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Ramalingam

Ramalingam Kalirajan  |7497 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 29, 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
Ashish Question by Ashish on Apr 29, 2024Hindi
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I am Ashish aged 52. I recently resigned from my job. At present i have following investments Rs 42 L shares 77 L Mutual Fund 25 L in PPF 15 L in one SBI insurance policy. I am expected to get 39 L from PF and gratuity. Also expected to get 22 Lakhs from LIC in 2030 and pension from LIC @ 2500/ per month from 2027. I do not have any loans nor my child education is pending. My son is appearing for CA finals. Only Group 1 of Finals is pending. My wife is a professional baker and is making around 40 K per month. My monthly expenses are 60 k. Pls guide how can i plan. At present i have 29 K SIP which i am planning to continue and is not included in 60 K expenses

Ans: Ashish, you've built a solid foundation with your investments and your wife's entrepreneurial spirit. It's admirable how you've planned ahead, especially with your son's education and your retirement in mind. Now, as you transition into this new phase of life, it's time to ensure your financial security. Have you considered diversifying your investments to spread the risk? And with your son's CA finals approaching, perhaps setting aside some funds for his future endeavors could provide peace of mind. Remember, life is a journey, and financial planning is just one part of it. Cherish the moments with your loved ones and embrace the changes that come your way. A Certified Financial Planner can help navigate this journey with expertise and care. Stay focused, stay resilient, and may your future be as fulfilling as your past achievements.
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  |7497 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 06, 2025

Asked by Anonymous - Jan 05, 2025Hindi
Money
I am 52 years Old .. PPF 65L NPS 20L(20K SIP) Demat 22L PPF 35L 2 bhk flat self owned 60L Villa 40L Liquid cash 15L Medical Insurance 20L One son in Xth One Son planning post graduation MS or MBA Monthly Income 2L Please guide in further planning
Ans: At 52, with a solid income and assets, planning further requires careful strategy. Your goals, such as funding your sons’ education and retirement, can be achieved with disciplined planning. Let’s evaluate your financial situation and provide actionable steps.

Understanding Your Financial Position
Income: Monthly income of Rs. 2 lakh provides room for disciplined saving.

Assets: You own significant assets including PPF (Rs. 65L + Rs. 35L), NPS (Rs. 20L), and Demat holdings (Rs. 22L).

Real Estate: Your self-owned flat (Rs. 60L) and villa (Rs. 40L) offer stability but limited liquidity.

Liquidity: Liquid cash (Rs. 15L) ensures emergency needs are manageable.

Insurance: Medical insurance coverage of Rs. 20L is reasonable.

Expenses: Two major upcoming expenses include funding one son’s postgraduate education and the other’s higher education.

Key Financial Goals
Children’s Education: Adequate funds for one son’s post-graduation (MBA/MS) and the other’s schooling.

Retirement Planning: Building a sustainable retirement corpus for financial independence.

Emergency Preparedness: Ensuring sufficient funds for unforeseen events.

Tax Efficiency: Optimising investments to reduce tax liabilities.

Funding Children’s Education
Postgraduate Education: Costs for an MBA/MS could range from Rs. 50L to Rs. 1 Cr.

Short-Term Investment: Allocate funds from PPF and liquid cash for education expenses.

Balanced Funds: Use balanced mutual funds for stable yet growth-oriented investments.

Systematic Withdrawals: Plan systematic withdrawals from investments to meet tuition timelines.

Retirement Corpus Planning
Current Retirement Savings: PPF (Rs. 65L + Rs. 35L), NPS (Rs. 20L), and Demat (Rs. 22L) total Rs. 1.42 Cr.

Target Corpus: A realistic target corpus could range between Rs. 3-5 Cr.

Mutual Funds: Begin a SIP to bridge the retirement corpus gap.

Diversification: Allocate funds across equity, balanced, and debt mutual funds.

NPS SIP: Continue Rs. 20K monthly SIP in NPS for tax benefits and retirement security.

Step-Up SIP: Increase SIP contributions annually to boost corpus growth.

Managing Existing Investments
PPF: This is a safe investment but offers moderate returns. Avoid over-concentration in PPF.

NPS: Continue contributions for retirement benefits and tax efficiency.

Demat Holdings: Review stocks for performance. Consider partial reallocation to mutual funds for diversification.

