Home > Money > Question
Need Expert Advice?Our Gurus Can Help

43 year old earning 1.2 lakh monthly, how to plan financially for retirement at 60?

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 17, 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 - Jun 22, 2024Hindi
Listen
Money

I am 43 year old. Im hand salary is around 1.2 lakh per month. EMI for personal loan is 23000 (debt 7 lakhs). Home loan EMI of 170000. House tent. Rent 12500 p.m. Mutual fund SIP of 10000 p.m. current nps corpus of 70 lakhs. PPF corpus 34 lakhs. Insurance premium of 12000 p.m. what should be my target corpus when I am 60 and how to plan. Have two daughters studying in school.

Ans: Let's create a plan to achieve a comfortable retirement by the age of 60. We will consider your current financial situation, future needs, and investment strategies.

Current Financial Position
Your current financial details are:

In-hand salary: Rs 1.2 lakhs per month

Personal loan EMI: Rs 23,000 (debt of Rs 7 lakhs)

Home loan EMI: Rs 1,70,000

House rent: Rs 12,500 p.m.

Mutual fund SIP: Rs 10,000 p.m.

NPS corpus: Rs 70 lakhs

PPF corpus: Rs 34 lakhs

Insurance premium: Rs 12,000 p.m.

You have two daughters studying in school, which implies future educational expenses.

Estimating Retirement Corpus
To determine your retirement corpus, we consider your monthly expenses and inflation. Assuming an inflation rate of 6%, your current expenses will increase significantly by the time you retire.

Managing Loans
You have significant EMIs for personal and home loans. Paying off these loans early can reduce financial stress. Focus on clearing the personal loan first due to its higher interest rate.

Investment Strategy
Mutual Funds:

Increase your SIPs as you pay off loans. Actively managed funds can yield better returns than index funds. Fund managers actively pick stocks, aiming to beat market performance.

National Pension System (NPS):

Your current NPS corpus is Rs 70 lakhs. Continue contributing to NPS. It offers tax benefits and a mix of equity and debt exposure, which is beneficial for long-term growth.

Public Provident Fund (PPF):

Your PPF corpus is Rs 34 lakhs. Continue contributing to PPF. It is a safe investment with tax benefits and reasonable returns.

Insurance:

Ensure you have adequate health and life insurance coverage. This protects your savings from unforeseen medical expenses and provides financial security for your family.

Additional Monthly Investment
After clearing your personal loan, redirect the Rs 23,000 towards SIPs and NPS. Once the home loan is cleared, further increase your investments.

Education Fund for Daughters
Start a separate investment plan for your daughters' education. Consider child education plans or mutual funds dedicated to long-term goals.

Emergency Fund
Maintain an emergency fund that covers at least 6 months of expenses. This ensures financial stability during unforeseen circumstances.

Regular Review
Review your portfolio annually. Adjust your investments based on performance and changing goals.

Final Insights
With disciplined savings and investments, you can build a substantial retirement corpus. Focus on clearing high-interest loans first. Increase your SIPs and contributions to NPS and PPF as you free up funds. Ensure adequate insurance coverage and maintain an emergency fund. Regularly review your financial plan to stay on track.

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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 25, 2024

Asked by Anonymous - Jun 17, 2024Hindi
Money
Hi sir, I am 29 years old and having 3 months old kid, working in IT earning 90k monthly and I have NPS of 5k. I have a personal loan of 14L and I pay 30k loan for it and monthly expenses is about 40k. I invest in mutual fund 15k. I am planning to have Corpus of 10cr in my 50s..can you help me to plan sir.
Ans: You're doing a great job balancing work and finances at 29, especially with a 3-month-old child. You're earning Rs. 90,000 per month, contributing Rs. 5,000 to NPS, and investing Rs. 15,000 in mutual funds. You also have a personal loan of Rs. 14 lakh with an EMI of Rs. 30,000 and monthly expenses of Rs. 40,000.

Understanding Your Financial Goals
You aim to build a corpus of Rs. 10 crore by your 50s. This goal is ambitious but achievable with disciplined saving and smart investing. Let's break down your current situation and outline a plan to help you reach this goal.

Creating a Strong Financial Foundation
Emergency Fund
Before diving deeper into investments, establish an emergency fund. Save 6-12 months' worth of expenses in a liquid, easily accessible account. This fund acts as a safety net for unforeseen events and provides financial stability.

Paying Off Debt
Your personal loan of Rs. 14 lakh with a monthly EMI of Rs. 30,000 is significant. Paying off this debt should be a priority. Focus on repaying high-interest loans first to reduce the financial burden and free up more money for investments.

