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Ramalingam Kalirajan |10872 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Nov 06, 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 - Nov 04, 2025Hindi

i am having Rs.30lakhs after selling my house.i am 65 years age and still in the job drawing Rs.2,00,000/-per month.my job is i am working as a consultant in one company and don't know how many months/years i will work.My son is studying first year b.tech,biotechnology and my wife is a house wife.How i can plan this money?

Ans: You have done well to stay active and continue earning at 65. It shows your strong health, sharp mind, and commitment to your family. Selling your house and having Rs.30 lakhs now gives you flexibility. You also have regular income from your consulting work, which is a big advantage. Let’s now see how to use this Rs.30 lakhs wisely so that it supports your current needs, future safety, and your son’s education.

» Assessing your current position

You have three key pillars – your consulting income, your savings of Rs.30 lakhs, and your family responsibilities.

Your monthly salary of Rs.2,00,000 gives you stability for now.

Your son’s B.Tech education will need continued financial support for the next few years.

Your wife depends on you financially, so you must plan for her comfort too.

Since your job is uncertain in duration, your Rs.30 lakhs should be treated as a safety fund and future income generator.

» Setting clear financial goals

At this stage, your money must work with purpose. Define simple goals like:

Emergency safety fund for 12–18 months of family expenses.

Regular income support after your consulting work stops.

Your son’s education and initial career support.

Long-term protection for your wife and yourself.

Each goal needs a clear role for your Rs.30 lakhs.

» Building a strong emergency reserve

When job continuity is uncertain, liquidity becomes your first protection.
Keep around 6–9 months of expenses in safe, easily accessible options.
This money should be in simple, low-volatility instruments that allow quick withdrawal.
Do not chase high returns here. The goal is peace of mind, not profit.

This reserve will help you manage life comfortably even if your consulting assignment ends suddenly.

» Creating a medium-term income cushion

You should plan a second layer for stability. This portion can give steady income after your job ends.
Around one-third of your corpus can be used for such steady income purpose.
Choose instruments that offer regular payouts but still have moderate growth potential.
This helps you avoid dipping into your emergency fund unnecessarily.

This layer becomes your bridge income when your consulting work stops or slows down.

» Planning for your son’s education and future

Your son is in his first year of B.Tech. He will need 3 more years of educational expenses.
Part of your Rs.30 lakhs can be allocated for this.
Do not depend fully on your consulting income to fund his fees, as job continuity is uncertain.

You can create an education reserve now in a balanced growth plan.
It should stay invested for 3–4 years and be redeemed gradually each year for college fees.
Avoid taking any educational loan at this stage, as you already have funds available.

» Ensuring safety for your wife

Your wife is a homemaker. She needs long-term security even after your working years.
So, keep part of your corpus in safe, income-generating options that can continue giving her monthly income even in your absence.
A joint or survivor account is better for her convenience.

Also, keep all your investments and financial documents well organized and shared with her in simple form.
This will make future handling smoother for her.

» Creating a growth-oriented portion

Even at 65, growth should not stop completely.
Inflation will keep eating the value of money.
So, part of your Rs.30 lakhs should be in growth-oriented assets that can beat inflation over 5–7 years.

You can consider a balanced mix of high-quality diversified mutual fund options.
These funds are actively managed by expert fund managers who can handle market changes.
Actively managed funds can adjust allocation based on market cycles and protect downside better than index-based funds.
Index funds may look simple, but they follow the market blindly without flexibility.
For a senior investor like you, controlled risk and active management are safer than market-tracking funds.

This growth part will keep your capital rising gently, ensuring you don’t lose value to inflation over the next decade.

» Tax efficiency planning

At your income level, tax efficiency is very important.
When you invest in mutual funds or similar instruments, keep in mind the new taxation rules:

For equity mutual funds, long-term capital gains above Rs.1.25 lakh are taxed at 12.5%.

Short-term capital gains are taxed at 20%.

For debt mutual funds, both long-term and short-term gains are taxed as per your income slab.

This means you should prefer holding your growth investments for longer periods to reduce taxes.
Avoid unnecessary withdrawals and churning.

Also, if you still contribute to tax-saving investments under Section 80C, plan them carefully to get maximum benefit without locking too much money.

» Insurance and health protection

At your age, insurance for life may not be necessary if your wife will be well supported from your corpus and other savings.
However, health insurance is extremely important.
Ensure you have a good family health cover that continues even after you stop working.

If your company provides health cover now, check if it can be continued later.
If not, buy a personal health policy now while you are still insurable.
Health emergencies can create sudden large expenses, so protect yourself now.

» Re-evaluating old policies and deposits

If you have old LIC, ULIP, or insurance-cum-investment policies, review them now.
Many such products give poor returns and limited flexibility.
You can consider surrendering low-performing ones and reinvesting those proceeds in well-diversified mutual funds.
This shift can improve your returns and liquidity, with help from a Certified Financial Planner.

Do not stop your traditional insurance plans suddenly without proper review.
Assess the surrender value, tax impact, and reinvestment plan before taking action.

» Managing your consulting income smartly

Your current salary is high compared to average post-retirement income.
Use this period wisely to build reserves.
Avoid spending heavily because the job may not continue forever.

A good approach is to save at least 40–50% of your consulting income now.
Add these savings to your investment portfolio each month.
This will increase your retirement corpus faster and reduce future financial worry.

If your job continues for another 2–3 years, this disciplined saving can easily double your investable funds.

» Building a steady retirement income plan

You can plan for a multi-source income in retirement.
Instead of depending only on one source, create 3–4 smaller streams of income.
These can include:

Monthly withdrawals from income-generating funds.

Interest from safe debt investments.

Partial withdrawals from growth investments at intervals.

This method keeps your money working while giving you steady cash flow.
It also helps you stay flexible with market conditions.

A Certified Financial Planner can help you design the withdrawal structure in a tax-efficient way, balancing income and longevity of the corpus.

» Emotional and lifestyle considerations

At 65, it is important not only to secure your finances but also your peace of mind.
Keep your financial structure simple and easy to manage.
Avoid complicated products with too many conditions or lock-ins.

Spend a small portion of your money on experiences that bring happiness – travel, hobbies, or family time.
This keeps you emotionally healthy and satisfied.
Money should serve your life, not the other way around.

» Regular review and monitoring

Every plan needs regular review.
Once in a year, sit with your Certified Financial Planner and check:

How each goal is progressing.

Whether asset allocation is still right.

If tax efficiency can be improved.

If any emergency changes are needed.

A simple yearly review keeps your plan current and aligned with your life changes.
Markets, tax laws, and personal goals change – so your plan must adapt too.

» Finally

You have a strong position even at 65.
You have income, health, and savings.
Your Rs.30 lakhs can give you comfort, protection, and peace when used correctly.
Focus on safety, steady income, and gentle growth.
Keep liquidity for emergencies and education needs.
Stay disciplined and review once a year.
With this structure, your financial journey will remain stable and confident.

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.