situation has a strong foundation, but with careful planning, you can secure your sons' education and your retirement. Focus on diversifying your investments, ensuring adequate funds for education, and growing your retirement corpus. Avoid index and direct funds in favor of actively managed mutual funds through a Certified Financial Planner. Consider selling your plot if liquidity is required and explore options to generate income from your parental house. With the right strategy, you can navigate this phase successfully and secure a comfortable future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Money
Ramalingam

Ramalingam Kalirajan  |7290 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 28, 2024

Money
Sir, I am 45 , lost 1 cr in business and shifted to Job profile and earning 24 LPA, have 1 home of 65 Lacs with 40 Lacs home loan , 20 Lakhs Mediclaim Policy , Nil Investment. what is the way ahead . 1. come out of depts urgently. 2. Build up a little for kids . Have 2 kids 9 and 8 yrs . school bit costly . 5 Lacs per Annum .
Ans: You’ve experienced a major financial setback with a business loss of Rs 1 crore and have since transitioned to a job with an annual income of Rs 24 lakh. Currently, you have a home valued at Rs 65 lakh but with an outstanding loan of Rs 40 lakh, and you’ve mentioned a costly school setup for your two children, with an annual fee of Rs 5 lakh. You also have a Rs 20 lakh mediclaim policy, which provides some security in terms of health coverage. Now, you are keen on clearing your debts, securing your children’s future, and building up a financial cushion.

Given your circumstances, it’s important to prioritize debt repayment, secure your children’s education, and rebuild your financial base. Here’s a step-by-step approach to achieving your goals.

1. Prioritize Debt Repayment
Paying Off the Home Loan
Your home loan of Rs 40 lakh is a significant liability. Considering that you pay Rs 5 lakh annually for your children’s education, this loan will be a major financial burden. However, paying off your home loan aggressively while maintaining your lifestyle is crucial for long-term stability.

Increase EMI Payments: Check if you can increase your home loan EMIs. You could redirect any excess income towards your home loan. Even a small increase in EMI can reduce your overall loan tenure, saving you substantial interest in the long run.

Lump Sum Prepayments: If you get any bonuses or financial windfalls, use them to make lump sum payments towards the principal. This will help reduce the loan quickly.

Refinance Your Home Loan: If your current interest rate is high, consider refinancing the loan to a lower interest rate. Even a small reduction in interest can lead to significant savings over the long term.

2. Build an Emergency Fund
Before starting any investments, you need to establish an emergency fund. This will prevent you from having to take on more debt in case of unforeseen expenses.

Target 6 Months of Living Expenses: Set aside enough money to cover at least 6 months of your family’s living expenses. This should include EMI payments, school fees, and day-to-day expenses. Aim for a fund of Rs 8-10 lakh for emergencies.

Place in a Liquid Fund: You can park this money in a liquid mutual fund or a high-interest savings account. The idea is that it should be easily accessible and provide some returns.

3. Address Kids’ Education
Your children are 9 and 8 years old, and their education is a significant ongoing expense. With annual fees of Rs 5 lakh, the costs are substantial.

Set Up a Dedicated Education Fund: You can begin a systematic investment plan (SIP) in mutual funds dedicated to their future educational needs. Equity mutual funds will provide the best growth over a 10-15 year period, but you’ll need to manage this carefully as they get closer to higher education.

Consider Education Insurance: Although you have a mediclaim policy, an education insurance plan can provide additional coverage in case something happens to you. This will ensure that their education is funded even if you're not around.

4. Start Long-Term Investments for Retirement
Since you have no current investments and a home loan to deal with, start slowly and steadily building your long-term savings. At 45, you have about 15-20 years until retirement, which is enough time to grow a retirement corpus if you act now.

Systematic Investment Plans (SIPs): Start with an SIP in equity mutual funds. Equity funds have the potential to give higher returns over the long term, which is crucial given the time frame. You can start small and increase contributions as your financial situation stabilizes.

Public Provident Fund (PPF): Consider opening a PPF account. Though it has a lower interest rate compared to equity, it provides tax benefits and a risk-free return. It’s ideal for building a portion of your retirement fund.

Voluntary Provident Fund (VPF): If your company provides EPF (Employee Provident Fund), consider contributing extra to the VPF. This will help build a tax-free retirement corpus.

5. Secure Health and Life Insurance
You already have a Rs 20 lakh mediclaim policy, which is good. However, with two young children, securing your family’s future through proper life insurance is critical.

