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Ramalingam

Ramalingam Kalirajan  |6568 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 21, 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 09, 2024Hindi
Money

I am 53 year old working women with 3.5 cr property , 2 cr in pf , 13 lakh ppf , 9 lakh nps , 40 lakh gold , 5 lakh Mutual fund, 10 lakh equities , 30 lakh fixed deposits. How should I reallocate my funds to prepare for retirement.

Ans: Your financial journey is truly inspiring. You have managed to build a substantial and diversified portfolio that will serve you well as you prepare for retirement. Given your current assets and goals, let's delve deeper into structuring your investments to ensure a comfortable retirement, focusing on Systematic Withdrawal Plans (SWP) as a key component for generating a steady income.

Current Financial Snapshot
Property: Rs 3.5 crores
Provident Fund (PF): Rs 2 crores
Public Provident Fund (PPF): Rs 13 lakhs
National Pension System (NPS): Rs 9 lakhs
Gold: Rs 40 lakhs
Mutual Funds: Rs 5 lakhs
Equities: Rs 10 lakhs
Fixed Deposits (FD): Rs 30 lakhs
Objectives
Ensure a steady income stream post-retirement
Preserve and grow wealth
Maintain liquidity for emergencies
Optimize tax savings
Genuine Compliments and Empathy
Your diligent saving and investment habits are commendable. You’ve built a strong portfolio that reflects foresight and financial acumen. Planning for retirement now ensures a comfortable and worry-free future. Let’s tailor your investments to match your goals and risk tolerance.

Retirement Income Stream
To secure a steady income post-retirement, consider the following allocations:

Provident Fund (PF)
Your PF is a substantial part of your retirement corpus. It provides stable and secure returns, which is excellent for post-retirement income.

Strategy: Continue contributing to maximize your returns and benefit from compounding.
Public Provident Fund (PPF)
PPF is another stable investment with tax benefits.

Strategy: Keep contributing to PPF until maturity. Consider extending it in blocks of 5 years for continued tax-free returns.
National Pension System (NPS)
NPS provides a mix of equity and debt, offering balanced growth with an annuity option post-retirement.

Strategy: Continue your contributions. At retirement, use a portion to purchase an annuity for a steady income.
Systematic Withdrawal Plans (SWP)
A Systematic Withdrawal Plan (SWP) is a smart way to generate a regular income from your mutual fund investments. Here's how it can benefit you:

Benefits of SWP
Regular Income: Provides a fixed income stream at regular intervals, which is essential for retirement.
Tax Efficiency: Only the capital gains portion of each withdrawal is taxable, often resulting in lower taxes compared to traditional fixed deposits.
Flexibility: You can customize the withdrawal amount and frequency according to your needs.
Capital Preservation: Helps in preserving your investment capital while providing regular income.
Implementing SWP
Choose the Right Funds: Select mutual funds with a good track record and stable returns. Balanced or hybrid funds are often a good choice.
Determine Withdrawal Amount: Calculate your monthly expenses to determine how much you need to withdraw regularly.
Set up the Plan: Work with your mutual fund provider to set up the SWP. You can choose the frequency (monthly, quarterly, etc.) and the amount.
Monitor and Adjust: Regularly review your SWP to ensure it meets your needs. Adjust the withdrawal amount as necessary based on your expenses and fund performance.
Growth and Wealth Preservation
Balancing growth with wealth preservation is crucial. Diversify investments to manage risks while aiming for growth.

Mutual Funds
Mutual funds provide growth potential. However, your current allocation is relatively low.

Strategy: Increase investments in mutual funds, especially in balanced or hybrid funds. These funds mix equity and debt, offering moderate risk and stable returns.
Equities
Direct equity investments can yield high returns but come with high risk.

Strategy: Diversify your equity holdings across sectors. Consider reducing exposure and reallocating some funds to mutual funds for professional management and reduced risk.
Gold
Gold is a good hedge against inflation and economic uncertainty.

Strategy: Maintain your gold investments. It acts as a safety net and preserves wealth.
Fixed Deposits (FD)
FDs offer safety but lower returns compared to other options.

Strategy: Keep a portion in FDs for safety and liquidity. Consider shifting some funds to debt mutual funds for better returns with low risk.
Maintaining Liquidity
Liquidity is crucial for emergencies and unforeseen expenses. Here’s how to ensure liquidity:

Emergency Fund
Maintain an emergency fund equivalent to 6-12 months of expenses.

