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Ramalingam

Ramalingam Kalirajan  |6971 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 16, 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
Bibhanshu Question by Bibhanshu on Apr 08, 2024Hindi
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My employment after Campus Placement from IITDelhi gave opportunity to my children, Son&Daughter. to study engineering from Top Engineering College of India to earn salary to insure my health. Should I insure from my saving for their future treatment for their &my good health? My Wife is no more due to Covid after long treatment of her kidney through dialysis by my health insurance for family amounting around Rs 1Crore from 2014-2020

Ans: Yes, insuring your health and your children's health is essential for financial security. Given your family's medical history and the significant health expenses incurred for your wife's treatment, it's prudent to have health insurance coverage. It will protect your savings from potential high medical costs and ensure timely and quality healthcare for you and your children.
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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Moneywize

Moneywize   |174 Answers  |Ask -

Financial Planner - Answered on Apr 23, 2024

Asked by Anonymous - Apr 21, 2024Hindi
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Should I buy mediclaim for my son and daughter and myself? I lost my husband during the Covid pandemic and am dependent on only my company health insurance which comes to about Rs 10 lakh for the three of us. Both my children are in college now and I also have to save for their education abroad. Which health insurance policy shall I opt?
Ans: I am sorry for your loss. I understand this is a tough time financially and you're juggling multiple priorities. Here's why a mediclaim policy for your family might be a good idea:

• Peace of mind: Medical emergencies are unpredictable. A mediclaim policy would provide financial cover beyond your company insurance, especially if the hospitalisation costs exceed 10 lakh.
• Security for children's future: Medical bills can derail your savings plan for their education. A mediclaim would ensure their education funds remain untouched.

Finding the right mediclaim policy:

• Family floater plan: Consider a family floater plan where the sum insured is shared amongst you and your children. This is usually cheaper than individual plans.
• Start with a reasonable sum insured: You can start with a sum insured of 5-7 lakhs on the family floater plan. This can be increased later.
• Check for exclusions: Carefully review the policy document for exclusions pre-existing conditions, specific procedures etc.

Balancing cost and coverage:

• Compare quotes online: Use online insurance aggregators to compare quotes from different insurers. They can help you find plans that fit your budget.
• Company vs Individual plan: While your company plan offers some coverage, a personal mediclaim can provide wider coverage and may not be tied to your employment.

Don't forget:

• Disclose pre-existing conditions: Be upfront about any pre-existing conditions to avoid claim rejections.
• Renew on time: Timely renewal ensures uninterrupted coverage.

Remember, a mediclaim policy is an investment in your family's well-being. Weigh the cost of the premium against the potential financial burden of medical bills.

..Read more

Ramalingam

Ramalingam Kalirajan  |6971 Answers  |Ask -

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

Money
Sir, I am 36. My monthly income is 80k. I have a daughter and my wife is housewife. I have investment with market value of Rs. 13 lakhs. Total 4 nos mutual fund total SIP Rs. 7000 p. m. with current value of Rs. 6 lakhs. My office provides EPF scheme. Where I invest 16% of Basic+DA. Present corpus is around 19 lakhs. Except a personal loan of Rs. 2.50 lakhs, presently I dont have any other loans. I have taken a comprehensive Health insurance policy value of Rs. 5 lakhs plus my office provides medical benefits. I have taken a term policy cover of Rs. 1 cr. Now, i want to have i) Education of my daughter now she is 7m old And ii) Steady cashflow for present and post retirement. I suppose the highest cost of education of IIT will be around 45 lakhs ii) Retirement corpus of Rs. 5 crores. There is no desire to buy car or house in future. Will I be able to cover up my family financially secure by present investment?
Ans: Detailed Financial Review and Strategy for Achieving Goals
Current Financial Status
Monthly Income: Rs. 80,000
Mutual Fund SIPs: Rs. 7,000 per month
Current Value of Mutual Funds: Rs. 6 lakhs
EPF Corpus: Rs. 19 lakhs
Health Insurance: Coverage of Rs. 5 lakhs
Term Insurance: Coverage of Rs. 1 crore
Personal Loan: Rs. 2.5 lakhs
Financial Goals
Daughter’s Education: Rs. 45 lakhs needed in 17 years
Retirement Corpus: Rs. 5 crores needed in 24 years
Detailed Investment and Savings Strategy
Mutual Funds
Current SIPs: Rs. 7,000 per month
Recommendation: Continue with actively managed mutual funds to potentially achieve higher returns. Aim for funds with a strong track record and capable fund managers.
Increase SIPs Gradually: As your income grows, consider increasing your SIPs by at least 10-15% annually to boost your investment corpus.
Employee Provident Fund (EPF)
Current Corpus: Rs. 19 lakhs
EPF Growth: EPF is a low-risk investment with steady growth. Continue contributing regularly as it provides a stable retirement fund base.
Insurance
Term Insurance: The Rs. 1 crore cover is sufficient to secure your family’s future in case of an unforeseen event. Ensure to review and adjust this coverage periodically to match inflation and any changes in financial responsibilities.
Health Insurance: The Rs. 5 lakhs coverage, combined with employer benefits, appears adequate. However, with rising healthcare costs, consider increasing your health insurance cover or adding a top-up plan.
Daughter’s Education Planning
Time Horizon: 17 years
Estimated Cost: Rs. 45 lakhs
Investment Strategy:
Equity Mutual Funds: Start a dedicated SIP in equity mutual funds. Given the long investment horizon, equity funds offer the best potential for high returns.
Target SIP Amount: To accumulate Rs. 45 lakhs in 17 years, assuming an average annual return of 12%, you need to invest approximately Rs. 8,000-10,000 per month.
Retirement Planning
Time Horizon: 24 years
Target Corpus: Rs. 5 crores
Investment Strategy:
Additional SIPs: Besides your existing SIPs and EPF contributions, start additional SIPs in diversified equity mutual funds.
Target SIP Amount: To accumulate Rs. 5 crores in 24 years, assuming an average annual return of 12%, you need to invest approximately Rs. 15,000-20,000 per month. This figure should be periodically reviewed and adjusted based on actual investment performance and any changes in retirement goals.
Debt Management
Current Debt: Rs. 2.5 lakhs personal loan
Strategy: Prioritize paying off this personal loan to free up cash flow for further investments. Consider allocating a portion of your monthly savings towards this debt to clear it as soon as possible.
Ensuring Steady Cash Flow Post-Retirement
Balanced/Hybrid Funds: Invest in balanced or hybrid funds as you approach retirement. These funds offer a mix of equity and debt, providing both growth and stability. They are ideal for generating a steady income post-retirement.
Systematic Withdrawal Plan (SWP): Consider setting up an SWP in mutual funds to ensure a regular income stream during retirement. This helps in managing monthly expenses without compromising on the principal investment significantly.
Continuous Review and Adjustment
Annual Review: Regularly review your financial plan and investment portfolio at least once a year. Adjust your investments based on market performance, changes in financial goals, or life events.
Professional Guidance: Consider working with a Certified Financial Planner (CFP) to stay on track and make informed decisions. A CFP can provide personalized advice and help in navigating complex financial markets.
Conclusion
You are already on the right path with a disciplined approach to savings and investments. By gradually increasing your SIPs, focusing on equity funds for long-term goals, and efficiently managing debt, you can comfortably achieve your financial objectives. Regular reviews and adjustments, along with professional advice, will further ensure that you stay on track to secure your family’s future and your retirement.

Best Regards,
K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6971 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

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I am single and retired with no family or loan commitments. with my enough funds in dividend funds for my routine monthly expenses, I have taken a Health Insurance for Rs.10 lacs with Royal Sundaram and life insurance term plan for Rs.50 lacs and Traditional insurance plan from LIC for Rs. 25 lacs on various named policies out of which except yearly premium of Rs.50,000 all policy payment terms were over. (policies like Jeevan Tarang, Jeevan Amrut etc) To cover this Rs.50000 insurance premium, I am getting survival benefit from Jeevan Tarang policy every year; only the date will differ which I could manage with my credit card payment. Can you please advise me whether the health insurance cover is okay and Life cover is okay; or should I take extra cover. Though I do not require to leave a legacy, I may also surrender the policy, in case of need. please advise
Ans: Financial Overview
Current Status

You are single and retired.

No family or loan commitments.

Insurance Policies

Health insurance: Rs. 10 lakhs with Royal Sundaram.

Life insurance term plan: Rs. 50 lakhs.

Traditional insurance plans from LIC: Rs. 25 lakhs.

Annual insurance premium: Rs. 50,000.

Appreciating Your Efforts
You have a well-structured plan.

Health and life insurance cover your needs.

Insurance Review
Health Insurance

Your health insurance cover is Rs. 10 lakhs.

Consider increasing it to Rs. 20 lakhs.

This ensures better protection against rising medical costs.

Life Insurance

Your life cover is Rs. 50 lakhs.

Since you have no family commitments, this is sufficient.

Traditional Insurance Plans
Jeevan Tarang and Jeevan Amrut

These plans provide survival benefits.

Use these benefits to pay your annual premium.

Surrender Option

Consider surrendering these policies if needed.

The surrender value can be reinvested in mutual funds.

Investment Strategy
Mutual Funds

Actively managed funds can offer higher returns.

Consider SIPs in large-cap and balanced funds.

PPF and NPS

Continue with PPF and NPS investments.

They offer safety and tax benefits.

Disadvantages of Index Funds
Lower Returns

Index funds mimic the market.

They often yield lower returns compared to actively managed funds.

Lack of Flexibility

Index funds have less flexibility.

Actively managed funds adapt to market conditions.

Disadvantages of Direct Funds
Lack of Guidance

Direct funds lack professional advice.

Regular funds provide support through MFDs with CFP credentials.

Higher Risk

Direct funds can be riskier.

Professional guidance helps mitigate risks.

Emergency Fund
Maintain Liquidity

Keep an emergency fund.

Ensure it's equivalent to 6-12 months of expenses.

Liquid Mutual Funds

Consider liquid mutual funds for this purpose.

They offer better returns than savings accounts.

Action Plan
Increase Health Cover

Increase your health insurance to Rs. 20 lakhs.

Review Traditional Policies

Consider surrendering LIC policies.

Reinvest the proceeds in mutual funds.

Continue SIPs

Increase SIP contributions.

Focus on large-cap and balanced funds.

Maintain Emergency Fund

Keep a sufficient emergency fund.

Use liquid mutual funds for better returns.

Final Insights
Your current insurance and investment strategy is commendable.

Consider increasing your health cover for better protection.

Reevaluate traditional policies and focus on mutual funds.

Maintain an emergency fund for financial stability.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

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Hi Madam, I'm 60,retired, my wife is 47, our son is 23. I had love marriage and was leading a happy married life. Just after silver jubilee of our wedding anniversary I accidentally came to know that my wife is madly in love with one of our common married friend who runs a simple shop. Upon investigation I found that they are in relation for last 12 years and were enjoying sex in my own house for such a long time. He hails from an uneducated family and is not even cultured. I could not believe that the wife of a highly educated socially respected man could do this with a shopkeeper who does not have any socio economic status. I am living a normal life with my wife for the sake of our only child. Once he settles in life I have decided to end my life. Ofcourse I still love her as ours was a love marriage. I seek your wise suggestion in this regard, should I divorce her or live a normal life that we are doing?
Ans: Dear Shristi,
It is obviously very shocking for you to know that things have been happening behind your back.
Now, how you want this to move on from here on, is a decision only you must make! Have you had a chat with your wife about the association that she has with the other person? Does she know that you know about it?
If she doesn't, then you need to make her aware and yes, do ask her whether she is interested at all in the marriage. That will give you an idea as to whether things are worth fighting for or is it best to walk away!

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

Anu

Anu Krishna  |1269 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 05, 2024

Asked by Anonymous - Nov 03, 2024Hindi
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Relationship
Hello madam I a 32 year old married man with a kid , who is 6 years old. I have done arrange marriage with my own decision I agreed to my parents for the marrige at that time I was in a casual relationship with a girl I didn't said anything to the girl and get married to someone else. After that I tried to live a happay life with my wife without thinking about the girl whom I left behind, from outside I tried to be happy with my wife but my wife thought doesn't matches with me so I felt so disturbed from inside. Still I was trying to continue the relationship for sake of our child but suddenly I got my ex love contact and I was so happy that after so long time I got a chance to talk to her, I have tried to meet her but she always refused to meet me because she was in a relationship. I tried many times and due to some misconduct I again lost her for the second time. At this moment when she is not with me her thoughts memories are troubling me so much I am in pain, what am I suppose to do to get rid of the pain?? Please help
Ans: Dear Anonymous,
There is no point wanting a 'past' relationship just because you have one...what if that relationship did not exist, you would have possibly made efforts to make your marriage work, right?
Then do just that...DO NOT treat your marriage as an option...which marriage is a perfect one? And are all spouses tailor-made to fit one another?
So, if her thoughts don't match with yours, then even yours don't match with hers...so, should she also think of jumping into some other relationship. Please act mature about this especially with a child in the entire equation; try and understand each other...speak about your differences and find ways of working on them by accepting them. Ex-love etc looks all very nice, but come down to ground reality; please...work on your marriage!

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

Ravi

Ravi Mittal  |395 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 05, 2024

Asked by Anonymous - Sep 15, 2024Hindi
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I am 50 years old and got married 15 years ago. I am a very spontaneous sort of a guy and enjoy life, partying etc. I was also very active socially.My wife being the complete opposite put a stop to all that once we got married. She also does not display any affection and has no interest in physical intimacy. She is just concerned with her housework.We also have lot of differences in mental attitude & intellectual abilities. At no stage will we ever seperate, however, I am unhappy with her nature. She has lot of friends, however is always at daggers drawn with in her in laws. We had to stay separately for 6 months, and I tried looking for love else where, however after a couple of months, I realised, that I missed her. I am in a quandary. Despite requesting her to work on our relationship, I get no response. Please advise on how to proceed.
Ans: Dear Anonymous,
I understand you are in a tough spot. But it's nice to see that after all those years of differences, you still have genuine feelings for her. I strongly suggest considering marriage counseling. From your description of your marriage, it seems to be there have been issues from the very beginning of it. It's been too long and now those issues must've become deep-rooted. Seeing a professional can be a game-changer. They can guide you out of this slump more methodically and help you navigate the emotions you are feeling right now. It can also help you understand the reasons for your wife's disinterest and handle it better.

Best Wishes

...Read more

Ravi

Ravi Mittal  |395 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 05, 2024

Asked by Anonymous - Nov 02, 2024Hindi
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Relationship
Hii, I have an love marriage after 9 years of dating and 6 years, 2 children post marriage, my little one is 11 months old now. My husband has an affair upto chatting to someone in his company, his junior but in different department, when my Lil one was 1 month old, we had in a rough patch then due to child birth and family drama. When I saw it and confronted him, he said he is sorry and won't do it again, we had multiple fights for 3-4 months after then due to same reason, but he mostly listen and consol. It's been a lot of mental torture for me. I love my husband a lot and he is a good person, but sometimes sill I see her msg in his phone asking for small helps or casual msg. She is also married. I am not sure my husband deletes msg or what, I am not able to get over this. Before it, this is was preety much a good relationship. I am highly educated and independent women. I don't want anything form my husband apart from love. What should I do, whenever I tell him I want to just leave and let him have his life, he won't let me somehow. We are having a good physical relationship 2-4 times a week( just to tell where we are). Please help me...I can't overcome that he is making fool of me...
Ans: Dear Anonymous,
I am sorry to hear you are in such a tough spot. I would suggest considering marriage counseling. A professional who can help you both tackle these issues would be helpful in this situation. I understand that it was his mistake and he needs to put the effort to make you trust him again, but since you are still together, you will also have to put in the effort to let it. I know it is difficult and that's where marriage counselor comes in. They can help you navigate these feelings. Moreover, if he is indeed hiding something, therapy can help that come out in the open.

