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30-Year-Old With No Marriage Plans: How Long Will My Rs. 1.1 Crore Corpus Last?

Ramalingam

Ramalingam Kalirajan  |8151 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 15, 2025

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 - Feb 15, 2025Hindi
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We are a family of three (me + my parents). I am 30 and have no plans on getting married. Will explore spirituality and try to be a social worker after working for 2-3 more years. We have a corpus of Rs. 1.1 cr invested in FDs. The interest generated (Rs. 8,00,000 p.a.) is withdrawn monthly and used for daily expenses. Please tell me - 1. How long can my corpus last if we keep withdrawing the same amount each year? 2. Is there a need to add more money in corpus? 3. How will inflation hurt and play a role?

Ans: Your situation is well-structured, and your financial discipline is impressive. Let’s break down your concerns step by step.

1. How Long Will the Corpus Last?
You have Rs 1.1 crore in fixed deposits (FDs).

Your annual withdrawal is Rs 8 lakh, covering living expenses.

The duration your corpus lasts depends on the FD interest rate and inflation.

If the interest earned matches your withdrawals, the corpus remains intact.

But if expenses rise due to inflation, the corpus may start depleting.

If inflation is higher than your FD interest rate, the corpus will shrink faster.

Over time, this gap can significantly reduce your savings.

Without additional earnings or reinvestment, depletion becomes inevitable.

A detailed cash flow analysis is necessary for exact projections.

2. Is There a Need to Add More Money?
Your current strategy works well for now.

But inflation will increase expenses each year.

FD interest rates may also decline in the future.

A 25-year time frame requires careful planning.

If expenses rise but income stays the same, your corpus may not last.

Having an extra financial buffer is always good.

You may need to add funds over time to sustain withdrawals.

Consider a mix of investment options for better returns.

Balancing risk and stability is key for long-term security.

3. The Role of Inflation
Inflation reduces the value of money over time.

What costs Rs 50,000 today may cost Rs 1 lakh in 15-20 years.

If expenses double, your withdrawals must also double.

But your FDs may not generate enough interest to support this.

Over time, the real value of your corpus declines.

This means either increasing your corpus or reducing expenses.

Investing in assets that beat inflation can help.

A financial plan with regular reviews is necessary.

4. Fixed Deposits – Strengths and Weaknesses
FDs offer stability and guaranteed returns.

But they may not keep up with inflation in the long run.

Tax on FD interest further reduces net earnings.

Interest rates fluctuate and may decline in the future.

Over-reliance on FDs can erode wealth over time.

A diversified investment plan is essential.

5. Alternative Investment Strategies
You can explore better investment options alongside FDs.

Actively managed mutual funds have the potential for higher returns.

Debt mutual funds offer stability with tax efficiency.

Some portion in balanced hybrid funds can manage risk well.

Conservative investment in gold can hedge against inflation.

Having multiple sources of income is always better.

Choosing the right mix of investments is crucial.

6. Steps to Strengthen Financial Security
Review expenses and identify areas for cost-cutting.

Maintain an emergency fund for unexpected needs.

Consider reinvesting some interest earnings to grow the corpus.

Diversify investments instead of relying only on FDs.

Keep track of inflation and adjust withdrawals if needed.

Reassess the financial plan every year.

7. Impact of Taxes on Your Income
FD interest is fully taxable as per your income slab.

High taxation reduces the effective return on FDs.

Some alternative investments offer better tax efficiency.

Choosing tax-efficient options helps preserve more wealth.

8. Planning for Spiritual and Social Work Phase
After 2-3 years of work, your income may stop.

Your corpus must fully support expenses post-retirement.

Ensuring a steady income source is essential.

Passive income streams like dividend-yielding investments can help.

Reducing lifestyle costs can make funds last longer.

Proper financial discipline is crucial for long-term sustainability.

9. Final Insights
Your financial setup is strong, but long-term risks exist.

Inflation, tax impact, and lower FD rates can hurt corpus longevity.

A well-diversified portfolio will offer better security.

