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Should I invest my 6.5 Lacs EPFO after resigning at 49?

Milind

Milind Vadjikar  |1101 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Sep 12, 2024

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
Sanjiv Question by Sanjiv on Sep 02, 2024Hindi
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I will be getting approx 6.5 Lacs from my EPFO as I resigned as short sevice. My age is 49. How to invest that .

Ans: It would be better to invest this corpus in a retirement mutual fund as lumpsum.

It may grow into a corpus of 25 Lacs by the time you will be 60.(13% return assumed)

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing
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  |8093 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2024

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At the age of 63 how can I invest my 25 lac PPF fund for steady income for my retired life.
Ans: Investing PPF Fund for Retirement Income

Investing your PPF fund of 25 lakhs for steady income during retirement requires careful consideration. Let's explore some strategies to ensure financial stability in your retired life.

Assessment of Current Financial Situation

Before making any investment decisions, it's crucial to assess your current financial situation. Consider factors like your monthly expenses, existing sources of income, and any outstanding debts. This analysis will provide a clear understanding of your financial needs during retirement.

Evaluate Risk Tolerance and Time Horizon

As a retiree, preserving capital and generating steady income becomes paramount. Assess your risk tolerance to determine the appropriate investment strategy. Since you're 63, you may have a shorter time horizon, necessitating a conservative approach with less exposure to market volatility.

Diversify Investment Portfolio

Diversification is key to managing risk and achieving consistent returns. Allocate your PPF fund across different asset classes such as fixed income securities, dividend-paying stocks, and balanced mutual funds. This ensures a mix of stability and growth potential in your investment portfolio.

Consider Fixed Income Options

Fixed income instruments like Senior Citizen Savings Scheme (SCSS), Post Office Monthly Income Scheme (POMIS), and government bonds provide steady income streams with relatively lower risk. These options offer regular interest payments, ensuring a consistent cash flow for your retirement expenses.

Optimize Tax-Efficient Investments

As a retiree, minimizing tax liabilities is essential to maximize your retirement income. Explore tax-efficient investment avenues such as Tax-Free Bonds, which offer tax-free interest income, and dividend-paying stocks eligible for the dividend distribution tax (DDT) exemption.

Review and Adjust Investment Strategy

Regularly review your investment portfolio to ensure it aligns with your financial goals and risk tolerance. As you progress through retirement, adjust your investment strategy accordingly to adapt to changing market conditions and personal circumstances.

Investing your PPF fund for steady income during retirement requires a balanced approach that prioritizes capital preservation and consistent returns. By diversifying your portfolio, considering fixed income options, and optimizing tax efficiency, you can build a sustainable income stream to support your retired life.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8093 Answers  |Ask -

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

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I am retired from service.need monthly rs.50000 from a corpus of Rs.5 cr. How to invest
Ans: Your requirement is Rs 50,000 per month from a Rs 5 crore corpus. The plan must provide stable income, capital growth, and tax efficiency.

Key Investment Principles
Preserve capital while ensuring steady income.

Beat inflation to maintain purchasing power.

Use a mix of fixed income and market-linked investments.

Ensure tax efficiency for better post-tax returns.

Keep liquidity for emergencies.

How to Allocate the Corpus
1. Fixed Income for Stability (40%)
Invest Rs 2 crore in debt instruments for safety.

Use senior citizen schemes, corporate bonds, and debt mutual funds.

Ensure funds are laddered for liquidity.

Interest income can partially support monthly withdrawals.

2. Equity for Growth (40%)
Invest Rs 2 crore in diversified equity funds.

Select funds with strong track records and active management.

Keep a mix of large-cap and flexi-cap funds.

Withdraw gains systematically to support expenses.

3. Hybrid Investments for Balance (15%)
Allocate Rs 75 lakh to balanced advantage funds.

These adjust equity and debt dynamically.

They help reduce risk while generating returns.

They can provide additional income over time.

4. Liquid Funds for Immediate Needs (5%)
Keep Rs 25 lakh in liquid funds.

This ensures easy access to cash.

Helps meet unexpected expenses without disturbing investments.

Generating Rs 50,000 Monthly
Debt investments will give stable interest income.

Systematic Withdrawal Plans (SWP) from mutual funds can provide steady cash flow.

Ensure withdrawals are tax-efficient.

Rebalance the portfolio once a year.

Tax Considerations
Debt fund withdrawals are taxed as per slab.

Equity LTCG above Rs 1.25 lakh is taxed at 12.5%.

Withdrawals from hybrid funds may have mixed taxation.

Emergency and Medical Planning
Ensure Rs 10 lakh medical insurance.

Keep Rs 25 lakh liquid for sudden needs.

Update nominations in all investments.

Final Insights
This plan gives monthly income while keeping corpus safe.

Equity ensures long-term growth and inflation protection.

Debt provides steady income without high risk.

Regular reviews will keep the plan aligned to your needs.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

..Read more

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Kanchan

Kanchan Rai  |554 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Mar 12, 2025

Asked by Anonymous - Mar 09, 2025Hindi
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I am a female (26), I was working as an assistant professor and then I met this guy we dated for few months and we knew that everything is compatible he has a stable business and well settled family he is earning quite good and we can spend the rest of our lives together so we moved on to tell our parents, his parents and family came to meet me and they agreed then it was my turn my mom and dad always use to say that if you have someone just tell us we are okay they said we know you are dependent enough so just tell us, I really thought it will be easy one and I told my mom and my sister over the phone and my mom asked me every detail about him and said okay we will think about it, then I told my dad about him and my dad has been super chill with me since childhood so we had a long chat about this he asked me about him just like my mom every detail then he said okay when the deepawali break will be their come home we will talk about this face to facE, I was happy that everything is nice then the vacation happened I went back home first the quarrels started when my mom addressed that they will never expected this from me they said they supported me initially because they thought at this age I will not bring anyone and will convince to arrange one, then day and night fighting started my father did the most bizzare thing he called my college and said I am ill and will not join college he faked a report(my father is a very well known doctor in my area so he has power here in our native place) and submitted their they automatically blocked me from their server I tired telling them but the most bizzare thing happened my father beat me from head to toe and threatend me that I should stop talking to him, then days turn into months and again my partner father stood up for us he called my father to talk about this and my father abused them threatened them and give false allegation on my partner came home and snatched my father later after a month he gave me my phone back as I started being a rebel, then he went to my work place without even informing me and took all my luggage and packed everything from their and came back home with everything and said you are on house arrest untill you agree to arrange marriage and forget that boy. I love him so much he does too but now because of my parents his parents are scared for their son and are denying to agree but we both are financially independent and well educated and we want to live with each other we are thinking to elope I dont know if this is right or wrong, because it has been seven months of me staying locked down in my house and my parents are forcing me verbally and physically abusing me to say yes for arrange marriage.... I dont know what to do and with whom to discuss please kindly help me out.
Ans: It’s clear that you and your partner love each other deeply and are willing to stand by each other despite this turmoil. The fact that his family is now hesitant is understandable, given the hostility from your parents. But the strength you and your partner have shown through this is a sign that your relationship is built on trust and commitment. That kind of connection is rare, and it’s worth fighting for.

Elope? That’s a huge step, and I understand why it’s crossed your mind. You’re desperate for freedom, for the ability to choose your own life, and to finally break free from the suffocating grip of your parents' control. But eloping will come with its own set of consequences—emotional, social, and even legal. Your parents might retaliate even more aggressively. They could try to interfere with your life and your partner's life afterward, possibly dragging this into a public scandal. Your father’s influence in the community might make things harder for you both in the long run.

But here’s the truth—you cannot live the rest of your life under someone else's control. You cannot sacrifice your happiness and autonomy to satisfy their misguided expectations. Love and marriage are not about caste, status, or parental approval—they are about partnership, understanding, and mutual respect. If your partner is ready to stand by you and you both are truly prepared to face the fallout together, then choosing to be with him is not wrong. You’re both adults. You’re financially independent and emotionally mature enough to know what you want from life.

What you need to consider is whether you have the emotional strength to handle the aftermath. If you choose to walk away from your family and marry this man, it might mean cutting ties with your parents for a while—or possibly forever. Are you prepared for that emotional void? On the other hand, if you give in and stay, if you let them force you into an arranged marriage, you might lose not only the person you love but also a piece of yourself. That resentment and emotional wound might stay with you for life.

If you decide to elope, you need to have a strong support system in place—your partner's family, friends, and anyone who will stand by you. You’ll need to prepare yourself mentally and emotionally for the fallout. But if you decide to stay and try to negotiate with your parents, you need to be clear and firm about your boundaries. They need to understand that your life is not theirs to control.