Strategy: Keep this fund in liquid assets like savings accounts or liquid mutual funds. Ensure quick access when needed.
Debt Mutual Funds
Debt mutual funds offer better returns than FDs with reasonable safety and liquidity.

Strategy: Allocate a portion of your FDs to short-term or liquid debt mutual funds.
Tax Optimization
Effective tax planning enhances your net returns. Utilize tax-saving investments and strategies:

Section 80C Investments
Maximize your contributions to PPF, EPF, and NPS to avail tax benefits under Section 80C.

Strategy: Plan your investments to fully utilize the Rs 1.5 lakh limit under Section 80C.
Health Insurance
Invest in health insurance for tax benefits under Section 80D.

Strategy: Ensure you and your family have adequate health coverage to save on medical expenses and get tax deductions.
Portfolio Optimization and Reallocation
To optimize your portfolio for better returns and align with your goals, consider the following reallocations:

Reduce Savings Account Holdings
Large sums in a savings account are underutilized. Transfer a portion to short-term debt funds or recurring deposits for better returns.

Re-evaluate Fixed Deposits
While FDs are safe, diversify into debt funds for potentially higher returns without significantly increasing risk.

Increase Equity Exposure
Given your long-term goals, slightly increasing your equity exposure could enhance overall portfolio returns. Balance this with your risk tolerance.

Regular Monitoring and Adjustments
Investments need regular monitoring. Periodically review your portfolio to ensure it aligns with your goals. Make adjustments based on market conditions and personal financial changes.

Final Insights
You've built a solid foundation for your financial future. With systematic planning and disciplined investing, you can achieve your goals. Regularly review your investments and adjust them as needed 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.
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Ramalingam

Ramalingam Kalirajan  |6568 Answers  |Ask -

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

Asked by Anonymous - Jun 02, 2024Hindi
Money
Hi, i am 44 years old. Have 35 lakhs in PF, 30 Lakhs in MF , around 3 lakhs in stocls, 6 lakhs in FDs , home loan of 12 lakhs, 1 house is in litigation though and second house i am joint owner with my father with 30: share. I am single . I want to retire by 55. How should i plan my retirement funds.
Ans: Planning for retirement is a crucial step, especially if you aim to retire by 55. Given your current financial situation, let's create a comprehensive retirement plan. This plan will consider your assets, liabilities, and future financial needs to ensure a secure and comfortable retirement.

Assessing Your Current Financial Situation
Existing Assets and Liabilities
You have a good start with Rs 35 lakhs in PF, Rs 30 lakhs in mutual funds, Rs 3 lakhs in stocks, and Rs 6 lakhs in fixed deposits. You also have a home loan of Rs 12 lakhs, and two properties, one in litigation and one shared with your father.

Net Worth Calculation
Let's calculate your net worth by subtracting your liabilities from your assets.

Assets:

PF: Rs 35 lakhs
Mutual Funds: Rs 30 lakhs
Stocks: Rs 3 lakhs
Fixed Deposits: Rs 6 lakhs
Total Assets: Rs 74 lakhs
Liabilities:

Home Loan: Rs 12 lakhs
Total Liabilities: Rs 12 lakhs
Net Worth:

Total Assets - Total Liabilities = Rs 74 lakhs - Rs 12 lakhs = Rs 62 lakhs
Your current net worth is Rs 62 lakhs.

Retirement Goals and Expenses
Determining Retirement Corpus
To determine how much you need to retire comfortably, estimate your annual expenses post-retirement. Factor in inflation, healthcare costs, and any other regular expenses. Suppose you estimate your annual expenses to be Rs 6 lakhs today.

Assuming an average inflation rate of 6%, your expenses in 11 years will be:11.3 6 Lacs.

To maintain this lifestyle for 25 years post-retirement, you need a corpus that supports annual withdrawals of Rs 11.36 lakhs, adjusted for inflation. Assuming a safe withdrawal rate of 4%: Required corpus approx = 2.84 Crores.

Investment Strategy
Maximizing Existing Investments
Provident Fund (PF):
Continue contributing to your PF to benefit from the guaranteed returns and tax advantages. This will be a stable part of your retirement corpus.

Mutual Funds:
Given your substantial investment in mutual funds, ensure they are diversified across equity and debt funds. Equity funds offer growth, while debt funds provide stability. Aim for a mix that aligns with your risk tolerance and investment horizon.

Stocks:
Stocks can offer high returns but come with higher risk. Review your stock portfolio and consider diversifying to reduce risk. Focus on blue-chip stocks for stability and potential growth.