Hope this helps.

...Read more

Ravi

Ravi Mittal  |395 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 05, 2024

Asked by Anonymous - Sep 10, 2024Hindi
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Relationship
Hi, Me(M38) and wife(F37) happily married for 12 years and blessed with one daughter. Partner(F28)continuing friendship with a person[M] who had crush on her before marriage considered emotional infidelity? Me(M38) and wife(F37) happily married for 12 years and blessed with one daughter. My wife is having friendship (strictly platonic) with a guy from her 10tlh grade (same class). Before our marriage (she may be doing her college, our relationship just started may be 2 weeks) this guy told her he has genuine interest in her and he want to take the relationship further if she wants, she said she is not interested in a relationship and she got committed, she always saw him as a friend, no other feelings for him and we can be friends if you don't bring any romantic interest again. He never took this talk again ever after and happy to be a friend. They are talking as friends. She got married to me. He also got married. They still do chats once in a month. She introduced me to him and visited his home when we visited his city. He also came to our home once (me and my family was there). She used to update me with chat she had with him and the content they are chatting. I am ok with that When we were talking about our school life and college life 2 years before. She said this guy had crush on her during her college days. I asked her, why did not she tell me this info till now. She said it is not purposely, she does not feel the need to do as the person is not in-appropriate with her and continuing as good friend as promised after she rejected his proposal. I don’t want to create any unnecessary issues as I don’t have any felling or so with him. That time I checked their chats completely, it’s about update about their common friends, their recent travel, their job, meditation courses and the books they read recently. I haven’t seen any flirting or romantic message from either of them. So I am perfectly fine with it and had no problems. I recently came to know about the concept of emotional cheating which is very new to me. Before that cheating to me is only flirting, sexeting and physical sex. I have asked for advice in redddit.com in infedility sub forum about emotional cheating/ emotion affair. There persons are advising like even having friendship with someone who had crush on you is emotional cheating as it is indirectly leading them on you. So with an omission of lie he had crush on her and indirectly leading him on you wife was emotionally cheating on you. This is very much equal to cheating. I do have lots of friends in other gender, but no one had crush on me. Does this count as emotional cheating/affair as she did not mention he had crush on her before marriage? I am little depressed and not able to spend quality time with my wife who is in postpartum depression and take care of our daughter properly as before. Do you guys advise me how to navigate this situation?
Ans: Dear Anonymous,
Are you really going to ruin your happy relationship based on some new term you have learned recently? Emotional cheating and many more terms of the kind will come and go, what truly matters is the truth. She is merely friends with this guy and for your peace of mind, you have even checked their conversations- what part of it looks like cheating to you? If tomorrow, some random person projecting their own insecurities claims that a man speaking to a woman is some "new form" of cheating, would you start believing that? My point is that these are just random opinions of some people- it isn't the ultimate truth. The entire context matters. This man had a crush on your wife, she rejected it, and now they are just friends. I find absolutely no misconduct or infidelity in this. The fact that none of your friends had a crush on you does not factor in at all. Moreover, your wife is in postpartum depression- that should be your biggest concern but here you are, giving more importance to the random 2 AM thoughts of some people you don't even know. Please rethink if you are being fair to your wife- the mother of your child.

Best Wishes

...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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