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41, Rs 10.8 Cr Assets, Rs 90 Lakh Income: Can I Retire in 4 Years?

Ramalingam

Ramalingam Kalirajan  |8317 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 29, 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 - Aug 13, 2024Hindi
Money

I am 41 with a house worth Rs 3 crore and an apartment worth Rs 1.8 cr. I also have FDs worth Rs 6 cr. I want to retire by 2026. I earn around Rs 90 lakh per annum. I have two school-going daughters. Would my retirement savings be good to last long after I retire?

Ans: Retirement is a crucial phase of life. It requires careful planning, especially if you want to maintain your current lifestyle. At 41, you have built a solid foundation with a house, an apartment, and significant fixed deposits (FDs). You plan to retire by 2026, which gives you two years to prepare. Let’s assess your current situation and evaluate how well your retirement savings will serve you in the long run.

Current Assets and Income
Your current assets include:

A house valued at Rs 3 crore

An apartment valued at Rs 1.8 crore

FDs worth Rs 6 crore

Your annual income is Rs 90 lakh. These are impressive figures and reflect your diligent saving and investment efforts. You also have two school-going daughters, which adds the responsibility of planning for their future education and possibly their weddings.

Retirement Timeline
You aim to retire by 2026, which gives you a time horizon of two years. This is a relatively short period, and your focus should be on preserving your capital and ensuring it generates sufficient income post-retirement.

Evaluating Your Retirement Corpus
Let’s break down your assets to see how well they can sustain your retirement.

Real Estate Assets
Your house and apartment have a combined value of Rs 4.8 crore. However, real estate is generally considered an illiquid asset. Selling property during retirement could be challenging due to market conditions and other factors.

Additionally, real estate doesn’t generate regular income unless you plan to rent out the apartment. Even if you do, rental income might not be sufficient to cover all your retirement needs.

Fixed Deposits (FDs)
You have FDs worth Rs 6 crore, which is a significant amount. FDs are safe, low-risk investments. They provide regular interest income, which is beneficial for retirement.

However, the interest rates on FDs have been on the decline. This could affect your income stream. Also, the interest from FDs is fully taxable, which could reduce your net income.

Estimating Post-Retirement Expenses
A crucial part of retirement planning is estimating your post-retirement expenses. Your current income is Rs 90 lakh per annum, which translates to Rs 7.5 lakh per month. After retirement, your expenses will likely reduce, but you need to consider:

Living Expenses: Basic needs, utilities, groceries, and other day-to-day expenses.

Healthcare: Medical expenses tend to increase with age. Ensure you have adequate health insurance coverage.

Daughters’ Education and Marriage: Planning for these significant expenses is essential. They can be substantial, depending on the level of education and the type of wedding.

Income Streams Post-Retirement
After retiring, you’ll need to generate income from your assets. Let’s explore your options:

Interest Income from FDs
FDs will provide regular interest income. However, as mentioned earlier, the interest rates are not as attractive as they used to be. Plus, the income is taxable. This might reduce your net income and could impact your cash flow.
Rental Income
Renting out your apartment could provide a steady income stream. However, rental income may not be substantial compared to your current earnings. Moreover, rental income is also taxable.
Diversifying Investments
While FDs are safe, they might not be sufficient to cover your retirement needs, especially considering inflation. It’s advisable to diversify your investments into instruments that can offer better returns.
Investment Options for Retirement
Given your current assets and retirement timeline, you should consider the following investment strategies:

Actively Managed Mutual Funds
Actively managed mutual funds can provide better returns compared to FDs. Professional fund managers handle these funds, aiming to outperform the market. This could be a good option to grow your corpus, especially with a two-year investment horizon.

Unlike index funds, which passively track the market, actively managed funds are designed to take advantage of market opportunities, potentially providing higher returns.

Regular Funds vs. Direct Funds
Regular funds, invested through a Certified Financial Planner (CFP), offer the benefit of professional advice and monitoring. This is particularly important as you approach retirement, where capital preservation and steady income generation are key.

Direct funds, on the other hand, do not offer this professional oversight. While they have lower expense ratios, the lack of guidance could lead to suboptimal investment choices, especially for someone nearing retirement.