Term Insurance: You should get a term insurance policy that covers at least 10 times your annual income. With a Rs 24 lakh annual salary, consider a Rs 2.5-3 crore term policy. This will ensure your family’s financial security if anything happens to you.

Review Mediclaim Policy: With rising medical costs, a Rs 20 lakh mediclaim policy may not be sufficient. Consider increasing the coverage to Rs 30-40 lakh, depending on your budget.

6. Manage Current Lifestyle and Expenses
Your children’s school fees are Rs 5 lakh annually, which is a significant part of your income. You’ll need to make sure that this expense does not derail your financial goals.

Budgeting: Create a strict budget to ensure that you are able to save and invest every month. Keep discretionary spending to a minimum until you are able to stabilize your financial situation.

Avoid Lifestyle Inflation: As your income grows, it’s important to avoid lifestyle inflation (increased spending as income rises). Prioritize savings and investments instead of increasing your standard of living.

7. Rebuild Your Financial Confidence
Given the business loss, it's understandable to feel financial strain, but you’re taking the right steps by focusing on your job and rebuilding your financial base. The key now is to be consistent and disciplined with your finances.

Stay Positive and Committed: You have the earning capacity and time to rebuild your financial portfolio. Stick to your investment and debt repayment strategies, and you’ll find that progress happens gradually.

Focus on Long-Term Goals: Short-term market fluctuations and financial hurdles may cause concern, but your goal should always be long-term financial stability and security for your family.

Final Insights
Focus on Debt Reduction: Prioritize paying off your home loan and avoid new debts. Use any excess income or bonuses to prepay the loan faster.

Build an Emergency Fund: Secure at least 6 months of expenses in an easily accessible emergency fund before you start investing.

Start Investing for Kids’ Education: Start an education fund with SIPs in equity mutual funds. This will help you cover the cost of their higher education.

Plan for Retirement: Begin SIPs in equity funds and open a PPF account for long-term retirement savings. Consider VPF contributions if available.

Secure Your Family: Increase health insurance coverage if needed and take a term insurance policy of Rs 2.5-3 crore for your family’s protection.

With disciplined savings, prudent investments, and focused debt repayment, you will be able to rebuild your financial future and secure your children’s education as well as your retirement.

Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
Holistic Investment YouTube Channel

..Read more

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Ramalingam

Ramalingam Kalirajan  |7290 Answers  |Ask -

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

Asked by Anonymous - Dec 14, 2024Hindi
Money
Dear Mr. Ramalingam, I have been reading your column regularly and feel you are giving great advice. Would like your advice and help in seeing what would be my income going forward per month and will that be adequate and how to supplement it. I am aged 62 in kerala. My wife is 58 not working and unmarried daughter, independently earning, who we hope will get married this year. Savings: 1.2 cr in Fd’s in banks and Post office 66 lakhs in PPF (I have been extending it by 5 years each time) 14 lakhs in NPS 1 lakhs in EPF last employment was in Jun 2024 44 lakhs in shares (portfolio bought many years back based on friends recommendation but only few stocks are doing ok rest is just sitting there) 90 lakhs in Mutual funds with several mutual funds (all in growth plans) 86 lakhs at cost price for A flat where I am staying and empty plot (both fully paid for) Income currently is from: LIC Jeevan Suraksha Plan, receiving Rs. 7,021 per month till death LIC Pradhan Mantri Vaya Vandana Yojana -annual receipt of - Rs. 77,979 (till mar 2032) when I get lumpsum back of app Rs. 10 lakhs New Jeevan Shanti Plan – fully paid up but receipts to commence from Mar 2027 monthly Rs. 36,450.00/- till death of self and wife Interest income from few of the FD or break fd principal when required. Little income from dividends Expense: Tata ULIP 20 yr plan premium of 1 lakhs till last payment in 2026 (2 payments left), mature in 2027, current value is 57 lakhs. TATA AIA Fortune Guarantee Pension – annual payment of Rs. 3,06,000/ till last payment in 2026 (2 payments left). 1,07,000 per year from Apr 2028 for life of both of us and return of premium at end of both lives. Aditya Birla Guaranteed Milestone Plan –Paid Rs. 1,02,500 for 5 year last payment this year. Will receive Rs.8,94,000/ in Dec 2031 has life cover of Rs. 15 lakhs (Worst plan I was conned into taking) Family Health insurance of 8 lakhs cover plus a super top up floater of 5 lakhs, covering all 3 of us approximately 45,000 for both policies 12 year old car with 4,000 insurance policy Other expenses approximately 30,000 per month for food etc. Should I change any of my investment etc to get a better income to meet future needs Thanks
Ans: You have diligently built a robust and diversified portfolio. It includes fixed deposits, mutual funds, real estate, and insurance plans. You also have various annuity and pension products. Your current financial situation showcases foresight and discipline.

