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Ramalingam Kalirajan |7290 Answers |Ask -Follow

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

Asked by Anonymous - May 28, 2024Hindi

Money

SIR, I AM A BUSINESSMAN WITH ASSETS IN THE FORM OF LAND AND HOUSES EQUIVALENT TO Rs 15 CR I M 55 YEAR OLD WITH ONE DAUGHTER WHOSE MARRIAGE IS FIXED IN DEC 24 , MY WIFE IS ALSO A TEACHER AND HAS A FD OF 1CR MY CURRENT MONTHLY EXPENSES ARE 1.5 - 2 LAC PER MONTH NO HEALTH INSURANCE AND LIFE INSURANCE IS 1 CR WHICH WILL BE A GOOD AMOUNT IN WHICH WILL GIVE ME AND MY WIFE SAME OR BETTER LIFE STYLE IN ANOTHER 20 YEARS CONSIDERING INFLATION AND A SAFE INVESTMENT

Ans: Financial Planning for a Comfortable Retirement
Thank you for sharing your financial details. You have a solid foundation with significant assets and a fixed deposit. Let’s explore a strategy to ensure you and your wife maintain or improve your lifestyle for the next 20 years, considering inflation and safe investments.

1. Evaluating Your Financial Situation
You have assets worth Rs 15 crore in land and houses. Your wife has a fixed deposit of Rs 1 crore. Your monthly expenses are Rs 1.5 to 2 lakh.

2. Setting Financial Goals
Your goals include maintaining your lifestyle, funding your daughter’s marriage, and ensuring a comfortable retirement.

3. Importance of Health Insurance
First, consider getting comprehensive health insurance for you and your wife. Medical expenses can erode savings, so it’s crucial to have adequate coverage.

4. Secure Investment Options
For safe investments, consider the following:

a. Fixed Deposits and Bonds
Continue with fixed deposits for stable returns. Invest in high-quality bonds for additional safety and fixed income.

b. Senior Citizens' Savings Scheme (SCSS)
SCSS offers good interest rates and is a safe investment option for retirees.

c. Debt Mutual Funds
Invest in debt mutual funds for relatively safe returns. They are less volatile and provide better returns than traditional fixed deposits over the long term.

5. Systematic Withdrawal Plans (SWPs)
Invest a portion in mutual funds and opt for SWPs. This provides regular income and is tax-efficient.

6. Diversified Portfolio
Create a diversified portfolio balancing safety and growth. Allocate assets across fixed deposits, bonds, debt mutual funds, and some equity exposure for growth.

7. Inflation Consideration
Factor in inflation when planning. Your investments should grow faster than the inflation rate to maintain purchasing power.

8. Estate Planning
Ensure proper estate planning. Create a will and consider setting up a trust for seamless asset transfer and management.

Conclusion
With careful planning and prudent investments, you can maintain your lifestyle and ensure financial security. Consulting a Certified Financial Planner can help tailor a plan to your specific needs and goals.

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.

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Ramalingam Kalirajan |7290 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jun 11, 2024

Asked by Anonymous - Jun 07, 2024Hindi

Money

Hi I am 37 year old and wife is 33 yr old with a total earning of 4 lakh/month. We have a housing loan of 1.8cr, MF worth 10 lakh , PPF - 12 lakh , Life insurance - 20 lakh. Every yr we invest 1 lakh on MF , LIC & Insurance. We have 5 yr old daughter. Planning to retire at 55 with net worth of 10Cr & 1.5Cr for child education.

Ans: Comprehensive Financial Plan for Retirement and Child's Education
Understanding Your Current Financial Situation
You are 37 years old, and your wife is 33. Together, you have a monthly income of Rs 4 lakh. You have a housing loan of Rs 1.8 crore, mutual funds worth Rs 10 lakh, a PPF of Rs 12 lakh, and life insurance cover of Rs 20 lakh. Annually, you invest Rs 1 lakh in mutual funds, LIC, and insurance. You have a five-year-old daughter and plan to retire at 55 with a net worth of Rs 10 crore and Rs 1.5 crore for your daughter's education.

Setting Clear Financial Goals
Retirement Goal
You aim to retire at 55 with a net worth of Rs 10 crore. Considering an inflation rate of 6%, this corpus should be sufficient to support a comfortable lifestyle post-retirement.

Child's Education Goal
You need Rs 1.5 crore for your daughter's higher education. With education costs rising, starting early ensures you achieve this goal without financial strain.

Evaluating Current Investments
Mutual Funds
Your mutual fund portfolio is Rs 10 lakh, with an annual investment of Rs 1 lakh. Mutual funds are crucial for long-term growth due to their compounding benefits.

Public Provident Fund (PPF)
Your PPF balance is Rs 12 lakh. PPF offers safe, tax-free returns and should continue to be part of your portfolio.

Life Insurance
Your life insurance cover is Rs 20 lakh. Ensure this is adequate to cover any unforeseen events. Term insurance may provide higher coverage at lower premiums.

Analyzing Your Housing Loan
You have a substantial housing loan of Rs 1.8 crore. This loan represents a significant financial commitment. Ensure you manage this loan efficiently to avoid financial strain.

Current loan: Rs 1.8 crore
EMI: Calculate based on the interest rate and tenure to manage monthly cash flow effectively.
Enhancing Your Investment Strategy
Increasing Mutual Fund Investments
Mutual funds should form a significant part of your investment strategy due to their potential for high returns. Increase your annual SIP investments to Rs 5 lakh to build a substantial corpus.

Diversified Portfolio
Equity Mutual Funds: High growth potential; allocate 60% of your mutual fund investments here.
Debt Mutual Funds: Lower risk; allocate 20% for stability.
Hybrid Funds: Combine equity and debt; allocate 20% for balanced growth.
Systematic Investment Plans (SIPs)
Increase your SIPs to ensure a disciplined investment approach. A monthly SIP of Rs 40,000 can grow substantially over time.

Calculating Future Value of SIPs
Assuming a 12% annual return, a monthly SIP of Rs 40,000 over 18 years can accumulate a significant amount. Use an SIP calculator for precise future value calculations.

Disadvantages of Index Funds and Direct Funds
Index funds replicate market performance and may lack the potential for higher returns offered by actively managed funds. Direct funds require significant knowledge and time, which may not be suitable for everyone. Investing through a mutual fund distributor ensures professional management.

Utilizing Tax Benefits
Tax-saving Investments
Maximize contributions to tax-saving instruments like PPF, ELSS funds, and NPS. These provide tax deductions under Section 80C and additional benefits under Section 80CCD for NPS.

Efficient Tax Management
Review your investments for tax efficiency. Long-term capital gains on equities are taxed at 10% beyond Rs 1 lakh. Mutual funds provide tax-efficient growth compared to traditional savings.

