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Ramalingam

Ramalingam Kalirajan  |8291 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 23, 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
Chirosunder Question by Chirosunder on Apr 22, 2024Hindi
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Sir/Mam, another answer i wanna get from you that if I want to invest rs.7500 for 12 years for getting pension 20 thousand per month through sip with swp then May i get 20k per month pension through out my life making a sip? If you give me a suggestion that how can I get 20k per month throughout my life by investing rs.7500 per month for 12 years.

Ans: Investing Rs.7500 monthly with the goal of securing a lifelong pension of Rs.20,000 requires careful planning. Using SIP with SWP (Systematic Withdrawal Plan) can be a strategy, but longevity risk (outliving your savings) is a concern. To aim for a sustainable pension, consider a mix of growth-oriented and income-generating investments. However, achieving a consistent Rs.20,000 monthly payout from a Rs.7500 SIP in 12 years might be challenging. A more realistic approach might involve increasing your investment amount or extending the investment horizon.
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  |8291 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 07, 2024

Asked by Anonymous - May 01, 2024Hindi
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I want to invested rs.9000 per month for 15 years to get a pension 25 thousand monthly. Where should I invested to Achieve my goal? If I do sip through swp then which fund will be good for me for achieving my goal?
Ans: To achieve your goal of receiving a monthly pension of 25,000 rupees after 15 years with an SIP investment of 9,000 rupees per month, we'll need to select suitable funds that offer growth potential while managing risk. Here's a suggested approach:

Investment Strategy:
Given your goal of creating a pension income, we'll focus on funds with a balanced approach that offer both growth potential and stability.
Investing in a combination of equity and debt funds can help optimize returns while managing risk over the long term.
Fund Selection:
Consider allocating your SIP investment across a mix of equity funds for growth potential and debt funds for stability.
Opt for funds with a track record of consistent performance and a strong portfolio management team.
SIP Through SWP:
You can structure your investment as an SIP followed by a Systematic Withdrawal Plan (SWP) to generate a regular income stream post-retirement.
Choose funds that offer the option for SWP and have historically provided steady returns with relatively low volatility.
Fund Recommendations:
For equity exposure, consider diversified equity funds or balanced advantage funds that invest in a mix of large-cap, mid-cap, and small-cap stocks.
For debt exposure, opt for short to medium-term debt funds or hybrid funds with a significant allocation to debt securities.
Risk Management:
Given your investment horizon of 15 years, you can afford to take a moderate level of risk.
However, it's essential to periodically review your portfolio and adjust your asset allocation based on market conditions and your risk tolerance.
Professional Advice:
Consult with a financial advisor or Certified Financial Planner to tailor an investment strategy that aligns with your goals, risk profile, and investment horizon.
A professional can help you select suitable funds, monitor your portfolio's performance, and make adjustments as needed to stay on track towards achieving your pension income goal.
By investing systematically and prudently over the long term, you can work towards building a corpus that will generate the desired monthly pension income of 25,000 rupees after 15 years. Remember to stay disciplined in your investment approach and regularly review your portfolio to ensure it remains aligned with your financial goals.

..Read more

Ramalingam

Ramalingam Kalirajan  |8291 Answers  |Ask -

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

Asked by Anonymous - Jul 13, 2024Hindi
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Hi I am 43 years old. I am regular investor in SIP. I invest 2lacs per month in SIP. My fund value will be approximately 6.5 cr in 5 years. If I would like to retire at after 5 years and need approximately 3 lacs per month as SWP for 25 years.. Can you please let me know how many years i can sustain with 6.5 cr.? or how much 6.5cr will grow if i dont withdraw lumpsum but only SWP of 3 lacs per month for 25 years.? Thank you.
Ans: Evaluating Your Retirement Plan
Let's evaluate your plan to ensure financial stability during your retirement.

Current Investments
SIP Investment: Rs. 2 lakhs per month
Expected Fund Value in 5 Years: Rs. 6.5 crores
Retirement Plan
Monthly SWP Needed: Rs. 3 lakhs
Retirement Duration: 25 years
Sustaining Rs. 6.5 Crores with SWP
Assuming an average annual return of 7% on your investments post-retirement, let's calculate how long your corpus will sustain with a monthly SWP of Rs. 3 lakhs.