However, to ensure your monthly income meets your needs and grows with inflation, some restructuring is necessary. Let’s evaluate your assets and income streams in detail and suggest ways to optimise them.

Existing Income Sources and Expenses

Current Income

LIC Jeevan Suraksha Plan: Rs. 7,021 per month (lifetime income).

LIC Pradhan Mantri Vaya Vandana Yojana (PMVVY): Annual income of Rs. 77,979 till 2032.

New Jeevan Shanti Plan: Monthly income of Rs. 36,450 from 2027 (lifetime for self and wife).

Interest Income: From fixed deposits and dividends from shares.

Current Expenses

Household expenses: Rs. 30,000 per month.

Insurance premiums: Rs. 3,51,000 annually until 2026.

Health insurance: Rs. 45,000 per year.

Asset Analysis

Fixed Deposits

Current Value: Rs. 1.2 crore.

Analysis: While secure, FD returns are low and may not keep pace with inflation. Only retain a portion for emergencies.

Public Provident Fund (PPF)

Current Value: Rs. 66 lakh.

Analysis: PPF offers tax-free and risk-free returns. Continue extending it as a safe long-term investment.

National Pension Scheme (NPS)

Current Value: Rs. 14 lakh.

Analysis: NPS has market exposure, offering potential growth. Partial withdrawal for reinvestment can be considered post-retirement.

Employee Provident Fund (EPF)

Current Value: Rs. 1 lakh.

Analysis: Withdraw and reinvest for higher returns.

Shares Portfolio

Current Value: Rs. 44 lakh.

Analysis: A few stocks are performing, while others are stagnant. Retain fundamentally strong stocks. Sell non-performing ones and reinvest proceeds.

Mutual Funds

Current Value: Rs. 90 lakh.

Analysis: Growth plans are suitable for long-term wealth creation. However, evaluate and streamline the portfolio with the help of a Certified Financial Planner.

Real Estate

Flat: Rs. 86 lakh (self-occupied).

Plot: Value not mentioned.

Analysis: These assets provide stability but do not generate regular income. Retain them as non-liquid investments.

Insurance Plans

TATA ULIP: Current value of Rs. 57 lakh, matures in 2027.

Recommendation: Surrender post-2026 and reinvest in mutual funds for better returns.

TATA AIA Fortune Guarantee Pension: Annual payout of Rs. 1,07,000 from 2028.

Recommendation: Retain as a fixed income source.

Aditya Birla Guaranteed Milestone Plan: Payout of Rs. 8.94 lakh in 2031.

Recommendation: Retain until maturity. Avoid similar plans in future.

Recommendations to Enhance Income

1. Restructure Fixed Deposits

Retain Rs. 30 lakh as emergency funds in liquid FDs.

Reallocate Rs. 90 lakh into debt mutual funds for better post-tax returns. Choose funds with low risk and stable performance.

2. Optimise Shares Portfolio

Retain strong-performing stocks. These can provide growth over the long term.

Liquidate underperforming stocks and reinvest proceeds into equity mutual funds. Select funds aligned with your risk tolerance.

3. Streamline Mutual Funds Portfolio

Review your existing funds to avoid duplication and underperformance.

Retain well-performing funds and shift others to actively managed diversified funds.

Opt for regular funds through a Certified Financial Planner for professional advice and monitoring.

4. PPF and NPS

Continue extending PPF for tax-free returns.

Do not withdraw from NPS until it’s mandated. Allocate the lumpsum received wisely at maturity.

5. Insurance Plan Adjustments

Allow the TATA ULIP to mature and surrender it in 2027.

Retain the TATA AIA and Aditya Birla plans until maturity as fixed income sources.

Avoid high-premium insurance plans in future.

6. Increase Monthly Income

From 2027 onwards, New Jeevan Shanti and other payouts will provide substantial monthly income.

Until then, use dividends, interest from debt mutual funds, and systematic withdrawals from mutual funds for supplementary income.

7. Plan for Inflation

Maintain a mix of equity and debt investments to beat inflation.

Ensure equity exposure is at least 40% of your portfolio for long-term growth.

8. Health Insurance Adequacy

Current health insurance of Rs. 8 lakh with a Rs. 5 lakh super top-up is reasonable.

Review coverage every 2-3 years and increase if necessary.

