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Ramalingam

Ramalingam Kalirajan  |7363 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 25, 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
Asked by Anonymous - Nov 23, 2024Hindi
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Hello Sir, I'm Ayush and my age is 20 running Now I'm pursuing in a last yr degree clg , I'm working in a company and my salary is 30k I need a suggestion for investment in stepwise ,for a corpus of around 1cr My father worked for my family since the age of 23. now,I want to retire him at the age of 50 I want to invest or start the sip till 2040 for that how much i invest a month Around 10k is expense towards bill and my personal expense

Ans: Ayush, your thoughtfulness in planning for your father’s early retirement is truly admirable. With a disciplined approach, your goal of achieving Rs 1 crore by 2040 is realistic. Let us create a stepwise investment strategy to guide you towards this financial milestone.

Understanding Your Financial Situation
Here is a summary of your current financial status:

Age: 20 years
Income: Rs 30,000 per month
Expenses: Rs 10,000 per month (bills and personal expenses)
Savings Capacity: Rs 20,000 per month
You have the potential to save and invest consistently. Starting early gives you the advantage of compounding.

Setting a Target and Estimating Investment
You aim for a corpus of Rs 1 crore by 2040, 16 years from now.
Consistent SIPs in equity-oriented mutual funds will help achieve this goal.
We’ll break this into practical steps for effective execution.

Stepwise Investment Plan
Step 1: Start with SIPs in Equity Mutual Funds
Allocate at least Rs 15,000 per month towards SIPs.
Equity mutual funds can deliver inflation-beating returns over the long term.
Diversify across categories like flexi-cap, mid-cap, and small-cap funds.
Why Equity Funds Are Important
Equity funds provide growth potential for long-term goals.
Active fund management adjusts to market changes, maximising returns.
Avoid index funds due to their rigid structure and lack of flexibility.
Step 2: Build an Emergency Fund
Save Rs 1 lakh in a liquid fund or savings account for emergencies.
This ensures liquidity and prevents withdrawal from long-term investments.
Step 3: Gradually Add Debt Mutual Funds
Begin allocating Rs 3,000–5,000 per month to debt funds after two years.
Debt funds offer stability and help balance the portfolio closer to your goal.
Step 4: Increase SIP Amount Periodically
As your salary increases, increase your SIP amount by 10–15% annually.
Even small increments have a significant impact over 16 years.
Step 5: Monitor and Review Annually
Review your portfolio yearly with a Certified Financial Planner.
Rebalance investments based on market performance and personal goals.
How to Allocate Rs 20,000 Savings
Initial Allocation:
Rs 15,000: Equity mutual funds for growth.
Rs 5,000: Emergency fund (first year only).
After Building Emergency Fund:
Rs 17,000: Equity mutual funds.
Rs 3,000: Debt mutual funds.
Benefits of Regular Funds Over Direct Funds
Professional Guidance: Regular funds include expert advice from Certified Financial Planners.
Portfolio Management: They help align investments with goals and market conditions.
Avoid Costly Errors: Direct funds may lead to uninformed decisions.
Regular funds ensure a structured and guided investment journey.

Avoid Index Funds for Your Goal
Index funds lack active management, which is critical for optimising returns.
Their rigid portfolio composition might underperform during specific market cycles.
Actively managed funds adjust to market conditions and offer higher potential returns.
Tax Implications on Mutual Funds
Equity Funds: LTCG above Rs 1.25 lakh is taxed at 12.5%. STCG is taxed at 20%.
Debt Funds: Gains are taxed as per your income slab.
Plan withdrawals carefully to minimise tax liabilities.

Your Father’s Retirement at 50
Your goal to retire your father at 50 is achievable with discipline.
Start with SIPs now and avoid unnecessary withdrawals.
Plan an additional retirement corpus for your father if needed.
Final Insights
Your goal of achieving Rs 1 crore by 2040 is attainable with consistent investments. Starting early gives you a significant advantage. Stick to a disciplined SIP strategy and review your portfolio regularly. Diversify wisely, prioritise equity funds, and gradually introduce debt funds.

