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33-year-old with 1.5L income, own house, FDs, shares, and 15L loan: How to manage finance and build wealth?

Jinal

Jinal Mehta  | Answer  |Ask -

Financial Planner - Answered on Jul 26, 2024

Jinal Mehta is a qualified certified financial professional certified by FPSB India. She has 10 years of experience in the field of personal finance.
She is the founder of Beyond Learning Finance, an authorised education provider for the CFP certification programme in India.
In addition, she manages a family office organisation, where she handles investment planning, tax planning, insurance planning and estate planning.
Jinal has a bachelor's degree in management studies. She also has a diploma in in financial management from NMIMS, Mumbai.
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Asked by Anonymous - Jul 26, 2024Hindi
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Age 33, Need advise on how manage my finance and improve my wealth, earning 1.5 l per month, own a house worth 50 lakhs, FD of 3 lakhs, SGB 2.00 lakhs, Shares 1.00 lakhs, debt hosing loan 15 lakhs, having health insurance 5.00 lakhs, 2 children one studying 2nd STD and other is 3 yrs old. Need advice on term or retirement insurance needs. And how to invest my salary to accumulate substantial wealth

Ans: I understand retirement planning is important..but looking at the assets and your current situation, i feel that the health insurance is too low..please hike it..you may consider to buy a floater policy as well. Next, I feel that you have no plan for your childrens education. So that should not be ignored.

Ms. Jinal Mehta CFP
Founder

www.beyondlearningfinance.com
Asked on - Aug 13, 2024 | Not Answered yet
Increased my health cover to 10 lakhs. Please suggest how to set aside funds for children education? and other wealth improving strategy and where to invest
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  |8320 Answers  |Ask -

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

Asked by Anonymous - Jun 13, 2024Hindi
Money
Hi I am 35 years old, earning 1.20 lakh per month, fixed expense 40k per month. I have sip 13000 & ppf monthly i deposit 5000, nps monthly 4000, lic yearly 43000 premium. I have car laon of 11000/month,also having recurring deposit of 4000/month. I have fd of 1 lakh. Kindly suggest how can i manage my finance to reach goal of 3 crore by 50 years of age
Ans: I understand your desire to reach a goal of Rs 3 crore by the age of 50. You’re on the right track by investing regularly. Let’s assess your current financial situation and develop a strategy to achieve your goal.

Assessing Your Current Financial Situation
To create an effective plan, we first need to review your current financial commitments and investments.

Income and Expenses
Monthly Income: Rs 1.20 lakh
Fixed Expenses: Rs 40,000 per month
Existing Investments
SIP: Rs 13,000 per month
PPF: Rs 5,000 per month
NPS: Rs 4,000 per month
Recurring Deposit: Rs 4,000 per month
FD: Rs 1 lakh
Liabilities
Car Loan: Rs 11,000 per month
LIC Premium: Rs 43,000 annually
Calculating Available Funds
After accounting for your fixed expenses and loan repayment, let’s determine the available funds for additional investments.

Total Income: Rs 1.20 lakh
Total Fixed Expenses and Loan: Rs 40,000 + Rs 11,000 = Rs 51,000
Remaining Amount: Rs 1,20,000 - Rs 51,000 = Rs 69,000
You currently invest Rs 26,000 monthly (SIP + PPF + NPS + RD). This leaves you with Rs 43,000 for potential additional investments.

Evaluating Your Investment Portfolio
Your current investments are diversified across different instruments. Let’s analyze each one to optimize your portfolio.

Systematic Investment Plans (SIP)
Growth Potential: SIPs in mutual funds are good for long-term wealth creation.
Flexibility: Allows for periodic review and adjustment based on performance.
Recommendation: Consider increasing your SIP allocation to leverage the power of compounding.
Public Provident Fund (PPF)
Security: PPF is a safe investment with decent returns and tax benefits.
Lock-in Period: Has a 15-year lock-in period but offers partial withdrawals after 7 years.
Recommendation: Continue with PPF for its stability and tax advantages.
National Pension System (NPS)
Retirement Corpus: NPS is designed to build a retirement corpus with tax benefits.
Equity Exposure: Offers equity exposure for higher returns but has restrictions on withdrawals.
Recommendation: Continue NPS for retirement planning, but do not solely rely on it for your Rs 3 crore goal.
Recurring Deposit (RD)
Low Risk: RD offers low-risk returns but generally lower than equity investments.
Short-term Goal: Useful for short-term savings but not ideal for long-term wealth creation.
Recommendation: Evaluate the need for RD; consider redirecting funds to higher-return investments.
Optimizing Your Investment Strategy
To reach Rs 3 crore in 15 years, a well-structured investment strategy is essential.