Final Insights

Your financial portfolio is solid and well-diversified. With minor adjustments, it can provide inflation-adjusted income. Focus on reallocating underperforming assets and streamlining investments. Regular reviews will ensure your wealth grows while meeting your needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

..Read more

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Latest Questions
Dr Nagarajan Jsk

Dr Nagarajan Jsk   |183 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on Dec 21, 2024

Asked by Anonymous - Nov 19, 2024Hindi
Career
Hello sir I am mbbs graduated from russia in 2020,n passed with my fmge exam in india in 2021, I want to ask if i want to practice medicine or work as doctor in uk ? Is it necessary for me to pass plab exam exam? Or if i get sponsorship from any uk i will be able to work there and simultaneously i will give plab exam?? Please guide me i m so confused?
Ans: Hi, I understand that you pursued a medicine course in Russia (a non-European country) and, since you are from India, you have completed the FMGE. Now you want to practice or work in the UK as a doctor?

Based on your question, you are eligible to practice in India after completing your internship (which you haven't mentioned, but I assume you have completed it). The FMGE is essentially a licensure exam for Indian students who have completed their medical studies abroad, so you are eligible to practice in India only.

If you want to practice medicine in the UK, you need to complete the PLAB test, as you are from outside the UK/Switzerland/European countries (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland).

