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Ramalingam

Ramalingam Kalirajan  |8934 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 06, 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 11, 2024Hindi
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I am 56 and working in a MNC at Bangalore. I have a retirement corpus of 2 crore which includes PF, Gratuity, Super annuation, FDs and MF investment. I want to quit corporate life immediately and want to work wherein work life balance is better for another 6-8 years. I do have own house, a plot, term & medical insurance and completed my responsibilities ( son’s education, marriage). My question is whether this 2 crore corpus is enough to survive for next 30 years ( average yearly expenses is about 7.2L)

Ans: It's fantastic that you've accumulated a substantial retirement corpus and are considering transitioning to a work-life balance that suits you better. Let's assess whether your 2 crore corpus is sufficient to sustain you for the next 30 years:

• Assess Expenses: With an average yearly expense of 7.2 lakhs, it's crucial to ensure your retirement corpus can cover your lifestyle needs comfortably. Take into account inflation and any potential increase in expenses over time.

• Calculate Withdrawal Rate: Determine a sustainable withdrawal rate from your corpus that allows you to maintain your desired lifestyle without depleting your savings too quickly. A commonly recommended withdrawal rate is around 3-4% of your total corpus annually.

• Consider Investment Returns: Assess the potential returns on your investments and how they'll contribute to your income stream during retirement. Given your mix of FDs and MF investments, factor in both the interest earned and the growth potential of your mutual funds.

• Account for Inflation: Inflation can erode the purchasing power of your savings over time. Ensure your retirement income is indexed to inflation to maintain your standard of living throughout your retirement years.

• Emergency Fund: Set aside a portion of your corpus as an emergency fund to cover unexpected expenses or emergencies that may arise during retirement.

• Healthcare Costs: As you age, healthcare expenses may increase. Make sure you have adequate health insurance coverage and provisions for any potential medical costs in your retirement planning.

• Consult a Financial Advisor: Consider seeking advice from a Certified Financial Planner who can conduct a comprehensive analysis of your financial situation and retirement goals. They can provide personalized recommendations and help you develop a retirement income strategy that aligns with your objectives.

• Review and Adjust: Regularly review your retirement plan and make adjustments as needed based on changes in your lifestyle, expenses, and investment performance. Stay flexible and adaptable to ensure your financial security throughout retirement.

In conclusion, while a retirement corpus of 2 crore is a significant achievement, it's essential to carefully assess whether it can sustain your desired lifestyle and expenses over the next 30 years. By considering factors like inflation, investment returns, and healthcare costs, and seeking professional advice, you can make informed decisions and enjoy a fulfilling retirement with peace of mind.
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  |8934 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

Asked by Anonymous - Feb 27, 2024Hindi
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Hi i am 49 and currently have a total corpus of approx 2.5 crs ( 1cr in MF/50 lacs in stocks/ another 80-90 lacs in PF/ EPF/ NPS and some other instruments.i am planning to retire in 13 years i.e at 62 . i will be able to accumulate another 5 cr approx more till then and with the current portfolio and interests of those looking at 10 cr of corpus then . will it be sufficient for my 15- 17 years of life after that looking at 3-4 lakhs montly expenses then
Ans: With a planned retirement in 13 years and an estimated total corpus of around 7.5 crores, your goal of achieving a corpus of 10 crores by retirement seems achievable. However, it's essential to conduct a detailed analysis to ensure financial sustainability for the subsequent 15-17 years.

Consider the following factors:

Inflation: Account for inflation in your expense calculations to maintain the purchasing power of your corpus over time.
Investment Returns: Assess the expected returns from your current investments and future contributions to meet your target corpus.
Expenses: Review your anticipated expenses post-retirement, including healthcare, travel, and other lifestyle needs.
Contingency Planning: Build a buffer for unforeseen expenses or emergencies to safeguard your retirement corpus.
Regular Review: Periodically review your portfolio's performance and adjust your investment strategy if needed to stay on track towards your retirement goals.
Consulting with a Certified Financial Planner can provide personalized guidance tailored to your specific financial situation and retirement aspirations. With careful planning and prudent management, you can aim for financial security and peace of mind in your retirement years.

