Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Ramalingam

Ramalingam Kalirajan  |8265 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 18, 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
Komala Question by Komala on May 18, 2024Hindi
Listen
Money

Hi I am a 65 year old house wife looking for investment options to take care of myself. Income sources : Son gives 10000 and husband gives 3000 per month. I have an existing FD of 2 lakh rupees. Where all I can invest and I don't have a health insurance, any suggestions to plan my investment as well as health policy

Ans: It's wonderful that you're thinking about your financial security. Here are some ideas to consider:

Understanding Your Income:

Combined Income: You have a combined monthly income of Rs. 13,000 (Rs. 10,000 from son + Rs. 3,000 from husband).

Financial Goals: Consider your financial goals. Are you looking for regular income, to grow your savings, or both?

Investment Options:

FD Reinvestment: Consider reinvesting your existing FD or its interest to earn compound interest.

Debt Funds: Debt funds offer stability and regular income, potentially suitable for your situation.

Senior Citizen Savings Scheme (SCSS): This government scheme offers attractive interest rates for senior citizens.

Importance of Health Insurance:

Medical Expenses: Medical emergencies can be expensive. Health insurance can help manage these costs.

Senior Citizen Plans: Many insurance companies offer health insurance plans specifically designed for senior citizens.

Benefits of a CFP:

Personalized Plan: Consulting a Certified Financial Planner (CFP) is recommended. They can assess your needs, risk tolerance, and suggest suitable investment options and health insurance plans.
Here's a simplified example (not a recommendation):

Invest Rs. 50,000 in Debt Funds (SIP): Start a Systematic Investment Plan (SIP) in debt funds for regular income.

Invest Remaining in SCSS: Invest the remaining amount in SCSS for a good interest rate and safety.

Get a Senior Citizen Health Insurance Plan: Choose a health insurance plan that covers your needs and budget.

Remember:

Review Regularly: Review your investments and health insurance plan (at least annually) with your CFP to ensure they remain aligned with your needs.

Start Investing Early: Even a small amount invested regularly can grow significantly over time.

Emergency Fund: Maintain an emergency fund with 3-6 months of living expenses for unexpected situations.

By taking charge of your finances and getting proper health coverage, you can secure a brighter future for yourself!

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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |8265 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 18, 2024

Asked by Anonymous - May 14, 2024Hindi
Listen
Money
I am 62 year old, single person. I have my own home. I have a corpus of approx 2 cr. I will be retiring soon. I have mediclaim of 12 laks. Health wise i am good at present. I do not have pension. Suggestion requested for investment & medical expence planning.
Ans: Firstly, let me commend you on your diligent financial planning and prudent decision-making regarding your retirement. It's essential to have a clear strategy in place to ensure financial security and peace of mind during your retirement years. Let's explore some recommendations for investment and medical expense planning tailored to your unique situation.

Retirement Investment Strategy
Diversified Investment Portfolio:

Allocate a portion of your corpus to a diversified investment portfolio comprising a mix of equity, debt, and hybrid instruments.
Aim for a balanced approach that offers growth potential while mitigating risk, considering your age and risk tolerance.
Regular Income Streams:

Explore investment avenues that provide regular income streams to supplement your retirement expenses.
Consider options such as dividend-paying stocks, fixed deposits, and monthly income plans to ensure a steady cash flow post-retirement.
Tax-Efficient Investments:

Opt for tax-efficient investment options to minimize your tax liability and maximize your post-tax returns.
Utilize tax-saving instruments such as Senior Citizen Savings Scheme (SCSS), tax-free bonds, and equity-linked savings schemes (ELSS) to optimize your tax planning.
Medical Expense Planning
Comprehensive Health Insurance:

Review your existing health insurance coverage and ensure it adequately addresses your medical needs.
Consider upgrading to a comprehensive health insurance policy with higher coverage limits and additional benefits to safeguard against rising healthcare costs.
Emergency Fund Provision:

Set aside a portion of your corpus as an emergency fund to cover unexpected medical expenses or other contingencies.
Aim to maintain a liquid reserve equivalent to at least 6-12 months of your living expenses to provide financial security during emergencies.
Regular Health Check-ups:

Prioritize preventive healthcare by scheduling regular health check-ups and screenings to detect any potential health issues early.
Invest in your well-being by adopting a healthy lifestyle, including regular exercise, balanced nutrition, and stress management techniques.
Estate Planning Considerations
Will and Estate Distribution:

Consult with a legal advisor to draft a comprehensive will outlining your wishes regarding estate distribution and asset transfer.
Ensure that your will is updated regularly to reflect any changes in your financial or personal circumstances.
Beneficiary Designations:

Review and update the beneficiary designations on your investment accounts, insurance policies, and retirement accounts as needed.
Confirm that your chosen beneficiaries are accurately designated to facilitate smooth asset transfer in the event of your demise.
Conclusion
As you prepare for retirement, it's crucial to adopt a holistic approach to financial planning that addresses both investment and medical expense management aspects. By diversifying your investment portfolio, securing adequate health insurance coverage, and prioritizing preventive healthcare, you can enjoy a financially secure and fulfilling retirement. Additionally, estate planning measures will ensure that your legacy is preserved and your assets are distributed according to your wishes.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8265 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 28, 2024

Asked by Anonymous - May 28, 2024Hindi
Listen
Money
Hi..My name is Shiva and i am 49 years old..i have 35 lakhs in FD's which become 50 lakhs in 2028 and owning a 2bhk flat worth 30 lakh and some funds are invested in open plots which currently worth around 30 lakhs and nearly 16 lakhs are invested in insurance policies which would mature in 3 years from now..and has debt of 7.5 lakh of personal loan and i get 65 thousand as monthly salary with 10 lakhs in PF account. I am blessed with two sons..elder one completed graduation and is ready to do job now..and 2nd one is pursuing graduation 2nd year. I live in my own house and i get 10 thousand as rent monthly and i want to retire by taking health insurance worth 20/30 lakh per annum.please suggest...
Ans: Planning for Retirement at 49: A Comprehensive Guide
Shiva, your dedication to planning for a secure retirement is admirable. Let's develop a comprehensive plan that aligns with your financial goals and ensures a comfortable future for you and your family.

Current Financial Situation
Fixed Deposits: Rs 35 lakhs, maturing to Rs 50 lakhs by 2028
Property: 2BHK flat worth Rs 30 lakhs, generating Rs 10,000 monthly rent
Open Plots: Rs 30 lakhs
Insurance Policies: Rs 16 lakhs, maturing in 3 years
Debt: Rs 7.5 lakhs personal loan
Salary: Rs 65,000 per month
Provident Fund: Rs 10 lakhs
Financial Goals
Retirement at 60
Health Insurance Coverage: Rs 20-30 lakhs per annum
Managing Debts
Investment Growth
Investment Strategy
Surrendering Insurance Policies
Insurance policies often offer lower returns compared to other investment options. Consider surrendering them and reinvesting the proceeds in higher-yield investments.

Fixed Deposits (FDs)
FDs are safe but offer moderate returns. As your Rs 35 lakhs will become Rs 50 lakhs by 2028, consider diversifying some of this amount into other investment avenues.

Mutual Fund Investments
Benefits of Actively Managed Funds
Actively managed funds offer professional management, flexibility, and the potential for higher returns. They adapt to market conditions and aim to outperform benchmarks.

Diversifying Across Funds
Consider a mix of large-cap, mid-cap, and small-cap funds. This diversifies risk and enhances growth potential. Regular funds, managed by a Certified Financial Planner, provide personalized guidance and regular portfolio reviews.

Health Insurance
Securing a robust health insurance plan is crucial. A coverage of Rs 20-30 lakhs per annum ensures protection against unforeseen medical expenses. Evaluate different plans based on coverage, premiums, and network hospitals.

Debt Management
Paying off your Rs 7.5 lakh personal loan should be a priority. Consider using part of your insurance policy proceeds or fixed deposits to clear this debt. Reducing liabilities enhances financial security.

Emergency Fund
Maintain an emergency fund equivalent to six months of expenses. This ensures liquidity for unexpected financial needs. Utilize your fixed deposits and provident fund for this purpose.

Estate Planning
Ensure proper estate planning. Create a will and consider setting up a trust. This ensures smooth asset transfer and management in the future.

Children's Education and Career
With your elder son ready to start working and the younger one in graduation, their financial independence will soon reduce your financial burden. Encourage them to start investing early for their financial security.

Regular Reviews and Adjustments
Regularly review your investment portfolio and financial plan. Adjustments based on market conditions and life changes ensure you stay on track towards your goals. Consulting a Certified Financial Planner can provide valuable insights and guidance.