Insurance Coverage
Adequate Life Insurance
Ensure you have adequate life insurance coverage. A term insurance plan provides high coverage at a low premium, securing your family's financial future.

Comprehensive Health Insurance
With a family of three, having comprehensive health insurance is crucial. Ensure your policy covers all family members and has a high sum insured to protect your savings from medical emergencies.

Planning for Child's Education
Child Education Fund
Start a dedicated education fund for your daughter. Invest in child-specific mutual funds or education plans that offer long-term growth. Starting early ensures a substantial corpus for her higher education.

Emergency Fund
Building a Safety Net
Maintain an emergency fund covering at least six months of expenses. This fund protects against unexpected financial challenges. Consider keeping this amount in a high-yield savings account or liquid mutual funds for easy access.

Managing Your Housing Loan
Efficient Loan Repayment
Consider prepaying your housing loan when possible to reduce the interest burden. Evaluate if refinancing options offer lower interest rates, helping manage EMIs effectively.

Retirement Planning
Creating a Retirement Account
Consider opening a retirement-specific account like the National Pension System (NPS). NPS offers tax benefits and helps build a retirement corpus with professional management. Invest regularly in this account for long-term growth.

Pension Plans
Explore pension plans that provide regular income post-retirement. These plans ensure a steady flow of income and financial security during retirement.

Building a Sustainable Retirement Corpus
Calculating Future Value
Using the earlier example, let’s calculate the future value of your current investments.

PPF: Rs 12 lakh + annual investments for 18 years at 7% = significant growth
Mutual Funds: Rs 10 lakh + Rs 40,000 monthly SIP for 18 years at 12% = substantial corpus
Equity Shares: Assuming 10% annual growth
Total estimated corpus needs to be regularly reviewed and adjusted based on market conditions and personal circumstances.

Regular Review and Rebalancing
Regularly review your investment portfolio. Market conditions and personal circumstances change over time. Rebalancing ensures your portfolio stays aligned with your goals.

Professional Guidance
Consult a Certified Financial Planner (CFP) for personalized advice. A CFP can help create a comprehensive financial plan tailored to your goals. They offer professional insights and strategies to achieve your retirement and education objectives.

Final Insights
Achieving your retirement goal of Rs 10 crore and Rs 1.5 crore for your daughter's education requires disciplined saving and investing. Regularly review and adjust your financial plan. Focus on long-term growth and tax efficiency. With careful planning, you can retire at 55 with financial security and peace of mind.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |7290 Answers |Ask -Follow

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

Asked by Anonymous - Aug 02, 2024Hindi

Money

I am 42 years and work with an autonomous R&D institute. My gross annual salary is 38 Lakhs. My wife is a Govt school teacher and her gross salary is 13 Lakhs per annum. No loans. We have PMS investment of 60 Lakhs which is appreciated to 85 Lakhs. Mutual fund portfolio of 60 Lakhs personal equity portfolio of 30 Lakhs. Monthly SIP in equity MFs is 60k and 35k in NPS, SSY, PPF schemes. I have accumulated PF of 35 Lakhs superannuation fund of 15 Lakhs. My personal NPS amount is 13 Lakhs and my Wife's NPS portfolio is 20 Lakhs. We own house worth 85 Lakhs and agriculture land of 20 acres. I have term insurance of 1.0Cr, LIC policies of 20 Lakhs and medical family cover of 20 Lakhs over and above office insurace Our goal is early retirement with good quality of life and fund my daughters dream of medical studies in Germany

Ans: You and your wife have a solid financial foundation. Your combined gross annual income is Rs. 51 lakhs. You have diversified investments across various asset classes, including PMS, mutual funds, personal equity, NPS, and traditional schemes like PPF and SSY.

Your current assets include:

Rs. 85 lakhs in PMS (from an initial Rs. 60 lakhs investment)
Rs. 60 lakhs in mutual funds
Rs. 30 lakhs in personal equity portfolio
Rs. 35 lakhs in accumulated PF
Rs. 15 lakhs in superannuation fund
Rs. 13 lakhs in your NPS account
Rs. 20 lakhs in your wife’s NPS account
House worth Rs. 85 lakhs
20 acres of agricultural land
You have secured your family with:

Term insurance of Rs. 1 crore
LIC policies worth Rs. 20 lakhs
Medical cover of Rs. 20 lakhs, in addition to office insurance
Your monthly SIP investments in equity MFs are Rs. 60,000, and Rs. 35,000 in NPS, SSY, and PPF.

Setting Clear Goals
Your primary goals are early retirement with a good quality of life and funding your daughter’s dream of medical studies in Germany.

Early Retirement: Early retirement requires careful planning. You must ensure that your investments can sustain your lifestyle for the rest of your life. Your monthly SIPs are a good start, but more focused planning is needed.

Daughter’s Education: Medical studies in Germany will require a significant amount of money. The costs include tuition, living expenses, and other related costs. You need to build a separate corpus to ensure you are well-prepared.

Evaluating Your Current Investments
PMS Investment: Your PMS has grown from Rs. 60 lakhs to Rs. 85 lakhs. This is a substantial appreciation. PMS investments are generally more volatile, so it’s important to assess whether this fits your risk tolerance and goals.

Mutual Funds and Equity Portfolio: Your mutual fund portfolio of Rs. 60 lakhs and personal equity portfolio of Rs. 30 lakhs show that you have a strong equity exposure. However, you should regularly review the performance of these investments and adjust them based on your goals and market conditions.

Traditional Investments: Your investments in PPF, SSY, and NPS are stable and secure. They provide a safety net, but the returns are generally lower compared to equity investments. You need to balance these with your equity investments for growth.

Real Estate and Agriculture Land: Owning a house and agricultural land adds to your wealth, but they are illiquid assets. You cannot rely on them for regular income or emergencies without selling them. It’s important to keep this in mind while planning your retirement.

Building the Right Strategy for Early Retirement
Diversify Your Portfolio: While you have a good mix of assets, you might want to diversify further. Consider adding international equity funds, sectoral funds, or other asset classes like gold or commodities. This can help in mitigating risks and enhancing returns.

Increase SIP Contributions: Your current SIPs of Rs. 60,000 per month are good, but given your goal of early retirement, you may need to increase your SIP contributions over time. This will help you build a larger corpus by the time you retire.

Focus on Growth Funds: Since you have a long-term horizon, focus on growth-oriented funds. These funds have the potential to deliver higher returns over the long term. Avoid conservative funds unless you are close to your retirement age.

Review and Rebalance: Regularly review your investment portfolio. Market conditions and your financial situation may change, and it’s important to rebalance your portfolio accordingly. This ensures that your investments remain aligned with your goals.