Increasing SIP Contributions
Aggressive Growth: Increasing SIP contributions in equity mutual funds can help achieve higher returns.
Monthly Contribution: Consider increasing your SIP by an additional Rs 10,000 to Rs 15,000 per month.
Review Regularly: Monitor the performance of your SIPs and adjust as needed to stay on track.
Diversifying Investments
Equity Mutual Funds: Allocate a higher portion of your investments to equity mutual funds for growth.
Debt Funds: Maintain a portion in debt funds for stability and risk management.
Balanced Funds: Consider balanced or hybrid funds for a mix of growth and stability.
Utilizing Lump Sum Investments
FD Utilization: Use the Rs 1 lakh FD for emergencies or short-term needs; avoid premature withdrawal.
Lump Sum in Mutual Funds: Invest any additional savings or bonuses in mutual funds to boost your corpus.
Planning for Specific Goals
Your primary goal is to accumulate Rs 3 crore by the age of 50. Let’s break down the approach:

Goal-Based Planning
Define Goals: Clearly define milestones such as education, buying a home, or retirement.
Allocate Funds: Allocate investments based on the time horizon and risk appetite for each goal.
Track Progress: Regularly track progress towards each goal and make adjustments as necessary.
Child's Education
Separate Corpus: Create a separate corpus for your child’s education using child-specific mutual funds or education plans.
Time Horizon: Align the investment horizon with the expected timeline for education expenses.
Retirement Planning
NPS and PPF: Continue contributions to NPS and PPF for retirement security.
Equity Exposure: Increase equity exposure to achieve higher returns over the long term.
Emergency Fund: Maintain an emergency fund to cover unforeseen expenses without disturbing your investment plan.
Tax Planning and Savings
Effective tax planning can enhance your savings and investment returns.

Utilizing Tax Benefits
Section 80C: Utilize the Rs 1.5 lakh limit under Section 80C through PPF, NPS, and ELSS.
Section 80D: Avail tax benefits on health insurance premiums under Section 80D.
Tax-Free Returns: Prefer investments that offer tax-free returns to maximize post-tax income.
Regular Reviews
Annual Review: Conduct an annual review of your investments and tax planning.
Rebalancing Portfolio: Rebalance your portfolio to maintain the desired asset allocation and risk level.
Financial Discipline and Monitoring
Maintaining financial discipline is crucial to achieving your long-term goals.

Budgeting
Track Expenses: Keep a detailed record of your monthly expenses to identify areas of saving.
Reduce Unnecessary Spending: Cut down on discretionary spending to increase your investment potential.
Emergency Fund
Maintain Liquidity: Keep 6-12 months of expenses in a liquid fund to handle emergencies.
Avoid Debt: Use the emergency fund instead of incurring high-interest debt for unexpected expenses.
Final Insights
Reaching a goal of Rs 3 crore by the age of 50 is achievable with a disciplined and strategic approach. Increase your SIP contributions, diversify your portfolio, and regularly review and adjust your investments. Utilize tax benefits and maintain financial discipline to stay on track. With a focused and proactive strategy, you can achieve your financial goals and secure your future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8320 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Asked by Anonymous - Jul 14, 2024Hindi
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I am 50 years old and my salary is 47000. My husband warns 1.5 lacs but we are in a process of divorce. I have only daughter her educational expanses are borne by her father. Till now I am having full medical facility from ny husbands company but I dont know whether divorce will be finalized or not. If divorce happens I wont get his medical facilities. I had started mutual fund 4000 sip in SBI flexi cap fund. I have lumpsum of 130000 in multi cap fund. I have also started sip in sbi contra and large and micap fund. I jave 40000 in multicap and sbi sensex fund in a different folio. I have a RD of 15000 per month which will mature in 2025 April. I have fixed deposit of 250000. I have invested 1.5 lacs in DBS Stock broker agency which give me monthly 12000 interest. Again I have gold of about 8 lacs. I dont have house or a car. I want to have a comfortable retirement and also travel. My only expanse now is to pay the lawyer average 3k per month. My job travel cost is 5k per month.So how should I manage my wealth.
Ans: Current Financial Situation
You are 50 years old with a salary of Rs 47,000 per month.

Your husband earns Rs 1.5 lakhs per month, but you are in the process of getting a divorce.

Your daughter’s educational expenses are covered by her father.

You currently receive full medical coverage from your husband’s company.

You are unsure if you will retain these medical benefits post-divorce.

Investments and Savings
You have a SIP of Rs 4,000 in a flexi-cap mutual fund.