You also inquired about sponsorship. Here is the information related to sponsorship for practicing medicine in the UK.
(Extracted from general medical council, uk org. )Applying for registration using sponsorship
If you apply through sponsorship, you will have to satisfy the sponsor that you possess the knowledge, skills and experience required for practising as a fully registered medical practitioner in the UK. Each sponsor has their own scheme which we have pre-approved. If you can satisfy the requirements of their scheme, they will issue you with a Sponsorship Registration Certificate (SRC) which you will need for your application with us. Please ensure this is a Sponsorship Registration Certificate for GMC registration, as we can’t accept UK visa sponsorship certificates for your application for registration.
Please note that a core part of all sponsors' criteria is that a doctor applying for an offer of sponsorship must have been engaged in medical practice for three out of the last five years including the most recent 12 months. If you cannot meet these minimum criteria, it is unlikely that you'll be able to supply sufficient evidence to support your application for sponsorship.
Doctors applying through sponsorship are required to demonstrate their English language skills by achieving our current minimum scores in the academic version of the IELTS test or the OET (medicine version).
• Alder Hey International Fellowship Scheme (Anaesthetics)
• Betsi Cadwaladr University Health Board - BCUHB IMG Sponsorship Scheme
• BAPIO Training Academy Ltd – BTA International Fellowship Scheme
• BAPIO Training Academy Ltd – International Training Programme for Postgraduate Doctors
• BAPIO Training Academy Ltd - BTA International Fellowship Scheme – Internal Medicine with interest in Oncology with MSc in Oncology
• Barking Havering and Redbridge University Hospitals NHS Trust - BHRUT Sponsorship Scheme for Overseas Doctors in Clinical Radiology
• Birmingham and Solihull Mental Health NHS Foundation Trust - International Medical Fellowship Programme in Psychiatry (Birmingham)
• Birmingham Women’s and Children’s Hospital – Birmingham Women’s and Children’s International Medical Graduate sponsorship scheme
• Bradford District Care NHS Foundation Trust - International Medical Fellowship in Psychiatry
• Cambridge IVF, Cambridge University Hospitals NHS Trust – IVF Senior Clinical Fellowship Scheme
• Cambridge University Hospital – Senior Clinical Fellowship Scheme in Intensive Care Medicine/Anaesthesia
• Canterbury Christ Church University
• Cumbria Northumberland Tyne and Wear NHS Psychiatry Fellowship Programme
• Derbyshire Healthcare NHS Foundation Trust - International Medical Fellowship Programme in Psychiatry
• Dudley Group NHS Foundation Trust
• East Lancashire Hospitals NHS Trust - Clinical Fellowship in Urology or Ophthalmology
• East Lancashire Hospital NHS Trust - Specialist Clinical Fellowship in Pain Management
• East London NHS Foundation Trust (ELFT) – ELFT Advanced International Fellowship in Psychiatry
• East Suffolk and North Essex NHS Foundation Trust – ICENI Centre Fellowships Programme
• Edge Hill University and Wrightington, Wigan and Leigh NHS Trust – International Training Fellowships in MCh programmes
• ENT UK – Royal College of Surgeons
• Essex Partnership University NHS Foundation Trust – EPUT Advanced Fellowship in Psychiatry
• Frimley Health NHS Foundation Trust – International Fellowship in Regional Anaesthesia combined with MSc in Principles of Regional Anaesthesia at the University of East Anglia
• Great Ormond Street Hospital International Fellowship Programme
• Guy's and St Thomas' Hospitals NHS Foundation Trust – Critical Care
• Guy’s and St Thomas’ NHS Foundation Trust – International Clinical Fellowship Programme (ICFP)
• Guy's and St Thomas' Hospitals NHS Foundation Trust – Obstetrics and Gynaecology
• Guy’s and St Thomas’ NHS Hospitals Foundation Trust – Oncology Specialty Training
• Guy's and St Thomas' NHS Hospitals Foundation Trust – Specialty Training in Anaesthetics
• Harefield Hospital, Royal Brompton and Harefield NHS Trust – Anaesthesia and Critical Care
• Hertfordshire Partnership University NHS Foundation Trust
• Hull University Teaching Hospitals NHS Trust – International Fellows at Hull University Teaching Hospitals NHS Trust
• Humber Teaching NHS Foundation Trust - Sponsored International Fellowship Scheme in Psychiatry
• Imperial College Healthcare NHS Trust – Emergency Medicine
• Imperial College Healthcare NHS Trust – Haematology
• Imperial College Healthcare NHS Trust – International Anaesthesia Trainees
• Imperial College Healthcare NHS Trust – Intensive Care Medicine
• Imperial College, London - Clinical Research
• King’s College Hospital NHS Trusts – International Critical Care Fellowship
• King’s College Hospital NHS Trusts – Paediatric Critical Care Fellowship
• Lancashire & South Cumbria NHS Foundation Trust - Psychiatry specialty Fellowship Scheme
• Lancashire Teaching Hospitals NHS Trust - Overseas Registrar Development and Recruitment (ORDER)
• Leeds Teaching Hospitals NHS Trust – International Fellowship Programme
• Leicestershire Partnership NHS Trust – International Medical Fellowship Programme in Psychiatry
• Lincolnshire Partnership NHS Foundation Trust – CESR Fellowship in Psychiatry or Sponsored Fellowship in Psychiatry
• Lysholm Dept of Neuroradiology – National Hospital for Neurology and Neurosurgery, UCL
• Manchester University NHS Foundation Trust – International Fellowship Programme
• Midlands Partnership NHS Foundation Trust
• Ministry of Defence – International Military Clinical Fellowships
• Modality Partnership - Modality Primary Care International Fellowship Scheme
• NAViGO Health and Social Care CIC – International Medical Fellowship in Psychiatry
• NHS England, East of England - East of England International Office GMC Sponsorship
• NHS Fife – CESR Fellowship Programme in Psychiatry
• NHS Grampian – Psychiatry CESR Fellowship Programme
• NHS Grampian – Multi-specialty SAS Fellowship
• NHS Wales Shared Services Partnership (NWSSP) – All Wales International Medical Recruitment Programme
• Norfolk and Suffolk NHS Foundation Trust (NSFT) - Advanced Clinical Fellowship in Psychiatry
• North Lincolnshire and Goole NHS Foundation Trust (NLAG) Sponsorship Programme
• Northampton General Hospital – Clinical Fellowship in Regional Anaesthesia
• Northampton General Hospital NHS Trust - International Clinical Fellowship in Regional Anaesthesia, Vascular Anaesthesia, or Peri-operative Medicine
• Northamptonshire Healthcare NHS Foundation Trust – International Clinical Fellowship Scheme
• Northamptonshire Healthcare NHS Foundation Trust – International Clinical Fellowship Scheme (Psychiatry)
• Northern Care Alliance – NCA International Medical Fellowship Scheme
• Oxford University Hospitals NHS Foundation Trust – Oxford Eye Hospital
• Oxford University Hospitals NHS Foundation Trust – Oxford Intensive Care Medicine (OxICM) Sponsorship Scheme
• Oxford University Hospitals NHS Foundation Trust – Oxford University Hospitals Sponsorship Scheme
• Oxford University Hospitals NHS Foundation Trust – The Oxford International Neonatal and Paediatric Fellowship Programme
• Rotherham Doncaster and South Humber NHS Foundation Trust - Sponsored International Fellowship Scheme in Psychiatry
• Royal College of Anaesthetists – Global Fellowship Scheme (Anaesthesia or ICM)
• Royal College of Anaesthetists – MTI Scheme
• Royal College of Emergency Medicine
• Royal College of Obstetricians and Gynaecologists – MTI Scheme
• Royal College of Ophthalmologists
• Royal College of Paediatrics and Child Health – International Paediatric Sponsorship Scheme
• Royal College of Paediatrics and Child Health – MTI Scheme
• Royal College of Pathologists
• Royal College of Physicians of Edinburgh
• Royal College of Surgeons of England
• Royal College of Physicians of London
• Royal College of Physicians and Surgeons of Glasgow
• Royal College of Psychiatrists – MTI Scheme
• Royal College of Radiologists – Clinical Radiology
• Royal College of Radiologists – Clinical Oncology
• Royal College of Radiologists – RCR Specialty Training Sponsorship Scheme
• Royal College of Surgeons of Edinburgh
• Royal Devon and Exeter NHS Trust
• Royal Papworth Hospital NHS Foundation Trust – Senior Clinical Fellowship Programme in Anaesthesia and Critical Care
• Royal Wolverhampton Trust – Clinical Fellowship Programme
• Sheffield Children’s NHS Foundation Trust - Rotational Clinical Fellows in Paediatrics, Trauma and Orthopaedic International Fellows, and Subspeciality Fellows in Paediatrics
• Sheffield Health and Social Care NHS Foundation Trust - International Medical Fellowship in Psychiatry
• Somerset NHS Foundation Trust – Somerset Overseas Doctors Sponsorship Scheme
• Somerset NHS Foundation Trust – Psychiatry Overseas Doctors Sponsorship Scheme
• South Warwickshire University NHS Foundation Trust - GMC Multispecialty Sponsorship Scheme
• South West Yorkshire Partnership NHS Foundation Trust – International Fellowship in Psychiatry
• Southmead Hospital, North Bristol NHS Trust – International Obstetrics and Gynaecology Training Programme
• St Bartholomew’s Hospital, Barts Health NHS Trust – St Bartholomew’s Critical Care Fellowship
• St George’s University Hospitals NHS Foundation Trust – International Anaesthetics Fellowship Programme
• St George’s University Hospital NHS Foundation Trust (Dr Nirav Shah) – International Intensive Care Medicine Trainees
• St George’s University Hospitals NHS Foundation Trust – International Emergency Medicine Trainees
• Surrey and Borders Partnership (SABP) NHS Foundation Trust – International Psychiatric and Community Paediatrics Sponsorship Scheme
• Tees, Esk and Wear Valleys NHS Foundation Trust – International Psychiatric CESR or SAS Fellowship
• University College London Hospitals NHS Foundation Trust, Department of Critical Care – Clinical Fellowship Critical Care and Perioperative Medicine
• University Hospital Birmingham NHS Foundation Trust - International Training Fellowship Programme
• University Hospitals Birmingham NHS Foundation Trust - UHB LED Fellowship Programme
• University Hospitals Bristol and Weston NHS Foundation Trust – Bristol Children's Hospital International Fellowship Scheme
• University Hospitals Bristol and Weston NHS Foundation Trust - Department of General Internal Medicine at Weston General Hospital
• University Hospitals Coventry and Warwickshire NHS Trust
• University Hospitals of Leicester NHS Trust - Postgraduate Clinical Fellowship Programme
• University of Buckingham – Master of Medicine
• University of Buckingham – Master of Surgery
• University of Chester and Cheshire and Wirral Partnership NHS Trust – International Training Fellows Psychiatry
• University of Hertfordshire – Professional Doctorate in General Internal Medicine (Clinical MD) Programme
KINDLY NOTE: If your sponsor is not on this list then you cannot apply using sponsorship.
If you have any further questions, please visit the GMC website for more information.