Fixed Deposits:
Fixed deposits offer safety but low returns. Consider shifting a portion of your FDs to higher-yield investments like mutual funds or debt funds to enhance returns.

Reducing Liabilities
Home Loan Repayment:
Prioritize paying off your home loan. This reduces interest burden and improves cash flow. Consider using a portion of your fixed deposits or mutual funds to expedite repayment.
Addressing Real Estate Issues
Litigation Property:
Legal issues can be lengthy and uncertain. Keep a close watch and consult with a legal advisor. Avoid relying on this property for your retirement corpus.

Joint Ownership Property:
Discuss future plans with your father regarding the jointly owned property. Ensure clarity on ownership and future use or sale.

Enhancing Savings and Investments
Systematic Investment Plan (SIP)
Start or increase your SIPs in mutual funds. SIPs help in disciplined investing and rupee cost averaging, which is beneficial for long-term wealth creation.

Diversification
Diversify your investments across various asset classes. This includes equity, debt, and other financial instruments. Diversification reduces risk and enhances potential returns.

Emergency Fund
Maintain an emergency fund equivalent to 6-12 months of expenses. This fund should be easily accessible and kept in a savings account or liquid funds.

Insurance Coverage
Health Insurance
Ensure your mediclaim policy offers adequate coverage. Health costs can significantly impact your savings, especially post-retirement.

Life Insurance
Evaluate your life insurance coverage. If you hold LIC policies or other investment-linked insurance, consider their returns. If they are not meeting your expectations, consider surrendering them and redirecting the funds to more efficient investments.

Tax Planning
Utilizing Tax Benefits
Maximize tax-saving investments under Section 80C. This includes PF, PPF, ELSS, and other eligible instruments. Utilize the tax benefits to reduce your taxable income and increase your savings.

Long-Term Capital Gains
Plan your investments to take advantage of long-term capital gains tax benefits. Equity investments held for more than a year qualify for lower tax rates, enhancing your post-tax returns.

Regular Portfolio Review
Periodic Assessments
Regularly review your investment portfolio. Adjust allocations based on market conditions and personal circumstances. A Certified Financial Planner (CFP) can assist in periodic reviews and rebalancing.

Staying Informed
Stay updated with financial news and trends. Financial literacy empowers you to make informed decisions and adapt your strategy as needed.

Appreciating Your Efforts
Your proactive approach to retirement planning is commendable. At 44, you have substantial savings and a clear goal. This disciplined approach will ensure a secure and comfortable retirement.

Conclusion
Achieving a comfortable retirement by 55 requires careful planning and disciplined execution. Assess your current financial situation, set clear goals, and choose the right investment options. Regularly review and adjust your plan with the help of a Certified Financial Planner. Stay consistent, patient, and informed. Your dedication and effort will pave the way to financial success.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6568 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 22, 2024

Money
Hello Anil Ji i am 58yr of age retiring in Dec 24. My family is myself wife 55yr , unmarried daughter 29yr working since last four yr in reputed MNC with good salary and career prospects. My investment are 1.09 cr of equity, 2.37cr MF equity, 0.56cr MF Debt funds. 65lacs Ulip all premium paid maturing in sept 24. FD in bank 20lacs. Total of 4.82cr. Own 3 Bhk apartment in Metro city where i live approx value 1.45cr. No loans no debts. My question is what should be my asset allocation after retirement my monthly requirement is 1.25lacs and one time expense of daughter marriage in next 1-2 yrs of 30lacs. Thanks
Ans: I appreciate the clarity and the thoroughness with which you've provided your details. It sounds like you have done a fantastic job building your assets. Let's explore how to best allocate your resources after retirement to meet your needs.

Understanding Your Financial Position
Firstly, congratulations on reaching a well-diversified asset base. Here's a summary of your assets:

Equity Investments: Rs 1.09 crore
Mutual Funds (Equity): Rs 2.37 crore
Mutual Funds (Debt): Rs 0.56 crore
ULIP: Rs 65 lakhs (maturing soon)
Fixed Deposit: Rs 20 lakhs
Real Estate: 3 BHK apartment (Rs 1.45 crore)
Your total financial assets come to around Rs 4.82 crore. You have no loans, which is excellent. Your monthly requirement is Rs 1.25 lakhs, and you have a one-time expense of Rs 30 lakhs for your daughter's marriage.

