Hi , i am 62 year women.i havd no investment so far. Now i will be receiving some amount from by husband through a sale of property. So how do invest to earn 1 to 2 lakhs per month ? Now i have a savings account .but soon i am planning to become a canadian citizen soon . So how i change my accounts from savings account ? I plan to have my current accounts in india slways ? I will have only this amount that i will receive from my husband around 70 Lakhs rupees for the moment and monthly rent of 31000 rupees . I wanr to self-sufficient and pay my own reavel snd nedizal expenses.please advice.
Ans: You’ve taken a bold and inspiring step by planning to manage your finances independently. At 62, starting afresh requires courage, and that deserves appreciation. With Rs. 70 lakh expected soon and Rs. 31,000 as rental income, you're well-positioned to build a stable monthly income. Let’s structure this carefully.
» Understanding Your Goal
– You aim for a monthly income of Rs. 1–2 lakh.
– You currently have no investments, but Rs. 70 lakh will be available soon.
– Rental income is Rs. 31,000/month.
– You are becoming a Canadian citizen soon, but want to keep Indian accounts active.
– Your expenses include travel and medical needs.
– Your objective is self-reliance, with minimal support from others.
Let’s now explore how you can achieve this with safety, income, and liquidity.
» Clarifying Account Structure as an NRI
– Once you become a Canadian citizen, your resident savings account in India must change.
– You will need to convert it into an NRO (Non-Resident Ordinary) account.
– An NRO account allows you to hold and manage your Indian income, like rent.
– If you want to send Indian income to Canada, you’ll need an NRE (Non-Resident External) account.
– NRE is useful only for funds earned outside India and repatriated here.
– Keep the NRO account to manage income and expenses within India.
– Do not continue using a normal savings account as an NRI. That’s non-compliant.
You can keep the NRO account and continue investing and spending in India.
» Segregating the Rs. 70 Lakh Wisely
To earn Rs. 1–2 lakh/month, you need smart allocation.
We’ll create three buckets:
– Immediate need
– Medium-term
– Long-term
Let’s keep this structured.
» Immediate Need Bucket (Rs. 10 lakh)
– This should be parked in a liquid or ultra-short-term mutual fund.
– This will act as your emergency fund and travel-medical reserve.
– Keep it in your NRO account-linked mutual fund folio.
– Do not leave this in a savings account.
– Liquid mutual funds offer better return than savings account with similar access.
Expect monthly income of Rs. 7,000 to Rs. 8,000 from this part, if needed.
It’s best to let this part remain untouched for emergencies.
» Medium-Term Bucket (Rs. 20 lakh)
– This portion should generate income from the start.
– Invest in conservative hybrid mutual funds.
– These funds combine debt and equity. They are less volatile than pure equity.
– They offer better income than bank FDs.
– You can opt for SWP (Systematic Withdrawal Plan) of around Rs. 15,000 to Rs. 18,000 per month from this portion.
– This bucket can also help you manage medical costs over the next 5–7 years.
Tax on these withdrawals is only on capital gains. That too, only when you sell.
» Long-Term Income Bucket (Rs. 40 lakh)
– This part is for building long-term monthly income.
– Invest in aggressive hybrid mutual funds.
– They hold more equity, but also have some debt for stability.
– Over 3–5 years, they can deliver 9%–11% returns.
– Begin an SWP after 1 year to benefit from long-term capital gain tax.
– You can expect monthly income of Rs. 30,000 to Rs. 40,000 from this portion.
– Do not opt for dividend plans. Choose growth plans with SWP.
This strategy will help in keeping the principal safe and income flowing.
» Income Summary
– Rental income: Rs. 31,000/month
– Liquid/debt bucket: reserve, not for regular income
– Conservative hybrid SWP: Rs. 15,000/month
– Aggressive hybrid SWP: Rs. 35,000/month (after 1 year)
After 1 year, your income will be close to Rs. 81,000/month.
This may go up with better returns over time.
If you wish to reach Rs. 1 lakh/month, you can slightly increase SWP, cautiously.
Your capital will still remain mostly intact for 12–15 years.
» Tax Planning as an NRI
– In India, your mutual fund SWP will attract capital gains tax.
– After 1 year, equity-oriented funds (hybrid funds with >65% equity) attract 12.5% tax on LTCG above Rs. 1.25 lakh.
– STCG is taxed at 20% flat.
– For debt-oriented funds, both STCG and LTCG are taxed as per your income slab.
– As an NRI, TDS of 10%–20% may apply on mutual fund withdrawals.
– You can claim tax refund later if TDS is more than your actual tax.
So, keep your PAN updated, file tax returns in India, and plan SWP timing carefully.
» What to Avoid
– Do not leave money idle in a savings account.
– Avoid traditional insurance policies.
– Avoid annuity plans, as they give low returns and are illiquid.
– Don’t invest in real estate again. Your current rental income is sufficient.
– Avoid direct equity or PMS unless you understand volatility well.
– Don’t put all money in one fund. Diversify across 4–5 good mutual funds.
» Should You Invest in Direct Mutual Funds?
– Direct funds may look cheaper due to low expense ratio.
– But they come with no support or portfolio management.
– As an NRI, tax compliance, redemption timing, and fund choice can get complex.
– It is safer to invest through a Certified Financial Planner via regular plans.
– A qualified MFD with CFP credential will help you with:
Suitable scheme selection
SWP optimisation
Exit load and tax impact planning
Rebalancing every year
NRI compliance guidance
The 1% extra cost is worth the guidance you receive.
» Medical and Travel Expense Planning
– Your travel and medical costs will vary year to year.
– Keep Rs. 10 lakh liquid for these needs.
– Consider a good Indian health insurance policy if staying longer here.
– Once you become a Canadian citizen, get health cover there as per eligibility.
– Don’t depend only on travel insurance.
Also plan foreign trips in off-peak season. You will save more.
» Maintain Income Stability
– Don’t withdraw more than 6% of your corpus every year.
– Review mutual funds annually with your CFP.
– Avoid frequent portfolio changes. Let your investments work quietly.
– Track your monthly expenses and stick to a budget.
Discipline and patience are key. Your plan will succeed with consistent tracking.
» What Happens After 10 Years?
– At age 72, you will still have most of your corpus intact.
– Only partial withdrawals would have happened till then.
– If market returns are favourable, your wealth may grow instead of reducing.
– At that time, you can reassess your needs and decide to:
Continue with SWP
Increase emergency reserves
Gift or create inheritance for someone
Flexibility will be high if you invest right now.
» Finally
– You have a strong starting point: Rs. 70 lakh and rental income.
– You want to stay financially independent. That is admirable.
– You can expect Rs. 80,000 to Rs. 90,000/month income starting soon.
– With careful planning, this can rise to Rs. 1 lakh/month without touching principal.
– Don’t worry about starting late. You’re still in full control.
– Invest through a Certified Financial Planner in regular mutual funds.
– Create a balanced plan with safety, growth, and liquidity.
Your decision to become self-reliant, especially as you enter a new citizenship status, is empowering.
With proper planning, the Rs. 70 lakh can serve you for the next 25+ years with dignity and comfort.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
