I am 48 years old and my monthly income is 1.4 Lac. My existing investment is PPF 1.5 Lakh/year and 18 Thousand Term insurance and Bank FD's. I want to invest in NPS about 50 Thousand/Year. What option to select to earn at least 8% with lower risk. Also let me know what are other options for investment with lower risk?

Ans: Regarding NEET: Proceed as per Dad's instructions.

Regarding Coaching: Not an issue. Since you have prior experience with coaching, and you are retaking the NEET, you should be familiar with the question paper pattern. Identify the subjects where you scored less or feel weak and work on them. You will surely achieve high marks and secure admission in one of the best institutions.

All the best!

Ans: Dear Vishwa,
Seek the help of a medical expert for this please.
And oh, it can be useful to channel that energy into sports or the gym during the day so that you can get a good night's sleep.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

Ans: Dear Anonymous,
Just imagine a situation where this maid cries 'foul' after your association and then you have to live within the same apartment/society/surrounding.
Oooops, and she's not attracted towards you, then why are you all over the place on this one? Better to focus on your life and it might help to find another maid to work at your place.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

Ans: Dear Manglemba,
My suggestion may not be very effective as your post/question has very limited information. When you say, 'crazy', what does that mean? 'Brain disorder', as in? Does this condition impact any cognitive functions?
You might want to check with a medical expert if you need any treatment based on the reports for the medical condition.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

Ans: Dear Anonymous,
All questions directed towards me will always be answered by me. There is no option of sending the response by email as this platform is a direct interface between readers and the Gurus.
It might be useful for you to check your email for a notification on the response. In case, you still face a challenge, kindly post your question again.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

Ans: Dear Anonymous,
Your husband wants a family without responsibilities and that's why neither is he interested in the baby nor in paying the bills...This is not just insensitivity but lack of emotional immaturity and the unwillingness to take on responsibilities head on...Approach a senior male member within the family who is someone that has been a role model to others in terms executing family responsibilities and is also caring and affectionate. This person can appeal to your husband and talk some sense into him.

If there's no one that fits the bill, the only option is to go to a professional for Couples Therapy. There's a reason why your husband avoids his duties as a husband and father and that needs to be uncovered and sorted out. It will also help the two of bond and connect better. Make this attempt before jumping into divorce; separating is a whole different world that comes with its own set of challenges and with the baby now in the picture, work at the marriage and putting things together.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

Ans: Dear Sam,
I am sure that you are wise enough to understand that stepping out of marriage and searching for sex outside is going to involve a lot of complications.
Reconnect with your wife instead; it's possible that with growing children and responsibilities, she has also forgotten that physical intimacy can help couples bond. It's easy to sway outside marriage and spoil a good marriage...so, work on your marriage instead...

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

Ans: Yes, retail angel investing for the startup is definitely possible; however, it is perfectly legal in India if it happens according to the rules and regulations provided by SEBI- The Securities and Exchange Board of India. One would say that angel investing is all about being a rich person. Well, not anymore. Today, with some of the online portals, you can even invest in starting up with as little as ?50,000 or ?1 lakh. That is a huge plus for retail investors like you who would like to support early-stage ventures but do not have big amounts of capital.

You must be wondering if really small amounts of investment are legal. The good news is that, yes, they are, but they have to happen through regulated channels. SEBI has put forth guidelines under the Alternative Investment Fund (AIF) category so that the process is above board. These platforms connect investors to startups in a structured way and offer transparency with legal safety. Therefore, it is a very risky proposition- the very nature of angel investing means you're essentially betting on new startups. Most of the time, companies either hit huge or hit nothing. Therefore, as mentioned before, legal and accessible always consider the risks and make the right decision.

About the platforms, in India, few are especially for retail investors looking for angel investing. A few of the popular ones are AngelList, LetsVenture, and Tyke. Here you have all these startups at different levels looking to raise funds. It enables you to go through the startups, see what their business models are, and pick the ones you find believable to have some potential. What's so fascinating about these platforms is the way they help to amalgamate smaller investments coming in from many individuals to cater to the needs of the startup. So, even if you are just putting in ?1 lakh, you become a part of a much larger group of investors, making it relatively easy for the startup to raise funds as required.

Now, although your investment sum is smaller, this also has to be approached with caution. You will have to research the backgrounds of these startups, their business plans, and the sectors they focus on. Given that this is a game of high risks, you also want to invest in a few different kinds of startups to differentiate your risk a bit. Furthermore, the other thing that might build up from these platforms would be the provision of access to due diligence reports and investor meetups, which would make you even more confident in making decisions regarding your investments.

In short, Yes, you can begin angel investing with relatively small amounts and some platforms help retail investors like you to get legally involved and safely. Just do your homework right, do some more research, talk to people who have been in the same situation, take some risks, and be patient- it's all part of the exciting journey of startup investing.

Ans: First, you’ve done well to manage your household expenses and investments while providing for your family. Your combined household income is Rs 1,66,475 per month, and your monthly expenses total Rs 1,42,550, leaving you with Rs 23,925 per month. However, there are certain areas where we can optimize both expenses and investments to improve your financial situation.

Let's address two key areas:

Expense Reduction
Income Enhancement and Investment Strategy
1. Expense Reduction Strategy
1.1. Loan Repayment Optimization
House EMI (Rs 27,000 per month): This is a fixed and necessary expense. However, if possible, check with your bank if there are options to refinance your loan for a lower interest rate. Lowering your interest rate could reduce your EMI slightly.