Your thoughtfulness towards your father’s retirement is inspiring. With your determination, you will create a secure financial future for your family.

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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Ramalingam

Ramalingam Kalirajan  |7363 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

Asked by Anonymous - May 07, 2024Hindi
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I am 34 years old living with my Parents, my wife and 3 yr old Son, I have invested around 75L through various FDs and Post office schemes, currently having a house loan of 45L for which I am paying EMI 35000 and extra amount each month around 25000 for past two years, planning to start to invest in SIP by this year to plan my retirement when I reach 50 years of age Could anyone please guide me for this. Currently having monthly salary 70,000 in hand.
Ans: Crafting a Financial Plan for Retirement and Wealth Accumulation
Assessing Your Current Financial Situation
At 34, you've demonstrated prudent financial habits by investing in FDs and Post Office schemes, along with diligently repaying your housing loan through regular EMIs and additional payments. With a stable monthly salary of 70,000 and a family to support, it's wise to plan for your long-term financial security.

Prioritizing Retirement Planning
Starting SIPs for retirement planning is a commendable step towards securing your financial future. Aim to allocate a portion of your monthly income towards equity-oriented mutual funds through SIPs to harness the power of compounding over the long term.

Determining Retirement Corpus
Calculate your desired retirement corpus based on your lifestyle expenses, inflation, and retirement age target of 50. Consider consulting with a Certified Financial Planner (CFP) to determine the appropriate corpus required to maintain your desired standard of living post-retirement.

Choosing Suitable Mutual Funds
Select a mix of equity mutual funds that align with your risk tolerance, investment horizon, and financial goals. Diversify your portfolio across large-cap, mid-cap, and multi-cap funds to balance risk and potential returns. Monitor fund performance regularly and make adjustments as needed.

Optimizing Debt Repayment
Continue making additional payments towards your housing loan to accelerate debt reduction and save on interest costs. Consider evaluating refinancing options or negotiating with your lender to lower your interest rate and shorten the loan tenure, if feasible.

Emergency Fund and Contingency Planning
Ensure you have an adequate emergency fund equivalent to 6-12 months' worth of living expenses to cover unforeseen circumstances or financial emergencies. Review your insurance coverage, including health, life, and property insurance, to protect your family's financial well-being.

Seeking Professional Advice
Consult with a Certified Financial Planner (CFP) to develop a comprehensive financial plan tailored to your specific needs and goals. A CFP can provide personalized advice, recommend suitable investment strategies, and help you navigate complex financial decisions.

Conclusion
By prioritizing retirement planning, optimizing debt repayment, and building a robust financial safety net, you can achieve your long-term financial goals and secure a comfortable retirement for yourself and your family. Stay disciplined in your savings and investment approach, and seek professional guidance to maximize your wealth accumulation potential.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7363 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

Asked by Anonymous - Nov 21, 2024Hindi
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Hello sir, I am 49 years old male, investing rs 30000 permonth in sip since 2016 October. Getting 3lacs per month after tax deduction. Has a house loan of 40lacs 19years more with monthly emi of 40k. Has 25lacs star health insurance. Needs around 40lacs per year for 3 years for my son's abroad education from next year.... And planning to retire at 55. Kindly guide me to invest for a retirement plan (2 lacs monthly pension) and sons education. Thank you.
Ans: Your financial journey is commendable. Investing Rs 30,000 per month through SIP since 2016 is a disciplined approach. Balancing a house loan, education goals, and retirement is crucial. Let's craft a structured strategy for your priorities.

Current Financial Snapshot
Monthly Income: Rs 3 lakhs (post-tax).

House Loan EMI: Rs 40,000 monthly.

Health Insurance: Rs 25 lakhs coverage.

Education Goal: Rs 40 lakhs annually for 3 years starting next year.

Retirement Goal: Rs 2 lakhs monthly pension from 55 years.