Tax Efficiency: Maximise your tax savings by investing in tax-efficient instruments. Since you and your wife are in high-income brackets, this will help you retain more of your earnings. Consider ELSS funds, NPS, and other tax-saving options.

Planning for Your Daughter’s Education
Separate Corpus for Education: It’s crucial to have a separate investment plan for your daughter’s education. This will ensure that her education funds are not affected by market fluctuations or other financial needs.

Estimate Costs: Estimate the total cost of medical studies in Germany, including tuition fees, living expenses, and other related costs. This will give you a clear target to aim for.

Start Early: The earlier you start investing for this goal, the better. You have the advantage of time, which allows you to benefit from compounding returns.

Consider Global Funds: Since the goal involves studying abroad, consider investing in international funds. This will give you exposure to foreign currencies and markets, which can be beneficial if the rupee depreciates.

Regular Contributions: Make regular contributions to this corpus. You can set up a separate SIP specifically for this goal. Ensure that this amount is kept aside and not used for other expenses.

Managing Risk and Insurance
Adequate Insurance: Your term insurance of Rs. 1 crore is a good safety net. However, given your goals and financial responsibilities, you might want to reassess the coverage. Ensure that it is enough to cover your family’s needs in case of any eventuality.

Medical Insurance: Your medical cover of Rs. 20 lakhs is good, but with rising healthcare costs, you may want to consider increasing it. A critical illness rider or a top-up plan can provide additional coverage.

LIC Policies: Your LIC policies worth Rs. 20 lakhs provide additional security, but you should evaluate the returns they are offering. If the returns are lower than your other investments, consider whether these policies are worth continuing.

Emergency Fund: Ensure that you have a sufficient emergency fund. This fund should cover at least 6-12 months of your household expenses. It will provide you with liquidity in case of emergencies.

Preparing for Retirement
Estimate Retirement Needs: Calculate how much you will need to maintain your lifestyle after retirement. Consider inflation, healthcare costs, and other expenses. This will give you a clear idea of the corpus you need to build.

Invest in Retirement-Oriented Funds: Consider investing in funds that are specifically designed for retirement. These funds balance risk and return and are tailored for those nearing retirement.

Avoid Early Withdrawals: Avoid withdrawing from your retirement corpus unless absolutely necessary. Early withdrawals can significantly reduce the amount you have at retirement.

Plan for Healthcare: Healthcare costs are a significant concern in retirement. Ensure that you have adequate health insurance and a healthcare plan in place.

Consider a Phased Retirement: If possible, consider a phased retirement where you reduce your working hours gradually. This allows you to ease into retirement while still earning an income.

Finally: Key Takeaways
Review and Adjust Regularly: Your financial situation and goals will evolve over time. Regularly review your investments and adjust them as needed.

Prioritise Goals: Focus on your most important goals, such as retirement and your daughter’s education. Allocate your resources accordingly.

Stay Disciplined: Stay disciplined with your investments. Avoid making impulsive decisions based on market movements or short-term trends.

Seek Professional Guidance: While you have a solid understanding of your finances, it’s always helpful to seek guidance from a certified financial planner. They can provide you with personalised advice and help you stay on track.

Enjoy the Journey: Lastly, remember to enjoy the journey. Financial planning is not just about the destination but also about making the most of the present.

By following these strategies, you can achieve your goals of early retirement and funding your daughter’s education with confidence. Stay focused, disciplined, and keep reviewing your plan to ensure you’re on the right path.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

Ramalingam Kalirajan |7290 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Nov 26, 2024

Asked by Anonymous - Nov 25, 2024Hindi

Money

Name Anoynomous..Current Age 55, Retirement age 60,Wife and daughter dependent as daughter is autistic but completed her MA in economics Current Position PPF :- 60 lakhs EPF/ Superannuation/Gratuity :- 80 lakhs CSGL :- 66 lakhs Two houses Bought and on rent :- Rent around 39,000/- pm One House inherited :-Self occupied FDR in wife name :- 50 lakhs Equity Investment value :- 1.9 crores Medical insurance for self and wife :- 50 lakhs Current expenses including insurance premium :- 94,000/- pm, at 65 the insurance premium shall reduce by Rs 35,000/- per month Current salary in hand :- 1,45,000/- pm Mutual fund :- Five lakhs After sixty till I am seventy-five should get Rs 3 lakhs per annum from my LIC policies Likely pension :- Rs 4500 per month Is this enough to maintain current lifestyle and what more should be done?

Ans: Your financial portfolio is robust, with a mix of fixed income, equity, real estate, and insurance. Given your current lifestyle, dependents, and specific needs, a detailed evaluation is necessary. The goal is to ensure your family’s financial security while sustaining your lifestyle after retirement.

Assessing Your Current Financial Status
PPF and EPF/Superannuation: Rs 60 lakhs in PPF and Rs 80 lakhs in EPF provide a stable foundation.

CSGL Investments: Rs 66 lakhs adds significant fixed-income security.

Real Estate Rental Income: Rs 39,000 monthly rent is a steady and inflation-linked source of income.

Equity Portfolio: Rs 1.9 crores in equities ensures long-term growth potential.

Mutual Fund Investments: Rs 5 lakhs offers diversification, though the amount is currently modest.

FDR in Wife’s Name: Rs 50 lakhs ensures a safety cushion for emergencies.

Medical Insurance: A Rs 50 lakh cover is commendable and provides robust health security.

Key Observations and Challenges
Current Expenses: Rs 94,000 monthly is significant, but it aligns with your income.

Retirement Income Gaps: Post-retirement income from pension (Rs 4,500) and LIC (Rs 3 lakhs annually) seems inadequate.

Inflation Impact: Current expenses will rise over time due to inflation. Adjusting for this is essential.

Autistic Daughter’s Needs: Planning for your daughter’s long-term care and security is critical.

Steps to Ensure Financial Sustainability
1. Build a Sustainable Withdrawal Plan
Corpus Utilisation: Use the PPF, EPF, and CSGL corpus strategically to generate monthly income.

Systematic Withdrawal Plan (SWP): Set up an SWP from your equity and mutual fund investments. Withdraw a fixed amount monthly to supplement income.

Segregate Corpus for Short and Long-Term Goals: Allocate funds for immediate needs, medium-term needs, and your daughter’s long-term security.

2. Increase Equity and Mutual Fund Exposure
Expand Equity Investments: Allocate a portion of your fixed deposits and PPF maturity to equity mutual funds for inflation-beating returns.

Balanced Funds for Safety: Invest in balanced or hybrid funds to reduce risk while achieving moderate growth.

Active Fund Management: Work with a Certified Financial Planner to choose funds that outperform passive investments over the long term.