WISH YOU ALL THE VERY BEST.

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Dr Nagarajan Jsk

Dr Nagarajan Jsk   |183 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on Dec 21, 2024

Asked by Anonymous - Aug 02, 2024Hindi
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Dr Nagarajan Jsk

Dr Nagarajan Jsk   |183 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on Dec 21, 2024

Asked by Anonymous - Dec 20, 2024Hindi
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Ramalingam

Ramalingam Kalirajan  |7290 Answers  |Ask -

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

Asked by Anonymous - Dec 21, 2024Hindi
Money
Hi Sir, I follow your articles regularly and your detailed assessment is really awesome.I am 47yrs Male with wife, 20&18 years kids, elder one is in B.Tech and younger one is 12th. My wife is a home maker. Coming to financials. I have 4 houses including the one residing worth 10cr(total) and getting rental income of 70k per month, invested in stocks and MFs worth 60L, have foreign stocks of worth 1.7cr, accumulated pf around 1.3cr. I have farm lands worth 5cr. Have 1.2cr loan and salary of ~4L (net). current sips in equity 70k/month, have 5Cr term plan, health insurance for family 50L. How do I plan my retirement at 52-53years assuming 80 years life expectancy. Don't want to depend on kids and need regular income ~3-4L per month.
Ans: Asset Evaluation
Real Estate:
You own four houses worth Rs 10 crore, generating Rs 70,000 monthly rental income. This is a solid base for passive income. However, real estate can have fluctuating maintenance costs, tenant issues, and varying rental yields over time.