Setting the Foundation: Emergency Fund
An emergency fund is crucial for financial security. Ensure you have at least 6 to 12 months of expenses in a liquid, low-risk account. This fund should cover unexpected expenses without disturbing your investments.

Recommended Emergency Fund: Rs 15 lakhs (12 months of expenses)
Asset Allocation Strategy Post-Retirement
Let's break down a suitable asset allocation strategy:

1. Debt Instruments for Stability
Debt instruments provide stability and regular income. They are less volatile and suitable for your monthly needs. Considering your requirement of Rs 1.25 lakhs per month, prioritize these investments:

Mutual Funds (Debt): Rs 56 lakhs already allocated. Consider adding more to this to ensure stable returns.
Fixed Deposit: Rs 20 lakhs is a good buffer. Keep this as part of your emergency fund and for short-term liquidity.
2. Equity Investments for Growth
Equity investments are essential for growth and to combat inflation. However, post-retirement, the exposure should be balanced:

Equity Investments: Rs 1.09 crore
Mutual Funds (Equity): Rs 2.37 crore
While these investments have higher returns, they come with higher risks. Consider reallocating some equity to balanced or conservative funds to reduce volatility.

3. ULIP as a Diversification Tool
Your ULIP maturing soon will provide a lump sum. ULIPs combine insurance and investment but may not always offer the best returns. Since all premiums are paid and it’s maturing, use the maturity amount wisely.

ULIP Maturity: Rs 65 lakhs. Reinvest this in safer debt funds or balanced funds for moderate growth with lower risk.
Creating a Monthly Income Stream
To generate Rs 1.25 lakhs per month, a mix of Systematic Withdrawal Plans (SWPs) from mutual funds and interest from fixed deposits can be considered.

Systematic Withdrawal Plan (SWP)
SWP allows you to withdraw a fixed amount from mutual funds periodically. This can provide regular income without selling your investments entirely.

SWP from Debt Mutual Funds: Utilize debt funds to withdraw a steady amount monthly.
SWP from Balanced Funds: For a balanced risk approach, include some withdrawals from balanced funds.
Interest from Fixed Deposits
Interest from fixed deposits can supplement your monthly income. Ensure the interest aligns with your monthly needs and reinvest any excess for future use.

Planning for One-Time Expenses
For your daughter’s marriage, earmark Rs 30 lakhs from your existing assets. Consider using the maturity proceeds of your ULIP or liquidating some of your fixed deposits for this purpose.

Adjusting Your Portfolio
Rebalancing Equity and Debt
After ensuring your monthly needs and one-time expenses are covered, rebalance your portfolio to maintain a suitable risk level. Post-retirement, a common approach is to have a 40-60% allocation in equities and 60-40% in debt:

Equity Allocation: Aim for around 40% of your portfolio.
Debt Allocation: Aim for around 60% of your portfolio.
This balance provides growth potential while ensuring stability and regular income.

Diversifying within Debt and Equity
Within debt and equity, diversify to manage risk better:

Debt Funds: Include short-term, medium-term, and income funds.
Equity Funds: Include large-cap, mid-cap, and balanced funds.
Tax Planning
Efficient tax planning ensures you retain more of your income. Post-retirement, tax planning involves:

Tax-Exempt Instruments: Use the tax benefits of PPF and other exempt instruments.
Long-Term Capital Gains: Equity investments held for over a year have favorable tax treatment.
Tax-Efficient Withdrawals: Plan withdrawals from funds in a tax-efficient manner.
Monitoring and Review
Regular monitoring and review of your investments are crucial. Assess your portfolio at least once a year and adjust as needed to align with your goals and market conditions.

Genuine Compliments and Empathy
You've done a remarkable job in securing a diversified asset base. Managing your finances prudently has given you a solid foundation. Your focus on family and ensuring their well-being is commendable. It’s understandable to want to ensure your assets are well-managed post-retirement. I'm here to help guide you through this transition.

Final Insights
Retirement planning is about securing your future while enjoying the present. You've built a strong portfolio, and with the right adjustments, you can ensure a stable, comfortable retirement.