Investing in Mutual Funds
Diversifying Your Portfolio
Investing Rs. 15,000 per month in mutual funds is a good start. Consider diversifying your portfolio across different types of mutual funds to spread risk and increase potential returns. Here’s a suggested allocation:

Large-Cap Funds: 30% of your investment
Mid-Cap Funds: 30% of your investment
Small-Cap Funds: 20% of your investment
Flexi-Cap Funds: 20% of your investment
Benefits of Actively Managed Funds
Actively managed funds have the potential to outperform the market indices. Fund managers actively select stocks that can offer better returns. This approach can be more beneficial than investing in index funds, which simply track market indices.

National Pension System (NPS)
Enhancing Your NPS Contribution
Currently, you're contributing Rs. 5,000 per month to NPS. Consider increasing this contribution over time. NPS offers tax benefits and is a good long-term investment for retirement planning. The additional tax benefits under Section 80CCD(1B) can also help reduce your taxable income.

Exploring Other Investment Options
Equity-Linked Savings Scheme (ELSS)
ELSS funds offer tax benefits under Section 80C and have a lock-in period of three years. They invest primarily in equities and can provide good returns. Allocating a portion of your savings to ELSS can help you save on taxes and grow your wealth.

Public Provident Fund (PPF)
PPF is a safe investment option with tax-free returns. It has a 15-year lock-in period, making it suitable for long-term goals. Consider investing in PPF to balance the risk in your portfolio and ensure steady returns.

Systematic Investment Plans (SIPs)
Consistent Investing
Continue your SIPs in mutual funds. SIPs allow you to invest a fixed amount regularly, which helps in averaging the purchase cost and reducing the impact of market volatility. Increasing your SIP amount as your income grows can significantly boost your corpus over time.

Avoiding High-Risk Investments
Caution with Direct Stock Trading
While direct stock trading can offer high returns, it comes with significant risks. Unless you have in-depth market knowledge and time to monitor stocks, it's better to stick with mutual funds. Professional fund managers have the expertise to make informed decisions and manage risks effectively.

Financial Discipline and Budgeting
Maintaining a Budget
Keep a detailed record of your income and expenses. A budget helps you identify unnecessary expenses and allows you to allocate more towards savings and investments. Financial discipline is crucial in achieving your long-term goals.

Regular Savings
Apart from investments, ensure you save a portion of your income regularly. Set aside at least 20-30% of your income for savings and investments. Automating your savings can help maintain consistency and discipline.

Tax Planning
Maximizing Tax Benefits
Utilize tax-saving instruments like NPS, ELSS, and PPF to reduce your taxable income. Efficient tax planning can help increase your investable surplus, enabling you to invest more towards your financial goals.

Reviewing and Rebalancing Your Portfolio
Regular Monitoring
Review your investment portfolio at least once a year. This helps you assess the performance of your investments and make necessary adjustments. Rebalancing your portfolio ensures it remains aligned with your risk tolerance and financial goals.

Planning for Child’s Future
Education and Other Expenses
Start a dedicated investment plan for your child’s education and future needs. Consider child-specific mutual funds or PPF for these goals. Investing early ensures you have a substantial corpus when required.

Insurance and Protection
Health and Life Insurance
Ensure you have adequate health insurance for your family to cover medical emergencies. Additionally, a term life insurance policy is crucial to protect your family’s financial future in case of any unforeseen events. Insurance acts as a safety net and prevents your investments from being used for emergencies.

Long-Term Wealth Creation
Compounding and Time
The power of compounding works best over a long period. By starting early and investing consistently, your money grows exponentially. The longer you stay invested, the more your wealth grows.

Staying Invested
Market fluctuations are normal. Avoid the temptation to withdraw your investments during market downturns. Staying invested through ups and downs helps in realizing the full potential of your investments.

Final Insights
Achieving a corpus of Rs. 10 crore by your 50s is ambitious but attainable with disciplined saving and strategic investing. Prioritize paying off your personal loan, build an emergency fund, and ensure adequate insurance coverage. Continue with your mutual fund SIPs and diversify your portfolio. Increase your NPS contributions and consider tax-saving instruments like ELSS and PPF. Regularly review and rebalance your portfolio, maintain financial discipline, and stay invested for the long term. This holistic approach will help you reach your financial goals and secure a prosperous future for your family.