Priority 1: Son’s Abroad Education
Your son’s education requires Rs 1.2 crore in 3 years.

Allocate current SIP investments towards this goal.

Use a mix of short-term debt funds and balanced hybrid funds.

Redeem SIPs closer to need, considering market trends.

Avoid taking high-risk equity exposure for this short-term goal.

Any surplus income or bonuses should be added to this goal.

Priority 2: House Loan Management
Your loan has a 19-year tenure, costing Rs 40,000 monthly.

Avoid prepayments now to prioritize education.

Post-education, consider reducing the loan tenure by increasing EMI.

This will help you save significant interest over the loan period.

Priority 3: Retirement Planning
You plan to retire at 55, requiring Rs 2 lakhs monthly.

This translates to Rs 24 lakhs annually post-retirement.

Inflation-adjusted corpus needed: Rs 6-7 crore (approximate).

Steps to Build the Retirement Corpus:

Increase SIP contributions once education expenses reduce.

Use a mix of large-cap, flexi-cap, and multi-cap mutual funds for growth.

Keep 10-15% allocation in debt funds for stability.

Review and rebalance the portfolio annually.

After 55, shift corpus to systematic withdrawal plans (SWPs) for regular income.

Suggestions for Health Insurance
Your Rs 25 lakh health insurance cover is decent but may be insufficient.

Add a super top-up plan of Rs 25-30 lakhs.

This will safeguard you against rising medical costs.

Contingency Fund
Maintain a fund for emergencies, equal to 6-12 months of expenses.

This should cover household costs and EMI.

Invest in liquid funds or fixed deposits for easy access.

Tax Planning
Your investments should align with the new tax rules.

For equity mutual funds, LTCG above Rs 1.25 lakh is taxed at 12.5%.

Short-term gains from equity funds attract 20% tax.

Debt funds gains are taxed as per your income slab.

Factor these into your withdrawals for education or retirement.

Investment Approach
Use actively managed funds to outperform benchmarks.

Avoid index funds due to limited flexibility in volatile markets.

Invest through a Certified Financial Planner for expert guidance.

Regular plans offer the added benefit of professional advice.

Insurance Review
Evaluate your insurance policies.

If you hold LIC or ULIP policies, consider surrendering and reinvesting in mutual funds.

This will optimize returns for long-term goals.

Recommendations for the Next Steps
Education Fund: Reallocate existing SIPs to low-risk funds.

Retirement Fund: Increase SIP contributions gradually after education expenses.

Health Insurance: Enhance coverage with a super top-up plan.

Emergency Fund: Build a liquid corpus for unforeseen needs.

Finally
Your disciplined approach is inspiring. Focusing on these steps will ensure your goals are met. A Certified Financial Planner can provide personalized strategies.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

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

..Read more

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Dr Nagarajan Jsk

Dr Nagarajan Jsk   |188 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on Dec 27, 2024

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Hello! Sir This is Sravani.I am a M.Pharmacy postgraduate and has a work experience of 6 years in Quality control department in pharma industry.At present i am working in the same department. But i want to go for work from home job.so that i can spend time with my kids. Both my kids are in kindergarten. It's becoming tough for me to manage both job & kids as my working hours are too long. Please do suggest me any kind of work from home job which suits my profile. Regards Sravani
Ans: Hi Sravanthi,

It's great to hear that you have six years of experience in Quality Control (QC). As you know, QC roles are generally onsite, unlike IT roles that can often be done remotely. Given your expertise in QC, you have the option to transition to Quality Assurance (QA), Regulatory Affairs (RA), or the Validation team, but we need to assess the feasibility of such a shift. While it is uncommon, it is possible to find roles in RA, such as preparing and submitting documents, pharmacovigilance, or medical scribing. However, since these are not your areas of expertise, if you choose to pursue them, you may be considered a fresher in those fields.

You also mentioned that need to work long hours. Even with work from home (WFH), you will likely face similar challenges; once you log in, you cannot skip the tasks assigned to you. Being at home may hinder your ability to care for your children, creating additional difficulties.

