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Sanjeev

Sanjeev Govila  | Answer  |Ask -

Financial Planner - Answered on Nov 15, 2023

Colonel Sanjeev Govila (retd) is the founder of Hum Fauji Initiatives, a financial planning company dedicated to the armed forces personnel and their families.
He has over 12 years of experience in financial planning and is a SEBI certified registered investment advisor; he is also accredited with AMFI and IRDA.... more
Abhishek Question by Abhishek on Nov 09, 2023Hindi
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Sir I am going to retire in next 3yrs. How much amount I need so that I can get monthly income of Rs70000. And where I should invest those money. Please advice

Ans: To calculate how much money you need to retire with a monthly income of Rs. 70,000, we need to know the following:

Your current age
Your desired retirement age
Your expected rate of return on your investments
Your desired lifestyle in retirement

Assuming that you are currently 51 years old, plan to retire at age 54, have a life expectancy of 20 years after retirement, and expect a 6% rate of return on your investments, you would need to have a retirement corpus of Rs. 75 lacs approx as of now which become approx. 1 Cr. after the 3 years at the time of your retirement to generate a monthly income of Rs. 70,000 for 20 years after retirement upto the age of 74 years.

As for where to invest your money, there are a number of options available, depending on your risk tolerance and investment goals. Some popular options include:

• Senior citizen savings scheme (SCSS): This is a government-sponsored savings scheme that offers a guaranteed interest rate of 8.2% per annum.
• Post office monthly income scheme (POMIS): This is another government-sponsored savings scheme that offers a monthly income to investors. The current interest rate is 7.40% per annum.
•Annuity plans: Annuity plans provide investors with a guaranteed income stream for a set period of time or for life.
• Debt mutual funds: Debt mutual funds invest in a variety of fixed-income securities, such as government bonds and corporate bonds. They offer relatively low risk and stable returns.
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  |7194 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 26, 2024

Asked by Anonymous - Oct 30, 2023Hindi
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Money
Hi sir, Now I am 24 and I need a fix monthly income of 3+ lakhs by the age of 50 yrs. How much did I need to invest on monthly basis?
Ans: Achieving a fixed monthly income of Rs 3 lakhs by the age of 50 is a commendable goal. Given your current age of 24, you have a 26-year investment horizon. This long-term horizon allows for strategic planning and disciplined investing to reach your target.

Understanding Your Financial Goal
To generate a fixed monthly income of Rs 3 lakhs, you need a substantial retirement corpus. The exact amount will depend on the assumed rate of return and inflation. Generally, a well-planned investment strategy can help achieve this target.

Importance of Starting Early
Starting your investments early is beneficial. Compounding plays a crucial role in wealth accumulation. The longer your money is invested, the more it grows, making it easier to achieve your financial goals.

Estimating the Required Corpus
A fixed monthly income of Rs 3 lakhs translates to Rs 36 lakhs annually. Assuming a conservative withdrawal rate of 4%, you would need a retirement corpus of approximately Rs 9 crores. This corpus can sustain withdrawals while preserving capital.

Monthly Investment Requirement
To reach a corpus of Rs 9 crores in 26 years, regular and disciplined investments are essential. Based on historical returns of diversified equity mutual funds, you can estimate the required monthly investment. Assuming an annual return of around 12%, you need to invest a significant amount monthly.

Choosing the Right Investment Avenues
Diversification is key to managing risk and achieving stable returns. Here are some recommended investment options:

Equity Mutual Funds: These funds offer high returns over the long term. Diversify across large-cap, mid-cap, and small-cap funds to balance risk and return.

Hybrid Funds: These funds invest in both equity and debt. They provide stability and moderate returns, making them suitable for long-term goals.

Debt Funds: While offering lower returns, debt funds provide stability. They should form a smaller portion of your portfolio to reduce overall risk.

The Benefits of SIPs
Systematic Investment Plans (SIPs) are an effective way to invest regularly. SIPs help in rupee cost averaging and reduce the impact of market volatility. Investing a fixed amount monthly ensures disciplined savings and wealth accumulation.

The Role of Actively Managed Funds
Actively managed funds are preferable over index funds for long-term goals. Fund managers actively select securities to outperform the market. This active management can potentially provide higher returns, aiding in faster accumulation of the required corpus.

Disadvantages of Direct Funds
Direct funds require self-management and in-depth market knowledge. Without professional guidance, it can be challenging to make informed investment decisions. Investing through regular funds with the assistance of a Mutual Fund Distributor (MFD) and a Certified Financial Planner (CFP) offers professional advice and personalized strategies.