Best regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

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

Asked by Anonymous - Jul 14, 2024Hindi
Money
I am 39 years old male and i am only person earning . I am married and my wife is also looking for work and we have 2 kids . I do have many parents dependent on me. My annual income 30 lac and I have two personal loans with emi of 28000 and 47000 as well four credit card with a liability of 5lac. We are currently have 2 bhk flat and a plot in bangalore . I do have investments in kotak mutual funds and lic mutual funds around 50 lac. My concern i want to come out of the debt and create corpus fund . Plan for my retirement at 60
Ans: First, let's understand your current financial landscape. You are 39, the sole earner in your family. Your wife is searching for a job. You have two children and multiple dependents. Your annual income is Rs. 30 lakhs. You own a 2 BHK flat and a plot in Bangalore. You have investments in Kotak and LIC mutual funds, totaling around Rs. 50 lakhs.

Your monthly EMIs are significant, with Rs. 28,000 and Rs. 47,000 for personal loans. Additionally, you have a credit card liability of Rs. 5 lakhs. Your primary concern is to manage and eliminate your debts while creating a corpus for retirement and other financial goals.

Tackling High-Interest Debt
Your first priority should be to address high-interest debts, especially credit card debt. These can quickly escalate and create financial strain.

Debt Consolidation: Consider consolidating your credit card debts. This can help you get a lower interest rate, reducing the overall cost of your debt.

Prioritize Payments: Focus on paying off the highest interest debt first. This will save you money in the long run.

Limit Credit Card Usage: Try to avoid using credit cards unless absolutely necessary. Pay off the balance in full each month to avoid interest charges.

Managing Personal Loans
Your personal loan EMIs are quite substantial. To ease this burden:

Refinance Loans: Look into refinancing options to get a lower interest rate. This can reduce your monthly EMIs.

Prepayment: If possible, use any surplus income or bonuses to make prepayments. This will reduce the principal amount and the interest burden.

Loan Tenure Adjustment: Extending the loan tenure can reduce the monthly EMI, although it may increase the overall interest paid.

Building a Robust Emergency Fund
An emergency fund is crucial to avoid falling into debt during unforeseen circumstances. Aim to build an emergency fund that covers 6-12 months of living expenses.

Automate Savings: Set up an automatic transfer to a high-interest savings account every month. This ensures consistency in building your emergency fund.

Accessible but Separate: Keep this fund in a separate account from your regular savings to avoid the temptation to dip into it.

Investment Strategy Review
You have significant investments in mutual funds. Let's refine your strategy to ensure it aligns with your goals.

Evaluate Mutual Funds: Review the performance of your Kotak and LIC mutual funds. Ensure they align with your risk tolerance and financial goals.

Diversification: Diversify your investments across different asset classes to mitigate risk. This could include equity, debt, and gold.

Professional Advice: Regularly consult with a Certified Financial Planner to review and adjust your investment strategy as needed.

Retirement Planning
With the aim to retire at 60, you need a well-structured plan.

Calculate Corpus Required: Estimate the amount you need for retirement considering inflation and lifestyle.

Regular Investments: Continue investing regularly in mutual funds. Use a mix of equity and debt to balance growth and stability.

Increase Contributions: As your income grows or debts reduce, increase your contributions towards retirement savings.

Planning for Children's Future
Your children’s education and future expenses need strategic planning.

Education Fund: Start a dedicated education fund for your children. Use child-specific mutual funds or fixed deposits to ensure growth and safety.

Regular Contributions: Allocate a specific amount monthly towards this fund. The earlier you start, the larger the corpus will be due to compounding.

Managing Dependents
Supporting multiple dependents can be challenging. Ensure their financial security without compromising your own goals.

Health Insurance: Ensure all dependents are covered under a comprehensive health insurance policy. This reduces the risk of out-of-pocket medical expenses.

Budgeting: Create a strict budget to manage monthly expenses efficiently. Identify areas where you can cut costs without affecting the quality of life.

Creating Additional Income Streams
Explore ways to increase your income to ease financial stress and meet goals faster.

Wife’s Employment: Support your wife in her job search. Her income can significantly contribute to household finances.

Side Gigs: Consider freelance or part-time work. Leveraging your skills can create additional income streams.

Long-term Investment Approach
For a sustainable financial future, adopt a long-term investment approach.

SIP (Systematic Investment Plan): Continue investing in SIPs for mutual funds. This ensures disciplined investment and benefits from rupee cost averaging.

Review and Rebalance: Periodically review your portfolio. Rebalance it based on performance and changing financial goals.

Avoiding Common Pitfalls
Emotional Investing: Avoid making investment decisions based on market emotions. Stick to your plan and consult your Certified Financial Planner.

High-risk Investments: Stay away from high-risk, high-reward schemes. They can jeopardize your financial stability.