You have Rs 1,30,000 invested in a multi-cap fund.

You have SIPs in contra and large & mid-cap funds.

You hold Rs 40,000 in a multi-cap fund and a Sensex fund.

You have a recurring deposit (RD) of Rs 15,000 per month, maturing in April 2025.

You have a fixed deposit (FD) worth Rs 2,50,000.

You invested Rs 1,50,000 in DBS Stock Broker Agency, receiving Rs 12,000 monthly interest.

You own gold worth Rs 8 lakhs.

Expenses
Your average monthly lawyer fee is Rs 3,000.

Your job travel costs Rs 5,000 per month.

Goals
You aim for a comfortable retirement with the ability to travel.
Evaluation and Analysis
Diversified Investment Strategy
Your investment portfolio is diversified. You have SIPs in multiple funds, fixed deposits, and gold. This helps mitigate risks and ensures stability.

Mutual Fund Investments
Actively managed funds can outperform index funds due to professional management. Avoid direct funds, which might seem cheaper but lack expert guidance. Invest through a certified financial planner to maximize returns.

Fixed Deposits and Recurring Deposits
Fixed deposits and recurring deposits provide stability but offer lower returns compared to equity funds. Diversify further into equity to balance growth and security.

Stock Broker Investment
The Rs 1,50,000 investment yielding Rs 12,000 monthly interest is beneficial. However, ensure you understand the risks and sustainability of this return.

Gold Investment
Gold is a good hedge against inflation and adds to your diversified portfolio. Keep this investment as it provides liquidity in emergencies.

Recommendations
Emergency Fund
Maintain an emergency fund covering at least 6 months of expenses. Your FD and gold investments can act as a buffer, but consider keeping some liquid cash.

Health Insurance
Post-divorce, you might lose medical coverage. Secure a comprehensive health insurance plan for yourself. This will prevent financial strain due to medical emergencies.

Retirement Planning
Continue SIPs in actively managed funds for higher returns.

Increase SIP contributions if possible, especially in equity funds.

Consider diversifying into debt mutual funds for stability.

Evaluate the performance of your current funds annually and make necessary adjustments.

Travel Goals
Plan for travel expenses by setting aside a portion of your investments. Use the interest from your stock broker investment for travel, ensuring it doesn't impact your retirement corpus.

Legal Expenses
Manage legal expenses efficiently. Use part of your monthly income or interest from investments to cover these costs.

Final Insights
Your diversified investment strategy is commendable. Maintain this approach for balanced growth and stability.

Secure a health insurance plan post-divorce to safeguard against medical emergencies.

Continue and increase SIPs in actively managed mutual funds for higher returns.

Reevaluate your portfolio annually with a certified financial planner to stay aligned with your financial goals.

Set aside funds specifically for travel to enjoy a comfortable retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8320 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 02, 2024

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hello, my age is 31 year old married. wife is house wife and we have 1 year old daughter alo, i am freelance interior designer, architect from mumbai and earning aprroximate 1.25 lac per month and monthly expenses are approc 30000. i dont have any loan/ dept to pay. currently i have 15 lac in equity market, 10 lac in mutual funds monthly SIP 25000, 2lac in FD, 5lac of gold jewellary, 20 lac of health insurance and 20 lac of Life insurance. please send good planning to make wealth by the age of 50.
Ans: Current Financial Overview
Age: 31 years

Family: Married with a homemaker wife and a 1-year-old daughter

Profession: Freelance interior designer and architect

Location: Mumbai

Monthly Income: Rs 1.25 lakh

Monthly Expenses: Rs 30,000

Savings: Rs 95,000 per month

Existing Investments:

Rs 15 lakh in equity market
Rs 10 lakh in mutual funds
Rs 2 lakh in fixed deposits
Rs 5 lakh in gold jewellery
Rs 20 lakh health insurance
Rs 20 lakh life insurance
Financial Goals
Corpus Goal: Rs 5 crore in the next 12-15 years
Wealth Accumulation Goal: By age 50
Financial Strategy
Evaluation of Existing Investments
Equity Market: Rs 15 lakh

Equity investments earn high returns over a long period.
Invest in different sectors to minimize risk.
Mutual Funds: Rs 10 lakh with Rs 25,000 SIP on a monthly basis

One can continue investing through SIP in actively managed funds.
These funds would perform better than index funds as it is expertly managed funds.
Get the services of a CFP to select funds periodically.
Fixed Deposits: Rs 2 lakh

