Need Expert Advice?Our Gurus Can Help

Ramalingam Kalirajan |10334 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 28, 2025

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

Question by RUDRARAJU on Jul 28, 2025Hindi

I AM 60 YEARS OLD. I WANT TO INVEST MONEY IN PROCURING PLOT IN HYDERABAD.FOR PROCURING A PLOT MOST OF THE MONEY IS BLACK.GIVE YOUR ADVISE SOLUTION AFTER SALE AND USING BLACK MONEY WAYS.

Ans: You have reached 60 years. It’s a time to reduce risk and ensure peace of mind.

Preserving capital, ensuring liquidity, and keeping everything legally clean is now priority.

Let us now evaluate your situation from a long-term, 360-degree planning perspective.

? Current Focus on Plot Purchase Using Unaccounted Money

– You want to buy a plot in Hyderabad using mostly unaccounted cash.

– This poses multiple financial, legal, and compliance issues.

– Transactions involving black money are now highly monitored.

– Most plot registrations require Aadhaar, PAN, and payment trail.

– Authorities link property value with income and tax records.

– Later, if questioned, there can be heavy penalties and legal risk.

– This risk increases especially during property resale or while transferring to heirs.

– Encashing black money through real estate is not safe or recommended.

– It also keeps your wealth outside the formal system.

– At 60, this creates long-term complications for your family too.

? Why Real Estate is Not Suitable at This Stage

– You are 60. Your focus now should be liquidity, not locking funds in land.

– Land does not generate regular income.

– It also does not offer easy resale or emergency use.

– No tax benefit is available on land purchase or holding.

– Land values grow slowly and uncertainly. There's no guaranteed return.

– Maintenance, security, and encroachment risk add more headaches.

– At your age, you need peace, cash flow, and health cover—not land stress.

– You will need money regularly for medical, lifestyle, and family support.

– Don’t block money in immovable, illiquid assets.

? Better Options to Use and Regularise Undisclosed Money

– Cash or unaccounted money brings mental and legal burden.

– You can slowly regularise this through legal, compliant channels.

– Start using black money for day-to-day living expenses.

– Use it for cash-based spending like groceries, travel, utilities, repairs, gifts.

– This avoids the need to use white income for expenses.

– Then you can start investing your white money into mutual funds.

– Gradually reduce black money and build a formal portfolio.

– This transition takes time. But gives peace of mind.

– Don’t try to convert black into white via shortcuts. Most end up in trouble.

– Avoid giving or receiving cash during property purchase. It violates the law.

? Build a Legal Retirement Portfolio with White Money

– Your focus should be on building regular income now.

– Use white money to invest in mutual funds.

– Use regular plans through a certified financial planner.

– Actively managed funds are best for income, growth, and risk management.

– Avoid index funds. They fall with market and give no downside protection.

– Actively managed funds adapt to changing market conditions.

– Don’t go for direct plans. They give no advice or reviews.

– Regular plans through a CFP offer goal tracking, yearly review, and expert help.

– Start SIP or lump sum in hybrid mutual funds.

– Conservative hybrid or balanced advantage funds suit your age.

– They offer monthly income with moderate risk.

– You can use Systematic Withdrawal Plan (SWP) to get monthly payout.

– This payout can replace pension and support lifestyle.

– Funds also grow quietly in background, unlike land which remains idle.

? Create a Separate Health & Emergency Plan

– At 60, medical costs can rise anytime.

– If you don’t have separate health insurance, buy it now.

– Don’t depend only on company cover or savings.

– Health plans with top-up benefit work well for senior citizens.

– Premiums are higher now. But hospital bills can be much higher later.

– Add Rs 3L to Rs 5L in liquid fund or FD for emergency buffer.

– This avoids sudden sale of investments during crisis.

– Keep nominee and family aware about emergency money and investments.

– If any asset is held in cash or informal name, convert it to formal ownership.

– This helps avoid confusion for family members later.

? Pass on Wealth Smoothly to Your Heirs

– Unaccounted land or cash is hard to pass to children.

– Legal heirs may struggle to claim or prove ownership.

– Property held partly in black can create legal disputes later.

– Avoid keeping such complexity in your retirement years.

– Focus on clean, easy-to-transfer assets like mutual funds, PF, health cover, and savings.

– Mutual funds allow nomination. Transfer is simple and tax-efficient.

– Also prepare your Will to make things simple.

– A Will avoids future family conflict and court battles.

– Mention all mutual funds, PF, cash, bank, and insurance in the Will.

– Keep a copy with your family and one with a trusted person.

– Real estate with black component cannot be easily bequeathed.

– Legal disputes can delay or destroy family wealth.

? Avoid Emotional Attachment to Land Investments

– Many people keep land just for pride or future sale hope.

– But land doesn't solve your monthly needs.

– It won't pay for your medicine or grandchildren’s school.

– Don't keep it just for prestige or belief that value will rise.

– At your age, real value comes from peace, comfort, and regular income.

– It is better to have Rs 1 Cr in mutual funds than Rs 3 Cr in unsold land.

– Your children may not even want land in future.

– Modern generation prefers simple, liquid assets.

– Help them by keeping your wealth clean and useful.

? If Still Insisting on Plot Purchase

– If you still want to buy land, use only white money.

– Register full value. Don’t do under-registration or cash portion.

– Keep proof of income source and transaction record.

– Don’t do benami deals. Always buy in your name or your heir’s name.

– Be careful of land scams, illegal layouts, and disputed plots.

– Do legal due diligence through a registered lawyer.

– Check ownership title, conversion status, and municipal approvals.

– Don't go for layouts promising huge returns. Many are just sales pitches.

– Even if plot is purchased, don’t expect monthly income from it.

– So don’t consider it as part of retirement plan.

? Finally

– You have reached a stage where simplicity is wealth.

– Real estate bought with black money brings stress and legal issues.

– Instead, use cash for living expenses, and invest white money wisely.

– Avoid further land purchases now. It does not suit your age and goals.

– Start mutual fund investments with a certified financial planner.

– Use regular plans, not direct or index funds.

– Actively managed funds offer stability, growth and monthly income.

– Build emergency buffer. Get separate health insurance.

– Plan Will and family protection. Keep all assets in legal, traceable names.

– A peaceful and financially clean retirement is the best gift to your family.

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

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.

MoneyReply