Benefits of Regular Funds
While considering investments, understand the benefits of regular funds over direct funds.

Expert Guidance: Investing through a Mutual Fund Distributor (MFD) with CFP credentials provides professional guidance.

Continuous Support: Regular funds come with advisory support for portfolio management, which can be crucial for making informed decisions.

Long-term Relationship: Building a relationship with a certified planner ensures personalized advice aligned with your changing financial goals.

Final Insights
Your financial journey requires a strategic approach to manage debt and build wealth. Address high-interest debts first and focus on creating an emergency fund. Regularly review and diversify investments with professional guidance. Plan meticulously for retirement and children's future while managing dependents efficiently. Explore additional income streams to ease financial burden. Stick to a long-term investment strategy and avoid common pitfalls. Embrace the benefits of regular funds for professional advice and continuous support.

By following these steps, you can achieve financial stability and meet your goals. Always consult a Certified Financial Planner for personalized advice and stay committed to your financial plan.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 08, 2024

Asked by Anonymous - Jul 31, 2024Hindi
Money
Hi sir, I have net salary of 2.5L per month and am 48 year old with 2 children aged 16 and 14. I have a EPF corpus of 60 lakhs , NPS 20 lakhs, 10L in stocks,MF portfolio of 15L,invest 50k monthly in MF SIPs. I own a house(loan free), have other outstanding loans of 8 lakhs. I have family floater medical insurance with 30L coverage and life cover for 1.5Cr. I wish to retire by age of 50 - pls advise how much corpus do I need at hand to retire.consider my monthly expense as 60-70k
Ans: Current Financial Situation

Your current financial position is strong. You have a good salary and a solid investment portfolio. Owning a loan-free house adds security. Your EPF, NPS, and SIP investments are well-planned. The life and health insurance coverage is also comprehensive. However, retiring at 50 requires careful planning, especially considering your children’s future needs.

Assessing Your Retirement Needs

To determine your required retirement corpus, several factors must be considered:

Monthly Expenses Post-Retirement: Currently, your expenses are Rs. 60k-70k monthly. This will likely increase with inflation. At an estimated 6% inflation rate, your monthly expenses might double in 12 years.

Retirement Age: You plan to retire in two years at 50. This is an early retirement, so your corpus needs to last longer, possibly 35-40 years.

Children’s Education: Your children are 16 and 14. Higher education costs can be significant in the next few years. Allocating funds for their education is crucial.

Lifestyle Post-Retirement: Consider how your lifestyle might change. Will you travel more? Will healthcare needs increase? These factors affect your corpus requirement.

Estimating the Retirement Corpus

Based on your current expenses and future needs, your retirement corpus should be substantial. Here’s a simplified approach to calculating it:

Inflation-Adjusted Expenses: Your current expenses of Rs. 60k-70k monthly could rise to around Rs. 1.2 lakh monthly by the time you retire. Over a 35-40 year retirement period, this requires a significant corpus.

Healthcare Costs: As you age, healthcare costs will likely increase. While your insurance covers a significant amount, out-of-pocket expenses can still be high.

Children’s Future: Your children’s higher education and potential marriage costs must be factored in. This could be an additional Rs. 50-60 lakhs or more.

Lifestyle and Emergencies: Maintaining your current lifestyle and being prepared for emergencies is essential. This could add another Rs. 50 lakhs to your corpus requirement.

Considering these factors, a retirement corpus of approximately Rs. 10-12 crores might be necessary. This should be enough to cover your monthly expenses, healthcare, and any unforeseen costs. This estimate ensures a comfortable and secure retirement, even if you live longer than expected.

Optimizing Your Investments

To reach this corpus in two years, maximizing your investments is critical:

Increase SIP Contributions: Currently, you invest Rs. 50k monthly in SIPs. Increasing this amount, if possible, will help grow your corpus faster.

Focus on Growth-Oriented Funds: With a two-year horizon, investing in funds with higher growth potential can be beneficial. While these are riskier, they offer better returns.

Review Your Portfolio: Regularly review your mutual fund portfolio. Ensure it’s aligned with your retirement goals and risk tolerance.

Debt Reduction: Paying off the remaining Rs. 8 lakh loan should be a priority. Reducing debt will lower your financial burden in retirement.

NPS and EPF Utilization: Your EPF and NPS together amount to Rs. 80 lakhs. These are crucial components of your retirement corpus. However, they may not be enough alone, so continue to build on them.

Healthcare and Insurance Planning

Adequate Coverage: Your current health coverage of Rs. 30 lakhs is good. But, it might not be enough in later years due to rising medical costs. Consider enhancing your coverage or adding a super top-up plan.

