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Ramalingam Kalirajan |2317 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 12, 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 - Feb 22, 2024Hindi

Money

I am 45 years old with 2 kids ages 17 an 14.wife is homemaker and earn 2.1 lacs pm. I have some investment worth 1.1 crore in mf and stocks. How much would i need by 60 with kids marriage and higher education. Currently doing a sip of 60k per month

Ans: To estimate how much you'll need by the time you're 60 for your kids' marriages and higher education, we'll need to consider several factors:

Current Expenses: Determine your current monthly expenses and adjust for inflation to estimate your future expenses.

Education Costs: Research the current costs of higher education and estimate how much they might increase by the time your kids reach college age. Consider tuition, living expenses, and other related costs.

Marriage Expenses: Research the average costs of weddings in your region and estimate how much you might need for each child's marriage.

Investment Growth: Estimate the potential growth of your current investments over the next 15 years until your retirement age of 60.

SIP Contributions: Calculate the future value of your SIP contributions over the next 15 years, assuming a reasonable rate of return.

By considering these factors and making some assumptions about investment growth and future expenses, you can estimate how much you'll need by the time you're 60 to cover your children's education and marriage expenses. It's also a good idea to periodically review and adjust your plan as needed based on changes in your financial situation and goals. Consulting with a financial advisor can also provide personalized guidance based on your specific circumstances.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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Ramalingam Kalirajan |2317 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Oct 26, 2023

Asked by Anonymous - Oct 18, 2023Hindi

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IT engineer 45 yrs old. I and wife earn 80L per year. 1.25L monthly investment in SIP. Current Mutual fund networth is 70L. We have company esops worth 7-8CR. Have 2 kids of age 14 yrs. Willing to retire by 50 yrs of age. Willing to secure - Kids education, kids marriage, health insurance and monthly income 2-3L How much corpus we need before retiring.

Ans: How much corpus needed depends on what kind of monthly income you are expecting during your retirement.

BTW, esops 7-8 crores , need to be definitely diversified. Your employment income and investment income should not be from the same source. This increases your overall risk.

Ramalingam Kalirajan |2317 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 06, 2024

Asked by Anonymous - Apr 20, 2024Hindi

Money

Sir, i m 40 yrs old, have two children 11 & 9 years old. Monthly income appx 90000/- P. M. Investing in monthly sip (5 different sector) appx 18000/- p. M. From last 4 years and RD in bank 15000/- p. M. How much i have to invest more for children education and marriage expenses appx 75 lacs each Monthly expenses abt 40 to 50k. No home loan only one car loan 20 installment pending 9100/-

Ans: It sounds like you've been diligently investing in SIPs and RDs to secure your family's future, which is truly commendable.

Given your children's ages, planning for their education and marriage expenses is a prudent step forward.

To accumulate approximately 75 lakhs for each child's education and marriage, you may need to increase your monthly investments.

Considering your current commitments and expenses, allocating an additional amount towards these goals is essential.

Calculating the required monthly investment involves factoring in the time horizon, expected returns, and inflation.

A Certified Financial Planner can help tailor a plan suited to your specific needs and goals.

Adjusting your budget to accommodate higher monthly investments may be necessary to achieve your financial objectives.

Exploring options like increasing SIP contributions or diversifying your investment portfolio can accelerate wealth accumulation.

Maintaining a balance between meeting your current financial obligations and saving for future goals is crucial.

Regularly reviewing your financial plan and making necessary adjustments ensures you stay on track to achieve your objectives.

Your dedication to securing your children's future is admirable. With careful planning and perseverance, you'll undoubtedly succeed.

Keep up the excellent work, and remember that every rupee saved today is a step closer to a brighter tomorrow for your family.

Ramalingam Kalirajan |2317 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 07, 2024

Asked by Anonymous - May 02, 2024Hindi

Money

I am 45 working with 15lakh in hand pacakge I hvae property worth 2 crore in which I am living . Family of 3 (me my wife and daughter 8 ) no loan Assest inveatment of 1.2 crore as property. Sip of total 5000 in index funds Epf worth 15lakh Fd 10lakh Helath hdfc 10 lkah and 20lakh with company and term insurance (1 crore ) How much corpse required for retirement and child education .