Regular financial reviews help in adjusting to changing needs.

Adding funds to your corpus ensures stability for the future.

Prudent planning today ensures a worry-free tomorrow.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment
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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I am a first year student at MIT Manipal,currently pursuing Electrical and Electronics engineering(EEE),and I am have been given a choice to apply for branch change in my institute either to CSE,Mathematics and Computing(MnC) or ECE in my second year. I did not study Computer Science in 11th and 12th, and I coding in C for the first time as part of my 1st year syllabus.I am not very much interested to coding,but I am learning it since it is there in the course syllabus. My parents suggest switching to CSE, but they are not engineers and do not have insights into the current job market. Since my batch will be passing out in 2028, I want to understand the job scenario for CSE, MnC, ECE, and EEE graduates by then. Among these,which branch provides better opportunities for core engineering jobs with good or decent salary and stability? I have heard that many ECE graduates end up in IT jobs due to lack of core industries-is that true?Would ECE be a better alternative to CSE for core jobs or is it better to stay in EEE? Also between CSE, ECE, and EEE, which has less competition in the job market while still offering good career prospects? Additionally, I want to know which branch is broader, with ample opportunities in both the government and private sectors, especially for core jobs with good pay and stability. base on futuret rends, would it be a wise decision to change my branch, or should I continue with EEE?
Ans: Happy to see that you have asked very logical questions. I can say that, since you are already in Electrical and Electronics Engineering (EEE) at MIT Manipal and have the opportunity to change to CSE, Mathematics and Computing (MnC), or ECE, your decision should be based on:


Your Interests (Core Engineering vs Coding)
Job Market Trends for 2028 and Beyond
Competition & Industry Demand

Future Job Market (2028 & Beyond) for Each Branch
Branch Core Job Scope IT/Software Jobs Govt Jobs Competition Salary Stability
CSE Low (Software Focused) High Limited Very High High but Unstable
MnC Medium (AI/ML, Finance) High Limited High High but Research-Oriented
ECE Medium (VLSI, Chip Design, Telecom, IoT) High Moderate (ISRO, DRDO, PSU) High Medium-High
EEE High (Power, EVs, Automation, Energy, PSU) Moderate High (Railways, NTPC, BHEL, Govt) Low-Medium High & Stable

Should You Switch to CSE, MnC, or ECE?
If You Want Core Engineering Jobs with Stability
Best Option: Stay in EEE

If You Want a Balance Between Core & Software Jobs
Best Option: ECE

If You Want a High-Paying Private Sector Career (But Not Core Engineering)
Best Option: MnC or CSE

Hope this will help you in decision making.

...Read more

Milind

Milind Vadjikar  |1134 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Mar 25, 2025