Personal Loan (Rs 12,000 per month): Since this will end by December 2024, you will soon have Rs 12,000 available for other uses. This is a temporary burden, and once cleared, you can redirect this amount toward savings or paying off other loans.

Loan from LIC and Office (Rs 2,00,000 & Rs 1,90,000): These small loans have manageable EMIs, with Rs 5,000 already being deducted for the office loan. After December 2024, consider using the Rs 12,000 saved from your personal loan towards faster repayment of the LIC or office loan. This will help you clear your debt faster.

1.2. Review of Education Expenses
Son’s School Fee (Rs 13,350 per month): Education is a non-negotiable expense. However, review the additional expenses associated with school activities. See if any costs can be optimized.

Daughter’s College Fee (Rs 12,000 per month): Again, education is essential, but as your daughter reaches higher education, encourage her to look for scholarships, internships, or part-time work opportunities. This can relieve some financial burden over the next few years.

1.3. Household and Miscellaneous Expenses
Conveyance (Rs 20,000 per month): This is quite high. Assess if you can reduce this by switching to more economical modes of transport, like carpooling or using public transportation where feasible. This can help you save at least Rs 5,000-10,000 per month.

Grocery and Household (Rs 35,000 per month): Look for ways to cut down grocery bills by planning meals, buying in bulk, and reducing wastage. You can also explore cheaper alternatives for household items. A 10% reduction can save Rs 3,500 per month.

Other Expenses (Rs 10,000 per month): Regularly evaluate if any of these miscellaneous expenses are unnecessary or can be minimized. Even cutting down by Rs 2,000-3,000 monthly can add up significantly over time.

Medical Expenses and Mediclaim (Rs 8,200 per month): You are already spending on mediclaim insurance for the family, which is good. Ensure that your coverage is sufficient to avoid large out-of-pocket expenses in case of medical emergencies.

2. Income Enhancement and Investment Strategy
2.1. Optimizing Existing Investments
HDFC Balanced Advantage, SBI Contra, Mid Cap Opportunities, and Large & Mid Cap Funds: Continue your investments in these funds, as they are providing growth for your long-term goals. However, consider increasing your SIPs in high-growth funds once your personal loan ends in 2024.

Term Insurance (Rs 2,700 per month): It’s great that you have a term plan in place. Ensure that the sum assured is sufficient to cover your family's needs in case of any unfortunate events. Term plans are a necessary part of your financial planning and should not be cut back.

HDFC Life Click to Invest (Rs 2,585 per month): Since ULIPs tend to have higher charges and relatively lower returns compared to mutual funds, evaluate this investment closely. Once the 5-year lock-in period ends, you might want to discontinue further investments in this plan and redirect that money into mutual funds.

LIC Policy (Rs 1,530 per month): LIC policies often offer lower returns. Consider discontinuing or surrendering the policy (depending on surrender value) and reinvesting the amount into better-performing mutual funds after evaluating costs.

2.2. Suggested Changes in Investment Approach
Increase SIP contributions: After clearing the personal loan in 2024, redirect that Rs 12,000 into SIPs. Start increasing your contributions to mutual funds, especially in diversified and mid-cap funds that offer better returns.

Avoid high-fee insurance products: Traditional insurance plans and ULIPs often have high fees and low returns. After the lock-in periods end, switch to low-cost term insurance and invest more in mutual funds for better returns.

Emergency Fund: Keep at least 6 months’ worth of expenses in a liquid fund or bank account for emergencies. This will protect you from dipping into your investments in case of unexpected events.

3. Maximizing Income Opportunities
3.1. Income Enhancement Suggestions
Explore Additional Income Streams: With your skills and experience, consider finding freelance or part-time work. You and your wife could explore online tutoring, consultancy, or starting a small side business. Even an extra Rs 5,000-10,000 a month can improve cash flow.

Increase Salary through Skill Development: Discuss with your employer about any opportunities for promotions or salary increases. Additionally, you and your wife could invest in skill development courses to enhance your career opportunities.

3.2. Investment in Children’s Education
Daughter’s Higher Education: Start a dedicated SIP or recurring deposit for your daughter’s future education. You’ll need a significant amount for her higher education, especially if she chooses professional courses. Plan in advance to avoid taking on loans.

Son’s Education Planning: Similarly, plan for your son’s future schooling and higher education. Start a separate SIP now so that you have a corpus ready by the time he reaches college age.

4. Debt-Free Strategy
4.1. Focus on Debt Reduction
Aggressively repay personal and office loans: After clearing your personal loan by December 2024, focus on repaying your LIC and office loans. This will reduce your financial burden and free up monthly cash flow.

Reallocate EMI savings to investments: Once your debts are cleared, invest the savings into your SIPs or other wealth-building avenues. This will accelerate your wealth creation and help secure your future.

Finally
Cutting Expenses: Focus on reducing discretionary spending and controlling conveyance, grocery, and other household expenses.

Increase Investments: Redirect loan repayments toward higher SIPs once your loans are cleared in 2024. Avoid ULIPs and traditional insurance plans with high charges.

Increase Income: Look for side-income opportunities and enhance your career prospects with skill development.

By implementing these steps, you can improve your financial situation and secure your family’s future. Prioritize debt repayment, optimize your investment strategy, and focus on increasing your income to achieve long-term financial stability.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment