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Doctor, 36, earning 2 lakhs/month - How to invest for stable income of 2 lakhs/month in 2035?

Milind

Milind Vadjikar  |1031 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Jan 28, 2025

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Asked by Anonymous - Jan 28, 2025Hindi
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I am a doctor aged 36 yrs , earning approx 2 lakh per month my monthly expenses around 50 k . My investments around 60L real estate , Emergency fund 10 L and Mutual funds around 50 L and liquid gold around 10 L . How can I invest more so that I get a stable income of approx 2 lakhs per month from 2035 .

Ans: Hello;

You may begin a monthly sip of 1.2 L into a combination of MFs as follows:

25 K into flexicap fund
25 K into multicap fund
25 K into large cap fund
25 K into large and midcap fund
10 K into balanced advantage fund
10 K into multi asset allocation fund

You may select any fund from the top quartile of these fund categories or consult your MFD.

This may grow into a sum of 2.79 Cr by end of 10 years.

Similarly your assets like RE, existing MF corpus and gold may grow into a sum of 2.82 Cr in 10 years.
So your total corpus after 10 years will be 5.61 Cr.

If you buy an immediate annuity for this corpus from a life insurance company you may expect a post tax monthly income of around~2 L.

Happy Investing;
X: @mars_invest
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  |8001 Answers  |Ask -

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

Asked by Anonymous - May 16, 2024Hindi
Money
Hi Sir, I'm 35 having 4 lakhs on MF and stocks. I earn 1.3 lakhs per.month having a plot loan of 12 lakhs and have a kid . My wife earns 1.2 lakhs and I use most of the salary amount from both of us upto 1 lakh on pre payment of plot loan every month including the emi. I spend around 40k on monthly expenses and 10k for house rent. Could you please guide us how to invest more and which sector to invest to have a stable income in near future within 5 years.
Ans: Financial Planning for Stable Income within Five Years
You are 35 years old with a combined family income of Rs 2.5 lakhs per month. You have a plot loan of Rs 12 lakhs and an investment of Rs 4 lakhs in mutual funds and stocks. Managing finances while raising a child and pre-paying your plot loan is commendable. This guide will help you optimize your investment strategy to achieve stable income within five years.

Genuine Compliments and Understanding
Your dedication to managing loans and saving for the future is impressive. Balancing expenses and investments while planning for stability shows great foresight and discipline.

Current Financial Overview
Income and Expenses
Combined monthly income: Rs 2.5 lakhs
Monthly expenses: Rs 40,000
House rent: Rs 10,000
Plot loan pre-payment and EMI: Rs 1 lakh
You have a disciplined approach towards loan repayment, which is excellent for reducing debt quickly. However, it is essential to balance loan pre-payment with investments to ensure future stability.

Evaluating Your Financial Goals
Short-Term Goals (Within 5 Years)
Achieve Stable Income: Focus on creating multiple income streams to ensure financial stability.
Reduce Debt: Continue paying off the plot loan to become debt-free sooner.
Increase Investments: Build a diversified investment portfolio for growth and stability.
Long-Term Goals
Retirement Planning: Start planning for retirement to ensure financial security in later years.
Child’s Education: Save for your child’s education to avoid financial strain in the future.
Investment Strategy
Balancing Debt Repayment and Investments
While pre-paying your plot loan is a prudent strategy, it is also crucial to allocate funds towards investments. This ensures that you are building wealth for future needs while reducing debt. Consider the following steps:

Allocate a Fixed Amount for Investments: Set aside a portion of your monthly income specifically for investments. This can be in addition to the amount allocated for loan pre-payment.
Emergency Fund: Maintain an emergency fund equivalent to 6-12 months of expenses. This fund acts as a financial cushion for unforeseen circumstances.
Diversifying Investments
Diversification is key to managing risk and achieving stable returns. A balanced portfolio with a mix of equity, debt, and other instruments can provide growth and stability.

Equity Investments
Actively Managed Mutual Funds: Actively managed funds can potentially outperform the market due to professional management. They offer diversified exposure to equities.
Sector-Specific Funds: Consider investing in sector-specific funds that have growth potential. Sectors like technology, healthcare, and finance can offer good returns.
Direct Stocks: Continue minimal investments in stocks, focusing on fundamentally strong companies with growth potential.
Debt Investments
Debt Mutual Funds: Invest in debt mutual funds for stable returns. These funds are less volatile compared to equities and provide regular income.
Fixed Deposits and Bonds: Consider fixed deposits and bonds for guaranteed returns. They offer safety and regular interest income.
Benefits of Actively Managed Funds
Actively managed funds are guided by professional fund managers who make strategic decisions based on market research. These managers aim to outperform the market by taking advantage of investment opportunities. Regular funds, accessed through a Mutual Fund Distributor (MFD) with a Certified Financial Planner (CFP) credential, provide valuable professional advice and management.

Financial Planning with a Certified Financial Planner
Consulting a Certified Financial Planner (CFP) is crucial for tailored advice based on your financial goals, risk tolerance, and investment horizon. A CFP can help you create a balanced investment strategy, ensuring you achieve your long-term objectives.

Portfolio Diversification and Risk Management
A well-diversified portfolio balances risk and reward. By spreading investments across equities, debt, and other asset classes, you can manage risk effectively. Equities offer growth potential, while debt provides stability.

Increasing Savings and Investment Contributions
Consider increasing your savings and investment contributions as your income grows. Allocating a higher portion of your income towards diversified financial instruments will accelerate your wealth accumulation.

Systematic Investment Plans (SIPs)
Systematic Investment Plans (SIPs) are an excellent way to invest regularly and benefit from the power of compounding. Increasing your SIP contributions over time will significantly enhance your investment corpus.

Efficient Tax Planning
Effective tax planning can maximize your investment returns. Utilize tax-saving instruments and strategies to minimize your tax liability. For instance, investing in Equity-Linked Savings Schemes (ELSS) can provide tax benefits under Section 80C of the Income Tax Act.

Emergency Fund and Insurance Coverage
Maintaining an emergency fund is crucial for financial security. This fund provides a financial cushion for unexpected expenses, ensuring you don’t need to dip into your investments. Adequate insurance coverage protects against unforeseen events, safeguarding your financial health.

Conclusion
Your decision to either construct a residential building or sell the plot and reinvest the proceeds depends on your financial goals, risk tolerance, and lifestyle preferences. Both options have their merits and drawbacks. Constructing a building can provide steady rental income and asset appreciation, but requires significant initial investment and management. Selling the plot offers liquidity and investment flexibility, potentially yielding higher returns with professional management.

By following the strategies outlined in this guide and consulting with a Certified Financial Planner, you can make an informed decision that aligns with your long-term financial goals.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8001 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 05, 2024

Asked by Anonymous - Jun 04, 2024Hindi
Money
Hi Sir, I am 33 years old.My monthly Income is 120000. I have 10 lakhs cash in bank, 1.5 lakhs PPF per year, 1 Lakhs Tata AIG insurance per year, 32000 LIC per year. Please help me to invest more for long term for my retirement.
Ans: I am delighted to assist you with your financial planning. Your goal of securing a long-term retirement plan is both wise and admirable. You have taken some steps towards this goal, and it’s great to see your interest in further enhancing your financial strategy. Let’s explore various aspects and create a comprehensive plan for your retirement.

Current Financial Situation
You have shared some critical information about your current financial status. Let's break it down for a clearer understanding:

Monthly Income: Rs 120,000
Cash in Bank: Rs 10,00,000
Annual PPF Contribution: Rs 1,50,000
Annual Insurance Premiums:
Tata AIG: Rs 1,00,000
LIC: Rs 32,000
This overview provides a solid foundation to build upon. We will now analyze and evaluate different components of your financial situation to optimize your investments.

Emergency Fund
Maintaining an emergency fund is crucial. This fund should cover 6 to 12 months of your monthly expenses. Given your monthly income, it’s wise to set aside at least Rs 7,20,000 to Rs 14,40,000. Since you have Rs 10,00,000 in the bank, you already have a substantial amount saved. Ensure this amount is in a highly liquid and safe investment vehicle, like a savings account or a liquid mutual fund, to cover any unforeseen expenses without disturbing your long-term investments.

Assessing Current Investments
Public Provident Fund (PPF)
Your annual contribution of Rs 1,50,000 to the PPF is a prudent choice. PPF offers tax-free returns and is a risk-free investment backed by the government. However, the returns, although guaranteed, might not be sufficient to meet your long-term retirement goals due to inflation.

Insurance Policies
You have two insurance policies:

Tata AIG: Rs 1,00,000 per year
LIC: Rs 32,000 per year
While insurance is essential for risk management, investment-cum-insurance policies often provide lower returns compared to pure investment options. It may be more beneficial to separate your insurance and investment needs.

Recommendation: Consider surrendering these policies and reallocating the funds into more lucrative investment options. Opt for a pure term insurance plan, which provides adequate coverage at a lower premium. This will ensure your family is protected while freeing up more funds for investment.

Investment Strategy
Long-Term Investment Goals
For a robust retirement corpus, it’s essential to invest in avenues that offer higher returns. Let’s discuss some suitable investment options and strategies.

Mutual Funds
Mutual funds are a great choice for long-term investments. They offer diversification and professional management, which can help in achieving higher returns.

Actively Managed Funds vs. Index Funds
While index funds are popular for their low costs, actively managed funds can provide better returns. Actively managed funds benefit from professional fund managers who can adapt to market changes and make strategic investment decisions. Although they have higher expense ratios, their potential for higher returns can justify the cost.

Regular Funds vs. Direct Funds
Investing through a Mutual Fund Distributor (MFD) with a Certified Financial Planner (CFP) credential can be advantageous. Regular funds offer the benefit of professional guidance, which is invaluable for optimizing your portfolio and navigating market complexities. Direct funds might have lower expense ratios, but they require more time and expertise to manage effectively.

Systematic Investment Plan (SIP)
Consider investing in mutual funds through a SIP. SIPs allow you to invest a fixed amount regularly, benefiting from rupee cost averaging and compounding over time.

Recommendation: Start a SIP in diversified equity mutual funds. Given your monthly income, you can allocate a substantial amount to SIPs. Aim to invest around 30-40% of your monthly income, i.e., Rs 36,000 to Rs 48,000, into equity mutual funds.

Retirement Corpus Calculation
Let’s calculate the amount you need to save for retirement. Assuming you wish to retire at 60 and considering inflation, let’s estimate the required retirement corpus.

Monthly Expenses: Let’s assume your current monthly expenses are Rs 60,000.
Inflation Rate: We assume an average inflation rate of 6% per annum.
Retirement Duration: Assuming you live up to 85 years, you will need funds for 25 years post-retirement.
Expected Returns: Assuming an average return of 12% per annum from your investments.
Using these assumptions, we can calculate the future value of your monthly expenses and the required retirement corpus.

Step-by-Step Calculation:
Future Monthly Expenses:
Future Monthly Expenses = Current Monthly Expenses × (1 + Inflation Rate)^(Retirement Age - Current Age)
Future Monthly Expenses = 60,000 × (1 + 0.06)^(60 - 33) = 60,000 × 4.29 ≈ Rs 2,57,400

Annual Expenses Post-Retirement:
Annual Expenses = Future Monthly Expenses × 12
Annual Expenses = 2,57,400 × 12 ≈ Rs 30,88,800

Retirement Corpus:
Retirement Corpus = Annual Expenses × (1 - (1 / (1 + Expected Returns)^Retirement Duration)) / Expected Returns
Retirement Corpus = 30,88,800 × (1 - (1 / (1 + 0.12)^25)) / 0.12 ≈ Rs 5,18,00,000

You will need approximately Rs 5.18 crores to maintain your lifestyle post-retirement.

Optimizing Investments
Diversified Portfolio
To achieve your retirement goals, it’s essential to have a diversified investment portfolio. This can mitigate risks and maximize returns. Here are some recommended asset classes:

Equity Mutual Funds
Investing in a mix of large-cap, mid-cap, and small-cap equity mutual funds can provide growth potential. Each category has its risk and return profile, and diversification can balance the overall risk.

Debt Mutual Funds
Debt mutual funds provide stability to your portfolio. They are less volatile than equity funds and can offer consistent returns. Investing in a mix of short-term and long-term debt funds can provide liquidity and stability.

Gold
Allocating a small percentage of your portfolio to gold can act as a hedge against inflation and currency fluctuations. You can invest in gold ETFs or sovereign gold bonds for ease of investment and better liquidity.

Review and Adjust
Regularly reviewing and adjusting your investment portfolio is crucial. Market conditions change, and so do your financial goals and risk tolerance. A Certified Financial Planner (CFP) can provide valuable insights and help you make informed decisions.

Tax Planning
Efficient tax planning can increase your investable surplus. Here are some tax-saving options:

Section 80C Investments
Your PPF contributions already qualify for Section 80C deductions. You can also invest in other 80C instruments like ELSS (Equity Linked Savings Scheme) mutual funds, which offer tax benefits and potential for higher returns.

Health Insurance
Investing in a health insurance policy can provide tax benefits under Section 80D. This not only saves taxes but also ensures you are financially protected against medical emergencies.

National Pension System (NPS)
NPS is a good option for retirement planning. It offers additional tax benefits under Section 80CCD(1B) and provides a mix of equity and debt investments.

Lifestyle Considerations
Balancing your current lifestyle and future financial goals is essential. While it’s important to save and invest for retirement, it’s equally important to enjoy the present. Allocate a portion of your income towards hobbies, travel, and other personal interests. This ensures a fulfilling life both now and in retirement.

Conclusion
Securing a comfortable retirement requires strategic planning and disciplined investing. Your current savings and investments provide a solid start, but optimizing and diversifying your portfolio can significantly enhance your retirement corpus.

Consider separating your insurance and investment needs by surrendering investment-cum-insurance policies. Invest in mutual funds through SIPs and maintain a diversified portfolio to balance risk and returns. Regularly review your investments and make necessary adjustments. Efficient tax planning can further boost your savings.

Remember, a Certified Financial Planner can provide personalized guidance and help you navigate the complexities of financial planning. I appreciate your proactive approach to securing your financial future. With careful planning and disciplined investing, you can achieve your retirement goals and enjoy a financially secure and fulfilling life.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8001 Answers  |Ask -

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

Asked by Anonymous - Jun 23, 2024Hindi
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I am 34 year old my salary is 30000, wife is house wife, have 2 daughters 8year and 2 year old one son 6 year old, i can invest 8000 per month now, how i should invest so i can manage my kids studies and other expenses with making some retirement fund also. In future as my salary will increase i can increase investment.
Ans: Managing your finances with a focus on your kids' education and your retirement is commendable. Let’s dive into a detailed plan tailored for you.

Understanding Your Financial Goals
Your primary goals seem to be:

Ensuring a secure and quality education for your three kids.
Building a retirement corpus for a comfortable future.
Managing current expenses effectively while saving for future needs.
Each goal needs a specific strategy to ensure balanced growth and security.

Evaluating Your Current Financial Situation
With a salary of Rs 30,000 and a housewife spouse, it's essential to optimize your Rs 8,000 monthly savings. Your family responsibilities require prudent planning and disciplined saving habits.

Importance of a Diversified Portfolio
Investing across various assets is crucial. A diversified portfolio minimizes risk and maximizes returns. Let’s break down how you can allocate your Rs 8,000 monthly investment.

Prioritizing Emergency Fund
Before diving into investments, an emergency fund is vital. Aim to save 3-6 months' worth of expenses. This cushion will protect you from unexpected financial disruptions.

Building a Children's Education Fund
Education costs rise every year. Start a dedicated fund for each child’s education. Equity mutual funds are a strong option here due to their potential for high returns over a long period. While equity funds are volatile in the short term, they tend to outperform other asset classes in the long term.

Benefits of Actively Managed Equity Funds:

Professional management ensures informed investment decisions.
Potential for higher returns compared to passive index funds.
Active managers can navigate market volatility better.
Disadvantages of Index Funds:

Lack of flexibility in stock selection.
Possible underperformance in volatile markets.
Limited ability to react to market changes.
Planning for Retirement
Retirement planning should not be delayed. A systematic investment in mutual funds can create a substantial corpus. Since you have a long investment horizon, equity funds are suitable for this goal too.

Choosing Regular Funds Over Direct Funds
While direct funds have lower expense ratios, regular funds offer advantages through the guidance of a Certified Financial Planner (CFP). Regular funds come with:

Professional advice tailored to your financial goals.
Assistance in portfolio rebalancing.
Guidance during market volatility.
Insurance: Protection First
If you hold LIC, ULIP, or other investment-cum-insurance policies, it might be beneficial to surrender these and reinvest the proceeds into mutual funds. Pure term insurance is a better option for financial protection without the high costs of investment-linked insurance plans.

Systematic Investment Plan (SIP) Strategy
A SIP is an excellent way to invest consistently. Here’s a proposed allocation for your Rs 8,000 monthly investment:

Children’s Education Fund: Rs 4,000
Retirement Fund: Rs 3,000
Emergency Fund: Rs 1,000
As your salary increases, you can proportionally increase these investments.

Regular Review and Rebalancing
Financial planning is not a one-time activity. Regularly review your portfolio and rebalance it to align with your goals. A CFP can assist in these reviews and make necessary adjustments.

Tax Planning and Benefits
Investments in certain mutual funds offer tax benefits under Section 80C. Equity Linked Savings Schemes (ELSS) are mutual funds that provide tax deductions and have the potential for higher returns.

Importance of Discipline and Patience
Investing is a long-term commitment. Stay disciplined with your SIPs and avoid withdrawing funds unless absolutely necessary. Patience is key to achieving your financial goals.

Final Insights
To summarize:

Start with an emergency fund for financial security.
Allocate funds to children’s education and your retirement.
Opt for actively managed mutual funds over index funds.
Consider regular funds with professional guidance over direct funds.
Review and adjust your portfolio regularly with a CFP’s help.
Take advantage of tax-saving investment options.
With disciplined saving and informed investment decisions, you can secure your children’s future and build a comfortable retirement corpus.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8001 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 04, 2024

Asked by Anonymous - Jun 30, 2024Hindi
Money
I am 36 year old my salary is 75000, wife is house wife, have one son 6 year old, i can invest 30000 per month now, how i should invest so i can manage my kid studies and other expenses with making some retirement fund also. In future as my salary will increase i can increase investment.
Ans: It’s wonderful that you’re considering your family’s future and making a plan for your child’s education and your retirement. Let’s break down a comprehensive strategy for you.

Understanding Your Financial Goals
You have a clear goal to manage your child’s education and build a retirement fund. Investing Rs 30,000 per month is a great start. Let’s structure a plan that balances both objectives.

Investment Strategy Overview
You’re 36 years old, earning Rs 75,000 per month, and planning to invest Rs 30,000 monthly. Here’s how you can allocate your investments effectively.

Diversification: The Key to Balanced Growth
Diversification helps in spreading risk across various assets. By diversifying your investments, you can achieve growth and stability. Here's how you can do it:

Equity Mutual Funds
Equity mutual funds are ideal for long-term growth. They invest in stocks, which can offer high returns. Here are some options:

Large-Cap Funds: These invest in well-established companies. They offer stable growth with lower risk.
Mid-Cap Funds: These invest in medium-sized companies. They have higher growth potential but come with moderate risk.
Small-Cap Funds: These invest in small companies. They offer high growth but are riskier.
Multi-Cap Funds: These invest in companies of all sizes. They provide diversification within equities.
Debt Mutual Funds
Debt mutual funds invest in fixed-income securities like bonds. They offer stable returns with lower risk. Here are some options:

Short-Term Debt Funds: Suitable for stability and liquidity.
Medium-Term Debt Funds: Offer better returns with moderate risk.
Long-Term Debt Funds: Suitable for long-term goals, providing higher returns with interest rate risk.
Balanced Funds
Balanced funds, also known as hybrid funds, invest in both equities and debt. They offer a balanced approach, providing growth and stability.

Allocating Your Monthly Investment
Here’s a suggested allocation for your Rs 30,000 monthly investment:

Equity Funds: Rs 18,000 (60%)
Debt Funds: Rs 9,000 (30%)
Balanced Funds: Rs 3,000 (10%)
This allocation balances growth potential with risk management.

Investing for Your Child’s Education
Your child’s education is a major goal. Planning ahead ensures you can meet future expenses. Here’s how you can do it:

Child Education Fund
Start a dedicated child education fund. Invest in equity mutual funds for long-term growth. Consider the following:

Equity Funds: Allocate a significant portion to large-cap and multi-cap funds. These offer stable growth over the long term.
SIP (Systematic Investment Plan): Invest a fixed amount regularly. SIPs help in averaging the cost and benefit from market fluctuations.
Regular Monitoring
Review the fund performance regularly. Adjust the investment strategy as needed to ensure it stays on track.

Building a Retirement Corpus
Planning for retirement early ensures you build a substantial corpus. Here’s how you can do it:

Retirement Fund
Start a dedicated retirement fund. Diversify across equity, debt, and balanced funds. Consider the following:

Equity Funds: Allocate to large-cap and multi-cap funds for growth.
Debt Funds: Allocate to short-term and medium-term debt funds for stability.
Balanced Funds: Allocate a small portion to balanced funds for a mix of growth and stability.
Power of Compounding
The power of compounding is a key factor in building your retirement corpus. The longer you stay invested, the more your money grows.

Managing Risk
Investing involves risk. Here’s how to manage it effectively:

Diversification
Diversifying across various asset classes and fund types reduces risk. This ensures poor performance in one area is offset by better performance in another.

Regular Reviews
Regularly review your investments. Adjust your strategy based on market conditions and personal goals.

Emergency Fund
Maintain an emergency fund. This ensures you don’t need to liquidate your investments during emergencies.

Increasing Investments with Salary Hikes
As your salary increases, you can increase your investments. Here’s how to plan for it:

Incremental Investments
Increase your monthly investments proportionally with your salary hikes. This boosts your investment corpus significantly over time.

Rebalancing
Rebalance your portfolio regularly. Ensure your asset allocation aligns with your risk tolerance and financial goals.

Monitoring and Adjusting Your Strategy
Regular Monitoring
Monitor your investments every six months. Check fund performance and adjust your investments as needed.

Annual Review
Conduct a comprehensive review annually. Rebalance your portfolio to align with your changing financial goals and market conditions.

Final Insights
Your commitment to investing Rs 30,000 per month for your child’s education and retirement is commendable. By diversifying your investments across equity, debt, and balanced funds, you balance growth and stability.

Regular monitoring, rebalancing, and increasing investments with salary hikes ensure you stay on track to achieve your goals. Investing through a Certified Financial Planner ensures you get personalized advice tailored to your needs.

Your disciplined approach and strategic planning will lead you to a secure financial future for your family. Stay committed, stay informed, and keep your long-term goals in sight.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Asked by Anonymous - Feb 18, 2025
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Hi i am a married woman aged 45 years, i am happily married and have a loving husband. My husband travels a lot due to work and my son is studying in college in Pune. Everything was going fine in my life, but few months back a MBA graduate boy 23 years joined our office in my team. He had to report to me, and our company send us for sales corporatemeetings to Mumbai and other cities often. Gradually we became close and he confessed he had a crush on me. I was falttered but told him i am much older and married. Although i was very flattered that he found me attractive. I am tall 5ft 7 inches and kept myself very fit and always men keep hitting on me but i always ignore them. On our last trip together we went for a meal and had a few drinks together. Then i told him i was sleepy and needed to go to my room. He accompanied to my room and had a coffee. I had a bavk ache and he said he can massage me for 5 mins. I hesitantly agreed during the massage one thing led to another and we had sex and since then we have started having sex whenever we travel togther often. He says he truly loves me but for next 5 years he cannot marry anyone. I have now started loving him a lot i often fight with my husband. I want to continue this affair but am afraid if my husband finds out or if people in office come to know. Strangely another young man in office has starterd showing interest in me and asked me out for a coffee. He also says he likes me a lot anf is caring, I am confused shall i also go for a simple coffee. what if my husband or younger boyfriend find out. Is what i am doing wrong, i just want to live my life fully am i wrong ???
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If you do not have an open marriage, then what you are doing is certainly wrong. When has cheating ever been right? Especially when you did not mention anything wrong with your husband. I am not judging you; but I would suggest that if you want to keep this up, you either come clean to your husband or let him go. This isn't fair. You living your life to the fullest should not harm or hurt others.
Hope this helps.

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Ramalingam Kalirajan  |8001 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 18, 2025

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I am selling my 3bhk flat around 6000000 is it compulsory to invest that money in other property? if i want to invest it what is the best options available to avoid tax?
Ans: Selling a property attracts capital gains tax. Since your flat is a long-term capital asset (held for more than 2 years), the Long-Term Capital Gains (LTCG) tax rate is 20% with indexation.

LTCG Calculation = Sale Price - Indexed Cost of Acquisition
Tax Payable = 20% on the LTCG amount
However, you can avoid paying tax by reinvesting the capital gains under certain sections of the Income Tax Act.

Ways to Save Capital Gains Tax
1. Reinvest in Another Residential Property (Section 54)
If you buy another residential property within 2 years or construct within 3 years, you get an exemption on the LTCG amount.
The new property must be in India and should be held for at least 3 years.
If you sell it before 3 years, the exemption is reversed.
? Best for: Those who want to own another property.

2. Invest in Capital Gains Bonds (Section 54EC)
You can invest up to Rs 50 lakhs in NHAI or REC capital gains bonds within 6 months of sale.
The lock-in period is 5 years.
Interest is taxable but the capital gains are exempt.
? Best for: Those who want a risk-free investment with tax savings.

3. Deposit in Capital Gains Account Scheme (CGAS)
If you haven’t decided where to invest, deposit the LTCG in a Capital Gains Account Scheme (CGAS) before the IT return filing deadline.
This gives you time to buy property or construct a house.
The funds must be used within 3 years, or they become taxable.
? Best for: Those who need time before investing in real estate.

Other Investment Options (But No Tax Exemption)
If you don’t reinvest in property or bonds, the LTCG amount will be taxed at 20%. You can still invest the remaining amount in:

Mutual Funds – Equity funds for long-term growth
Fixed Deposits – Safe returns but fully taxable
Stock Market – High risk, high return potential
These options do not offer tax exemption but help grow wealth.

Final Insights
If you want tax-free gains, reinvest in property or capital gains bonds.
If you don’t want to lock funds, pay LTCG tax and invest in other assets.
Use the Capital Gains Account Scheme if you need time to decide.
Plan based on your financial goals and liquidity needs.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

...Read more

Ramalingam

Ramalingam Kalirajan  |8001 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 18, 2025

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Dear Sir, i'm 27 years old and wish to retire by 50. I live in my own home and investing 50k monthly sip to below funds from past 1 year. 20k tata small cap/ 10k parag parekh flexi cap/ 20k motilal oswal mid cap. Could you please guide me in long term if this would be sustainable or require some adjustments in funds or distribution? I'm hoping for higher returns to have enough big corpse at the time of retirement so not included large cap funds.
Ans: You are investing early, which is a great decision. Your goal of retiring at 50 is ambitious. A strong investment strategy will help achieve it.

Current Investment Overview
SIP Contribution – Rs 50,000 per month
Fund Allocation
Small Cap – Rs 20,000
Mid Cap – Rs 20,000
Flexi Cap – Rs 10,000
Investment Duration – 1 year completed
Key Observations
1. High Risk Allocation – Need for Balance
Your portfolio is heavily tilted toward small and mid caps.
These funds offer high returns but come with volatility.
A more balanced allocation will reduce risk.
2. Absence of Large Cap Exposure
Large caps provide stability in market downturns.
A portion of the portfolio should be in large-cap funds.
This will reduce portfolio fluctuations over time.
3. Flexi Cap Fund – Good Choice for Diversification
This fund type adjusts between market caps.
It provides flexibility based on market conditions.
Retain this fund for better risk management.
Recommended Adjustments
1. Optimizing Fund Distribution
Reduce small-cap allocation from Rs 20,000 to Rs 15,000.
Reduce mid-cap allocation from Rs 20,000 to Rs 15,000.
Add a large-cap fund with Rs 10,000 allocation.
Increase flexi-cap allocation from Rs 10,000 to Rs 15,000.
2. Adding Debt for Stability
As you get closer to retirement, reduce equity exposure.
Start a small allocation in debt funds after 40.
This will ensure capital protection.
3. Tax Planning Considerations
Capital gains tax will apply when you redeem funds.
LTCG above Rs 1.25 lakh is taxed at 12.5%.
STCG is taxed at 20%.
Plan withdrawals in a tax-efficient manner.
Final Insights
Continue SIPs with a more balanced allocation.
Add large-cap funds for stability.
Include debt funds closer to retirement.
Plan tax-efficient withdrawals in the future.
This strategy will ensure a strong retirement corpus.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

...Read more

Ramalingam

Ramalingam Kalirajan  |8001 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 18, 2025

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Hi ... I have been very bad a financial planning and have been living the good life without really bothering about the future. I am 48 and work with a MNC and make around 4.5L per month after taxes. I am married with a 17 yr old son who's in 11th. I currently have savings in my bank and equity to the tune of 35L. I have been investing around 80K per month in SIP's for the last 3 years. I have an apartment which is worth around 4cr now and I have a home loan of around 1cr remaining on it. In addition, I have a personal loan of around 40L taken for home interiors (4 more years pending on it). I feel I am not really set up well for my retirement. What would you suggest? My monthly expenses after all this do not have any room for savings.
Ans: You have a strong income and investments. But high loans are affecting savings. You need a structured plan to reduce debt and secure retirement.

Current Financial Overview
Income

Rs 4.5 lakh per month after taxes
Investments & Savings

Rs 35 lakh in bank and equity
Rs 80,000 SIP per month (3 years)
Assets

Apartment worth Rs 4 crore
Loans

Home loan: Rs 1 crore remaining
Personal loan: Rs 40 lakh (4 years left)
Expenses

No room for additional savings after all expenses
Key Financial Concerns
1. Home Loan & Personal Loan – Priority on Repayment
Loan EMIs are affecting savings.
Reduce home loan tenure by increasing EMI, if possible.
Try to prepay the personal loan first. It has a higher interest rate.
Avoid taking more loans until these are cleared.
2. Retirement Planning – Building a Strong Corpus
Your current savings are low for retirement. You need a better plan.

Increase SIPs when personal loan is cleared.
Allocate funds across equity and debt for long-term growth.
Consider PPF, EPF, and debt funds for stability.
Gradually move funds to safer investments as retirement nears.
3. Son’s Higher Education – Plan Early
Your son will enter college in two years. You need a dedicated fund.

Start a separate SIP to cover education costs.
Use debt funds for short-term needs.
Avoid withdrawing from retirement savings for education.
4. Insurance – Protect Your Finances
Ensure you have term insurance of at least Rs 1.5 crore.
Maintain health insurance for family with a high cover.
Avoid traditional insurance plans with low returns.
Final Insights
Focus on repaying personal loan first.
Prepay the home loan gradually for financial freedom.
Increase SIPs once debt reduces.
Start a dedicated education fund for your son.
Build a diversified retirement corpus with equity and debt.
A disciplined approach will secure your future.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

...Read more

Ramalingam

Ramalingam Kalirajan  |8001 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 18, 2025

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Hello Sir, I am 49 Yrs of Age and working in Private Firm in Mid Management. Today my monthly expenditure is around 40000 and wants to retire at the age of 59-60. But my daughter is of 4 yrs only . As on date I invest on SIP - Monthly 40K and Equity - 1.5 Lks.. Portfolio of around 19 Lks. I have purchased two Flats -01 is free debt and on another Housing Loan of 21lks is upto 2032. FD is of around 35Lkhs. PF balance is of now- 22lkhs and PPF of Rs 6 lkh . Mediclaim for family of 50lkhs per year. Under 80 C - monthly premium of around 25 K along with terms plan of 50Lkhs. I want to purchase open plot in Nagpur for investment and future planning, Funds i will use from FD of around 25 Lks..is this wise decision? Also I have 35 lks parental Property but it will transfer to me after 10 Yrs .....Pls advise how to secure my daughter future and his education and also post retirement my expenditure.
Ans: You have a well-structured portfolio with SIPs, equity investments, FDs, and real estate. Your focus on retirement at 59-60 and securing your daughter’s future is crucial. Let’s assess your financial standing and guide you towards a more structured approach.

Current Financial Overview
Investments

SIP: Rs 40,000 per month
Equity: Rs 1.5 lakh lump sum investment
Total Portfolio: Rs 19 lakh
Real Estate

One flat is debt-free
Second flat has a Rs 21 lakh home loan till 2032
Fixed Deposits

Rs 35 lakh in FD
Provident Fund & PPF

PF Balance: Rs 22 lakh
PPF: Rs 6 lakh
Insurance & Tax Savings

Mediclaim: Rs 50 lakh per year
Life Insurance: Rs 50 lakh term plan
Monthly insurance premium under 80C: Rs 25,000
Future Real Estate Plan

Planning to invest Rs 25 lakh in an open plot in Nagpur
Parental Property

Rs 35 lakh property expected to be transferred in 10 years
Key Financial Considerations
1. Should You Invest Rs 25 Lakh in an Open Plot?
Real estate is not liquid, making it difficult to use in emergencies.
Selling at the right price may take years.
Property maintenance and legal issues can add costs.
Instead, consider investing in equity or mutual funds for higher flexibility.
It’s better to keep Rs 25 lakh diversified in liquid investments rather than real estate.

2. Retirement Planning – Securing Post-Retirement Expenses
Your current monthly expense is Rs 40,000. This will rise due to inflation. You need a solid retirement corpus.

Continue SIPs and Increase Contribution Yearly

Rs 40,000 SIPs are good, but increase them by 10% yearly.
This ensures long-term wealth creation.
Allocate FD Funds Wisely

FD returns are low and taxable.
Shift a portion to equity and hybrid funds for better growth.
Utilise PF and PPF Efficiently

PF will grow by retirement but won’t be enough alone.
Continue PPF for stable, tax-free returns.
Debt Fund Investments for Stability

Gradually move funds to debt funds five years before retirement.
This protects against market volatility.
Health Insurance is Well-Planned

Rs 50 lakh mediclaim is a strong financial shield.
Ensure coverage continues post-retirement.
3. Planning for Your Daughter’s Future
Your daughter is just four years old. You need a structured education and marriage fund.

Start a Separate SIP for Her Education

Allocate at least Rs 15,000 per month in equity funds.
Increase by 10% annually to cover rising education costs.
Use Debt Funds for Short-Term Needs

For school fees or immediate expenses, use debt funds.
These are safer than FDs and provide better returns.
Avoid Child ULIPs or Traditional Insurance Plans

These give low returns with high charges.
Instead, use mutual funds for higher growth.
Consider a Sukanya Samriddhi Account

This provides tax-free returns and stability for long-term goals.
Invest a small portion to diversify savings.
Final Insights
Avoid investing Rs 25 lakh in an open plot.
Increase SIPs yearly and allocate part of FD funds to mutual funds.
Start a dedicated education fund for your daughter.
Focus on equity growth while gradually securing assets in debt before retirement.
With structured planning, you can achieve financial security for yourself and your daughter.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

...Read more

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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