3. Create a Contingency Reserve
Emergency Fund: Maintain at least 12 months' expenses (approx. Rs 12 lakhs) in a liquid fund or FDR. This ensures liquidity during emergencies.

Insurance Cover: Consider a family floater top-up plan or critical illness cover to address rising healthcare costs.

4. Plan for Your Daughter’s Long-Term Security
Trust Creation: Create a trust or a will for your daughter to manage funds for her lifetime security.

Designate Beneficiaries: Clearly define your daughter as a nominee in your investments and insurance policies.

Systematic Allocation: Set aside a fixed corpus in safer instruments, such as debt mutual funds or bonds, dedicated to her needs.

5. Optimise Tax Efficiency
Tax on Withdrawals: Be aware of tax implications on mutual fund SWP and other investments. Plan withdrawals to minimise tax outgo.

Rebalance Portfolio: Shift investments into tax-efficient instruments like equity mutual funds, which have a lower long-term tax rate.

Rent and Capital Gains: Declare rental income and manage gains on real estate sales strategically to stay tax compliant.

6. Utilise Insurance and Pension Benefits Wisely
LIC Policies: Rs 3 lakhs annually is a valuable income source. Invest this further if not needed for immediate use.

Pension Maximisation: Explore ways to increase pension contributions until retirement, if possible.

Health Insurance Costs: The reduction in premiums post-65 will ease your cash flow.

Financial Projections Post Retirement
Annual Expenses at 60: Adjust current expenses for inflation. At 6% inflation, Rs 94,000 will become Rs 1.25 lakhs monthly by 60.

Expected Income at 60: Add rental income (Rs 39,000), LIC (Rs 25,000 per month), and pension (Rs 4,500).

Gap Coverage: Supplement the shortfall through SWP from your existing corpus.

Long-Term Growth: Allow your equity investments to grow untouched for the first 5-7 years post-retirement to accumulate wealth.

Final Insights
Your current portfolio is impressive and provides a strong financial foundation. However, aligning your investments with future goals and inflation is critical. Structured withdrawal plans, increased equity exposure, and efficient tax management are essential. Focus on securing your daughter’s financial future through dedicated funds and legal instruments like trusts or wills. Regular reviews with a Certified Financial Planner will ensure you stay on track.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

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

Ramalingam Kalirajan |7290 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Nov 29, 2024

Question by Avinash - Nov 29, 2024Hindi

Money

Sir My Age is 38 Now. Running Business In Pune city. Below are the My Assets & Liabilities. Current Values - Assets. Own Industrial Plot - Rs. 2.0 Cr, Business Income Yearly Rs. 24.00 Lack, Own Company Investment ( Machinery, Debtors Etc ) - Rs 2.40 Cr, Mutual Fund & Share Market Investment Rs. 2.10 Cr, Bank FD - Rs. 50.00 Lack, Own 3 Flats in Pune - Rs. 75 lack, 50 Lack & 35 Lack ( Current Values ), Golds - Rs. 25.00 Lack, Land - Agriculture - Rs. 20.00 Lack, Term Insurances - Rs. 20.00 Lack ( Till Date Premium Paid ) Labilities. House Loan - Rs. 30.00 Lack ( EMI 26500.00 PM ) Loan will close after 17 years. Car Loan - Rs. 6.35 lack ( EMI 12500.00 PM ) Loan will close after 5 years. This Assets & investment sufficient for maintain 7 family members Expenses after retirement ? ( 4 Adult + 3 Children (Below 5 Years) ). I will retire at the age of 45.

Ans: Your financial position is commendable, with diverse investments and significant assets. Let's carefully evaluate your portfolio and determine its adequacy for retirement.

Assets Evaluation
Industrial Plot: The industrial plot adds stability to your portfolio. However, it may not generate regular income.

Business Income: Rs. 24 lakh yearly income supports both savings and current expenses. However, this income will stop after retirement.

Company Investments (Machinery, Debtors, etc.): Rs. 2.4 crore in business assets holds potential but depends on liquidity. Ensure your business succession plan is well-structured.

Mutual Funds and Stock Market Investments: Rs. 2.1 crore in equity investments offers excellent growth potential. A well-diversified portfolio aligned with your goals is crucial.

Bank Fixed Deposits: Rs. 50 lakh provides safety but generates lower returns. This can be retained for emergencies or short-term needs.

Real Estate (3 Flats): Your flats have a combined value of Rs. 1.6 crore. Rental income post-retirement can support your expenses.

Gold: Rs. 25 lakh in gold acts as a hedge against inflation. Gold is a strong reserve asset but not an income-generating one.

Agricultural Land: Rs. 20 lakh in agricultural land may have limited liquidity. Future appreciation depends on market conditions.

Term Insurance: Rs. 20 lakh in term insurance offers coverage but is not an investment.

Liabilities Evaluation
House Loan: Rs. 30 lakh house loan with 17 years remaining. This liability will continue into retirement unless paid early.

Car Loan: Rs. 6.35 lakh car loan with five years remaining. Manage this liability to avoid cash flow pressure.

Retirement Planning Considerations
Expenses for 7 Members: Your family size increases post-retirement costs. This includes education and healthcare for children and adults.

Retirement Age of 45: Early retirement reduces your working years and increases the time funds need to last.

Inflation Impact: Rising costs of living must be considered for a long retirement period.

Corpus Utilisation: Your existing investments need to generate regular post-retirement income while growing to beat inflation.

Suggestions for Asset Allocation
Equity Investments: Continue equity investments in mutual funds and stocks for growth. Consolidate under-performing funds and consider active funds for better returns.

Real Estate Management: If rental income is not substantial, consider selling underperforming properties. Reinvest proceeds into diversified financial instruments.

Emergency Fund: Maintain Rs. 6-8 lakh in liquid funds or FDs for unforeseen expenses.

Loan Repayment Strategy: Prepay car and home loans with surplus funds to reduce interest outflow.

Gold and Agricultural Land: Retain as reserves but avoid additional allocation here.

Business Continuity Plan: Create a clear succession plan to ensure business sustainability. This will protect your assets and provide stability.

Additional Recommendations
Mutual Fund Review: Diversify across large-cap, mid-cap, and balanced funds. Avoid excessive exposure to one category.

Life Insurance Review: Ensure your term insurance covers at least 10-15 times your annual income. Consider increasing coverage for better security.

Health Insurance: Cover all family members with adequate health insurance. Opt for a Rs. 20-25 lakh family floater plan.

Children’s Education and Marriage: Start dedicated investments for these goals using equity mutual funds for long-term growth.

Retirement Corpus Calculation: Target a corpus that generates Rs. 3 lakh monthly. Include inflation-adjusted returns and expenses.