Tax Efficiency in Retirement
Minimizing tax outflow is crucial to maximizing your retirement income. Here are a few strategies:

Tax-Free Instruments: Consider investing in tax-free bonds or instruments like the Public Provident Fund (PPF), which offer tax-free returns. However, be mindful of the lock-in periods.

Long-Term Capital Gains (LTCG): Investments in equity mutual funds or ULIPs (if you hold any) could provide tax advantages if held for more than a year, as LTCG tax is only 12.5% above Rs 1.25 lakh.

Healthcare and Insurance
Healthcare costs can be significant during retirement. Ensure you have:

Health Insurance: Adequate health coverage to cover potential medical expenses. Review your policy to ensure it meets your needs.

Life Insurance: If you hold any life insurance policies, assess whether they are still necessary post-retirement. If they are investment-cum-insurance policies, consider surrendering them and reinvesting in more appropriate instruments.

Final Insights
Your current financial standing is robust, with a diverse asset base. However, the focus should be on optimizing these assets for retirement. Diversifying your investments, focusing on tax efficiency, and ensuring adequate healthcare coverage are crucial steps.

Your FDs provide safety but might not generate enough income, especially considering inflation and taxes. Consider actively managed mutual funds for better returns. Real estate, while valuable, is illiquid and may not be the best income-generating asset in retirement.

You have done well so far in building a strong financial base. Now, it’s about fine-tuning your strategy to ensure a comfortable and secure retirement.

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

Asked by Anonymous - May 09, 2024Hindi
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I am 50 years old. I have my savings as follows: In Indian Banks FDs of Rs 10.6 Cr, In Pre IPO Opportunities Fund Rs 1 Cr, In Offshore Banks FDs of USD 1.45 mil (Rs 11.6 Cr) and In Physical Gold 5 kg (Rs 2.4 Cr purchase price). I have also saved enough to own an house abroad and 3 apartments in India. My Question is will I be able to take care of my retirement with the current savings? My spouse and I are 50 years old and expect to plan till 90 years. Our current expenses amount to Rs 6 lakhs per month. We are a family of 5 with 3 college going kids studying abroad ( Fees USD 35K every year for 4 year course).
Ans: Retirement Planning Assessment
Mr. and Mrs. Karthik, it's commendable that you're proactively considering your retirement planning at this stage of life. Let's delve into your current financial situation and evaluate whether your savings are sufficient to sustain your retirement lifestyle.

Understanding Your Assets
Indian Banks FDs: Your significant holdings in Indian Banks FDs provide stability and security but may offer relatively lower returns compared to other investment options.
Pre IPO Opportunities Fund: Investing in Pre IPO Opportunities Fund involves higher risk but can potentially yield attractive returns, subject to market conditions and the success of IPOs.
Offshore Banks FDs: Holding funds in Offshore Banks FDs diversifies your investment portfolio and provides exposure to foreign currencies, offering potential currency-related gains.
Physical Gold: While gold is considered a safe haven asset, its value can fluctuate over time. Nonetheless, it adds diversification to your portfolio.
Real Estate: Owning properties abroad and in India can serve as a source of rental income and potential capital appreciation, contributing to your overall financial security.
Assessing Retirement Needs
Monthly Expenses: Your current monthly expenses amount to Rs 6 lakhs, including your children's college fees. Planning for a retirement lasting until age 90 requires careful consideration of inflation and lifestyle changes.
College Expenses: Budgeting for your children's college expenses is crucial, considering the significant amount required annually for their education abroad.
Retirement Savings Evaluation
Income Sources: Assessing your potential income sources during retirement, including investment returns, rental income from properties, and any pension or annuity payments, is essential.
Inflation Adjustment: Factoring in inflation when estimating future expenses is crucial to ensure your savings retain their purchasing power over time.
Healthcare Costs: Considering potential healthcare expenses during retirement is important, as medical costs tend to increase with age.
Financial Planning Recommendations
Comprehensive Financial Plan: Consult with a Certified Financial Planner (CFP) to develop a comprehensive retirement plan tailored to your specific goals and circumstances.
Risk Management: Diversify your investment portfolio further to mitigate risks and optimize returns, considering your risk tolerance and time horizon.
Tax Planning: Explore tax-efficient investment strategies to maximize your after-tax returns and optimize your overall financial position.
Regular Reviews: Regularly review and adjust your retirement plan as needed, considering changes in your financial situation, goals, and market conditions.
Conclusion
In conclusion, while your current savings and assets provide a solid foundation for retirement, careful planning and strategic decision-making are essential to ensure financial security throughout your retirement years. Consulting with a Certified Financial Planner can provide you with personalized guidance and peace of mind as you embark on this important journey.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8317 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 01, 2024

