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Ramalingam Kalirajan  |5173 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 26, 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
prabir Question by prabir on Feb 24, 2024Hindi


Ans: Navigating Financial Stability Post-Divorce
Understanding Your Situation
Firstly, I empathise with your situation. At 64, after a long marriage, you now face financial challenges. Despite your extensive experience in accounts, you have limited funds after the divorce settlement.

Assessing Your Financial Needs
Immediate Needs:

Daily Expenses: You need a steady income to cover daily living expenses like food, utilities, and healthcare.
Emergency Fund: It’s crucial to set aside some money for unexpected expenses.
Long-Term Needs:

Sustainable Income: You need a plan to generate a sustainable income to support yourself in the coming years.
Healthcare Costs: As you age, healthcare costs may increase, requiring financial preparedness.
Exploring Income Options
Part-Time or Consultancy Work:

Leverage Experience: With 42 years in accounts, consider part-time or consultancy roles. Your expertise is valuable and can provide a steady income.
Flexible Work: These roles offer flexibility, allowing you to manage your time and health effectively.
Freelance Accounting:

Remote Work: Freelance accounting allows you to work from home, reducing commuting costs and stress.
Client Base: Build a client base through networking and online platforms. Your extensive experience can attract clients.
Investment Strategies
Mutual Funds:

Actively Managed Funds: These funds are managed by professionals who aim to outperform the market. They can provide higher returns than index funds.
Regular Plans: Investing through a Mutual Fund Distributor (MFD) with a Certified Financial Planner (CFP) ensures professional advice and management.
Fixed Deposits:

Low Risk: Fixed deposits are a safe investment option with guaranteed returns.
Regular Income: Choose a tenure that aligns with your financial needs to receive regular interest payments.
Government Bonds:

Stable Returns: Government bonds offer stable and secure returns, ideal for low-risk tolerance.
Interest Income: Bonds provide regular interest income, which can supplement your daily expenses.
Budgeting and Expense Management
Create a Budget:

Track Expenses: List all your expenses and track them regularly to ensure you stay within your budget.
Prioritise Needs: Focus on essential expenses first, such as food, healthcare, and utilities.
Cut Unnecessary Costs:

Reduce Luxuries: Cut down on non-essential expenses like dining out or expensive hobbies.
Smart Shopping: Look for discounts and buy in bulk to save money on groceries and household items.
Seeking Professional Guidance
Certified Financial Planner (CFP):

Personalised Advice: A CFP can provide tailored financial advice based on your specific situation and goals.
Investment Management: They can help you choose the right investment options to grow your wealth safely.
Emotional and Psychological Well-being
Stay Positive:

Resilience: Your experience and skills are valuable assets. Stay positive and leverage them to rebuild your financial stability.
Support Network: Surround yourself with supportive friends and family who can provide emotional and practical support.
Engage in Activities:

Stay Active: Engage in activities you enjoy and explore new hobbies. This can improve your mental well-being and overall happiness.
Volunteer Work: Consider volunteering in your community. It can provide a sense of purpose and fulfillment.
Your situation, though challenging, is manageable with the right strategies. By leveraging your experience, exploring flexible work options, and making smart investments, you can achieve financial stability. Prioritising your expenses, seeking professional guidance, and maintaining a positive outlook are key to navigating this phase successfully.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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 Kalirajan  |5173 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 13, 2024

Hello Sir! Myself Madeswaran and I am 33 yrs old. I have worked for 10 years and I have no savings and saved nothing. I had 6 Lakhs in my savings 4 years back. Purchased gold for 1 lakh. Purchased car in 2 nd had for 3.5 Lakhs and Lost 3 Lakhs in forex an year back.I am having debt of 1 Lakh now and cleared Rs.50,000. Now my monthly income is only Rs.45,000. I have house expenses of Rs. Rs.30,000 and Loan emi of Rs. 5,000. I give. I am not able to find how the rest of Rs.10,000 money gets drained away. Now I want my financial freedom at the age of 50. What shall I do amd how shall I start. I am also looking for secondary income to get some financial buffer.
Ans: Hello Madeswaran! It's commendable that you're seeking to take control of your finances and work towards financial freedom. Let's assess your current situation and explore steps to get you back on track.

At 33, with a monthly income of Rs. 45,000 and monthly expenses of Rs. 35,000, it's essential to understand where the remaining Rs. 10,000 is being spent. Tracking your expenses diligently can help identify areas where you can cut back and redirect funds towards savings and debt repayment.

Given your previous financial setbacks, it's crucial to prioritize building an emergency fund to cover unexpected expenses and avoid going into further debt. Aim to set aside at least 3 to 6 months' worth of living expenses in a separate savings account as a safety net.

Addressing your existing debt of Rs. 1 lakh should be a priority. Focus on clearing this debt as soon as possible by allocating a portion of your monthly income towards repayment. Cutting back on non-essential expenses can free up additional funds for debt reduction.