Regular Review and Rebalancing
Regularly review your investment portfolio to track performance. Rebalance your portfolio periodically to maintain the desired asset allocation. This involves shifting investments from overperforming to underperforming assets to stay aligned with your financial goals.

Professional Guidance
Engage with a Certified Financial Planner (CFP) for personalized advice. A CFP can help in selecting the right funds, managing risks, and ensuring that your investment strategy aligns with your long-term financial goals.

Inflation and Its Impact
Inflation erodes purchasing power over time. Your investment strategy should aim for returns that outpace inflation. Equity investments generally offer inflation-beating returns, making them essential for long-term wealth creation.

The Importance of Financial Discipline
Consistency is crucial in achieving financial goals. Stay committed to your investment plan, even during market downturns. Financial discipline ensures steady progress towards your target corpus.

Building a Contingency Fund
Maintain a contingency fund to handle unexpected expenses. This ensures that your primary investments remain intact, and you don’t have to liquidate assets prematurely.

Tax Planning
Consider the tax implications of your investments. Opt for tax-efficient investment options to maximize returns. Long-term capital gains from equity funds are tax-advantaged, making them a suitable choice for long-term goals.

Conclusion
Achieving a fixed monthly income of Rs 3 lakhs by the age of 50 is attainable with disciplined investing and strategic planning. Start early, diversify your investments, and seek professional guidance. Regular review and rebalancing of your portfolio will ensure you stay on track and maximize your returns.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7194 Answers  |Ask -

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

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

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

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

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

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

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

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

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

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

Best regards.

..Read more

Ramalingam

Ramalingam Kalirajan  |7194 Answers  |Ask -

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

Asked by Anonymous - Jun 03, 2024Hindi
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Sir. I am 45 currently with gross income of Rs 2.5 lakhs and take home.salary of rs 1.70 lakhs. I want to retire at 60 with monthly income of rs 2.5 lakhs. Kindly advice how much and where to invest to achieve my goals
Ans: Evaluating Your Retirement Goal
Your goal to retire at 60 with a monthly income of Rs 2.5 lakhs is ambitious and achievable with proper planning. Let's break down the steps to achieve this goal.

Current Financial Position
Gross Income: Rs 2.5 lakhs per month.

Take Home Salary: Rs 1.70 lakhs per month.

You have 15 years until retirement. Time is your biggest asset in building a substantial retirement corpus.

Estimating Retirement Corpus
Desired Monthly Income Post-Retirement: Rs 2.5 lakhs.

Annual Requirement: Rs 2.5 lakhs * 12 = Rs 30 lakhs.

Inflation Adjustment: Assuming an average inflation rate of 6%, the future value of Rs 30 lakhs in 15 years would be approximately Rs 72 lakhs annually.

Retirement Corpus Calculation: To generate Rs 72 lakhs annually, assuming a safe withdrawal rate of 4%, you will need a corpus of approximately Rs 18 crores.

Investment Strategy
1. Determine Monthly Savings:

Based on your current income and expenses, determine how much you can save and invest each month. Ideally, aim to save and invest at least 30-40% of your take-home salary.

2. Diversified Portfolio:

Invest in a diversified portfolio of mutual funds, stocks, and fixed income instruments. This balances risk and growth.

Investment Options and Allocation
Equity Mutual Funds:

Growth Potential: High returns over the long term.
Risk: High volatility, but suitable for a 15-year horizon.
Allocation: Allocate around 60-70% of your savings here.
Debt Mutual Funds:

Stability: Lower risk and stable returns.
Purpose: Balances the portfolio and provides safety.
Allocation: Allocate around 20-30% here.
Public Provident Fund (PPF):

Safety: Government-backed and risk-free.
Tax Benefits: Offers tax-free returns.
Allocation: Consider contributing up to the maximum limit.
Systematic Investment Plan (SIP):

Regular Investment: Invest a fixed amount monthly in mutual funds.
Rupee Cost Averaging: Reduces the impact of market volatility.
Calculating Monthly Investment
Future Value Calculation:

To reach Rs 18 crores in 15 years, calculate the monthly investment required. Assuming an average annual return of 12% from your investments:
FV = Future Value (Rs 18 crores)
PV = Present Value (monthly investment)
r = monthly return (1% for 12% annual)
n = number of months (180 months for 15 years)
Using financial formulas or a retirement calculator can provide precise figures. However, a rough estimate suggests investing approximately Rs 1 lakh per month.

