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Vipul

Vipul Bhavsar  |86 Answers  |Ask -

Tax Expert - Answered on Apr 24, 2025

Vipul Bhavsar is a chartered accountant from The Institute of Chartered Accountants of India. He has over 16 years of experience in corporate advisory, taxation and financial reporting.
His interest areas are consulting, income tax, GST and due diligence.
He founded his CA firm, V J Bhavsar and Associates, in 2010 through which he offers services like virtual CFO, trademark registrations, company /LLP formation, MIS reporting, audit, tax and TDS compliances, accounts receivable/payable management and payroll processing.... more
Asked by Anonymous - Apr 22, 2025
Money

66 old retiree for SWP for 50 lakhs for 15 years. Please suggest hiwbit works

Ans: Dear sir,
Pls explain your query
Asked on - Apr 24, 2025 | Not Answered yet
Hi I m retiring and have 50 lakhs to use it for future. Im 66 yealrs. Please suggest
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  |8482 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 15, 2024

Asked by Anonymous - Apr 13, 2024Hindi
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Hello sir can you suggest good option in swp to generate monthly income of 50k atleast in 15 years from now via sip
Ans: o generate a monthly income of 50k in 15 years through SWP (Systematic Withdrawal Plan), you'll need to build a sizable corpus. Here's a suggested approach:

Investment Strategy:

Start a SIP (Systematic Investment Plan) in equity mutual funds with a moderate to high-risk profile to build your corpus over 15 years.
As you near your goal, gradually shift a portion of your investments to debt funds or balanced funds to reduce volatility.
Corpus Calculation:

Using an average annual return of 10% (considering the market's historical average), you would need a corpus of approximately 1.6 crores to generate 50k per month through SWP.
SWP Selection:

Opt for SWP from balanced funds, debt funds, or a mix of both based on your risk appetite.
Ensure the SWP amount is not more than the fund's average returns to avoid depleting your corpus.
Tax Implications:

Remember that SWP from equity funds held for less than 3 years attracts short-term capital gains tax. Funds held for more than 3 years are taxed at 10% without indexation.
SWP from debt funds held for less than 3 years is added to your income and taxed as per your income tax slab. After 3 years, it's taxed at 20% with indexation.
Regular Monitoring:

Periodically review your SWP strategy and make adjustments based on market conditions, fund performance, and your financial needs.
Emergency Fund:

Maintain a separate emergency fund to cover 6-12 months of expenses to avoid premature withdrawals from your investment.
Remember, the above strategy is a general guideline. It's crucial to consult with a financial advisor to tailor the plan according to your financial situation, goals, and risk tolerance.

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Ramalingam

Ramalingam Kalirajan  |8482 Answers  |Ask -

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

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Good morning sir My self Erla srinivas age 50 years working in pharmaceutical company Having own flat in Hyderabad and no loans. Tax payer. My only one child is studying 9th standard EPF 20 lacs and having 5 Open plots Kindly suggest me after retirement fixed monthly income Regards Srinivas
Ans: Financial Assessment

Your financial situation looks good overall. Well done!
You have a stable job and own property. That's great.
Having no loans is excellent for financial health.

Current Assets

EPF savings of Rs. 20 lakhs is a good start.
Five open plots provide some diversification.
Owning a flat in Hyderabad adds to your assets.

Retirement Planning

We need to plan for steady income after retirement.
Your EPF and property can be part of this plan.
We should look at other investment options too.

Investment Strategy

Mutual funds can be a good choice for you.
They offer better liquidity than land plots.
Professional fund managers handle the investments.

Disadvantages of Plot Investments

Plots can be hard to sell quickly.
They need maintenance and may have legal issues.
Returns depend on location and market conditions.

Advantages of Mutual Funds

Easy to buy and sell units.
Professional management of your money.
Diversification across many stocks or bonds.
Regular income options are available.

Action Steps

Review your current expenses and future needs.
Start investing in mutual funds for retirement.
Consider selling some plots for more liquid assets.
Speak with a Certified Financial Planner for personalized advice.

Finally

Your financial base is strong. Good job!
With some changes, you can have a secure retirement.
Start planning now for a comfortable financial future.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8482 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 01, 2025

Asked by Anonymous - Mar 31, 2025Hindi
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I am having around 20 lakhs needs monthly income by investing in swp how to go ahead I am turning 60 next month.
Ans: You have Rs. 20 lakhs and want a steady monthly income using Systematic Withdrawal Plan (SWP). Since you are turning 60 next month, your investment must be structured for stability, tax efficiency, and longevity. Let’s analyze how to plan your SWP effectively.

Key Factors to Consider Before SWP
1. Expected Monthly Income and Longevity of Funds
SWP provides a fixed monthly withdrawal from mutual funds while allowing the rest to remain invested.

If the withdrawal rate is too high, the capital may deplete quickly. If it is too low, it may not meet your expenses.

You must balance growth, stability, and withdrawal rate to ensure the corpus lasts at least 20+ years.

2. Choosing the Right Type of Funds
Equity funds have higher growth potential but also come with market volatility.

Debt funds offer stability but have lower returns.

A hybrid approach (mix of equity and debt) can provide both growth and stability.

Funds with lower volatility and tax efficiency should be preferred.

3. Taxation on SWP Withdrawals
Equity-oriented mutual funds: Long-term capital gains (LTCG) above Rs. 1.25 lakh are taxed at 12.5%. Short-term gains are taxed at 20%.

Debt-oriented mutual funds: Taxed as per your income slab.

Step-by-Step Approach for SWP
Step 1: Allocate Funds Wisely
40% in Hybrid Funds: To balance growth and stability.

40% in Conservative Debt Funds: For low risk and steady income.

20% in Equity Funds: For long-term capital appreciation.

This mix ensures stability while keeping growth potential intact.

Step 2: Determine Withdrawal Rate
If you withdraw Rs. 10,000 per month, the corpus may last 25+ years with market-linked growth.

If you withdraw Rs. 15,000 per month, it may last 15-18 years.

A higher withdrawal rate shortens longevity of funds.

Step 3: Select the Right SWP Strategy
Withdraw from debt funds initially to allow equity funds to grow.

Keep one year’s expenses (Rs. 2-3 lakhs) in a liquid fund for emergency use.

Review SWP every year to adjust based on market performance and expenses.

Alternative Options for Steady Income
1. Dividend Payout from Mutual Funds
Some mutual funds offer regular dividends, but they are not guaranteed.

SWP is better than dividends as it provides controlled withdrawals.

2. Senior Citizens Savings Scheme (SCSS) and Monthly Income Schemes
SCSS offers 8-8.5% interest but has a 5-year lock-in.

Post Office Monthly Income Scheme (POMIS) gives fixed monthly income but lower returns.

These are safe but less flexible than SWP.

Final Insights
To get steady income, invest in a mix of hybrid, debt, and equity funds. Start SWP from debt funds first, then shift to equity and hybrid funds later. Withdraw at a sustainable rate to ensure funds last for 20+ years. Keep an emergency fund for safety. Avoid fixed-income schemes that limit flexibility. Review SWP yearly and adjust based on expenses.

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  |4699 Answers  |Ask -

Career Counsellor - Answered on May 21, 2025

Career
Sir, I have got 87% marks in mains. Please tell me a college where I can get a branch.
Ans: Aditi, Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main/Advanced 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
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.

Also, please have some other back-up options instead of relying only on JEE/JoSAA/NITs/IIITs/GFTIs.

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 and a bright 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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