Liquid Cash: Retain Rs. 6-8L for emergencies. Invest the balance for higher returns.

Benefits of Actively Managed Funds Over Index Funds
Outperformance: Actively managed funds aim to deliver higher returns than the index.

Flexibility: Fund managers adapt strategies to changing market conditions.

Drawbacks of Index Funds:

Limited to market performance.
No scope for outperforming benchmarks.
Tax Implications of Mutual Fund Investments
Equity Funds:

LTCG above Rs. 1.25L taxed at 12.5%.
STCG taxed at 20%.
Debt Funds: Gains are taxed as per your income tax slab.

Tax-Optimised Investing: Use ELSS for tax savings under Section 80C.

Building an Emergency Corpus
Emergency Fund Size: Six months of expenses should be liquid and accessible.

Liquid Funds: Invest in liquid or ultra-short-term debt funds for emergencies.

Medical Insurance: Consider enhancing medical insurance cover to Rs. 50L.

Estate Planning
Will Creation: Draft a will to ensure smooth asset transfer to heirs.

Nomination Update: Ensure nominations are updated across all investments.

Succession Planning: Discuss with family and consider setting up a trust if required.

Actionable Steps for Further Planning
Increase Investments: Direct surplus income to SIPs for higher growth.

Annual Review: Review investments with a Certified Financial Planner annually.

Avoid Real Estate: Avoid further real estate investments as they reduce liquidity.

Goal Alignment: Align investments with specific goals for education and retirement.

Financial Discipline: Continue disciplined saving and avoid impulsive expenditures.

Final Insights
Your current financial position is strong, but there’s scope for optimisation. Focus on mutual funds for growth, diversify investments, and plan systematically for children’s education and retirement. Reviewing your portfolio regularly ensures alignment with your goals and enhances financial security.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

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Ans: Pursuing higher education at Anna University is a commendable goal, and there are several scholarships and support programs available to assist students from modest backgrounds. Some of these include the Tamil Nadu Government Scholarships, which provide financial assistance to cover tuition fees, the DHAANISH BC/MBC/DNC Scholarship, SC/ST Scholarship, Central Government Scholarships, AICTE Pragati Scholarship for Girls, and Institutional Scholarships at Anna University. The application process involves eligibility verification, documentation, application submission, and tracking deadlines. Additional support includes educational loans at subsidized interest rates for economically weaker sections and fee waivers for meritorious and needy students. It is advisable to regularly check Anna University and the Directorate of Collegiate Education, Tamil Nadu, for the latest updates on available scholarships and application procedures. Also please visit buddy4study website & explore, You will get a lot of inputs about Schoarhsips. All The BEST for Your Prosperous Future.

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Help Needed: Unable to Login to JEE Mains Portal Due to Mistaken DOB Entry Hello Everyone, I’m reaching out to seek advice and support from anyone familiar with handling issues on the JEE Mains portal. Despite entering my correct application details, I’ve been unable to log in to download my admit card, and I believe it’s due to a mistake I made during the application process. The Problem During registration, I mistakenly entered the wrong date of birth. My correct date of birth is 12/08/2008, but I accidentally entered 22/08/2008. Now, neither date works when trying to log in, and I keep getting the error message: "Invalid Application No or Date of Birth." My Details: Name: Shivam Srivastav Application Number: ...................... Registered Contact Number: ...................... Registered Email ID: ................. Request for Help If anyone has faced a similar issue or knows how to resolve this problem, please share your suggestions. I’ve already emailed the authorities but am waiting for a response. I’m also prepared to provide necessary documents, such as my Class 10th marksheet, to verify my correct date of birth. Any help or guidance would be highly appreciated! Thank you for your time and support. Warm Regards,
Ans: Satyam, First step: Verify the following right away: Any SMS on your Registered Mobile Number from NTA from the date you registered in the NTA portal; your Registered email Inbox for any mails from NTA from that date. There's more likely you missed it or the mails ended in SPAM/JUNK Folder.

The second step is visiting NTA Jee Main Website. Click Contacts US Menu. around 4-5 Helpline Numbers can be tried and also send REMINDER MAILS to all mail IDS supplied there from your Registered eMail ID, by providing the following information: (a) Your Application Number (2) Your Registered Mobile Number (3) The nature of the problem & (4) Scanned copy of your Class 10 Marksheet for your DOB proof.

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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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