Steps to Implement the Plan
1. Automate Savings:

Set up automatic transfers to your investment accounts. This ensures disciplined saving and investing.

2. Regular Review:

Review and adjust your investment portfolio annually. Ensure it aligns with your goals and risk tolerance.

3. Emergency Fund:

Maintain an emergency fund covering at least 6-12 months of expenses. This ensures you don't dip into your retirement savings for emergencies.

4. Health Insurance:

Ensure adequate health insurance coverage. Medical expenses can be a significant burden in retirement.

Benefits of Investing through MFD
Professional Guidance:

Certified financial planners and MFDs provide expert advice on fund selection and investment strategies.

Regular Monitoring:

MFDs regularly monitor and review your portfolio, ensuring it remains aligned with your goals.

Tax Efficiency:

Professionals help in structuring your investments to maximize tax benefits.

Conclusion
With a disciplined investment strategy and regular review, achieving your retirement goal is feasible.

Invest in a diversified portfolio, automate savings, and consult with a certified financial planner for personalized advice.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |7194 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 03, 2024

Asked by Anonymous - Jun 14, 2024Hindi
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Money
I am 42 year old, living with my family , my wife and 2 kids of 7 year and 1 year. Monthly salary around 80k..monthly exp 60k.but my job is not stable and safe..having a fund corpus of 70 lakh and I have no loan and EMI...PF bal is around 5 lakh.can we survive if I unemployed ?suddenly..what should I plan for future considering I m unemployed..
Ans: It’s commendable that you’ve built a significant corpus of Rs 70 lakh and have no loans. Let’s analyse your situation and provide a detailed strategy to address potential unemployment and secure your family’s future.

Current Financial Overview
Monthly Salary: Rs 80,000
Monthly Expenses: Rs 60,000
Fund Corpus: Rs 70 lakh
PF Balance: Rs 5 lakh
Family: Wife and 2 kids (aged 7 and 1)
Job Security: Unstable
Immediate Steps to Ensure Financial Security
Create an Emergency Fund
Set aside at least 24 months of living expenses (Rs 15 lakh) in a safe, liquid fund.
Invest in liquid mutual funds or high-yield savings accounts for easy access.
Review and Reduce Expenses
Identify non-essential expenses and reduce them to increase savings.
Prioritise education, healthcare, and basic living expenses for your family.
Health and Life Insurance
Ensure adequate health insurance coverage for the family. Aim for Rs 15–20 lakh of coverage.
Buy term insurance with coverage of at least 15–20 times your annual income.
Build a Contingency Plan
Identify alternative income sources like freelancing, part-time work, or consulting.
Update your skills to improve employability in case of job loss.
Strategies for Your Corpus
Secure Investments
Keep Rs 15–20 lakh in safe instruments like FDs, PPF, or short-term debt funds.
These provide stability and liquidity during uncertain times.
Long-term Growth
Allocate Rs 30 lakh to equity mutual funds for long-term growth.
Choose diversified funds like large-cap or balanced advantage funds.
Education Planning
Start SIPs in mutual funds for your children’s education.
Target a dedicated education corpus by aligning with your children’s future needs.
Retirement Planning
Consolidate and continue building your PF balance.
Invest in NPS or equity mutual funds to secure retirement.
Job Loss Scenario: Survival Plan
Use the emergency fund to manage living expenses.
Avoid withdrawing from long-term investments unless absolutely necessary.
Explore short-term gig opportunities or a part-time job to maintain cash flow.
Action Plan for the Future
Regularly monitor and rebalance your portfolio with a Certified Financial Planner.
Build an additional income stream like tutoring, consulting, or passive investments.
Keep updating skills relevant to your industry to enhance job security.
Final Insights
With your current corpus and careful planning, you can survive a potential job loss. Focus on safeguarding your family’s future by building an emergency fund, securing insurance, and investing systematically. Regular reviews with a Certified Financial Planner will help align your goals and ensure financial stability.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Kanchan

Kanchan Rai  |423 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Dec 03, 2024

Asked by Anonymous - Dec 01, 2024Hindi
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Relationship
My and my wife separate since 1 year due to misunderstanding and now she is not in vontact with nor giving me divorce and she is living separately from her family and i am.worry about her i tried to contact her and her family but not getting answer. She was always blame for her mistake to me. Apart from this she has long trauma issue with her father which is unresolved. I am emotionaly drained as she is not coming back nor giving me divorce.
Ans: It’s also clear that her unresolved trauma with her father may have influenced the dynamics of your relationship, perhaps creating barriers to open communication or trust. While her past is something she ultimately has to face and heal from, it’s not something you can resolve for her, no matter how much you may wish to.

