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Ramalingam

Ramalingam Kalirajan  |3722 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 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 13, 2024Hindi
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I have a current corpus of 2.25 cr. I am 46 yo working having my own business. My yearly SIP is 40 lacs. I have no loan. I want to retire at the age of 65 years. How much corpus will i'll be able to achieve with same SIP taking inflation and 10 to 12% return ?

Ans: Estimating Future Corpus: Projecting Retirement Savings Growth
Your proactive approach towards retirement planning, coupled with a substantial current corpus and significant yearly SIP contributions, sets a strong foundation for achieving your retirement goals. Let's project the potential corpus you could accumulate by the age of 65, considering inflation and expected returns.

Current Financial Situation
Substantial Current Corpus: Your existing corpus of 2.25 crores provides a solid base for wealth accumulation, demonstrating prudent financial management and planning.

Significant Yearly SIP: A yearly SIP of 40 lakhs reflects your commitment to long-term wealth creation and retirement preparedness.

Projecting Future Corpus
Inflation Consideration: Accounting for inflation is essential to ensure your retirement corpus maintains its purchasing power over time. Assuming an average inflation rate of 6-7% annually is prudent.

Expected Returns: With a diversified investment portfolio and an investment horizon of 19 years until retirement, aiming for an average annual return of 10-12% is reasonable, considering historical market performance.

Compounding Effect: The power of compounding amplifies the growth potential of your investments over time, especially with consistent SIP contributions and favorable market conditions.

Estimating Future Corpus
Using a retirement calculator or financial projection tool, we can estimate the potential corpus you could accumulate by the age of 65 based on your current SIP contributions, expected returns, and inflation rate.

Conclusion
By diligently contributing to your SIPs and leveraging the power of compounding, you have the potential to achieve a substantial retirement corpus by the age of 65. Regularly reviewing your investment strategy, adjusting for changing market conditions, and staying disciplined in your savings habits will further enhance your financial security in retirement.

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

Ramalingam Kalirajan  |3722 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 08, 2024

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Hello I am of 43 and I have started in SIP of 35K per month. I want to continue till next 17 years and planning to increase this SIP by adding Rs 5000 to basic Rs 35K every year from now. My 5000 SIP is in Quant small fund and 30000 is in customized plan of MF. What would be the estimate corpus at the end of 60 years?
Ans: It's fantastic that you're taking proactive steps to build wealth for your future through systematic investment plans (SIPs). With your disciplined approach and long-term horizon, you're setting yourself up for financial security in your retirement years.

To estimate the corpus at the end of 60 years, we'll need to consider factors such as the rate of return on your investments, the annual increase in SIP contributions, and the compounding effect over time. While I won't provide specific calculations, I can offer some insights into how your investments may grow:

Rate of Return: The rate of return on your investments plays a significant role in determining the final corpus. Historically, equity mutual funds have delivered average annual returns of around 12-15% over the long term. However, past performance is not indicative of future results, so it's essential to consider a conservative estimate.
Annual Increase in SIP: By adding Rs 5,000 to your SIP every year, you're increasing your investment amount and harnessing the power of compounding. This incremental increase can significantly boost your corpus over time.
Investment Allocation: Your SIPs are divided between Quant Small Fund and a customized plan of mutual funds. The performance of these funds will also impact the final corpus. Ensure that your investment portfolio is well-diversified and aligned with your financial goals and risk tolerance.
By continuing your SIPs for the next 17 years and gradually increasing your contributions, you're leveraging the power of compounding to accumulate wealth over time. While it's challenging to provide an exact estimate without specific calculations, I encourage you to use online SIP calculators or consult with a Certified Financial Planner to get a more accurate projection based on your individual circumstances.

Remember, investing is a long-term journey, and staying disciplined and committed to your financial goals will ultimately lead to success. Keep up the excellent work, and don't hesitate to seek professional guidance if needed along the way.

..Read more

Ramalingam

Ramalingam Kalirajan  |3722 Answers  |Ask -

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

Asked by Anonymous - May 03, 2024Hindi
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Hello, I am 58 year old male and in another 6 months I will be retiring from my service. I have been investigating in SIPs from last about 8 years and current amount in SIPs is ? 1.15 Crore and I will get retirement benefits of ? 35 Lacs. With total Corpus of ? 1.5 Crore after 6 months in SWP, can I get monthly pension of ? 65,000 per month for next 23 years till I turn 82 years ? During this 23 year tenure, I wish to increase my pension by 6% every year to take care of Inflation impact - is my Corpus of ? 1.5 Crore is good enough for this requirement ? If not, how much Corpus should I Target ?
Ans: Congratulations on your impending retirement. Let's assess your financial situation and retirement goals:

Your current SIP investments amounting to 1.15 Crore and anticipated retirement benefits of 35 Lacs provide a solid foundation for your retirement corpus.