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Hi sir I am investing when ever i have money not like in SIP. my most of investments are around 6 L invested in Quant different mutual funds. No a days i can see my all the Quant funds are going down. Im 34 years old female. My plan is 10 years. Can i exit from quant and invest in any some MF rather than getting more loss? Can you please review my portfolian. Do i need to exit from any MF. Since i'm maintaining too many MF. Thanks in advance. Mutual Funds List No' Scheme Name AMC Category Sub-category ISIN 1 DSP Small Cap Direct Plan Growth DSP Mutual Fund Equity Small Cap INF740K01QD1 2 Quant Focused Fund Direct Growth Quant Mutual Fund Equity Focused INF966L01853 3 Parag Parikh Flexi Cap Fund Direct Growth PPFAS Mutual Fund Equity Flexi Cap INF879O01027 4 Mirae Asset ELSS Tax Saver Fund Direct Growth Mirae Asset Mutual Fund Equity ELSS INF769K01DM9 5 JM Flexicap Fund Direct Plan Growth JM Financial Mutual Fund Equity Flexi Cap INF192K01CC7 6 Axis Growth Opportunities Fund Direct Growth Axis Mutual Fund Equity Large & MidCap INF846K01J46 7 Parag Parikh ELSS Tax Saver Fund Direct Growth PPFAS Mutual Fund Equity ELSS INF879O01100 8 Quant Small Cap Fund Direct Plan Growth Quant Mutual Fund Equity Small Cap INF966L01689 9 Canara Robeco Small Cap Fund Direct Growth Canara Robeco Mutual Fund Equity Small Cap INF760K01JC6 10 Motilal Oswal Midcap Fund Direct Growth Motilal Oswal Mutual Fund Equity Mid Cap INF247L01445 11 Nippon India Multi Cap Fund Direct Growth Nippon India Mutual Fund Equity Multi Cap INF204K01XF9 12 Nippon India Small Cap Fund Direct Growth Nippon India Mutual Fund Equity Small Cap INF204K01K15 13 ICICI Prudential Value Discovery Direct Growth ICICI Prudential Mutual Fund Equity Value INF109K012K1 14 Quant Flexi Cap Fund Direct Growth Quant Mutual Fund Equity Flexi Cap INF966L01911 15 Nippon India Small Cap Fund Direct Growth Nippon India Mutual Fund Equity Small Cap INF204K01K15 16 Quant ELSS Tax Saver Fund Direct Growth Quant Mutual Fund Equity ELSS INF966L01986 17 Aditya Birla Sun Life PSU Equity Fund Direct Growth Aditya Birla Sun Life Mutual Fund Equity Sectoral / Thematic INF209KB1O82 18 Quant Mid Cap Fund Direct Growth Quant Mutual Fund Equity Mid Cap INF966L01887 STOCKS LIST 1 APOLLO TYRES-EQ RE 1 2 ASIAN PAINTS EQ 1/ 3 BRITANNIA IND-EQ1/- 4 CG POWER-EQ2/ 5 IRCTCL-EQ2 6 NHPC LIMITED - EQ 7 TATA STEEL-EQ1/ 8 Deepak nitrate 9 LT 10 Narayana Hrudayalaya
Ans: Hello;

6 L worth investment in 18 different funds is spreading it too thin.

You have a time horizon of 10 years but how much corpus you want to accumulate after 10 years kindly clarify?

Also if you can specify the goal for which this investment is aimed at then it will help us to suggest suitably.

I will recommend you strategy to rationalize you MF holdings once you revert on the above points.

Thanks;

...Read more

Milind

Milind Vadjikar  |1134 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Mar 25, 2025

Asked by Anonymous - Jan 26, 2025
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Sir, I am Mudassar, 40 years old, i have 3 childrens, 2 daughter and son. Sir, i need your suggestions/guidance becaz i am in very crtical situation. My take home salary is 40K and my father (retired age 74 ) salary is 35K , we both have personal laons to build house. I have two running LIC's , on which i have taken loan also. Recenlty we build own house , if i sell now, i will get around 42 to 45 Lakhs . My lloan detailsbelow ; 1. HDFC 7,20,000 emi 14K 2. Company emi 1,50,000 emi 4K 3. LIC loan 2 laks emi 2K 4. Father loan 4 lacks , two year remaining, emi 14K Total emi : 34K Apart from we are paying 15K monthy to chit fund , still 15 months remaining. Summary: Total sal 75 K , after laon and chit fund deducting , will get 26K to run home , including grocery, children fees , health etc... its very difficult to manage, and keep thinking to take extra loan .. as i said earlier , have two LIC's , i am.paying 56K every year . What i am thinking is, i will sell my house And clear all my laons .. and approximate i will have 25 Lakhs remeaing , so i will inest in mutual fund , SIP , SWP, index fund for long time investment .. So i.am in very confusing mode , whether i have to sell my house .. and start my investment journey... pls help sir .. My finacial conditions are very similar to all middle class family.. Request you to please reply and give your sugestion for investment joury. Awaiting your kind reply .. Thanks in advance ...
Ans: Hello;

Suppose you sell your house and clear your loans and other liabilities but where will you & your family stay?

How much rental per month would be required to get an adequate house on rent?

Please clarify. Based on your input we can advise you suitably.

Thanks;

...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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