Conclusion
With strategic planning and disciplined investments, you can achieve your retirement goals. Diversify your investments, secure comprehensive health insurance, manage your debts, and regularly review your financial plan.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8265 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 18, 2024

Listen
Money
Hello Sir, My question - Male, Age is 29, Salary of Rs. 22000/- p.m., my expenses 6-8k p.m. (Approx), Current Investments: Mutual Funds 2k monthly, 3k RD monthly for 3 Yrs, what is suitable Health/Life/Term Insurance? ROI option for same? or Other Investment options? I have my father who got his pension & he manages our household Expenses.
Ans: You are 29 years old, with a stable monthly salary of Rs 22,000 and low monthly expenses of Rs 6,000–8,000. Your father’s pension covers household needs, giving you flexibility for investments. Current savings of Rs 5,000 per month (Rs 2,000 in mutual funds and Rs 3,000 in a recurring deposit) is a good start.

Priorities and Recommendations
1. Health Insurance
Health insurance is crucial to safeguard against medical emergencies.

Coverage for Self: Opt for an individual health insurance policy with a sum insured of Rs 5–10 lakh. Look for plans offering cashless treatment, comprehensive coverage, and no claim bonus.

Coverage for Family: If you wish to extend coverage for your parents, consider a family floater plan with Rs 10–15 lakh coverage. However, check premiums and benefits before including senior members.

2. Life Insurance
Term Insurance: A term plan is the most cost-effective option. Choose coverage of Rs 50 lakh to Rs 1 crore to secure your family financially. Premiums for a non-smoker male at your age are low (approximately Rs 5,000–7,000 annually for Rs 1 crore coverage).

Avoid investment-linked insurance policies such as ULIPs or endowment plans, as they offer low returns and inadequate insurance coverage.

3. Building an Emergency Fund
Save at least 6–9 months of expenses in a highly liquid instrument like a savings account, short-term fixed deposit, or liquid mutual fund.
Given your expenses of Rs 6,000–8,000, aim for Rs 50,000–70,000 as an emergency fund.
4. Investment Strategy for Growth
You have significant surplus income after meeting expenses. Allocate it to high-growth investment instruments:

Increase Mutual Fund SIPs:

Increase SIPs to Rs 5,000–6,000 monthly.
Diversify across flexi-cap, mid-cap, and small-cap funds for long-term growth. Suggested categories include:
Flexi-Cap Fund: For diversification.
Mid-Cap Fund: For higher returns over a long horizon.
Small-Cap Fund: Allocate a smaller percentage (10–15%) for aggressive growth.
Recurring Deposit (RD):

RD is low-yield and taxed. Consider redirecting RD savings into mutual funds or a Public Provident Fund (PPF) for better long-term returns and tax benefits.
Public Provident Fund (PPF):

Invest in PPF for a secure, tax-free return (current rate: 7.1%). It’s an excellent long-term savings tool, especially for retirement.
5. Tax Planning
Leverage Section 80C: Maximise Rs 1.5 lakh yearly investment in tax-saving instruments like PPF, ELSS mutual funds, or 5-year tax-saving fixed deposits.

Opt for a health insurance policy to claim benefits under Section 80D (up to Rs 25,000 for self and Rs 50,000 for senior parents).

Suggested Allocation of Rs 10,000 Monthly Surplus
Mutual Funds: Rs 5,000
PPF: Rs 2,500
Emergency Fund: Rs 2,000 (till the fund reaches Rs 50,000–70,000, then redirect to other investments)
Health Insurance Premium: Rs 500–1,000
Final Insights
Prioritise health and term insurance immediately.
Focus on mutual funds and PPF for long-term wealth creation.
Avoid low-ROI options like recurring deposits once current tenure ends.
By maintaining discipline and increasing investment amounts annually, you can achieve financial independence while ensuring your family is protected.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

Latest Questions
Nayagam P

Nayagam P P  |4448 Answers  |Ask -

Career Counsellor - Answered on Apr 20, 2025

Listen
My JEE main CRL rank is 37000 and and OBC rank is 10442 Will I get Electronics or Mechanical at tier 1 Nit's
Ans: Dear Tilak, Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide.

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile | Convert the Percentile to AIR, based on the Formula available in Google.
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.
Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...Read more

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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x