Ans: It's commendable that you're thinking ahead about your retirement and your child's education. Let's assess your financial situation and estimate the corpus required for your retirement and your daughter's education:

Retirement Corpus:
Consider factors such as your desired retirement age, expected lifespan, estimated post-retirement expenses, and inflation.
Determine your retirement income needs, including living expenses, healthcare costs, and leisure activities.
Calculate the corpus required to generate the desired income using conservative withdrawal rates and factoring in inflation.
Child's Education Corpus:
Estimate the cost of your daughter's education, including tuition fees, accommodation, and other related expenses.
Consider the inflation rate for education expenses and the duration until your daughter enters college.
Calculate the corpus required to fund her education using a combination of savings, investments, and education loans if necessary.
Additional Considerations:
Take into account any other financial goals or obligations, such as buying a car or funding vacations.
Review your existing investments and savings to determine how much additional corpus you need to accumulate to meet your goals.
Developing a Financial Plan:
As a Certified Financial Planner, I recommend developing a comprehensive financial plan that addresses your retirement and education funding needs.
Consider various investment options, asset allocation strategies, and risk management techniques to achieve your goals.
Regularly review and adjust your financial plan as your circumstances change, such as salary increases, changes in expenses, or market fluctuations.
Seeking Professional Advice:
Consult with a financial advisor to analyze your current financial situation, set realistic goals, and create a customized financial plan.
A professional can provide personalized guidance and recommend strategies to help you achieve your retirement and education funding objectives.
By proactively planning for your retirement and your daughter's education, you can ensure a financially secure future for yourself and your family. Remember to stay disciplined in your savings and investment approach, and seek professional advice whenever needed. With careful planning and prudent financial management, you can achieve your goals and enjoy peace of mind.

Latest Questions

Ramalingam Kalirajan |2317 Answers |Ask -Follow

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

Asked by Anonymous - May 10, 2024Hindi

Money

I got a job in Dubai and salary is 3.3 Lacs per month. After EMIs and monthly expenses i have net savings of 1 Lac. As NRI Can you please suggest some SIP and how and how much should i diversify like MF, Bonds, Gold, ETFs, etc. Thank you.

Ans: Congratulations on your new job opportunity in Dubai! It's great to hear that you're planning ahead for your financial future as an NRI. Let's discuss some strategies to make the most of your net savings of 1 lac per month through systematic investment plans (SIPs) and diversification across various asset classes.

Understanding SIPs and Diversification
SIPs offer a disciplined approach to investing in mutual funds, allowing you to invest a fixed amount regularly. Diversification across different asset classes helps spread risk and maximize returns over the long term.

Mutual Funds: A Core Investment Option
Considering your monthly savings capacity, allocating a portion of your savings to mutual funds can be a prudent choice. Opt for a mix of equity and debt funds based on your risk tolerance and investment horizon.

Equity Mutual Funds for Long-Term Growth
Equity mutual funds have the potential to deliver higher returns over the long term but come with higher volatility. Invest in diversified equity funds or thematic funds aligned with your investment goals and risk appetite.

Debt Mutual Funds for Stability
Debt mutual funds provide stability and regular income by investing in fixed-income securities such as bonds and treasury bills. Allocate a portion of your portfolio to debt funds to balance out the risk from equity investments.

Gold as a Hedge Against Market Volatility
Including gold in your investment portfolio can act as a hedge against market volatility and inflation. Consider investing in gold mutual funds or gold exchange-traded funds (ETFs) to gain exposure to this precious metal.

International Funds for Geographic Diversification
As an NRI working in Dubai, you can benefit from geographic diversification by investing in international mutual funds. Look for funds that provide exposure to global markets and sectors outside of India.

Regular Review and Adjustment
Periodically review your investment portfolio to ensure it remains aligned with your financial goals and risk tolerance. Adjust your asset allocation as needed based on changing market conditions and life circumstances.

Seeking Professional Advice
Given the complexity of managing investments across different asset classes, consider consulting with a Certified Financial Planner (CFP) who has experience working with NRIs. A CFP can provide personalized advice tailored to your financial objectives and help you navigate the intricacies of international investing.

Conclusion
By diversifying your investments through SIPs across mutual funds, bonds, gold, and international funds, you can build a robust investment portfolio that aims to generate wealth over the long term while managing risk effectively. Remember to review your investments regularly and seek professional guidance when needed to make informed decisions.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ramalingam Kalirajan |2317 Answers |Ask -Follow

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

Question by Ankit - May 10, 2024Hindi

Money

HELLO SIR, I AM 37 YEARS OLD AND OWNS A PROPERTY OF WORTH 90 LAKHS RIGHT NOW BOUGHT 8 YEARS BACK FOR 60 LAKHS. MY EMI IS AROUND 43K PER MONTH FOR ANOTHER 20 YEARS. ME AND MY WIFE EARNS AROUND 110000 PER MONTH. MONTHLY EXPENSE IS AROUND 35K. I HAVE 1 KID. HAVE I DONE RIGHT INVESTMENT OR IS THERE ANY OTHER WAY AROUND.

Ans: It sounds like you've been diligently managing your finances and investing in property, which is a significant accomplishment. Let's take a closer look at your situation and explore potential strategies to optimize your financial position.

Assessing Your Current Investment: Property Ownership
Owning a property valued at 90 lakhs, which you purchased eight years ago for 60 lakhs, indicates a healthy appreciation in value over time. Property can be a valuable asset that offers potential long-term growth and stability.