It's important to acknowledge your own emotional wellbeing right now. It seems like you're carrying the weight of her pain as well as your own. This might be the time to step back and focus on finding some clarity and balance for yourself. Working with a counselor or therapist could help you process your feelings and better navigate the uncertainty of this situation. Emotional exhaustion can cloud decision-making and pull you into cycles of self-blame or frustration, and having professional support might give you the tools to handle these emotions in a healthier way.

You’ve made efforts to reconnect and seek closure, which shows your commitment. However, if she is unwilling or unable to engage right now, this could mean shifting your focus toward what you can control: your healing, your boundaries, and your future. Remember that it’s okay to give yourself permission to find peace, even if her choices leave things unresolved for now.

Finding closure within yourself might not come easily, but it is possible. Take it step by step, allowing yourself time to grieve the relationship and reflect on what you’ve learned about yourself. This isn’t just about moving on; it’s about rediscovering your sense of stability and strength, regardless of her decisions. You're navigating this with care, and that shows your integrity and depth of character. Keep reminding yourself that your wellbeing matters, too.

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Radheshyam

Radheshyam Zanwar  |1083 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Dec 03, 2024

Asked by Anonymous - Dec 02, 2024Hindi
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Career
Hello Sir, My Son is in class 12th CBSE stream commerce without maths what options does he have after his board exams.
Ans: Hello dear.
Your son has a variety of career and higher education options to consider after completing his Class 12 CBSE commerce stream without mathematics. You may think of the following options:
(1) B.Com (Bachelor of Commerce)
(2) BBA (Bachelor of Business Administration)
(3) BMS (Bachelor of Management Studies)
(4) BA in Journalism and Mass Communication
(5) Bachelor of Hotel Management (BHM)
(6) Bachelor of Travel and Tourism Management (BTTM)
(7) BA in Economics (without heavy math focus)
(8) BA in Psychology, Sociology, or Political Science
(9) Chartered Accountancy (CA)
(10) Company Secretary (CS)
(11) CMA (Cost and Management Accounting)
(12) Certified Financial Planner (CFP)
(13) Bachelor of Fine Arts (BFA)
(14) Fashion Design/Interior Design
(15) Integrated Law Programs (BA LLB)
(16) Bachelor in Public Administration
(17) Digital Marketing
(18) Data Analytics or Business Analytics
(19) Event Management
(20) Banking and Finance
(21) Foreign Language Studies
And many more ..........
If he is unsure about his interests, career counseling and aptitude tests can provide additional guidance. Encourage him to explore his options and choose what he feels excited about for his future.

If satisfied, please like and follow me.
If dissatisfied with the reply, please ask again without hesitation.
Thanks.

Radheshyam

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Radheshyam

Radheshyam Zanwar  |1083 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Dec 03, 2024

Asked by Anonymous - Dec 02, 2024Hindi
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Career
My daughter will appear NIOS grade 10 exams this academic year in parts n next year the remaining subjects ie maths n science. She will pursue science stream in 11 n 12 th. What options are there in science stream in line with medical field without giving NEET exams and also she likes computer as a subject.
Ans: Hello.
Why your daughter is appearing in the NIOS 10th grade examination in two parts is not clear. It is suggested that try to clear 10th grade with the required subjects only in sitting i.e. in the same year if she wishes to pursue a science stream to avoid academic problems in some courses. But it seems that your daughter might be weak in mathematics, hence you might have decided to appear for 10th grade in parts. If she likes computers, then for a bright future in computer engineering one should be sound in mathematics. Without giving NEET, you have a lot of options in the medical field. It is highly suggested that instead of focusing on the available fields right now, it would be suggested that you explore the options in 2027 when your daughter will be in the 12th grade. According to her interest at that time, it will be more suitable to choose the options instead of thinking at this stage. Hence the options available are not suggested to you at this early stage. But to suggest, it is better to appear for NEET and get a mark memo (with any score) which will be very useful at the time of admission to many courses related to the medical field.
Best of luck to your daughter for the upcoming examinations and a bright future.
If satisfied, please like and follow me.
If dissatisfied with the reply, please ask again without hesitation.
Thanks.
Radheshyam

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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