Life Insurance: Your Rs. 1.5 crore life cover is substantial. Ensure it’s sufficient to cover your family’s needs if something happens to you before or after retirement.

Retirement Lifestyle and Goals

Post-Retirement Activities: Think about how you want to spend your retirement. If you plan to pursue hobbies or travel, these will need additional funds.

Part-Time Work: If full retirement seems challenging, consider part-time work or consulting. This can supplement your income and keep you engaged.

Final Insights

Retiring at 50 is ambitious, but achievable with careful planning. You should aim for a retirement corpus of Rs. 10-12 crores to cover all your future needs. Maximizing your investments, reducing debt, and planning for healthcare are key steps. Regular reviews with a Certified Financial Planner will help ensure your financial plan stays on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

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

Money
Dear Sir, my age is 39 having 2 daughters 8 years and 5 years. my earning is 165000 per month. I have 43Lakh in PF, 5 Lakh in PPF ,12Lakh in NSC, 41 lakhs in mutual fund ,13 Lakh in shares, Term plan of 1 CR , Medical claim of 10 Lakh for family, Own flat, my monthly sip is 80K. I want to retire at the age of 46. How much corpus should I have for retirement, and both daughters' education and how to plan it? considering at present my monthly expenditure is 80 K
Ans: At the age of 39, you have a well-established financial foundation. Your monthly income is Rs 1.65 lakh, and you are already saving Rs 80,000 per month through SIPs. You have Rs 43 lakh in PF, Rs 5 lakh in PPF, Rs 12 lakh in NSC, Rs 41 lakh in mutual funds, and Rs 13 lakh in shares. With a term plan of Rs 1 crore and medical insurance of Rs 10 lakh for your family, you are ensuring both security and growth.

However, planning for retirement in 7 years and your daughters' education will need careful structuring to meet inflationary pressures and long-term needs.

Estimating the Retirement Corpus
To retire at 46, with your current monthly expenditure of Rs 80,000, we need to consider the following:

Inflation Impact: Assuming an inflation rate of around 6%, your expenses will nearly double in the next 7 years. That means at retirement, you will need around Rs 1.2 lakh per month.

Life Expectancy: Assuming a life expectancy of 85, your retirement could last 40 years. Therefore, the retirement corpus should be able to provide Rs 1.2 lakh (inflated expenses) for 40 years.

Considering all factors like inflation, withdrawal rates, and market growth, you may need around Rs 7-8 crore to retire comfortably at 46.

Education Planning for Both Daughters
For your daughters' education, considering the rising cost of education, you should plan for a significant amount:

Higher Education Costs: For your 8-year-old daughter, you will need funds in around 10 years. For your 5-year-old, you will need funds in around 13 years. Assuming a 10% inflation in education costs, you should target a corpus of Rs 40-50 lakh per child.
This means you may need around Rs 80 lakh to Rs 1 crore for both daughters’ education by the time they need to pursue higher studies.

Reviewing Your Current Investments
You already have a well-diversified portfolio across Provident Fund, PPF, NSC, mutual funds, and shares. Let's assess each component to see if any adjustments are necessary:

1. Provident Fund (PF), PPF, and NSC
These are safe investments that will help preserve capital. However, they may not grow aggressively enough to meet your retirement goals in 7 years.
PF and PPF are tax-efficient and low-risk, but their returns may not match inflation in the long run.
Consider continuing contributions but not overly relying on them for wealth creation.
2. Mutual Funds
You have Rs 41 lakh in mutual funds, which is a positive aspect of your portfolio. With your SIP of Rs 80,000 per month, you are already aggressively investing.
Ensure your mutual fund portfolio is well-diversified across equity and debt funds. Since you are aiming for retirement in 7 years, a mix of mid-cap and large-cap equity funds with some debt exposure would be ideal.
Avoid over-exposure to small-cap funds as they are more volatile, especially since your retirement horizon is short.
3. Shares
Rs 13 lakh in shares indicates a risk-taking approach, which is good for wealth creation but can be volatile.
If you are comfortable with the volatility, you can continue holding a portion of your portfolio in shares. However, ensure you do not rely too much on individual stocks for your retirement corpus.
Planning for Retirement in 7 Years
Given your SIP of Rs 80,000 per month, let’s assume an average return of 12% per annum from equity mutual funds. Over the next 7 years, this will accumulate to a significant corpus. However, it may not reach Rs 7-8 crore, which is the required amount for retirement.