Creating a Retirement Income Plan
Systematic Withdrawal Plan (SWP): Invest a portion of equity funds in debt-oriented SWP to generate regular income.

Rental Income: Generate steady rental income from real estate properties to cover a portion of expenses.

Debt Funds: Allocate a portion to debt funds for stable returns. This helps balance equity risks.

Dividend Yield Stocks: Invest in high-dividend stocks for a regular income stream.

Periodic Portfolio Review: Monitor and adjust your portfolio annually to align with changing goals and market conditions.

Final Insights
Your current assets and investments are significant. However, early retirement requires careful planning. Focus on prepaying loans and optimising investments. Protect your family with adequate insurance and create a robust retirement income plan.

With disciplined investments and adjustments, your goal of retiring at 45 is achievable.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Latest Questions

Dr Nagarajan Jsk |183 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Dec 21, 2024

Asked by Anonymous - Nov 19, 2024Hindi

Career

Hello sir I am mbbs graduated from russia in 2020,n passed with my fmge exam in india in 2021, I want to ask if i want to practice medicine or work as doctor in uk ? Is it necessary for me to pass plab exam exam? Or if i get sponsorship from any uk i will be able to work there and simultaneously i will give plab exam?? Please guide me i m so confused?

Ans: Hi, I understand that you pursued a medicine course in Russia (a non-European country) and, since you are from India, you have completed the FMGE. Now you want to practice or work in the UK as a doctor?

Based on your question, you are eligible to practice in India after completing your internship (which you haven't mentioned, but I assume you have completed it). The FMGE is essentially a licensure exam for Indian students who have completed their medical studies abroad, so you are eligible to practice in India only.

If you want to practice medicine in the UK, you need to complete the PLAB test, as you are from outside the UK/Switzerland/European countries (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland).