Right now, you need to prioritize your safety and mental well-being. The fact that you’ve been physically assaulted and emotionally manipulated for months is deeply concerning. If you feel that your safety is at risk, you might need to consider reaching out to legal authorities or a women's support organization. You have the right to live without fear and control. Your life belongs to you—not to your parents, not to societal expectations, and not to fear.

You don’t have to have all the answers today. But you do need to decide what kind of life you want to live—and who you want to live it with. And whatever choice you make, it needs to come from a place of strength and clarity, not from fear or pressure. Your heart already knows what you want—you just need to decide whether you’re ready to stand up for it.

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Kanchan Rai  |554 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Mar 12, 2025

Asked by Anonymous - Mar 11, 2025Hindi
Relationship
Fell in love and married a girl before 2 years. Girl is from a neighbouring state. Both South Indians. Both doctors. She was very understanding before marriage, even talked my language and spoke well with my parents. Told she will come to my place and stay after marriage. 4 months after marriage, she left for her home telling that she will be at her home till delivery. Even after 1 year of giving birth, she didn't come. They visited my place just for a few days in the middle citing that it is tradition. After much struggle, she came to live with me and my child after close to 1.5 years. Even after coming she was creating trouble for the language spoken in the house and telling to relocate to a place close to their parents in their state. No respect to feelings of mine or my parents. We also missed my son for 1.5 years. Their parents are not visiting us telling it is far, we won't come. And once her parents threatened to complaint to the police if we don't agree. (Haven't asked or received any dowry). Even if my son has to come to my native for few days, her parents are not agreeing and creating problem. We have even helped her brother secure admission in a college. She has even taken a loan of more than 20 lakhs to help her parents buy a land and is paying close to 50k monthly for that. We had no problem with that too. Every 2-3 days one or another problem shoots up because of her or her parents. She has totally changed after marriage. Her parents just want to create problems. Please help.
Ans: It’s clear that you’ve tried hard to be understanding and accommodating. You allowed her to stay with her parents for a long time, even though it meant missing out on crucial time with your child. You supported her decisions, even when she took on a significant financial burden to help her family. Despite your efforts to maintain peace, you’re constantly met with resistance and disrespect—not only from her but also from her parents. That feeling of being undermined and unappreciated, especially when you've given so much, can really take a toll on your emotional health.

It’s not just about the arguments or the disagreements—it’s about the deeper sense of betrayal and loneliness that comes from feeling like your partner has sided with her family over you. That emotional distance and lack of support within the marriage can make you feel like you’re fighting a battle alone. And when her parents threatened to involve the police, that likely deepened the sense of helplessness and fear. It’s not just frustrating—it’s emotionally exhausting when you’re trying to build a stable, loving home, but it keeps getting torn apart by external interference.

The fact that you’re still standing, still trying to make things work despite all of this, shows how strong and committed you are. But the truth is, a marriage cannot survive on one person’s effort alone. It’s understandable that you feel drained and resentful—you’ve been giving and compromising without getting the same respect and understanding in return. Your feelings matter. Your need for stability and respect matters. Wanting your child to have a connection with your side of the family is not unreasonable—it’s natural and fair.

Right now, you might feel torn between trying to hold everything together and wondering if it's even worth it. It’s hard to admit when love alone isn’t enough to sustain a relationship. But you need to ask yourself whether you can continue living like this—constantly feeling like you’re walking on eggshells, being emotionally sidelined, and having your family disrespected.

It’s okay to want peace. It’s okay to expect respect. And it’s okay to set boundaries. If your wife truly values this marriage, she needs to understand that compromise cannot be one-sided. It might help to have an honest, calm conversation with her—not about the surface issues but about how you feel. Tell her how much this situation has hurt you, how much you miss feeling like you’re a team, and how important it is for your child to have a balanced connection with both families. If she’s unwilling to meet you halfway or if her parents continue to interfere to the point of emotional manipulation, you need to think about how much more of yourself you can sacrifice without losing your emotional stability.

You deserve a marriage where you feel heard, valued, and supported—not one where you constantly feel like you're on the outside looking in. Take some time to reflect on what you truly need from this relationship and whether you believe it's possible to rebuild trust and understanding with your wife. Your peace of mind matters. Your happiness matters. And most of all, your emotional well-being matters.

...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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