Step-Up SIP: Consider increasing your SIP amount by 10% every year. This will significantly boost your retirement corpus.
Balanced Allocation: Maintain a balance between high-growth equity funds and safer debt instruments. As you approach retirement, gradually shift more of your investments into debt to reduce risk.
Education Fund Strategy
To meet your daughters' educational needs, consider creating a separate portfolio with a mix of equity mutual funds and PPF:

Equity Funds: Continue investing for the long term in mutual funds that offer higher growth potential.
Debt Funds: You may also consider debt funds for a portion of this portfolio to reduce risk as the need for funds approaches.
PPF Contributions: Since PPF offers tax benefits and stable returns, continue contributing to this for education as well.
Clearing Debt and Emergency Planning
You mentioned a home loan EMI of Rs 25,000 and a car loan EMI of Rs 16,200. Here’s how you can approach these:

Clearing Car Loan: Using Rs 4 lakh to clear your car loan makes sense. This will free up Rs 16,200 per month, improving your cash flow and liquidity.
Home Loan: Retaining your home loan for tax benefits is a wise strategy, especially since home loan interest rates are generally low.
Once you clear the car loan, build an emergency fund. A minimum of 6-12 months of expenses should be set aside. You plan to keep Rs 1 lakh for emergencies, which is a good start, but increase it as your liquidity improves.

Health Insurance Plans
You have a Rs 10 lakh medical claim for your family. Additionally, you are planning to take health insurance for yourself and your parents.

Family Health Insurance: Opting for an external policy like HDFC Ergo, with your wife covering the premiums, is a good step. Ensure that the sum insured is adequate, especially for critical illnesses.
Parents' Health Insurance: Your plan to take separate coverage for your parents with a Rs 5,000 premium is advisable. Ensure that it covers pre-existing diseases and offers lifetime renewability.
Final Insights
Retirement Corpus: Aim for Rs 7-8 crore to retire comfortably at 46, considering inflation.
Daughters’ Education: Plan for Rs 80 lakh to Rs 1 crore for both daughters' higher education.
SIP Strategy: Continue with your Rs 80,000 SIP but step it up by 10% annually to reach your goals faster.
Debt Management: Clearing your car loan is a good move, but retain your home loan for tax benefits.
Insurance Planning: Ensure your health insurance coverage is adequate for your entire family, including parents.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

Latest Questions
Kanchan

Kanchan Rai  |407 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 24, 2024

Asked by Anonymous - Nov 24, 2024Hindi
Relationship
How can an elder man attract young women
Ans: Attracting someone, regardless of age, begins with authenticity and mutual respect. If an older man is interested in forming a connection with a younger woman, it’s important to focus on qualities that foster meaningful relationships. Younger women are often drawn to the stability, confidence, and life experience that an older man can bring to the table, but the key lies in presenting these qualities without pretense or arrogance.

Confidence rooted in self-awareness and emotional maturity can be particularly appealing. This doesn’t mean showing off achievements or wealth, but rather displaying a genuine sense of self and clarity about what you want in life. Emotional maturity—expressed through kindness, patience, and good communication—creates a safe and engaging space for meaningful interactions.

Equally important is the ability to connect on a deeper level. Shared interests, respect for her individuality, and a willingness to engage with her worldview go a long way. Relationships thrive when both individuals feel valued and heard. An older man should approach a younger woman with curiosity about her experiences and aspirations, while also offering his perspective in a way that enriches the connection rather than dominating it.

It’s also crucial to approach such a dynamic with an understanding of potential societal perceptions. While age-gap relationships are increasingly accepted, they often come with assumptions or judgments. The foundation of a strong relationship in this context lies in ensuring that the connection feels equal, mutually respectful, and free of power imbalances.

Finally, maintaining physical and emotional health contributes to overall attractiveness. When a man prioritizes his wellbeing, it not only enhances his confidence but also signals that he values himself and his relationships. Attraction in any relationship is multifaceted, involving both external qualities and the inner richness of character.

...Read more

Kanchan

Kanchan Rai  |407 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 24, 2024

Asked by Anonymous - Nov 22, 2024
Relationship
I was in a relationship with a boy(he is 35 yrs old man, and a lawyer but not practising in a court, he had a lot of relationship during our relationship and after break up , He had changed 4, 5 women or used them physically) for 3 years. It has been three-four months. We are not in a relationship. We have broken up. I told him to delete our personal pics and videos. He is not deleting them and is not blackmailing me either. I told him that since we don't want to be together, we don't have a future together, then delete them. He is not deleting them and is not blackmailing me either and I want him to delete them. Who knows what will come to his mind in the future and what will happen. If we don't continue, he has no right to Keep the pics in your mobile, whatever video is personal to us, don't delete it and don't blackmail me either. I am not able to understand what should I tell him, although I have requested him a lot to delete it but he is not doing it either, He told me that I have kept ur pics and videos So that I cannot complain against him in future. so what should I do, please guide me. I know I had made a huge mistake to love him and gave him right to keep personal pics or videos..
Ans: At this point, it’s essential to protect your emotional and mental health while addressing this issue. You might consider seeking support from someone you trust, such as a close friend or family member, to share this burden. Talking to someone who knows you and your situation can provide comfort and practical guidance.