You also inquired about sponsorship. Here is the information related to sponsorship for practicing medicine in the UK.
(Extracted from general medical council, uk org. )Applying for registration using sponsorship
If you apply through sponsorship, you will have to satisfy the sponsor that you possess the knowledge, skills and experience required for practising as a fully registered medical practitioner in the UK. Each sponsor has their own scheme which we have pre-approved. If you can satisfy the requirements of their scheme, they will issue you with a Sponsorship Registration Certificate (SRC) which you will need for your application with us. Please ensure this is a Sponsorship Registration Certificate for GMC registration, as we can’t accept UK visa sponsorship certificates for your application for registration.
Please note that a core part of all sponsors' criteria is that a doctor applying for an offer of sponsorship must have been engaged in medical practice for three out of the last five years including the most recent 12 months. If you cannot meet these minimum criteria, it is unlikely that you'll be able to supply sufficient evidence to support your application for sponsorship.
Doctors applying through sponsorship are required to demonstrate their English language skills by achieving our current minimum scores in the academic version of the IELTS test or the OET (medicine version).
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• BAPIO Training Academy Ltd – BTA International Fellowship Scheme
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• BAPIO Training Academy Ltd - BTA International Fellowship Scheme – Internal Medicine with interest in Oncology with MSc in Oncology
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• Birmingham and Solihull Mental Health NHS Foundation Trust - International Medical Fellowship Programme in Psychiatry (Birmingham)
• Birmingham Women’s and Children’s Hospital – Birmingham Women’s and Children’s International Medical Graduate sponsorship scheme
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• Cambridge IVF, Cambridge University Hospitals NHS Trust – IVF Senior Clinical Fellowship Scheme
• Cambridge University Hospital – Senior Clinical Fellowship Scheme in Intensive Care Medicine/Anaesthesia
• Canterbury Christ Church University
• Cumbria Northumberland Tyne and Wear NHS Psychiatry Fellowship Programme
• Derbyshire Healthcare NHS Foundation Trust - International Medical Fellowship Programme in Psychiatry
• Dudley Group NHS Foundation Trust
• East Lancashire Hospitals NHS Trust - Clinical Fellowship in Urology or Ophthalmology
• East Lancashire Hospital NHS Trust - Specialist Clinical Fellowship in Pain Management
• East London NHS Foundation Trust (ELFT) – ELFT Advanced International Fellowship in Psychiatry
• East Suffolk and North Essex NHS Foundation Trust – ICENI Centre Fellowships Programme
• Edge Hill University and Wrightington, Wigan and Leigh NHS Trust – International Training Fellowships in MCh programmes
• ENT UK – Royal College of Surgeons
• Essex Partnership University NHS Foundation Trust – EPUT Advanced Fellowship in Psychiatry
• Frimley Health NHS Foundation Trust – International Fellowship in Regional Anaesthesia combined with MSc in Principles of Regional Anaesthesia at the University of East Anglia
• Great Ormond Street Hospital International Fellowship Programme
• Guy's and St Thomas' Hospitals NHS Foundation Trust – Critical Care
• Guy’s and St Thomas’ NHS Foundation Trust – International Clinical Fellowship Programme (ICFP)
• Guy's and St Thomas' Hospitals NHS Foundation Trust – Obstetrics and Gynaecology
• Guy’s and St Thomas’ NHS Hospitals Foundation Trust – Oncology Specialty Training
• Guy's and St Thomas' NHS Hospitals Foundation Trust – Specialty Training in Anaesthetics
• Harefield Hospital, Royal Brompton and Harefield NHS Trust – Anaesthesia and Critical Care
• Hertfordshire Partnership University NHS Foundation Trust
• Hull University Teaching Hospitals NHS Trust – International Fellows at Hull University Teaching Hospitals NHS Trust
• Humber Teaching NHS Foundation Trust - Sponsored International Fellowship Scheme in Psychiatry
• Imperial College Healthcare NHS Trust – Emergency Medicine
• Imperial College Healthcare NHS Trust – Haematology
• Imperial College Healthcare NHS Trust – International Anaesthesia Trainees
• Imperial College Healthcare NHS Trust – Intensive Care Medicine
• Imperial College, London - Clinical Research
• King’s College Hospital NHS Trusts – International Critical Care Fellowship
• King’s College Hospital NHS Trusts – Paediatric Critical Care Fellowship
• Lancashire & South Cumbria NHS Foundation Trust - Psychiatry specialty Fellowship Scheme
• Lancashire Teaching Hospitals NHS Trust - Overseas Registrar Development and Recruitment (ORDER)
• Leeds Teaching Hospitals NHS Trust – International Fellowship Programme
• Leicestershire Partnership NHS Trust – International Medical Fellowship Programme in Psychiatry
• Lincolnshire Partnership NHS Foundation Trust – CESR Fellowship in Psychiatry or Sponsored Fellowship in Psychiatry
• Lysholm Dept of Neuroradiology – National Hospital for Neurology and Neurosurgery, UCL
• Manchester University NHS Foundation Trust – International Fellowship Programme
• Midlands Partnership NHS Foundation Trust
• Ministry of Defence – International Military Clinical Fellowships
• Modality Partnership - Modality Primary Care International Fellowship Scheme
• NAViGO Health and Social Care CIC – International Medical Fellowship in Psychiatry
• NHS England, East of England - East of England International Office GMC Sponsorship
• NHS Fife – CESR Fellowship Programme in Psychiatry
• NHS Grampian – Psychiatry CESR Fellowship Programme
• NHS Grampian – Multi-specialty SAS Fellowship
• NHS Wales Shared Services Partnership (NWSSP) – All Wales International Medical Recruitment Programme
• Norfolk and Suffolk NHS Foundation Trust (NSFT) - Advanced Clinical Fellowship in Psychiatry
• North Lincolnshire and Goole NHS Foundation Trust (NLAG) Sponsorship Programme
• Northampton General Hospital – Clinical Fellowship in Regional Anaesthesia
• Northampton General Hospital NHS Trust - International Clinical Fellowship in Regional Anaesthesia, Vascular Anaesthesia, or Peri-operative Medicine
• Northamptonshire Healthcare NHS Foundation Trust – International Clinical Fellowship Scheme
• Northamptonshire Healthcare NHS Foundation Trust – International Clinical Fellowship Scheme (Psychiatry)
• Northern Care Alliance – NCA International Medical Fellowship Scheme
• Oxford University Hospitals NHS Foundation Trust – Oxford Eye Hospital
• Oxford University Hospitals NHS Foundation Trust – Oxford Intensive Care Medicine (OxICM) Sponsorship Scheme
• Oxford University Hospitals NHS Foundation Trust – Oxford University Hospitals Sponsorship Scheme
• Oxford University Hospitals NHS Foundation Trust – The Oxford International Neonatal and Paediatric Fellowship Programme
• Rotherham Doncaster and South Humber NHS Foundation Trust - Sponsored International Fellowship Scheme in Psychiatry
• Royal College of Anaesthetists – Global Fellowship Scheme (Anaesthesia or ICM)
• Royal College of Anaesthetists – MTI Scheme
• Royal College of Emergency Medicine
• Royal College of Obstetricians and Gynaecologists – MTI Scheme
• Royal College of Ophthalmologists
• Royal College of Paediatrics and Child Health – International Paediatric Sponsorship Scheme
• Royal College of Paediatrics and Child Health – MTI Scheme
• Royal College of Pathologists
• Royal College of Physicians of Edinburgh
• Royal College of Surgeons of England
• Royal College of Physicians of London
• Royal College of Physicians and Surgeons of Glasgow
• Royal College of Psychiatrists – MTI Scheme
• Royal College of Radiologists – Clinical Radiology
• Royal College of Radiologists – Clinical Oncology
• Royal College of Radiologists – RCR Specialty Training Sponsorship Scheme
• Royal College of Surgeons of Edinburgh
• Royal Devon and Exeter NHS Trust
• Royal Papworth Hospital NHS Foundation Trust – Senior Clinical Fellowship Programme in Anaesthesia and Critical Care
• Royal Wolverhampton Trust – Clinical Fellowship Programme
• Sheffield Children’s NHS Foundation Trust - Rotational Clinical Fellows in Paediatrics, Trauma and Orthopaedic International Fellows, and Subspeciality Fellows in Paediatrics
• Sheffield Health and Social Care NHS Foundation Trust - International Medical Fellowship in Psychiatry
• Somerset NHS Foundation Trust – Somerset Overseas Doctors Sponsorship Scheme
• Somerset NHS Foundation Trust – Psychiatry Overseas Doctors Sponsorship Scheme
• South Warwickshire University NHS Foundation Trust - GMC Multispecialty Sponsorship Scheme
• South West Yorkshire Partnership NHS Foundation Trust – International Fellowship in Psychiatry
• Southmead Hospital, North Bristol NHS Trust – International Obstetrics and Gynaecology Training Programme
• St Bartholomew’s Hospital, Barts Health NHS Trust – St Bartholomew’s Critical Care Fellowship
• St George’s University Hospitals NHS Foundation Trust – International Anaesthetics Fellowship Programme
• St George’s University Hospital NHS Foundation Trust (Dr Nirav Shah) – International Intensive Care Medicine Trainees
• St George’s University Hospitals NHS Foundation Trust – International Emergency Medicine Trainees
• Surrey and Borders Partnership (SABP) NHS Foundation Trust – International Psychiatric and Community Paediatrics Sponsorship Scheme
• Tees, Esk and Wear Valleys NHS Foundation Trust – International Psychiatric CESR or SAS Fellowship
• University College London Hospitals NHS Foundation Trust, Department of Critical Care – Clinical Fellowship Critical Care and Perioperative Medicine
• University Hospital Birmingham NHS Foundation Trust - International Training Fellowship Programme
• University Hospitals Birmingham NHS Foundation Trust - UHB LED Fellowship Programme
• University Hospitals Bristol and Weston NHS Foundation Trust – Bristol Children's Hospital International Fellowship Scheme
• University Hospitals Bristol and Weston NHS Foundation Trust - Department of General Internal Medicine at Weston General Hospital
• University Hospitals Coventry and Warwickshire NHS Trust
• University Hospitals of Leicester NHS Trust - Postgraduate Clinical Fellowship Programme
• University of Buckingham – Master of Medicine
• University of Buckingham – Master of Surgery
• University of Chester and Cheshire and Wirral Partnership NHS Trust – International Training Fellows Psychiatry
• University of Hertfordshire – Professional Doctorate in General Internal Medicine (Clinical MD) Programme
KINDLY NOTE: If your sponsor is not on this list then you cannot apply using sponsorship.
If you have any further questions, please visit the GMC website for more information.

WISH YOU ALL THE VERY BEST.

Dr Nagarajan Jsk |183 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Dec 21, 2024

Asked by Anonymous - Aug 02, 2024Hindi

Career

I’m mbbs final year student from Kathmandu university want pg medicine from UAE

Ans: You have provided very limited information. I understand that you are a student from Kathmandu University and wish to pursue higher education in medicine in the UAE. To provide a more accurate response, I need the following details:

What is your nationality? (Based on your nationality, I can check the relevant requirements from the health department regarding courses and internships).

Dr Nagarajan Jsk |183 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Dec 21, 2024

Asked by Anonymous - Dec 20, 2024Hindi

Career

Sir my son has 92 percentile in cat 2024..what are his scopes of admission.