Emergency Fund: Keep Rs 15 lakhs for unexpected needs.
Debt Instruments: Use debt funds and FDs for stability and regular income.
Equity Investments: Maintain equity for growth but balance with lower-risk options.
ULIP Maturity: Reinvest in safe or balanced funds.
SWP: Generate monthly income through systematic withdrawals.
Tax Planning: Optimize withdrawals to minimize tax impact.
By following these steps, you can maintain your lifestyle and meet your financial goals post-retirement. Regular review and adjustments will keep you on track. Wishing you a fulfilling and stress-free retirement.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6568 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 12, 2024

Asked by Anonymous - Jun 19, 2024Hindi
Money
I am 39 years old IT employee , I have monthly income of 3.5 lakhs and have a 10 years old son and wife .I have 35 lakhs in PF and 8 lakhs in ppf ,All I invested is in real estate and no other investments also i have 48 lakhs lakh an remaining for a house ,Where should I invest of I need to lan retirement by 50 will need 1.5 lakhs income per month post that
Ans: Retiring by age 50 with a steady monthly income of Rs. 1.5 lakhs is a significant goal. Given your current assets, it's crucial to strategically plan your investments to achieve this target. You have a strong base, and with careful planning, you can reach your retirement goals.

Assessing Current Financial Situation
You have a solid monthly income of Rs. 3.5 lakhs. This is a good start.

You have Rs. 35 lakhs in your Provident Fund (PF) and Rs. 8 lakhs in your Public Provident Fund (PPF). These are excellent long-term savings.

You have invested Rs. 48 lakhs in real estate. However, real estate alone may not be enough for retirement. Diversifying your portfolio is crucial.

Understanding the Importance of Diversification
Diversification is key to minimizing risk and maximizing returns. Currently, your investments are concentrated in real estate. You should consider diversifying into different asset classes.

Building a Balanced Investment Portfolio
1. Equity Mutual Funds:

Equity mutual funds can provide high returns over the long term. They are suitable for your retirement goal, which is more than a decade away.

Consider allocating a portion of your funds to diversified equity mutual funds. These funds invest in a mix of large-cap, mid-cap, and small-cap stocks, providing a balanced exposure to the equity market.

2. Debt Mutual Funds:

Debt mutual funds are less risky compared to equity funds. They provide stable returns and can be used to balance the risk in your portfolio.

Investing in debt funds will ensure that a portion of your investments remains safe, while still earning moderate returns.

3. Public Provident Fund (PPF):

Your current PPF investment is Rs. 8 lakhs. Continue contributing to PPF as it offers tax benefits and guaranteed returns. It’s a safe investment for long-term financial goals.

4. Provident Fund (PF):

With Rs. 35 lakhs in PF, you already have a significant amount saved. Ensure you continue contributing to this fund, as it provides a reliable source of retirement income.

Exploring the Benefits of Actively Managed Funds
Actively managed funds, run by experienced fund managers, can potentially outperform the market. These funds require active monitoring and adjustment, which can lead to better returns compared to passive index funds.

Disadvantages of Index Funds:

Index funds follow the market index, and they do not aim to outperform it. This means during market downturns, index funds will also suffer. They lack the flexibility to adjust holdings based on market conditions.

Benefits of Actively Managed Funds:

Actively managed funds have the potential to generate higher returns. Fund managers can make strategic decisions based on market trends and economic conditions. They can also provide a more tailored investment approach.

Considering the Role of Certified Financial Planners
Investing through a Certified Financial Planner (CFP) can offer several advantages. They provide personalized advice and help create a financial plan tailored to your goals.

Disadvantages of Direct Funds:

Investing directly without professional guidance can be risky. You might miss out on strategic opportunities and fail to manage risk effectively. A CFP can help optimize your investment strategy.

Benefits of Regular Funds through CFP:

Investing through regular funds with the help of a CFP ensures you receive expert advice. They can help you navigate market complexities and make informed decisions. This professional guidance can lead to better financial outcomes.

Creating a Retirement Corpus
To achieve your retirement goal of Rs. 1.5 lakhs monthly income post-retirement, you need to build a substantial corpus. Given your current assets and income, a disciplined investment approach is essential.

1. Setting Clear Goals:

Define how much you need at retirement. This will help you understand how much to save and invest each month.

2. Regular Investments:

Invest regularly in mutual funds through Systematic Investment Plans (SIPs). SIPs help in averaging out market volatility and build a corpus over time.

3. Reviewing and Rebalancing:

Regularly review your investment portfolio. Rebalance it to ensure it aligns with your goals and risk tolerance. This involves shifting funds between asset classes based on market performance and your investment horizon.

Importance of Emergency Fund
Maintain an emergency fund to cover unforeseen expenses. This fund should cover at least six months' worth of expenses. It ensures you don't have to dip into your long-term investments in case of emergencies.