Fixed deposits offer safety but only ordinary returns.
Some of the money could be shifted to betterperforming instruments.
Gold Jewellery: Rs 5 lakh
Gold is an excellent hedge against inflation.
No more money needs to be put into gold as the returns are only good.
Health and Life Insurance: Rs 20 lakh each
Adequate coverage ensures financial security.
Review periodically to check on adequacy of coverage.
Optimising Investments
Increase SIP Amount:

The monthly SIP should be increased from Rs 25,000 to Rs 50,000.
Now, invest in a mix of large-cap, mid-cap and multi-cap funds.
Since actively managed funds have an added advantage in terms of the possibility of higher returns.
Diversify Equity Investments:

Sectors in which you can diversify your Rs 15 lakh equity investments.
You can add in blue-chip stocks for stability.
Invest in sectors that will grow significantly for better returns.
Emergency Fund:

Maintain emergency funding equivalent to 6 months to 12 months of expenditure.
Consider keeping Rs 3-5 lakh in liquid funds or saving bank accounts.
Regular Review:

Review your investment portfolio regularly.
Flow with the market and adjust by financial goals.
Shun Index Funds:

Index funds closely follow the market index and tend to be inferior to active funds
Active funds can adjust to changes in the market and deliver superior returns
Take the help of a Certified Financial Planner
Engage a CFP for customized investment plans
He helps with the right fund choices and portfolio management
Investment Planning for the Long-term
Systematic Transfer Plan (STP):

Get the help of STP to transfer money from low-risk to high return investments.
This will ensure gradual exposure to equity markets.
Child's Education and Future Needs:

Open a separate fund for the education of your daughter.
You can look at some mutual funds that are specifically for children or PPF.
Retirement Planning:

Start retirement planning through targeted investments.
Diversify into retirement-specific mutual funds with steady growth expectations.
Tax Planning:

Invest in tax-saving products such as ELSS mutual funds.
Save on taxes through deductions available under Section 80C.
Final Words
Monitoring Regularly: Track your financial goals and performance of your investments regularly.

Discipline in Savings: Save and invest Rs 95,000 every month regularly.

Avoid Low-Yield Investments: Avoid investing in low-return instruments like excessive fixed deposits.

Professional Guidance: Consult a Certified Financial Planner to optimize your investment strategy.

With these steps, you will be able to achieve your aim of creating a corpus of Rs 5 crore in a span of 12-15 years. A disciplined approach and expert guidance will ensure steady growth.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8320 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 12, 2025

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I leave my job just a month ago, m 41 year old . I have 66 lks in fd, 21 lks in post office scheme, 14 lks in ncd, 10 lks in ppf paying sip 4k till now , value now 23lks. Staying in my own home, 0 debt . 1 child age 9. Suggest me for my rest of life wealth management
Ans: You have built a strong financial foundation. You have zero debt, good savings, and own your home. This gives you a lot of financial security. Proper planning will ensure lifelong financial stability and growth.

Your current portfolio consists of fixed deposits, post office schemes, NCDs, and PPF. These are all low-risk investments. However, they may not generate enough returns for long-term wealth creation.

Below is a detailed plan to manage your wealth for the rest of your life.

Assessing Your Current Financial Position
Fixed Deposits (Rs 66 lakhs) – These provide safety but offer low returns. Interest is also taxable.

Post Office Scheme (Rs 21 lakhs) – These give slightly better returns than FDs but have lock-in periods.

NCDs (Rs 14 lakhs) – These offer fixed returns but are subject to credit risk.

PPF (Rs 10 lakhs, Rs 4,000 SIP, Value Rs 23 lakhs) – This is a safe and tax-free investment. It is good for long-term wealth building.

Debt-Free Status – This is a big advantage. You do not have any EMI burden.

One Child (9 years old) – You need to plan for education and future expenses.

Key Financial Goals to Plan For
Regular Monthly Income for Life – You need a steady cash flow for expenses.

Child’s Education & Higher Studies – Funds will be needed in the next 5–10 years.

Retirement & Medical Emergencies – You need funds to maintain your lifestyle and handle health costs.

Wealth Growth & Protection – Your wealth should grow and beat inflation.

How to Allocate Your Investments?
You need a balance between safety, returns, and liquidity. Below is a suggested allocation:

Emergency Fund (Rs 15 lakhs) – Keep this in a high-interest savings account and liquid mutual funds. It will cover unexpected expenses.

Fixed Income for Stability (Rs 30 lakhs) – Invest in a mix of corporate bonds and debt mutual funds. They offer better returns than FDs.

Equity Mutual Funds for Growth (Rs 30 lakhs) – Invest in actively managed large-cap, flexi-cap, and mid-cap funds. This will provide long-term wealth creation.

PPF Continuation (Rs 4,000 per month) – Continue investing in PPF. This will provide tax-free returns for retirement.