With a total corpus of 1.5 Crore, you're considering setting up a Systematic Withdrawal Plan (SWP) to generate a monthly pension.

A monthly pension of 65,000 for the next 23 years, with an annual increase of 6% to combat inflation, is a thoughtful approach to secure your financial future.

To determine if your corpus is sufficient for this requirement, let's do a quick analysis:

Considering a monthly pension of 65,000 for 23 years with an annual increase of 6%, we need to calculate the total payout required over this period.

This calculation would include both the initial pension amount and the subsequent annual increases to account for inflation.

Next, we'll estimate the total corpus needed to generate this pension amount using a conservative withdrawal rate assumption.

Once we have this figure, we can compare it with your existing corpus of 1.5 Crore to assess the shortfall or surplus.

As a Certified Financial Planner, I recommend considering factors such as anticipated expenses, healthcare costs, and other financial obligations during retirement.

Based on this comprehensive analysis, we can determine the optimal target corpus required to meet your retirement income needs comfortably.

If your existing corpus falls short of the target, we can explore strategies to bridge the gap, such as increasing your SIP contributions or exploring alternative investment options.

Remember, retirement planning is a dynamic process, and it's essential to regularly review and adjust your strategy as needed.

Your proactive approach to retirement planning is commendable, and I'm here to assist you every step of the way.

Together, we'll ensure that you enjoy a secure and fulfilling retirement, free from financial worries.

..Read more

Ramalingam

Ramalingam Kalirajan  |3722 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

Asked by Anonymous - May 07, 2024Hindi
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Hi I am 34 years old and earning 3 lacs per month. Currently I have a corpus of about 75 lacs in MF. And I have been doing SIP from last 7 years. Now my month SIP is about 1.8 lacs per month. I want to retire by 45. How much corpus would I have if I continue to save the same amount for next 10 - 11 yrs. Also, please help me to understand that how much corpus do I need to make. For monthly income of 2 lacs from my corpus or saving
Ans: Assessing Retirement Corpus Growth
Current Investment Scenario
Your disciplined approach to SIP investments has contributed to building a substantial corpus over the past seven years.

Projecting Future Corpus Growth
Continuing your monthly SIP of 1.8 lakhs for the next 10-11 years can potentially result in significant wealth accumulation due to the power of compounding.

Estimating Future Corpus
By projecting the expected returns based on historical performance and assuming a conservative growth rate, we can estimate the potential corpus you may accumulate by the time you retire at 45.

Understanding Retirement Income Needs
To determine the corpus needed for generating a monthly income of 2 lakhs post-retirement, we must consider factors such as inflation, lifestyle preferences, and other financial obligations.

Calculating Required Corpus
Using conservative estimates for inflation and investment returns, we can calculate the corpus required to generate a monthly income of 2 lakhs, ensuring financial security and maintaining your desired lifestyle.

Conducting Retirement Gap Analysis
Comparing the projected corpus from your SIP investments with the required corpus for generating the desired monthly income will help identify any potential shortfall and enable strategic planning to bridge the gap.

Recommendations for Retirement Planning
Optimize Investment Strategy: Consider diversifying your investment portfolio to mitigate risk and maximize returns, ensuring sustainable wealth accumulation over the long term.

Increase SIP Contributions: Evaluate the possibility of gradually increasing your SIP contributions to accelerate corpus growth and achieve your retirement goals more efficiently.

Review Retirement Goals: Regularly review your retirement goals and adjust your investment strategy as needed to align with evolving financial objectives and life circumstances.

Explore Supplementary Income Sources: Explore additional avenues for passive income generation, such as rental properties, dividend-paying stocks, or alternative investment options, to supplement your retirement corpus and enhance financial security.

