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Ramalingam

Ramalingam Kalirajan  |5181 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 23, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Asked by Anonymous - Dec 28, 2023Hindi
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Good day, I am 41 years old with a good salary. How much money should I start investing every month,to have a monthly income of 1 lkh after retirement.Kindly also advise the various areas of investment.

Ans: Embarking on the journey towards a comfortable retirement at 41 reflects foresight and responsibility. To achieve a monthly income of 1 lakh post-retirement, one needs to plan meticulously, akin to nurturing a tree from a sapling to a robust entity.

Considering the compounding magic of investments, starting with a significant monthly contribution is crucial. It's like planting a tree with strong roots to bear ample fruit later. Aim to invest a substantial portion of your income, balancing between equity for growth and fixed income for stability.

Diversifying across various investment avenues is akin to planting different types of crops. Some may yield quicker returns, while others require patience. Real estate, equities, mutual funds, and bonds each play a role in shaping a balanced portfolio.

Lastly, remember that investing is not just about numbers but also about aligning your life's goals and aspirations. With consistent efforts and guidance, you're not just building wealth but crafting a future filled with security and peace of mind.
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  |5181 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 01, 2024

Asked by Anonymous - Feb 16, 2024Hindi
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I m 44 years. Net salary 96K per month. Considering inflation . How much money should I invest..pls suggest different options MF is one of them, to get at least Rs. 1.25L per month income post retirement ?
Ans: To achieve a post-retirement income of Rs. 1.25 lakhs per month, it's essential to plan your investments strategically, considering factors such as your age, current salary, inflation, and risk tolerance. Here's a general approach you can consider:

1. **Calculate Retirement Corpus**: Determine the retirement corpus required to generate a monthly income of Rs. 1.25 lakhs. This will depend on various factors such as your expected lifespan, inflation rate, and expected rate of return on investments during retirement.

2. **Estimate Monthly Investment**: Based on your current age, desired retirement age, and expected rate of return on investments, calculate the monthly investment required to accumulate the retirement corpus. You can use online retirement calculators or consult with a financial advisor to determine this amount.

3. **Diversified Investment Portfolio**: Build a diversified investment portfolio that aligns with your risk tolerance and investment objectives. Consider allocating your investments across different asset classes such as equities, mutual funds, fixed deposits, real estate, and other suitable investment options.

4. **Systematic Investment Plan (SIP)**: Start a SIP in mutual funds that offer the potential for long-term growth while managing risk. Choose funds that invest in a mix of equity and debt instruments to balance risk and return. Regularly review and adjust your SIP contributions based on changes in your financial situation and investment goals.

5. **Tax Planning**: Optimize your tax planning to maximize your savings and investment returns. Utilize tax-saving investment options such as Equity Linked Savings Schemes (ELSS), Public Provident Fund (PPF), National Pension System (NPS), and tax-saving fixed deposits to reduce your tax liability and increase your investible surplus.

6. **Regular Review and Adjustments**: Periodically review your investment portfolio and make necessary adjustments to ensure that you're on track to achieve your retirement income goal. Consider factors such as changes in income, expenses, market conditions, and life events when revising your investment strategy.

7. **Consider Professional Advice**: If you're unsure about the optimal investment strategy to achieve your retirement income target, consider seeking guidance from a qualified financial advisor. An advisor can help assess your financial situation, recommend suitable investment options, and develop a customized retirement plan tailored to your needs and objectives.

Remember that achieving a post-retirement income of Rs. 1.25 lakhs per month requires diligent planning, disciplined savings, and prudent investment decisions. Start early, stay focused on your goals, and regularly monitor your progress to ensure a financially secure retirement.

Best regards.

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Ramalingam

Ramalingam Kalirajan  |5181 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 23, 2024

Asked by Anonymous - Feb 18, 2024Hindi
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I am 35 year old working professional, have an investment in residential property equivalent to 70 lakh , have monthly income post tax is around 2 lakh rupees ? How much to start investing so that if I retire at an age of 45 I have approx 1 lakh monthly income
Ans: Retiring at 45 with a monthly income of 1 lakh is an ambitious goal. Given your current age, monthly income, and existing property investment, let's craft a plan:

Monthly Income Target:
If you aim to generate 1 lakh per month from your investments at 45, you'll need a corpus that can sustain this withdrawal rate without depleting the principal.
Investment Plan:
Equity Investments:
Given your age and goal, you can allocate a significant portion to equity for higher returns. Typically, equity investments are volatile but offer better returns over the long term.
Starting with an SIP (Systematic Investment Plan) in equity mutual funds can be a good strategy. Given your income, you might consider starting with an SIP of around 40,000 to 50,000 per month in diversified equity funds.
Debt Investments:
To balance the risk and provide stability to your portfolio, you can invest in debt instruments like Fixed Deposits, PPF, or debt mutual funds.
Allocating around 20-30% of your investment to debt can offer stability and regular income.
Real Estate:
Since you already have an investment in residential property, consider its potential for rental income. If not rented already, renting it out can add to your monthly income post-retirement.
Property:
If your residential property is not rented yet, consider renting it out to generate rental income. This can significantly contribute to your monthly income post-retirement.
Emergency Fund:
Ensure you have an emergency fund set aside, equivalent to 6-12 months of your living expenses. This fund should be liquid and easily accessible.
Health Insurance:
As you plan for early retirement, having adequate health insurance is crucial. Medical emergencies can significantly impact your finances.
Regular Review:
Regularly review and adjust your investment portfolio based on market conditions, your financial needs, and goals.
It's essential to remember that these are rough estimates, and actual results may vary based on market conditions, investment performance, and other factors. Consulting with a certified financial planner or advisor can help you tailor this plan to your specific needs and ensure you're on track to achieve your retirement goals.

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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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