Stocks and Mutual Funds:
Your Rs 60 lakh investment in stocks and mutual funds is a commendable step. Active mutual funds offer professional fund management and can outperform index funds over time.

Foreign Stocks:
Your Rs 1.7 crore portfolio in foreign stocks adds geographical diversification. Monitor currency exchange fluctuations and global market trends.

Provident Fund (PF):
With Rs 1.3 crore in PF, this is a reliable retirement corpus. The fund provides fixed returns and tax benefits, adding stability.

Farm Lands:
Farm lands worth Rs 5 crore are an illiquid but valuable asset. They might not generate consistent income unless leased or developed.

Loans:
A loan liability of Rs 1.2 crore needs prioritised repayment. Focus on loans with higher interest rates first.

Insurance Coverage:
A Rs 5 crore term plan is robust. Your Rs 50 lakh health insurance is sufficient for unexpected medical emergencies.

Retirement Goals
You need Rs 3–4 lakh monthly for 27–28 years post-retirement.
The portfolio must generate steady, inflation-adjusted returns.
Action Plan for Retirement
Debt Management
Prepay High-Interest Loans:
Use a portion of your surplus income to prepay loans. This reduces interest outflow and increases your cash flow.

Avoid New Loans:
Focus on reducing existing liabilities instead of taking on new ones.

Portfolio Restructuring
Real Estate:
Retain essential properties. Sell underperforming or non-essential properties to reduce concentration in real estate. Invest proceeds in mutual funds or debt instruments for diversification.

Mutual Funds (MFs):
Increase SIPs in actively managed funds. They outperform direct funds due to guidance from Certified Financial Planners and MFDs. Regular funds offer better tracking and professional assistance.

Stocks:
Monitor direct equity investments closely. Consider reallocating underperforming stocks to mutual funds for better management.

Debt Instruments:
Invest in high-quality debt funds or fixed-income securities for stability. These instruments balance equity volatility and ensure steady returns.

SIP Strategy
Increase SIPs from Rs 70,000 to Rs 1 lakh/month.
Allocate 70% to equity funds for long-term growth.
Invest 30% in debt funds for stability and liquidity.
Emergency Fund
Maintain a 12-month expense reserve in liquid funds or fixed deposits.
This covers unexpected expenses without disturbing investments.
Income During Retirement
Systematic Withdrawal Plan (SWP)
Use SWPs in mutual funds to generate regular income.
Withdraw 6–8% annually from your mutual fund portfolio for a steady income stream.
Rental Income Optimisation
Review property rents regularly.
Invest part of rental income in equity or debt mutual funds for compounding.
Dividend Stocks
Retain high-dividend-yield stocks for regular income.
Reinvest surplus dividends for long-term growth.
Tax Efficiency
Equity Funds Taxation:
Long-term gains above Rs 1.25 lakh are taxed at 12.5%. Short-term gains are taxed at 20%.

Debt Funds Taxation:
Both short- and long-term gains are taxed per your income slab.

Real Estate Capital Gains:
Use exemptions under Sections 54 or 54F to save tax on property sales.

Inflation Protection
Allocate 60–70% of your portfolio to equity investments.

Equity provides inflation-adjusted returns over time.

Debt funds and fixed instruments safeguard against equity market volatility.

Estate Planning
Draft a will to allocate assets transparently among family members.
Use nomination and joint ownership to avoid legal complications.
Consider a family trust for farm lands to avoid disputes.
Periodic Review
Review your financial plan every six months.
Adjust investments based on market conditions, goals, and needs.
Consult a Certified Financial Planner regularly for updates.
Finally
A well-diversified portfolio ensures financial independence post-retirement. Focus on debt repayment, portfolio balance, and tax-efficient withdrawals. Your assets can comfortably generate Rs 3–4 lakh monthly income, adjusted for inflation.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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Kanchan

Kanchan Rai  |444 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Dec 21, 2024