Calculating SWP Sustainability
Starting Corpus: Rs. 6.5 crores
Monthly Withdrawal: Rs. 3 lakhs
Annual Return: 7%
Using these parameters, we can estimate the duration your corpus will last.

Growth of Rs. 6.5 Crores with SWP
Corpus at Start: Rs. 6.5 crores
Annual Withdrawal: Rs. 36 lakhs (Rs. 3 lakhs x 12 months)
Annual Return on Remaining Corpus: 7%
The remaining corpus will continue to earn returns even as you withdraw funds. Let's see how it grows.

Insights and Recommendations
Sustainability: With a 7% return, your corpus can sustain for approximately 25 years with the monthly SWP of Rs. 3 lakhs.
Growth: The corpus will not only sustain but also grow, depending on the actual rate of return.
Detailed Calculation
Starting Corpus: Rs. 6.5 crores
Annual Return: 7%
Monthly Withdrawal: Rs. 3 lakhs
Yearly Breakdown (First Few Years)
Year 1: Starting Corpus = Rs. 6.5 crores

Annual Return = Rs. 6.5 crores * 7% = Rs. 45.5 lakhs
Withdrawal = Rs. 36 lakhs
End Corpus = Rs. 6.5 crores + Rs. 45.5 lakhs - Rs. 36 lakhs = Rs. 6.595 crores
Year 2: Starting Corpus = Rs. 6.595 crores

Annual Return = Rs. 6.595 crores * 7% = Rs. 46.165 lakhs
Withdrawal = Rs. 36 lakhs
End Corpus = Rs. 6.595 crores + Rs. 46.165 lakhs - Rs. 36 lakhs = Rs. 6.69115 crores
This pattern continues, showing how the corpus grows despite withdrawals, assuming a stable return.

Final Insights
Sustainable Plan: Your current plan is sustainable if the investments yield around 7% annually.
Monitoring: Regularly review and adjust your investments to maintain the desired returns.
Diversification: Ensure your investments are well-diversified to manage risks.
This plan should provide you with financial stability during retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8291 Answers  |Ask -

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

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Hi Sir, Good morning. Hi I am 43 years old. I am regular investor in SIP. I invest 2lacs per month in SIP. My fund value will be approximately 6.5 cr in 5 years. If I would like to retire at after 5 years and need approximately 3 lacs per month as SWP for 25 years.. Can you please let me know how many years i can sustain with 6.5 cr.? or how much 6.5cr will grow if i dont withdraw lumpsum but only SWP of 3 lacs per month for 25 years.? Thank you.
Ans: Based on your follow-up question, here's a concise analysis:

Future Value of SIP Investment:

If you invest Rs. 2 lakhs per month for the next 5 years and expect your corpus to grow to approximately Rs. 6.5 crores, this assumes an estimated annual return rate of about 12-15%.
Systematic Withdrawal Plan (SWP):

You plan to withdraw Rs. 3 lakhs per month (which is Rs. 36 lakhs annually) for 25 years.
Sustainability Analysis:

Assuming an average annual return of 8% on your remaining corpus during the withdrawal phase:
After 25 years of withdrawing Rs. 3 lakhs per month, your corpus should ideally grow, considering that the returns may balance the withdrawals.
Using a financial calculator or retirement corpus calculator:

Initial Corpus: Rs. 6.5 crores
Monthly SWP: Rs. 3 lakhs (Rs. 36 lakhs annually)
Return Rate During Withdrawal: 8%
With the above parameters:

Your corpus of Rs. 6.5 crores can sustain the Rs. 3 lakhs monthly withdrawal for approximately 25 years while maintaining a positive balance due to the 8% return rate.
However, if the returns fluctuate or are lower, the sustainability period might reduce. It's always good to reassess periodically and adjust your withdrawals and investments accordingly.

Please consult a certified financial planner for customised plan.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Sir my daughter got 90% in jee mains she can get NIT cse course sir I. Am genral category
Ans: Miranalini Madam, Here is, How to Predict Your Daughter's 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 daughter's admission chances based on the previous year’s data.

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

Her JEE Main percentile
Her category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Her Preferred institute types (NIT, IIIT, GFTI)
Her 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 she is 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 her preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Her 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 both Home State (HS) i.e. State your daughter belongs to & also Other State (OS).
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, separately for HS & OS Categories for a quick reference.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Her 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 her 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 daughter's admissions!

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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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