Managing Insurance Needs
Ensure you have adequate insurance coverage. Life insurance protects your family in case of any unfortunate event. Health insurance covers medical expenses, preventing financial strain.

Planning for Your Child's Future
Your 10-year-old son's education and future needs should also be planned for. Consider investing in child-specific mutual funds or creating a dedicated investment plan for his higher education and other needs.

Evaluating Current Investments
Real Estate:

While real estate can provide good returns, it's not very liquid. Consider the rental income potential and capital appreciation of your property.

Provident Fund (PF) and Public Provident Fund (PPF):

These are secure investments with tax benefits. Continue contributing to these funds for long-term stability.

Achieving Financial Independence
To achieve financial independence by 50, you need a comprehensive financial plan. This involves:

1. Increasing Savings:

Try to save and invest a significant portion of your income. Aim to save at least 30-40% of your monthly income.

2. Reducing Debt:

Avoid taking on new debt. Pay off any existing loans to reduce financial burden.

3. Enhancing Income:

Explore ways to increase your income. This could be through promotions, bonuses, or side gigs.

Final Insights
Reaching your retirement goal by 50 is achievable with disciplined planning and strategic investments. Diversify your portfolio, invest in equity and debt mutual funds, and continue contributing to PF and PPF. Seek guidance from a Certified Financial Planner to optimize your investments and ensure a secure financial future.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Milind

Milind Vadjikar  |386 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 13, 2024

Asked by Anonymous - Oct 12, 2024Hindi
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Money
Hi, age 40 years, monthly net salary Rs 85k, married , 1 kid. Recently have constructed new house. Ground floor commercial shops, and 1st floor residential 2bhk flat were we stay. Home loan 1.05 cr with monthly EMI of 85k for next 30 years & All current savings exhausted due to new construction. Commercial shops have potential for monthly rental income of 60k to 70k.please guide on below for strategy: 1) how to close home loan in next 10 years 2) considering 60 as retirement age, need corpus of 8 cr to fund kid education, marriage and for rest of livelihood.
Ans: Hello;

1. Immediately let out the commercial shops on long lease with yearly rent hikes. This is crucial to fund your loan EMI.

Assuming this to yield rental income of 70 K per month.

You will still need to shell out 15 K for the EMI amount from your income.

2. So after deducting EMI cut from your monthly pay we are left with
70 K.
Earmarking 30 K for your regular expenses, I suggest you start a monthly SIP of 40 K in a pure equity mutual fund with yearly top-up of 11% minimum.

This may grow into a corpus of 1.47 Cr after 10 years part of which you may utilise to settle off the overdue loan amount.

3. The balance corpus left after settling the loan is expected to be around 54 L. At this stage you will need enhance monthly sip to 1.5 L with 13 % yearly top-up for the next 10 years.

4. The corpus from SIP after the next 10 years may be 6.3 Cr. The balance corpus of 54 L may grow into a sum of 1.83 Cr. Both added will give you a comprehensive corpus of 8.13 Cr, as desired. ( A modest return of 13% from pure equity mutual funds is considered).

Happy Investing!!

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

...Read more

Nayagam P

Nayagam P P  |3811 Answers  |Ask -

Career Counsellor - Answered on Oct 13, 2024

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Career
Sir the median package at ssnce for cse core is less than rvce ise .So does it make more viable option considering placement in mind .I have a dream of becoming software engineer from my childhood. But my seniors are advising for rvce ise.what to do should I follow my dream or placement.I am a Bangalore resident and Tamil is my mother tongue.
Ans: Ashwin, my son, graduated from RVCE in 2023 and secured employment through campus placement with a reputable software company. Despite being among the highest achievers in COMEDK, he opted for ECE instead of the more accessible CSE. We did not compel him to join CSE. Following his second year, he progressively shown an interest in software and obtained several certifications through NPTEL, Internshala, and similar platforms. Regarding his experience, while ISE is commendable, CSE is the superior option. Simply enter 'RV placement statistics 2024'. Select the initial result to get the Placement Statistics of RV directly. The top placements are for Computer Science Engineering, followed by Electronics and Communication Engineering, and then Information Science Engineering. The recommendations of your seniors, your personal interests, and the branch with the highest placement statistics are distinct considerations. Kindly review the Course Curriculum for both CSE and ISE and make a decision. Kindly review one of my detailed responses below, in which I have explicitly outlined the stages, recommendations, and methods that a first-year engineering student should adhere to till their fourth year for campus placement. All the BEST for Your Prosperous Future.

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

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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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