Ans: Hi Sir,
You have provided very limited information to obtain the details. However, the percentile of the candidate will not solely determine the admission process. Other factors are also involved, including:

- Course
- Institution
- Caste
- Creamy layer
- Gender

But, there may be possibilities for admission to the following IIMs: IIM Visakhapatnam, Udaipur, Bodhgaya, Shillong, and Rohtak.

Ramalingam Kalirajan |7290 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Dec 21, 2024

Asked by Anonymous - Dec 21, 2024Hindi

Money

Hi Sir, I follow your articles regularly and your detailed assessment is really awesome.I am 47yrs Male with wife, 20&18 years kids, elder one is in B.Tech and younger one is 12th. My wife is a home maker. Coming to financials. I have 4 houses including the one residing worth 10cr(total) and getting rental income of 70k per month, invested in stocks and MFs worth 60L, have foreign stocks of worth 1.7cr, accumulated pf around 1.3cr. I have farm lands worth 5cr. Have 1.2cr loan and salary of ~4L (net). current sips in equity 70k/month, have 5Cr term plan, health insurance for family 50L. How do I plan my retirement at 52-53years assuming 80 years life expectancy. Don't want to depend on kids and need regular income ~3-4L per month.

Ans: Asset Evaluation
Real Estate:
You own four houses worth Rs 10 crore, generating Rs 70,000 monthly rental income. This is a solid base for passive income. However, real estate can have fluctuating maintenance costs, tenant issues, and varying rental yields over time.

Stocks and Mutual Funds:
Your Rs 60 lakh investment in stocks and mutual funds is a commendable step. Active mutual funds offer professional fund management and can outperform index funds over time.

Foreign Stocks:
Your Rs 1.7 crore portfolio in foreign stocks adds geographical diversification. Monitor currency exchange fluctuations and global market trends.

Provident Fund (PF):
With Rs 1.3 crore in PF, this is a reliable retirement corpus. The fund provides fixed returns and tax benefits, adding stability.

Farm Lands:
Farm lands worth Rs 5 crore are an illiquid but valuable asset. They might not generate consistent income unless leased or developed.

Loans:
A loan liability of Rs 1.2 crore needs prioritised repayment. Focus on loans with higher interest rates first.

Insurance Coverage:
A Rs 5 crore term plan is robust. Your Rs 50 lakh health insurance is sufficient for unexpected medical emergencies.

Retirement Goals
You need Rs 3–4 lakh monthly for 27–28 years post-retirement.
The portfolio must generate steady, inflation-adjusted returns.
Action Plan for Retirement
Debt Management
Prepay High-Interest Loans:
Use a portion of your surplus income to prepay loans. This reduces interest outflow and increases your cash flow.

Avoid New Loans:
Focus on reducing existing liabilities instead of taking on new ones.

Portfolio Restructuring
Real Estate:
Retain essential properties. Sell underperforming or non-essential properties to reduce concentration in real estate. Invest proceeds in mutual funds or debt instruments for diversification.

Mutual Funds (MFs):
Increase SIPs in actively managed funds. They outperform direct funds due to guidance from Certified Financial Planners and MFDs. Regular funds offer better tracking and professional assistance.

Stocks:
Monitor direct equity investments closely. Consider reallocating underperforming stocks to mutual funds for better management.

Debt Instruments:
Invest in high-quality debt funds or fixed-income securities for stability. These instruments balance equity volatility and ensure steady returns.

SIP Strategy
Increase SIPs from Rs 70,000 to Rs 1 lakh/month.
Allocate 70% to equity funds for long-term growth.
Invest 30% in debt funds for stability and liquidity.
Emergency Fund
Maintain a 12-month expense reserve in liquid funds or fixed deposits.
This covers unexpected expenses without disturbing investments.
Income During Retirement
Systematic Withdrawal Plan (SWP)
Use SWPs in mutual funds to generate regular income.
Withdraw 6–8% annually from your mutual fund portfolio for a steady income stream.
Rental Income Optimisation
Review property rents regularly.
Invest part of rental income in equity or debt mutual funds for compounding.
Dividend Stocks
Retain high-dividend-yield stocks for regular income.
Reinvest surplus dividends for long-term growth.
Tax Efficiency
Equity Funds Taxation:
Long-term gains above Rs 1.25 lakh are taxed at 12.5%. Short-term gains are taxed at 20%.

Debt Funds Taxation:
Both short- and long-term gains are taxed per your income slab.

Real Estate Capital Gains:
Use exemptions under Sections 54 or 54F to save tax on property sales.

Inflation Protection
Allocate 60–70% of your portfolio to equity investments.

Equity provides inflation-adjusted returns over time.

Debt funds and fixed instruments safeguard against equity market volatility.

Estate Planning
Draft a will to allocate assets transparently among family members.
Use nomination and joint ownership to avoid legal complications.
Consider a family trust for farm lands to avoid disputes.
Periodic Review
Review your financial plan every six months.
Adjust investments based on market conditions, goals, and needs.
Consult a Certified Financial Planner regularly for updates.
Finally
A well-diversified portfolio ensures financial independence post-retirement. Focus on debt repayment, portfolio balance, and tax-efficient withdrawals. Your assets can comfortably generate Rs 3–4 lakh monthly income, adjusted for inflation.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Kanchan Rai |444 Answers |Ask -Follow

Relationships Expert, Mind Coach - Answered on Dec 21, 2024

Question by Kevin - Dec 19, 2024Hindi

Relationship

I am the eldest sibling in our families and aged 51. Normally, whenever anyone in the family has a problem - financial, mental, psychological, issue with people or anything else, they come up to discuss with me and share. Well, many would say I am lucky as people look up to me when they are in any kind of a problem. But that is not the case. Sadly no one is around with whom I can discuss or even think to share my issues, my problems. I do not have any friends. Sadly, yes, that is a fact and at my age, I dont expect that here we have a culture where we can get to making friends, at least the kind of friends with whom you can confide, share your feelings, problems. I tried and failed. Maybe because I am introvert or maybe I am too cautious. To make it more complicated, I dont work in the regular kind of job. I am a lone person who works as a freelance from home. This limits my outreach when it comes to interacting with real people. I have clients, business contacts, but I cannot get personal with them. It will never be a good choice. My wife is busy with her job + we do not have any relation beyond the daily matters related to household and it has been more than 10 years now that we live this way. Tried to sort out things with her but she just does not have time and interest (after all who wants to add on to tensions, stress). My daughter is after all my daughter - I cannot share these with her, and definitely at 10 she is too young to be one to discuss such stuff. I am not sure how far this issue can be fixed but I am hopeful to find some path here.