..Read more

Ramalingam

Ramalingam Kalirajan  |8934 Answers  |Ask -

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

Money
I will retire end of this year and all my commitments are done, also no liabilities. I have a self owned apartment where Ism staying with my wife. Have invested close to 2 crores, mainly in stocks and mutual funds. On retirement, I will have a corpus of around 85 lakhs. Have sufficient health insurance and term life insurances. My job is non pensionable and I am targeting a yearly requirement of around 12 lakhs. Will my corpus + past investments provide this requirement ?
Ans: Retirement planning is a significant milestone, and your preparation is commendable. Having invested Rs 2 crores and having a retirement corpus of Rs 85 lakhs shows foresight and discipline. With your target of Rs 12 lakhs per year, let's assess if your investments can sustain your needs.

Understanding Your Financial Situation
You have a self-owned apartment and no liabilities. This is a solid foundation as housing costs are often a major expense for retirees. Your health and term insurance cover potential unforeseen expenses, reducing financial strain in emergencies. Your job is non-pensionable, making your investments crucial for generating a steady retirement income.

Evaluating Your Current Investments
Your investment of Rs 2 crores in stocks and mutual funds indicates a diversified approach. These investments can provide growth and income through dividends and capital gains. The additional Rs 85 lakhs corpus boosts your financial security. Let's assess how to utilize these resources effectively to meet your yearly requirement.

Annual Income Requirement Analysis
You aim to have Rs 12 lakhs per year for expenses. This translates to Rs 1 lakh per month. To determine if your corpus and investments can support this, we need to consider factors like expected returns, inflation, and withdrawal strategy.

Expected Returns and Inflation
Assume your investments provide an average annual return of 8%. This is a reasonable expectation for a balanced portfolio of stocks and mutual funds. However, inflation, which reduces purchasing power over time, must be considered. If inflation is around 6%, the real return is approximately 2%.

Withdrawal Strategy
A systematic withdrawal plan can help manage your finances effectively. With a corpus of Rs 2.85 crores (Rs 2 crores + Rs 85 lakhs), withdrawing Rs 12 lakhs annually is sustainable if managed well. A withdrawal rate of around 4% is often recommended for retirees to ensure longevity of funds.

Diversification and Asset Allocation
Diversification across various asset classes is essential. While stocks and mutual funds provide growth, consider including debt funds, fixed deposits, and bonds for stability. This reduces risk and ensures a steady income stream. A balanced portfolio can withstand market fluctuations better and provide consistent returns.

Actively Managed Funds vs. Index Funds
Actively managed funds can outperform the market through professional management. Fund managers adjust the portfolio based on market conditions, aiming for higher returns. Index funds, which mirror market indices, may have lower fees but lack the potential for outperformance. Actively managed funds, despite higher fees, can offer better risk-adjusted returns.

Regular Funds vs. Direct Funds
Direct funds have lower expense ratios since they bypass intermediaries. However, investing through a Certified Financial Planner (CFP) using regular plans provides professional advice and expertise. A CFP can help tailor investments to your needs, rebalance your portfolio, and make strategic adjustments. The cost of regular funds is often offset by the benefits of professional guidance.

Creating a Retirement Income Plan
Emergency Fund: Maintain an emergency fund covering 6-12 months of expenses. This ensures liquidity for unexpected needs without disturbing your investments.

Debt Instruments: Allocate a portion of your corpus to debt instruments like fixed deposits, bonds, and debt mutual funds. These provide stable returns and reduce risk.

Systematic Withdrawal Plan: Use a systematic withdrawal plan from your mutual funds. This ensures a regular income stream while allowing the remaining corpus to grow.

Balanced Portfolio: Maintain a balanced portfolio with a mix of equity, debt, and hybrid funds. This balances growth potential and risk.

Review and Rebalance: Regularly review and rebalance your portfolio. Adjust based on market conditions, performance, and changing financial goals.

Ensuring Financial Security
Regularly monitor your expenses and adjust your budget if necessary. Keep an eye on your investment performance and consult with your CFP periodically. Ensure that your investment strategy aligns with your long-term goals and risk tolerance.

Importance of Health and Life Insurance
You have sufficient health and term life insurance, which is excellent. This protects against high medical costs and provides financial security for your spouse. Regularly review your policies to ensure they meet your needs.

