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Ramalingam

Ramalingam Kalirajan  |7201 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 07, 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 - Apr 27, 2024Hindi
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I am 52 and want to retire now. Want to have 2 lac/ month income. My corpus has 4.5Cr in FDs/EPF/PPF, 30 Lac in MFs, 75 Lac in Stocks. No liabilities. Let me know how should i invest my funds to get desired or better income

Ans: Congratulations on reaching this milestone and planning for your retirement! With your substantial corpus and clear income goal, here are some suggestions on how you can invest your funds to generate a monthly income of 2 lakhs:

Fixed Deposits (FDs):
While FDs offer stability and guaranteed returns, they typically provide lower returns compared to other investment options. Consider keeping a portion of your corpus in FDs to ensure liquidity and meet short-term expenses.
Equity Mutual Funds (MFs) and Stocks:
Given your long investment horizon and the need for higher returns to sustain your desired income, consider allocating a significant portion of your portfolio to equity MFs and individual stocks.
Equity investments have the potential to generate higher returns over the long term but come with higher volatility. Diversify your equity portfolio across different sectors and market caps to manage risk.
Systematic Withdrawal Plan (SWP):
Consider setting up a Systematic Withdrawal Plan (SWP) from your MF investments to generate a regular income stream. You can specify the withdrawal amount and frequency based on your income needs.
SWP allows you to liquidate a portion of your MF units systematically while keeping the remaining investment intact to continue growing.
Dividend Income:
If you have invested in dividend-paying stocks or equity MFs, you can receive regular dividend income. However, dividend payouts are subject to market conditions and may vary over time.
Retirement-oriented Investments:
Explore retirement-focused investment options like Senior Citizen Savings Scheme (SCSS), Pradhan Mantri Vaya Vandana Yojana (PMVVY), or annuity plans from insurance companies.
These instruments offer regular income with varying degrees of safety and liquidity.
Consult a Financial Advisor:
Given the complexity of retirement planning and the need for personalized advice, consider consulting a Certified Financial Planner.
A professional can assess your financial situation, risk tolerance, and income needs to create a customized retirement plan and recommend suitable investment strategies.
Remember to regularly review your investment portfolio and adjust your asset allocation and withdrawal strategy based on changing market conditions and your evolving financial needs. With careful planning and disciplined investing, you can achieve your goal of generating a monthly income of 2 lakhs in retirement. Best of luck on your retirement journey!
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |7201 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 24, 2024

Asked by Anonymous - Apr 24, 2024Hindi
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I am 52 years old and want to retire now. I have about 5 crore in FD/EPF/PPF and 1 crore in stock/mf (70:30) i wouoe need 2 lac per month . Please advise where should i put money tp get 2 lac per month income
Ans: Congratulations on reaching the milestone of retirement! With your financial prudence and diligent savings, you've laid a solid foundation for this new chapter of life. Now, the focus shifts towards generating a steady income stream to sustain your lifestyle comfortably.

Given your retirement corpus of 6 crores, you're in a favorable position to achieve your income goal of 2 lakhs per month. To generate this income, a Certified Financial Planner would likely recommend a balanced approach that combines both growth and stability.

Here's a suggested strategy:

Investment Allocation: With a conservative approach in mind, consider allocating a portion of your corpus towards stable income-generating instruments such as Senior Citizen Savings Scheme (SCSS), Post Office Monthly Income Scheme (POMIS), or immediate annuity plans. These options provide regular income with relatively low risk.
Systematic Withdrawals: Utilize a systematic withdrawal plan from your FDs, EPF, and PPF to ensure a steady flow of income. You can set up monthly withdrawals that align with your income requirements while keeping the remaining corpus invested for growth.
Dividend-Paying Stocks and Mutual Funds: Allocate a portion of your equity portfolio towards dividend-paying stocks and mutual funds. This can provide a supplementary income stream while also offering the potential for capital appreciation over the long term.
Diversification: Maintain a diversified portfolio across asset classes to mitigate risk and capture opportunities for growth. Regularly review and rebalance your portfolio to ensure alignment with your income needs and risk tolerance.
Professional Advice: Consider consulting with a Certified Financial Planner who can assess your specific financial situation, goals, and risk appetite to tailor a comprehensive retirement income strategy that suits your needs.
By adopting a balanced approach and leveraging a combination of stable income sources and growth-oriented investments, you can potentially generate a sustainable income of 2 lakhs per month in retirement while safeguarding your financial security for the years ahead.