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Relationship
I am the eldest sibling in our families and aged 51. Normally, whenever anyone in the family has a problem - financial, mental, psychological, issue with people or anything else, they come up to discuss with me and share. Well, many would say I am lucky as people look up to me when they are in any kind of a problem. But that is not the case. Sadly no one is around with whom I can discuss or even think to share my issues, my problems. I do not have any friends. Sadly, yes, that is a fact and at my age, I dont expect that here we have a culture where we can get to making friends, at least the kind of friends with whom you can confide, share your feelings, problems. I tried and failed. Maybe because I am introvert or maybe I am too cautious. To make it more complicated, I dont work in the regular kind of job. I am a lone person who works as a freelance from home. This limits my outreach when it comes to interacting with real people. I have clients, business contacts, but I cannot get personal with them. It will never be a good choice. My wife is busy with her job + we do not have any relation beyond the daily matters related to household and it has been more than 10 years now that we live this way. Tried to sort out things with her but she just does not have time and interest (after all who wants to add on to tensions, stress). My daughter is after all my daughter - I cannot share these with her, and definitely at 10 she is too young to be one to discuss such stuff. I am not sure how far this issue can be fixed but I am hopeful to find some path here.
Ans: Dear Kevin,
Starting small can be helpful. Consider connecting with people through shared interests or hobbies, either online or in person, where the pressure to immediately open up is minimal. Online communities, local meetups, or volunteer activities can create low-stakes opportunities to connect with like-minded individuals. The goal isn’t to instantly find someone to confide in but to slowly build a sense of belonging and companionship.

Your relationship with your wife appears to be another significant source of emotional distance. While her lack of interest in deep conversations may seem like a barrier, it’s worth exploring other ways to reconnect—perhaps by spending time together in shared activities or revisiting moments that once brought you closer. Sometimes, relationships stuck in routines benefit from new experiences or even professional counseling to navigate the underlying dynamics.

Regarding your daughter, while it’s clear she cannot shoulder your emotional burdens, she can still be a source of joy and connection. Investing time in activities with her can provide a sense of fulfillment and grounding that counters loneliness.

Above all, remember that reaching out for professional support, such as therapy, is not a sign of weakness but an act of self-care. A therapist can provide a safe space to express your feelings and help you develop strategies to foster deeper connections and manage emotional isolation.

You deserve to feel supported and connected, and even if the journey to finding that seems long, every step you take toward opening up or seeking out others is a move toward a more fulfilling and less lonely existence.

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T S Khurana

T S Khurana   |260 Answers  |Ask -

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Ramalingam

Ramalingam Kalirajan  |7290 Answers  |Ask -

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

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Top4 sips with 15k amount suggest me
Ans: Here’s an updated strategy for your Rs. 15,000 SIP allocation, replacing the sectoral/thematic fund with a small-cap fund for better long-term growth potential.

Suggested SIP Allocation (Rs. 15,000)
Large-Cap Fund

Allocation: Rs. 4,000/month
Objective: Stability and steady growth by investing in India’s top 100 companies.
Why Choose: Provides consistent returns and low volatility in your portfolio.
Flexi-Cap Fund

Allocation: Rs. 4,000/month
Objective: Diversified exposure across large, mid, and small-cap stocks.
Why Choose: Offers balanced risk and returns with flexibility during market cycles.
Mid-Cap Fund

Allocation: Rs. 3,500/month
Objective: Tap into the growth potential of medium-sized companies.
Why Choose: Higher returns with manageable risk compared to small caps.
Small-Cap Fund

Allocation: Rs. 3,500/month
Objective: Focus on fast-growing small-cap companies.
Why Choose: High-growth potential over the long term, though with higher volatility.
Why Include Small-Cap Funds?
Long-Term Growth: Small-cap companies have immense potential to grow significantly over time.
Diversification: Adds exposure to an underrepresented segment, complementing large and mid-caps.
High Returns: Potential for higher returns compared to other categories, albeit with higher risk.
Key Considerations
Investment Horizon: Stay invested for at least 7-10 years to mitigate short-term volatility.
Active Fund Management: Avoid direct or index funds to leverage professional expertise.
Regular Monitoring: Review fund performance periodically with a Certified Financial Planner.
Tax Implications
Equity Funds:
LTCG above Rs. 1.25 lakh/year taxed at 12.5%.
STCG (held less than 1 year) taxed at 20%.
Final Insights
This updated allocation ensures a mix of stability, moderate risk, and high growth. With consistent SIPs and periodic reviews, you can achieve robust wealth creation over the long term. A Certified Financial Planner can assist in optimising your investment strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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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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