Conclusion
Your preparation for retirement is impressive. With a corpus of Rs 2.85 crores and a target of Rs 12 lakhs per year, your financial plan looks sustainable. Diversify your investments, maintain a balanced portfolio, and use a systematic withdrawal plan. Regularly consult with a Certified Financial Planner to adjust your strategy as needed. This approach will help ensure a comfortable and financially secure retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Janak

Janak Patel  | Answer  |Ask -

MF, PF Expert - Answered on Jun 05, 2025

Money
I AM 80 YEARS OLD AND STILL WORKING AS A Consultant AND EARNING RS.1.5 LAKHS PER MONTH. I HAVE A CORPUS OF 182 LAKHS CONSISTING OF MF/ FD/ AND STOCKS. I CONTEMPLATE RETIRING IN 6 MONTHS. REQUEST PL.SUGGEST IF MY CURRENT CORPUS WILL SUFFICE UNTIL AGE OF 95. MY MONTHLY EXPENSES ARE RS.50000.00. I HAVE NO LIABILITY AND MY WIFE IS THE ONLY DEPENDENT. SELF AND WIFE ARE CO.VERED UNDER MEDICLAIM.AWAITING UR VALUED OPINION
Ans: Hi Sivaramakrishnan,

Congratulations on having an active working life at the age of 80.

For your monthly expenses of Rs 50000 and assuming an inflation of 7% over the next 15 years, you require approx. Rs 85 lakhs (today).

You already have Rs 182 lakhs (not including any further savings over the next 6 months) invested across MF/ FD/ and STOCKS.

I recommend you have a systematic withdrawal plan from your investments for your annual expenses.
Depending on how you have spread your investments, you can decide on the approach.
For MFs - its simple to do a SWP for an amount each month.
For FDs - you may need to liquidate them, so instead of breaking them, plan to use them at their maturity if its within six months of your requirement. if the maturity is long term, and you have a need then you may need to liquidate. Also check if there is an option to make them Sweep-in type FD, which means that when your account has less balance, it will move money from FD to account. Discuss with your bank on options available to you.
For Stocks - You can decide when to liquidate them. If you wish to move away from stocks, then you can consider investing in so hybrid Mutual fund schemes considering your time horizon.

Overall you will be looking to grow approx. Rs 1 crore over the next 15 years and this can grow to an amount of Rs 3 crores at 8% returns.

So your current corpus is more than sufficient and even if you increase your monthly expenses, you will have a surplus after 15 years.
Happy retirement and a healthy life ahead.

Thanks & Regards
Janak Patel
Certified Financial Planner.

..Read more

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Nayagam P

Nayagam P P  |6515 Answers  |Ask -

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Asked by Anonymous - Jun 16, 2025
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Dear Sir, My son's JEE mains (year 2025) rank is 52330. JEE ADVANCED rank is 13975. General catagory. IAT score 139 marks. He is interested in research in Physics and / or Maths from IISC / top 3 IISERs. His class 12th score is 99% for MPC and overall 86%. Please guide.
Ans: With an IAT score of 139 placing him within the 120–130 general cutoff bracket, top IISERs including Pune, Kolkata and Mohali are within reach; their last-round closing ranks ranged between 1,023 (Pune) and 1,801 (Kolkata) in 2024, translating to expected IAT marks of 125–140 for general candidates. His JEE Advanced rank of 13,975 fits IISc Bangalore’s BSc Physics cutoff of 903–1,000 (General AI quota) and BSc Mathematical Sciences cutoff near 1,095, though female cutoff relaxations slightly wider for general candidates. JEE Main rank (52,330) cannot secure BSc at IISc via JoSAA’s AI quota but JEE Advanced suffices. His 99% in PCM and 86% aggregate meet all eligibility criteria. IISc’s BSc Research programs report 90–95% placement rates over three years in STEM roles, while IISER graduates similarly achieve 85–92% placements in academic and research positions. Recommendation: Prioritize registering for IAT counselling with preferences set to IISER Pune, IISER Kolkata and IISER Mohali, while listing IISc BSc Physics and Mathematics at the top contingent on JEE Advanced rank, ensuring multiple high-probability research-focused admission avenues. All the BEST for the Admission & a Prosperous Future!

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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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