Child’s Education Fund (Rs 20 lakhs) – Invest in a mix of balanced advantage funds and large & mid-cap funds. This will provide steady growth for future education needs.

Why Not Fixed Deposits for Long-Term Growth?
Low Returns – FD rates do not beat inflation. This reduces purchasing power over time.

Taxable Interest – Interest earned is added to taxable income, reducing actual returns.

Limited Growth – Equity funds can provide higher returns over long periods.

Why Actively Managed Mutual Funds Over Index Funds?
Better Risk Management – Fund managers adjust portfolios based on market conditions.

Higher Growth Potential – Actively managed funds can outperform the market over time.

Downside Protection – Index funds fall in crashes, but active funds adjust to minimize losses.

Creating a Regular Monthly Income
Systematic Withdrawal Plan (SWP) – Invest in balanced advantage funds and debt funds. Withdraw monthly income as needed.

Dividend-Paying Mutual Funds – These funds provide periodic payouts. This can be part of your regular income strategy.

Fixed Income from Bonds & Debt Funds – This ensures stability and predictability.

Insurance & Healthcare Planning
Health Insurance (Rs 10–15 lakhs coverage) – Medical expenses can be high. A comprehensive health plan is necessary.

Term Life Insurance – If you do not have term insurance, get a policy to secure your child’s future.

Critical Illness & Accidental Cover – This provides extra protection against major health risks.

Final Insights
Keep an emergency fund for safety.
Invest in equity mutual funds for long-term growth.
Reduce reliance on FDs for better wealth creation.
Use a mix of debt and balanced advantage funds for stability.
Plan a systematic withdrawal for regular income.
Continue investing in PPF for tax-free wealth accumulation.
Get proper health and life insurance coverage.
With this plan, you can secure your financial future. Your wealth will grow while ensuring stability and cash flow.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

Latest Questions
Dr Nagarajan J S K

Dr Nagarajan J S K   |371 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on May 06, 2025

Career
Hello sir I have taken a 1 year drop for neet 2025 from pw online . But now I am scoring only 300 in neet .Now i am very confused what to do should I take one more drop or chose any option. This time i want to join offline coaching and really want to work hard but afraid that the coaching centre after knowing my marks will give me their worst batch so what should i do ?
Ans: Hi Ritika,
You mentioned that you scored only 300 in NEET. While we can't make any judgments until the official results are published, I must say that a score of 300 is quite low.

If you're planning to reappear for NEET, that's a good decision! However, I understand you might be worried about the coaching classes placing you in a less suitable batch. I recommend attending for 2 or 3 days while attending the coaching just follow the below instructions.

Make a list of the subjects and chapters you find challenging. Discuss these areas with your coaching faculty and aim to ask at least 15-20 questions daily to clarify your doubts and enhance your understanding. Additionally, request tips and tricks for each chapter so that you can put in a lot of effort to reach your goal.

Alternatively, you can prepare 10 questions on your own and seek answers from your coaching faculty. If you maintain this practice throughout the course, you'll build your confidence, and the coaching staff may consider changing your group due to your proactive approach in asking questions.

Through NEET, you can also pursue other medical-related courses such as BAMS, BSMS, BHMS, BYMS, BNYS, and BDS.

If you don’t have confidence in yourself, you might consider dropping NEET and exploring other courses. However, I encourage you to take one chance and follow my suggestions.

Additionally, if you are not already practicing yoga and meditation, I recommend starting. These activities can help you concentrate better and reduce distractions while studying.

Best of luck!
POOCHO. LIFE CHANGE KARO.

...Read more

Dr Nagarajan J S K

Dr Nagarajan J S K   |371 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on May 06, 2025

Career
Hlo I have taken a 1 year drop in 2024 for neet but i am scoring only 300 . Now I am so confused what to do I really want to crack neet and this time i want to join offline coaching but afraid that i can do it or not Please tell me what to do
Ans: Hi Ritika,
Good decision! Offline coaching is far better than online coaching because it allows you to focus on your studies more effectively.

You mentioned that you need to crack the exam, so here are some tips on how to do that:

First, identify which subjects and chapters you find challenging and make a list. Discuss these areas with your coaching faculty. Aim to ask at least 10 questions daily to clarify your doubts and enhance your understanding.

Alternatively, you can prepare 10 questions on your own and seek answers from your coaching faculty. If you maintain this practice throughout the course, you will build your confidence.

Additionally, if you are not practicing yoga and meditation, I recommend starting. These activities can help you concentrate better and reduce distractions while studying.

Best of luck!

POOCHO. LIFE CHANGE KARO.

...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.

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