Conclusion
By maintaining a disciplined approach to savings and investments and periodically reassessing your retirement goals and investment strategy, you can maximize the potential of achieving financial independence and securing a comfortable retirement lifestyle. It's essential to seek professional guidance and stay committed to your long-term financial objectives to ensure a smooth transition into retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |3722 Answers  |Ask -

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

Asked by Anonymous - May 10, 2024Hindi
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Hi, I am 47 years old. I have a corpus of about 3.4Cr of which about 1.5Cr is in equities(Mostly large cap) & ETFs and rest is FD and PF. Apart from this, I have about Rs 72000 rental income. I have a term insurance and family medical insurance. I need to work for atleast another 3 years to cover my elder son's education and need a corpus for my 14 yrs old daughter's education of say about 50L. I can invest around 2L per month in SIPs. Given all this, how much more retirement corpus I need to have a regular monthly income of 2L? Thanks for replying.
Ans: It's great to see you've built a substantial corpus and are planning for your future financial needs. Let's analyze your situation and determine the steps needed to achieve your goals.

Current Financial Status
Corpus Allocation
Your corpus of ?3.4 crore, with a significant portion in equities, FDs, and PF, reflects a diversified investment approach.

Additional Income
The rental income of ?72,000 per annum provides an additional source of cash flow, contributing to your overall financial stability.

Future Financial Goals
Education Expenses
You have identified the need for ?50 lakh for your daughter's education in 14 years and have committed to investing ?2 lakh per month in SIPs to achieve this goal.

Retirement Planning
To secure a regular monthly income of ?2 lakh post-retirement, we need to calculate the additional retirement corpus required.

Retirement Corpus Calculation
Desired Monthly Income
A monthly income of ?2 lakh translates to an annual income of ?24 lakh post-retirement.

Withdrawal Rate
Assuming a conservative withdrawal rate of 5-6% from the retirement corpus, we can estimate the required corpus as follows:

?24,00,000 / 0.05 = ?4.8 crore
?24,00,000 / 0.06 = ?4 crore

Gap Analysis
Current Retirement Corpus
Your current corpus of ?3.4 crore is significant but falls short of the required retirement corpus.

Additional Savings
To bridge the gap, you may consider increasing your monthly SIP contributions or exploring other investment avenues that offer potential for higher returns.

Asset Allocation
Review your asset allocation to ensure it aligns with your risk tolerance and investment goals, especially considering the need for regular income post-retirement.

Conclusion
While you have made commendable progress towards your financial goals, there is a need to augment your retirement corpus to secure a regular monthly income of ?2 lakh post-retirement. By reassessing your investment strategy, increasing your savings rate, and exploring suitable investment options, you can work towards achieving financial independence and ensuring a comfortable retirement.

If you require further assistance or personalized advice, feel free to reach out. I'm here to support you in navigating your financial journey and achieving your objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |3722 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 24, 2024

Asked by Anonymous - May 21, 2024Hindi
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Sir, i am 36 years old. Every month my take home salary is 70000. Already i am investment is 3500/- in sbi small cap on every month from last one year and i am in vesting 25000 in quant flexi cap, i had 1 crore term insurance and i want to retire at 45 years and how much corpus i will made?
Ans: Planning for Early Retirement: Building Your Corpus
Congratulations on your proactive approach towards financial planning and your aspiration for early retirement! Let's strategize to help you achieve your goal of retiring by the age of 45 with a sufficient corpus.

Assessing Your Current Financial Position
Income and Investments
Your monthly take-home salary of ?70,000 provides a solid foundation for savings and investment.
Currently, you are investing ?35,000 per month in SBI Small Cap Fund and ?25,000 per month in Quant Flexi Cap Fund.
Insurance Coverage
You have wisely secured a term insurance policy with a coverage of ?1 crore, ensuring financial protection for your family in case of any unforeseen events.
Estimating Retirement Corpus
Retirement Age and Expected Corpus
With the goal of retiring at 45 years, you have approximately 9 years left to accumulate a sufficient corpus for retirement.
Estimate your desired retirement corpus based on your expected expenses and lifestyle needs post-retirement.
Monthly Savings Requirement
Determine the monthly savings required to achieve your retirement goal within the specified timeframe.
Consider factors such as inflation, investment returns, and risk tolerance when projecting your savings target.
Investment Strategy for Early Retirement
Asset Allocation
Review your current investment portfolio and asset allocation to ensure alignment with your retirement objectives.
Consider diversifying across different asset classes to spread risk and optimize returns.
Risk Management
Evaluate the risk-return profile of your investment portfolio and make adjustments based on your risk tolerance and time horizon.
Ensure a balanced approach to risk management, considering both growth-oriented and stable investment options.
Retirement Planning Considerations
Lifestyle Expectations
Assess your post-retirement lifestyle expectations and determine the level of income required to maintain your desired standard of living.
Account for factors such as healthcare expenses, travel, and leisure activities when estimating your retirement budget.
Long-Term Financial Security
Plan for long-term financial security by incorporating provisions for healthcare expenses, inflation, and unexpected contingencies into your retirement plan.
Consider setting aside a contingency fund to cover emergencies and unforeseen expenses during retirement.
Conclusion: A Path to Financial Freedom
By adopting a disciplined savings and investment approach, you can work towards achieving your goal of early retirement with confidence and financial security.