Considering your goal of achieving financial freedom by the age of 50, it's important to establish a long-term financial plan. Start by setting specific, achievable goals and creating a budget to track your income and expenses.

Explore opportunities to increase your income through additional sources such as freelance work, part-time jobs, or starting a side business. Generating a secondary income can provide a financial buffer and accelerate your journey towards financial freedom.

Investing in yourself through education, acquiring new skills, or pursuing career advancement opportunities can also enhance your earning potential over the long term.

Finally, seek guidance from a Certified Financial Planner who can provide personalized advice tailored to your financial situation and goals. They can help you create a roadmap for achieving financial freedom and offer support and guidance along the way.

Remember, financial freedom is achievable with determination, discipline, and strategic planning. By taking proactive steps now, you can pave the way for a brighter financial future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more


Ramalingam Kalirajan  |5173 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 14, 2024

Asked by Anonymous - May 06, 2024Hindi
I am aged 61 years. I shall get 30 lakhs in my bank account and 2 crores in cash after selling my property. I have no other income and home. My 85 year old father and 55 year old younger brother are the only dependents. Please advise me on how to utilize these funds for a better future. Thank you.
Ans: Congratulations on selling your property! This windfall presents a great opportunity to secure your future and the well-being of your dependents. Let's explore some smart ways to utilize these funds:

1. Priority: Safeguard Your Nest Egg

Safety First! With no other income and dependents to consider, prioritizing safety for your principal amount is crucial. Sudden emergencies can disrupt your plans, so having a buffer is important.

Bank Deposits: Consider parking a significant portion of the money in Fixed Deposits (FDs) or Senior Citizen Savings Schemes (SCSS). These offer guaranteed returns and easy access in case of need.

2. Regular Income Stream for Living Expenses

Plan for Your Needs: Create a monthly budget for your and your dependents' essential living expenses. This will help determine how much you need to set aside for regular income.

Monthly Income Options: Invest a portion of the corpus in options that generate regular income, like interest from Debt Funds or dividend payouts from some Equity Funds. Remember, these may not fully match inflation, but they provide a safety net.

3. Long-Term Growth for Future Needs

Growing Your Money: Invest a part of the corpus for long-term growth to meet future needs like healthcare or higher education for your brother. Actively managed Equity Mutual Funds can potentially provide inflation-beating returns over the long term (typically 10 years or more).

Seek Expert Advice: A Certified Financial Planner (CFP) can assess your risk tolerance and create a personalized asset allocation plan. They can recommend suitable Debt and Equity Mutual Funds based on your goals and investment horizon.

4. Living Accommodation:

Consider Your Needs: You mentioned not having a home. Depending on your needs and preferences, you could consider renting a comfortable place or using a portion of the funds to buy a smaller property.

Plan for the Future: If you plan to buy a property, remember to factor in maintenance and potential future repairs. A CFP can help you plan your finances for such eventualities.

5. Secure Your Dependents' Future:

Brother's Needs: Discuss your brother's long-term needs and goals. If he's employable, you might consider helping him set up a small business or invest in some skill development.

Father's Well-Being: Ensure your elderly father has access to quality healthcare and any special needs are met. You might consider health insurance plans for both of you.

Remember, this is a significant financial decision. Don't rush into any investments. Consulting a CFP will help you create a comprehensive plan that considers all your needs and ensures a secure future for yourself and your dependents.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more


Ramalingam Kalirajan  |5173 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 16, 2024

I am 61 years and retired from central government. Getting 48000 and 30000 as pension and rent. All my retirement benefits are exhausted on building of house and education loan. I need 5000000 fifty lakhs in seven years. What i should do. This amoint to be given to my son and what way i accummulate.
Ans: I appreciate your commitment to helping your son. Let's explore ways to accumulate Rs 50 lakhs in seven years.

Evaluate Current Income and Expenses

Track your monthly income of Rs 78,000. Prioritise your essential expenses and find areas to save.

Create an Investment Plan

Consider investing in mutual funds. Actively managed funds often outperform index funds, especially in volatile markets.

Benefits of Actively Managed Funds

Actively managed funds are handled by expert fund managers. They can adapt strategies based on market conditions.

Systematic Investment Plan (SIP)

Start a SIP to invest regularly. This helps in averaging costs and reduces market risk.

Consider Balanced Funds

Balanced funds invest in both equity and debt. This provides growth and stability.

Emergency Fund

Set aside a small amount each month for emergencies. This ensures financial security without touching investments.

Avoid Real Estate and Annuities

Real estate can be illiquid and risky. Annuities often have high fees and low returns.

Seek Professional Advice

Consult a Certified Financial Planner. They can tailor a plan to help you achieve your goal.

Stay Committed and Review Regularly

Monitor your investments and make adjustments if needed. Stay focused on your goal.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more

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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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