Asked by Anonymous - Jul 28, 2024Hindi
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I am 51 with a house worth 4cr and an apartment worth 1.2 cr. Have fixed deposits worth 4.5 cr. Wanting to retire in couple of years. I earn around 1.3 cr pa. I have two college going kids. Would my retirement savings be good to last long.
Ans: Current Financial Position
Age 51 years
Occupation Presently working in an MNC
Monthly Income Rs 3 lakhs
Wife's Monthly Income Rs 1.15 lakhs
Children Daughter doing BSc 1st year, Son studying in 8th standard
Monthly Expenses Rs 3 lakhs (assuming it will reduce by Rs 1.2 lakhs in two years time)
Assets
Mutual Funds and Shares Rs 1.75 crore
Fixed Deposits Rs 35 lakhs
PPF Rs 40 lakhs
PF Rs 85 lakhs
Other Investments (NSC/Kisan/LIC, Savings A/C, Loans): Rs 90 lakhs
Gratuity: Rs 12 lakhs (expected)
Rental Income: Rs 65,000 per month
Properties: 3 properties worth Rs 8 crore (besides the house you live in)
Gold: Rs 40 lakhs
Retirement Consideration
Financial Stability

You have a good size portfolio.
Monthly expenses are Rs 3 lakhs, against which rental income will also contribute.
Assets should yield a comfortable retirement corpus.
Current Investments

Mutual Funds and Shares: Rs 1.75 crore
Fixed Deposits: Rs 35 lakhs
PPF: Rs 40 lakhs
PF: Rs 85 lakhs
Other Investments: Rs 90 lakhs
Gold: Rs 40 lakhs
Recommendations
Income Stream Analysis

Rental Income: Rs 65,000 per month
Wife's Income: Rs 1.15 lakhs per month
Total Monthly Income Post-Retirement: Rs 1.8 lakhs
Expense Management

Current expenses: Rs 3 lakhs per month
Expected reduction: Rs 1.2 lakhs after 2 years
Future expenses can be managed with existing income and assets.
Investment Strategy

Mutual Funds: Continue for long-term growth.
PPF and PF: Provide stability and tax benefits.
Fixed Deposits: Can consider switching over to higher-return options.
Gold: Continue maintaining for diversification.
Health and Insurance

Adequate health insurance to be maintained for the family.
Insurance cover to be provided for son's medical requirements.
Additional Measures
Increase contributions towards retirement-targeted investments.
An emergency fund to meet unexpected expenses is always to be maintained.
Periodic review and rebalancing of the investment portfolio is a must.
Financial Objectives
Retirement Corpus

The corpus to be adequate to support monthly expenses and inflation.
Dovetail into an adequate mix of assets yielding a steady income.
Education and Marriage of Child

Separate investments to be planned for children's education and marriage.
Use equity mutual funds for long-term education goals.
Vacation Planning

Set aside a small portion of monthly income for vacations.
Take care that it does not hamper the essential expenses.
Final Insights
With a good asset base and a diverse source of income streams, retirement at the age of 51 is very much possible. Having control on expenses, adequate insurance, and periodic review of the investment portfolio will help in achieving your goal. Your financial situation will definitely support a comfortable retirement and your future goals.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Nayagam P

Nayagam P P  |4477 Answers  |Ask -

Career Counsellor - Answered on May 04, 2025

Career
which nit/iiit/gfti can i get with ews quota category rank 30127 in josaa counselling round and in which round
Ans: Kumar, Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories both Home State (HS) i.e. State you belong to & also Other State (OS).
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in, separately for HS & OS Categories for a quick reference.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.

Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...Read more

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Asked by Anonymous - May 03, 2025
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Jee mains 79.431 per IIIT me admision mil sakta hai kya
Ans: Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories both Home State (HS) i.e. State you belong to & also Other State (OS).
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in, separately for HS & OS Categories for a quick reference.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.

Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...Read more

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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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