Evaluating Financial Commitments: Mortgage and Monthly Expenses
With an EMI of 43k per month for another 20 years, it's essential to ensure that this obligation fits comfortably within your budget. Considering your combined monthly income of 1,10,000 and expenses of 35k, it seems like you're managing your finances responsibly.

Considering Future Financial Goals
As a family with one child, planning for the future is crucial. It's commendable that you're proactively assessing your investment decisions to ensure financial security and growth.

Exploring Alternative Investment Opportunities
While property investment can be lucrative, diversifying your portfolio with other assets may provide additional benefits. Consider exploring investment options such as mutual funds, stocks, or retirement accounts to supplement your existing holdings.

Consulting with a Certified Financial Planner
Given your financial goals and current assets, consulting with a Certified Financial Planner (CFP) can provide valuable insights and personalized recommendations. A CFP can help you assess your risk tolerance, identify investment opportunities, and create a comprehensive financial plan tailored to your needs.

Conclusion
Overall, your investment in property has proven to be a wise decision, considering the appreciation in value over time. However, exploring alternative investment avenues and seeking professional financial advice can further enhance your financial well-being and help you achieve your long-term goals.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ramalingam Kalirajan |2317 Answers |Ask -Follow

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

Asked by Anonymous - May 16, 2024Hindi

Money

Firstly, thanks for patiently answering everyone's questions ????. Can you please suggest a suggest a MF which i wznt to invest in for next 10 years for my kids higher education. I see lot of children related mutual funds but unable to decide on one. I am ok to take high risk since ny inv would be for more than ten years.

Ans: Investing for your child's education is a thoughtful decision that requires careful consideration. I appreciate your dedication to securing their future. Let's delve into selecting the right mutual fund for this purpose.

Understanding Your Investment Horizon and Risk Appetite
Investing for your child's education over a ten-year period is a commendable strategy. Since you're comfortable with high risk, you have the potential for higher returns over the long term.

Evaluating Mutual Fund Options
When considering mutual funds for your child's education, it's essential to focus on funds with a proven track record of long-term growth. Look for funds managed by experienced professionals with a history of delivering consistent returns.

Active vs. Passive Management: Making the Right Choice
While index funds offer low fees and broad market exposure, they may not outperform actively managed funds, especially during volatile market conditions. Actively managed funds, overseen by skilled fund managers, have the flexibility to adapt to market changes and potentially outperform the market indices.

Emphasizing the Benefits of Active Management
Actively managed funds offer the advantage of professional oversight, where fund managers actively research and select investments to maximize returns and mitigate risks. This approach can be particularly beneficial in volatile markets, helping to navigate uncertainties and capitalize on emerging opportunities.

Disadvantages of Direct Funds and the Benefits of Regular Funds through a Certified Financial Planner
Direct investing requires significant time and expertise to research, select, and monitor investments effectively. By working with a Certified Financial Planner (CFP), you gain access to professional guidance and personalized investment strategies tailored to your financial goals and risk tolerance. Through a Mutual Fund Distributor (MFD) with a CFP credential, you can benefit from ongoing support and portfolio reviews, ensuring your investments remain aligned with your objectives.

Making an Informed Decision
Consider mutual funds with a focus on sectors or themes aligned with your child's educational aspirations. Diversification is key to managing risk, so opt for funds with a well-balanced portfolio across various asset classes.

Conclusion
Investing in mutual funds for your child's higher education requires a thoughtful approach that considers your investment horizon, risk tolerance, and the expertise of fund managers. By leveraging the benefits of active management and seeking guidance from a Certified Financial Planner, you can make informed decisions that lay the foundation for your child's bright future.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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what should be equity exposure in investment?

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I am looking for advice for my son who is now in 12th standard ( Commerce subjects with Applied maths ). I want to send him abroad for his further studies. Could you please advise the courses he can take, countries he can opt for and the approximate costs involved. He is an average student.

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Asked by Anonymous - May 03, 2024Hindi

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Hello sir , I have just secured 94% in MAT 2024 I am confused which college to choose for MBA in finance with good ROI

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Dear Sir, I am a 34-year-old individual with ten years of experience working in a public sector bank. I graduated with a Bachelor's degree in Science (B.Sc.) with Physics, Chemistry, and Mathematics (PCM) in 2011, achieving a Second Division. Currently, I earn a monthly income of one lakh rupees. I am contemplating whether pursuing an MBA could elevate my career to new heights or if it is more suited for technical students. Could an MBA potentially offer me another chance to reshape my life? Thank you for your guidance. Sincerely, Anirudh

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Sir, i qm currently working at a PSU for the past 5-6 years. Although the remuneration nis okay for now. But the growth opportunities are limited. And also my work profile is different from my bachelors (CS degree). Is it too late to get into tech ? Is MBA going to help in the longer run ?

Ans: Its not late. you can look at either doing Executive MBA from some of the top colleges or doing some relevant course that would help your switch. Problem with switching to IT would be that you would have to start as a fresher.

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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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