..Read more

Ramalingam

Ramalingam Kalirajan  |7201 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

Asked by Anonymous - Apr 24, 2024Hindi
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I will retire in 3 years ,in june 2027 & will have a corpus of around 3.5 Cr invested in PPF, EPF ,Supper Annuation Fund & MF . I live in my own flat ,currently market value of Rs 1.8 Cr . I also have an inherited flat from my parent valued at Rs80 lakhs . I need a monthly income of Rs 2.0 lacs after retirement . Please suggest way to invest
Ans: Congratulations on your impending retirement and the substantial corpus you've accumulated across various investment avenues. Planning for a comfortable post-retirement income is essential, and I'm here to offer guidance on how to achieve your financial goals.

With a corpus of around 3.5 crores invested in PPF, EPF, Superannuation Fund, and mutual funds, you have a solid foundation for retirement. Additionally, owning your own flat with a market value of Rs. 1.8 crores and an inherited flat valued at Rs. 80 lakhs provides further financial security.

To generate a monthly income of Rs. 2.0 lakhs after retirement, you'll need to ensure your investments are structured to provide a consistent stream of income while preserving capital for the long term.

Given your investment horizon of 3 years until retirement, it's crucial to adopt a balanced approach that combines both growth and income-generating assets. Here are some suggestions:

Dividend-Paying Mutual Funds: Allocate a portion of your corpus towards dividend-paying mutual funds, focusing on both equity and debt funds. These funds provide regular income through dividend payouts while also offering the potential for capital appreciation.

Systematic Withdrawal Plans (SWP): Consider setting up SWPs from your mutual fund investments to meet your monthly income requirement post-retirement. SWPs allow you to withdraw a fixed amount periodically, ensuring a steady stream of income while keeping your investments intact.

Rental Income: Utilize the rental income from your inherited flat to supplement your monthly income post-retirement. If feasible, you may also explore renting out a portion of your own flat to generate additional income.

Fixed Deposits and Bonds: Allocate a portion of your corpus towards fixed deposits and bonds to provide stability and ensure liquidity. Opt for instruments with varying maturities to create a ladder that aligns with your income needs.

Real Estate Investment Trusts (REITs): Consider investing in REITs, which offer exposure to income-generating commercial real estate properties. REITs provide regular dividends and the potential for capital appreciation, enhancing your overall income stream.

Regular Review and Adjustment: Regularly review your investment portfolio and make necessary adjustments to ensure it remains aligned with your financial goals and risk tolerance. Consider consulting with a Certified Financial Planner to optimize your investment strategy and navigate the complexities of retirement planning.

By diversifying your investment portfolio across multiple asset classes and implementing income-generating strategies, you can work towards achieving your goal of a monthly income of Rs. 2.0 lakhs post-retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Ravi

Ravi Mittal  |450 Answers  |Ask -

Dating, Relationships Expert - Answered on Dec 03, 2024

Asked by Anonymous - Dec 03, 2024Hindi
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Relationship
Hello, my wife is Ugandan and I’m of English national, 30 years old and she’s 26, we met nearly a year ago and got married in uk with some of her friends and small family. We haven’t done kuchala (not sure if that’s correct spelling) yet and I’m feeling anxious for when the time comes. She said her family will kneel when they greet me and being white this is already stinging my moral (due to history). I also talked about moving in together before the meet the parents happen however she says she’s rather move in after? Currently this could take two years before going to Uganda, how should I proceed without overstepping her cultural beliefs as after all we are married and by my culture we should already be living together
Ans: Dear Anonymous,
It is very nice of you to be so considerate and sensitive while handling these cultural nuances. Let's discuss the kneeling tradition. It's a sign of respect and it's deeply rooted in Ugandan culture. While I understand your point of view, you also have to remember that it can have significant meaning to her and her family. I suggest you politely express your feelings and let her know why it is uncomfortable for you to see her family kneel. When you explain, mention how much her culture means to you as well. I am sure both of you can communicate and come to a compromise that makes you both happy. Just in case, they persist in following the ritual, just look at it as a gesture of love and respect and not submission.

About the moving in together part, in certain parts of the world, couples living together before the traditional wedding is not considered respectful. But since you are already married, you can try explaining to your wife how the living situation does not go against her cultural expectations. But if it is a really big deal for her and her family, consider seeing it from her perspective.

Communication is everything here. Look at every problem as a team; it's not your problem vs her problem. It's both of you vs the problems.

I hope this helps

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Radheshyam

Radheshyam Zanwar  |1088 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Dec 03, 2024

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I have received a job offer from Siecorp ,a Singapore based company though my posting would be at my hometown . They have asked me to submit all credentials related to education & job experiences which is quite normal but they have asked the following documents also which they said would help me to arrange through some agent by payment & the same would be reimbursed during first month of employment . Earlier also another overseas company asked for the same & I denied to make payment before having the job in hand . 1. Construction Health and Safety Technician (CHST) – Compulsory 2. OSHA Safety Certificate – Compulsory 3. Safety Trained Supervisor (STS) – Non-Compulsory Kindly advise whether these certificates are really required to be submitted to join any foreign company or any sort of cheating business regards,
Ans: Hello Bipradas.
From your query, it is clear that you have offered by job by a Singapore-based company and they are giving you a posting in your home town. You did not mention anything about the work culture of the company. It simply indicates that you are supposed to work from home which is always related to computers. I think there is no harm in producing the required documents through an agent if they are offering you a handsome salary. The requirement for documents differs from company to company. There is no harm in submitting the mentioned documents. If have fear in your mind, then please go through the profile of the company in detail before submitting the documents. There are many ways to check the authenticity of the company. There are some chances of cheating, but everybody is not indulged in the same category. But take the steps with utmost precaution.