Ans: Dear Kevin,
Starting small can be helpful. Consider connecting with people through shared interests or hobbies, either online or in person, where the pressure to immediately open up is minimal. Online communities, local meetups, or volunteer activities can create low-stakes opportunities to connect with like-minded individuals. The goal isn’t to instantly find someone to confide in but to slowly build a sense of belonging and companionship.

Your relationship with your wife appears to be another significant source of emotional distance. While her lack of interest in deep conversations may seem like a barrier, it’s worth exploring other ways to reconnect—perhaps by spending time together in shared activities or revisiting moments that once brought you closer. Sometimes, relationships stuck in routines benefit from new experiences or even professional counseling to navigate the underlying dynamics.

Regarding your daughter, while it’s clear she cannot shoulder your emotional burdens, she can still be a source of joy and connection. Investing time in activities with her can provide a sense of fulfillment and grounding that counters loneliness.

Above all, remember that reaching out for professional support, such as therapy, is not a sign of weakness but an act of self-care. A therapist can provide a safe space to express your feelings and help you develop strategies to foster deeper connections and manage emotional isolation.

You deserve to feel supported and connected, and even if the journey to finding that seems long, every step you take toward opening up or seeking out others is a move toward a more fulfilling and less lonely existence.

T S Khurana |260 Answers |Ask -Follow

Tax Expert - Answered on Dec 21, 2024

Asked by Anonymous - Nov 22, 2024Hindi

Money

My Question is for New Tax Regime for Financial Year 2024 – 25. Total gross Income is Rs.9 lakhs and along with that income from share / stock trading i.e short term gains of Rs. 1 lakh. Could you please help me advise if what would be the tax liability?

Ans: 01. Considering your Income of Rs.9.00 lakhs as business income & Rs.1.00 lakh as STCG on securities, without any tax savings, your tax liability would be around Rs.62,400.00 in New tax regime. If we opt for the old tax regime, your tax liability would be much more than this.
Most welcome for any further clarifications. Thanks.

T S Khurana |260 Answers |Ask -Follow

Tax Expert - Answered on Dec 21, 2024

Question by SA - Nov 11, 2024Hindi

Money

I got a residential property through will from my mother,,property is 30 years old and i am planning to sell it, in that case i am going to get Rs 165lacks,, what will be the tax implication and how to avoid the same kindly advise i am 55 years old married man with a daughter

Ans: 01. In this case, you would be subjected to LTCG (Long Term Capital Gain) tax.
02. To work out LTCG, you should reduce its Cost from the Sale proceeds (Rs.165.00 lakhs).
of property, which was costed to your mother.
03. However, following details may help you to assess your tax liability.
Under present provisions of Income Tax Act, you may opt any of the options (Long Term
Capital Gains), as under :
(a). Tax Rate 12.50% without indexation or
(b). Tax Rate of 20% with Indexation.
04. You may calculate your tax liability under both options & may opt for the tax regime, where tax liability is minimum.
05. To avoid tax, you may invest in purchase of some house property. Exemption available would be minimum of Cost of new house property or the LTCG, which ever is less.
06. You have the option to purchase Capital Gain Bonds of NHAI etc., for tax saving.
07. Most welcome for any further clarifications. Thanks.

T S Khurana |260 Answers |Ask -Follow

Tax Expert - Answered on Dec 21, 2024

Asked by Anonymous - Dec 19, 2024Hindi

Money

Hello Sir, I worked in a Pvt Ltd company from 2006 to 2011, and they had their own PF trust. The company was later sold off to another firm. I still haven't withdrawn the my PF amount. How will i be able to do that. I have the PF number and ESP number. Since this was before 2011 , my UAN is not linked to this account. How will i be able to retrieve my PF amount that is still stuck here.

Ans: Kindly keep in touch with your previous employer (present owner of the company), in this connection. There should not be any problem in getting your PF amount, except certain formalities/ forms to be submitted.
Most welcome for any further clarifications. Thanks.

T S Khurana |260 Answers |Ask -Follow

Tax Expert - Answered on Dec 21, 2024

Asked by Anonymous - Dec 21, 2024Hindi

Money

Dear Guru. I have inherited a property in Mumbai from my deceased father which was purchased in 1983 by him. If today i sell the property which is worth 2.60 Crs whats my capital gains tax and how will it be calculated

Ans: 01. In absence of exact figures, it is not possible to calculate your Capital Gains Tax. However, following details may help you to assess your tax liability.
02. Under present provisions of Income Tax Act, you may opt any of the options (Long Term
Capital Gains), as under :
(a). Tax Rate 12.50% without indexation or
(b). Tax Rate of 20% with Indexation.
03. You may calculate your tax liability under both options & may opt for the tax regime, where tax liability is minimum.
04. Most welcome for any further clarifications. Thanks.

Ramalingam Kalirajan |7290 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Dec 21, 2024

Question by Anil - Dec 20, 2024Hindi

Money

Top4 sips with 15k amount suggest me

Ans: Here’s an updated strategy for your Rs. 15,000 SIP allocation, replacing the sectoral/thematic fund with a small-cap fund for better long-term growth potential.

Suggested SIP Allocation (Rs. 15,000)
Large-Cap Fund

Allocation: Rs. 4,000/month
Objective: Stability and steady growth by investing in India’s top 100 companies.
Why Choose: Provides consistent returns and low volatility in your portfolio.
Flexi-Cap Fund

Allocation: Rs. 4,000/month
Objective: Diversified exposure across large, mid, and small-cap stocks.
Why Choose: Offers balanced risk and returns with flexibility during market cycles.
Mid-Cap Fund

Allocation: Rs. 3,500/month
Objective: Tap into the growth potential of medium-sized companies.
Why Choose: Higher returns with manageable risk compared to small caps.
Small-Cap Fund

Allocation: Rs. 3,500/month
Objective: Focus on fast-growing small-cap companies.
Why Choose: High-growth potential over the long term, though with higher volatility.
Why Include Small-Cap Funds?
Long-Term Growth: Small-cap companies have immense potential to grow significantly over time.
Diversification: Adds exposure to an underrepresented segment, complementing large and mid-caps.
High Returns: Potential for higher returns compared to other categories, albeit with higher risk.
Key Considerations
Investment Horizon: Stay invested for at least 7-10 years to mitigate short-term volatility.
Active Fund Management: Avoid direct or index funds to leverage professional expertise.
Regular Monitoring: Review fund performance periodically with a Certified Financial Planner.
Tax Implications
Equity Funds:
LTCG above Rs. 1.25 lakh/year taxed at 12.5%.
STCG (held less than 1 year) taxed at 20%.
Final Insights
This updated allocation ensures a mix of stability, moderate risk, and high growth. With consistent SIPs and periodic reviews, you can achieve robust wealth creation over the long term. A Certified Financial Planner can assist in optimising your investment strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

See more questions »

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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