If he continues to refuse, you may need to explore your legal options. Many countries have laws that protect individuals from having private photos or videos kept or shared without their consent. Taking this step might feel daunting, but it could give you a sense of empowerment and security. It’s not about revenge or escalation; it’s about protecting yourself and asserting your right to move forward without this hanging over you.

On an emotional level, remind yourself that you are not defined by this relationship or the choices you made while in it. You trusted someone who didn’t honor that trust, but this doesn’t diminish your value or strength. It’s natural to feel regret, but you deserve compassion from yourself as you work through this.

You’re not alone in this, and it’s okay to seek help—whether that’s legal advice, emotional support from loved ones, or even professional counseling to navigate the stress and anxiety this situation might be causing. The most important thing now is to take steps that protect your peace of mind and ensure your future isn’t weighed down by his actions.

...Read more

Milind

Milind Vadjikar  |687 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Nov 24, 2024

Asked by Anonymous - Nov 23, 2024Hindi
Listen
Money
Hello Team, Hi Dev Sir, I am 43 years old employed. Here are my financial stats: Loan - 35 lacs Saving- 27 lacs 1 house bought in 2009 at rent (14000/month) and valued at 60 lacs Another house which I live is valued at 90 lacs Monthly income after tax - 2.5 lac Monthly expenses- 1 lac PF/gratuity - 16 lacs MF - 2 lacs NPS - 4 lacs What are my options to retire after 5 yrs with good corpus?
Ans: Hello;

What is your monthly contribution to EPF, NPS and MFs?

Please clarify so as to advise you suitably.

Thanks;

...Read more

Nayagam P

Nayagam P P  |3918 Answers  |Ask -

Career Counsellor - Answered on Nov 24, 2024

Listen
Career
Sir i am currently in class 11 th and i just want to prepare for jee mains and advanced 2026 exam so give me some roadmap to achieve and also guide me for computer science
Ans: Shreya, I trust that you have already enrolled in a coaching center, whether it be online or in person, and have finished your eleventh syllabus. (1) If you have not yet created your own short-notes for the 11th syllabus that has been completed, prepare it and continue to revise them every three days until 2026, even after you have commenced studying the 12th syllabus in December 2024. (2) Review the questions that you have incorrectly answered or skipped in mock tests conducted by your Coaching Center and/or practiced independently. (3) In order to increase your rank/percentile by targeting computer science at a reputable college/institute, prioritize mathematics (although all three subjects are equally important). (4) You should be thorough with NCERT books, particularly those pertaining to chemistry, in conjunction with the materials provided by your coaching institute. (5) Have 1-2 reference books for each subject. Not exceeding two. (6) Review the questions that were incorrectly answered or skipped in your mock and practice exams and retake the test. It is advisable to maintain a distinct note-book for these types of questions, which should include answers and elucidating notes, in order to review them repeatedly for all three subjects. (7) Download the SYLLABUS of JEE Main 2025 (available on Google by searching for "JEE Main Information Bulletin") and print it out, as there will be no significant changes to the syllabus in 2026. Maintain it on your study table and continue to update the 11th syllabus chapters and concepts that you have covered to date by marking them with a checkmark. This will boost your confidence if you continue to update the same till November 2025. (8) A slight difference in Syllabus might be visible when you acquire the 2026 JEE Main / JEE Advanced Syllabus. The same can be resolved within 15 days to one month in 2025-26. (9) Increase your productivity by studying for 45 minutes to 1 hour, taking a 10-minute break, and then continuing for 45 minutes. (10) Take a 2-3 minute break every 45 minutes while practicing questions, whether offline or online. This break should consist of closing your eyes and taking long breaths to enhance your concentration and mental capacity. (11) Additionally, it is recommended that you acquire the 20-40 PREVIOUS years question paper book of JEE (Main & Advanced) from Amazon. Arihant's, Disha's, or MTG's publications are recommended. Once you have finished reading a chapter, practice and complete it to determine the extent to which you have comprehended the concepts and to identify areas that require improvement. (12) By October 2025, ensure that you have reviewed significantly more than 90% of the previous years questions. Your confidence will be further bolstered by this. (13) After the mock test is completed at your coaching center, clarify all incorrectly answered or ignored questions and continue to revise and practice them, as these types of questions will significantly disrupt your performance in the actual JEE. (14) If you are a regular school student, inquire with your class teacher about the minimum attendance requirement as outlined in the Board's regulations (State, CBSE, ICSE, etc.). Utilize the remaining 15% by taking time off and preparing for your JEE, if only 85% attendance is required. (15) THE MOST IMPORTANT Value Added Suggestion: Rather than solely relying on JEE, please participate in 5-7 entrance exams/counseling process with a JEE score for getting admission into any one of the private engineering colleges to have a variety of options to select the most suitable one. All the BEST for Your Prosperous Future.