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

Radheshyam

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Ramalingam

Ramalingam Kalirajan  |7201 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 03, 2024

Asked by Anonymous - Nov 29, 2024Hindi
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Money
Hi , I am 46 year old and trying to see if i can take an early retirement in next 2 years. Below is my financial condition; - Mutual fund 40Lakh - FD 30 Lakhs - 2 rental yielding flat with total rent of 55000 per month - Own house with no loan. - PF 80 Lakhs - NPS 10 Lakhs - PPF 20 Lakhs - Term insurance 50Lakhs
Ans: Your financial position shows good planning and discipline.

Assets Summary:

Mutual Funds: Rs 40 lakh
Fixed Deposits: Rs 30 lakh
Rental Income: Rs 55,000 per month from two flats
Own House: Fully paid, no loan liabilities
Provident Fund (PF): Rs 80 lakh
National Pension System (NPS): Rs 10 lakh
Public Provident Fund (PPF): Rs 20 lakh
Term Insurance: Rs 50 lakh
You have built a diversified portfolio across multiple asset classes.

Assessing Early Retirement Feasibility
Early retirement in two years can be achieved with strategic planning.

Key Factors to Evaluate:

Monthly Expenses: Calculate post-retirement expenses, including inflation.
Income Sources: Ensure rental income, investments, and withdrawals meet your needs.
Wealth Growth: Balance corpus growth with income stability.
Monthly Expense Coverage
Assume your future monthly expense is Rs 1.25 lakh.

Existing Income Streams:

Rental Income: Rs 55,000 monthly provides 44% of estimated expenses.
Corpus Withdrawals: Use investments to cover remaining expenses.
Adjust for Inflation:

Plan for a 6% inflation rate to protect purchasing power.
Investment Strategy
Align your portfolio for growth, stability, and liquidity.

Mutual Funds:

Continue investing in equity-oriented funds for long-term growth.
Opt for actively managed funds through Certified Financial Planners.
Avoid index funds; they limit opportunities for alpha generation.
Fixed Deposits:

Reallocate a portion to debt mutual funds for better post-tax returns.
Retain some FDs for emergencies and short-term needs.
NPS and PPF:

Maximise NPS contributions for additional tax savings.
Allow PPF to mature for risk-free, tax-exempt growth.
Corpus Withdrawal Plan
A systematic withdrawal strategy ensures steady income.

Use Systematic Withdrawal Plans (SWP) in mutual funds for monthly cash flow.
Keep withdrawal rates below 4% annually to sustain the corpus.
Children’s Education Planning
Your son’s education may require significant funds.

Steps to Plan for Education Costs:

Use PPF maturity or mutual fund proceeds for higher education.
Avoid using retirement corpus for educational expenses.
Risk Management
Protecting your family is as critical as building wealth.

Term Insurance Coverage:

Rs 50 lakh is adequate for income replacement.
Ensure policies are active and nominees updated.
Health Insurance:

Opt for a comprehensive family floater policy with Rs 20–25 lakh coverage.
Keep health-related emergency funds for additional expenses.
Tax Planning
Efficient tax planning maximises post-retirement income.

Mutual Fund Taxation:

Equity fund LTCG above Rs 1.25 lakh is taxed at 12.5%.
Short-term gains are taxed at 20%. Plan withdrawals carefully.
Fixed Deposit Interest:

FD interest is taxable as per your slab. Consider this in income planning.
Real Estate Considerations
Your rental flats provide steady income.

Points to Consider:

Avoid further real estate investments for better liquidity.
Keep properties well-maintained to ensure uninterrupted rental income.
Healthcare and Emergency Funds
Unplanned medical costs can affect your finances.

Steps to Safeguard:

Maintain Rs 10–15 lakh in liquid assets for emergencies.
Regularly review health insurance coverage to meet rising costs.
Assessing Early Retirement Timing
Your early retirement is achievable by 48 years with careful execution.

Why This is Feasible:

Rental income and portfolio can meet monthly needs.
A diversified asset base ensures sustainable returns.
Finally
Early retirement is within your reach with disciplined planning.

Review your financial plan annually and adjust for changes in needs or markets.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...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.

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