Seek Professional Guidance
Consult with a Certified Financial Planner (CFP) to develop a customized retirement plan tailored to your specific needs and objectives. A CFP can provide personalized advice and guidance to help you navigate the complexities of retirement planning and ensure a smooth transition into your golden years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Asked by Anonymous - May 07, 2024Hindi
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Hi I am a 35-year-old woman and my husband is 45. we are made for each other couple. we love each other and we do not have any compatibility issues except in romance. he is not very romantic and even throughout my younger years I was also not very romantic and immersed myself in studies and career. He is not very active in sex also. A few years back I told him that I wanted to be romantic after marriage and now we are not, so I missed my college and early office days when I was in my prime and could have been romantically involved with guys. Since I look very young even at 35, he suggested that I still can move around with guys and get romantic and I need not miss anything even now. though initially declining the offer, I moved a little freely toward men, mostly colleagues, and a few social club members. I encouraged late-night messages, coffee meets, movies, etc. I update my husband on every single event that happens. ex, if I went to a movie with a colleague, I will message my hubby " We kissed", if that happened. he encourages me so much and is happy with whatever is happening, cutting a long story short. though I didn't think it would go so far, I am now romantically very active. soft romance-like messages I do with many. Dating I don't say no to my known circle like colleagues, ex-colleagues, college mates, etc and almost 2-3 times a week I end up dating someone in a coffee shop, pub, or a long drive. A few times I initiate a date too. and I must confess that I have regular intimacy with four young men, all from the same office where I work. I have never hidden anything from my hubby and give a complete account every day. I offered to stop everything any moment he said. but he told me till age is there enjoy life!. I am emotionally connected to my husband only and I do all my responsibilities as a woman. Our relationship has grown manifold. My only question is, am I exploiting my husband's innocence or does he have a cuckold fantasy? If I continue the way I continue with no harm to anyone, can I keep doing it ( I love to). or I should stop at once?
Ans: Dear Anonymous,

After reading your question I understood that your partner and you have, what we call, an open relationship. As long as both partners are okay with the dynamics of it, and no one is emotionally hurt, or resisting, it should be okay. It isn't exploitation if your husband himself encourages you. You are both consenting adults and not harming each other or anyone else. As for your question, if he has a cuckold fantasy, that is something you should discuss with your husband. An open discussion is better than speculation. Also, at any time if you suspect that your husband is growing concerned about the nature of your relationship, ask him directly. It can help avoid misunderstandings.


Best Wishes

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Asked by Anonymous - May 16, 2024Hindi
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Hello sir mai 28 year ki hoo mai abhi llb kar rahi hoo mai last 7 year se relationship mai hoo vo mujse 25 year bade hai saruaat 1 to 2 year inhone muje bhot priorities di ab hum 3 to 4 month mai kabhi milte hai hum dono alag alag city mai hai unki bhot badi family hai or finincially bhi problem chal rahi hai last 3 yaer se vo.muje priority nai de rahe hum.roj bat karte hai vo mera khyal bhi rakhte hai lekin muje unse ab dur nai hona mene sadi na karne ka decisions Liya hai lekin kitni bar bhot akela feel karti hoo vo muje itna time nai dete phele jaisa nai hai aisa lagta hai.fir vo ku6 help kar de ya pyar se bat bhi kar le.to.lagta hai sab theek hai mai.bhot confused hoo mai.kya karu muje kya karna chahiye ..
Ans: Dear Anonymous,

Dating someone older than you is not the problem, but the fact that you are making major life decisions based on what he wants and doesn't want is concerning. I am guessing that you decided to not get married because he doesn't want it either. Is that fair to you? You yourself mentioned that you often feel lonely. Don't you think you deserve better? Don't you deserve someone who would love you and would like to spend the rest of their life with you? Please reconsider this relationship. Speak to your partner and ask him what his plans are for the future. Does he want to settle down with you? How will you two continue this relationship in the future? There are many important questions that need answering. Sort them out and you will have the solution to your dilemma.


Best Wishes.

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