To know more on ‘ Careers | Education | Jobs’, ask / follow Us here in RediffGURUS.

...Read more

Radheshyam

Radheshyam Zanwar  |1062 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Nov 23, 2024

Asked by Anonymous - Nov 23, 2024Hindi
Listen
Career
My son graduated BE CSC with 8.9 CGP was offered a job as system engineer inTCS in April when he was in his 8th semister. Till November 23 he didn't get the on boarding letter, in the meantime whe appeared in two' exams under same offer. Advice what has been going on.
Ans: Hello.
Whatever you are saying is just shocking. The track record of TCS is not like that, as you described in your question. It would be better to contact TCS again and ask them when they will give on boarding letter. It is not clear from your query whether your son had done some correspondence with TCS or not related to the job offered. It is also not clear which two exams he appeared in. If not selected in a campus interview, searching for a job might be tedious but not so difficult. Ask your son to post a strong resume on the LinkedIn portal and remain in touch with his seniors. Please visit the websites of renowned companies daily to search for vacancies. There are many job-offering portals where he can register his name. Please ask the college placement division for any placement opportunities.
Wishing the best of luck for his bright future.

If satisfied, please like and follow me.
If dissatisfied with the reply, please ask again without hesitation.
Thanks.

Radheshyam

...Read more

T S Khurana

T S Khurana   |197 Answers  |Ask -

Tax Expert - Answered on Nov 23, 2024

Asked by Anonymous - May 11, 2024Hindi
Listen
Money
Can you please suggest on capital gains as per Indian taxation laws arising in the below two queries : 1) property purchased with joint ownership, me and my wife’s name in 2015 at a cost of 64,80,000, housing improvements done for the cost of 1000000 and brokerages of 200000 paid and sold the same property at 10000000 in Dec 2023? 2) 87% of the proceeds got from the deal i.e 8700000, have been reinvested to pay 25% amount in purchasing another joint ownership property in Dec 2023, 3) I have invested in another under construction property in Nov 2023 by taking housing loan, which is on me and my wife’s name worth 1.4 cr, here the primary applicant is me only while wife is just made a Co applicant in the builder buyer agreement and also on the housing loan . So what are the LTCG tax liabilities arising from the above 3 scenarios for FY 2023-2024 and FY 2024-2025. I intend to sale off the property acquired in (2) by Dec 2024 and use that proceeds to close the housing loan for the property acquired in (3), will this sale of property be inviting any tax liabilities if the complete proceeds received from the sale of the property in (2) would be utilised to close the housing loan taken in Nov 2023 for the property in (3) ? Since in FY 23-24, I would be claiming the LTCG from the sale proceeds of 1) invested in the purchase of property in 2), and I intend to sale off this property in Dec 2024, will the LTCG claim be forfeited on the property sale in (1), should I hold this property at least for further 1 year so that sale of this property in 2) will not invite STCG?
Ans: (A). Let's first talk about F/Y 2023-24 :
You jointly sold a Property during the year for Rs.76.80 lakhs (64.80+10.00+2.00), & sold the same for Rs.100.00 lakhs.
You have jointly also purchased Property No.3 (I suppose it is Residential only), for Rs.140.00 lakhs.
You should avail exemption u/s-54 & file your ITR accordingly. Please disclose all details about sale & purchase in your ITR.
02. Now coming to the F/Y 2024-25 :
You intend to Sell Property No.2, which was acquired in 2023-24. Any Gain on Sale of it would be Short Term capital Gains & taxed accordingly.
Alternatively, you may hold this sale of property no.2 (for 2 years from its purchase) & avoid STCG
You are free to utilize the sale proceeds in a way you like, including paying off your housing Loan.
Please note to avail exemption u/s 54 only from investment in property no.3 & not 2.
Most welcome for any further clarifications. Thanks.

...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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x