If you are financially stable, you might consider quitting your current job to find other opportunities or to take care of your family. If not, you will need to weigh your options carefully.

My recommendation is to prefer onsite work rather than WFH.

On a lighter note, there are many advantages to onsite work that can actually save you money—such as reduced electricity bills, food expenses, and travel costs. Compared to WFH, where you may incur higher electricity costs due to using AC and your computer, along with food expenses for snacks and meals.

Logically speaking, as a working woman, if your maid were asking for a WFH arrangement, how would you respond?

As an additional suggestion, you might consider applying for government jobs as a Junior or Senior Analyst in your state’s Drug Testing Lab within the Drugs Control Department.

Ultimately, I recommend that you continue in your current field and potentially explore opportunities in a different company or industry that offers a higher salary. Alternatively, you could also consider transitioning to QA, but ideally in an onsite position.

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Knee Replacement- My doctor has advised me total knee replacement in right knee after examining X ray, as I am suffering from pain in right knee for last 12 months. Whether I have any options to avoid it or better to do to live pain free life after operation. I am worried about side effects, if any. Thanks Ganesh Surana
Ans: Dear Mr. Surana,
Thank you for your query. If your doctor has recommended a total knee replacement, it is likely based on the severity of your condition as indicated by the X-ray and your ongoing pain. However, you may still explore conservative options before deciding on surgery. I suggest consulting a physiotherapist for a comprehensive rehabilitation program. Physiotherapy can help strengthen the muscles around the knee, improve joint stability, and potentially reduce pain.
That said, your age and weight also play an important role in determining the best course of action. If you are overweight, weight management can significantly reduce stress on the knee joint and alleviate symptoms. Lifestyle changes, such as a tailored exercise regimen and a healthy diet, can also be beneficial.

If conservative measures don’t provide sufficient relief, total knee replacement may be the best option for living a pain-free life. It’s natural to be concerned about side effects, but modern surgical techniques and post-operative care have made the procedure highly effective and safe. Discuss all your concerns with your doctor and physiotherapist to make an informed decision.
Wishing you the best,

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Dr Shakeeb Ahmed

Dr Shakeeb Ahmed Khan  |132 Answers  |Ask -

Physiotherapist - Answered on Dec 27, 2024

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I AM HAVING UMBLICAL HERNEA PROBLEM.DOCOTR SUGGESTED ME TO BRING DOWN MY WEIGHT AND REDUCE FATTY BELLY BEFORE SURGERY.HE SUGGESTED ME TO WAIT FOR SURGERY TILL MY WEIGHT COMES DOWN FROM 92 KGS TO A REASONABLE LEVEL.PLEASE SUGGST ME WHAT EXERCISES i CAN DO TO ELIMINATE THE FAR BELLY WITHOUT DETERIORATING MY UMBLICAL HERNEA PROBLEM.PLEASE SUGGEST ME EXERCISES TO BRING DOWN MY BELLY. THANKS AND REGARDS. NVRSRINIVAS
Ans: Dear Mr. Srinivas,

Thank you for your query. Weight reduction is a gradual process that requires consistent effort and a balanced approach. It is advisable to consult a physiotherapist and a nutritionist to guide you through this journey. Focus on a high-protein, low-carbohydrate diet to support weight loss while maintaining muscle mass. Ensure your meals are nutritious and create a calorie deficit.

For exercise, start with low-impact aerobic activities such as walking, cycling, or swimming, as these can burn calories without putting pressure on your hernia. Incorporate gentle core-strengthening exercises like pelvic tilts and side planks to build core stability without straining the affected area. If suitable, include short bursts of high-intensity workouts or moderate-intensity, long-duration activities such as brisk walking or light jogging to enhance endurance and fat loss. Additionally, light resistance training can help maintain muscle mass, but avoid exercises that strain your abdominal muscles or involve heavy lifting.

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Ramalingam

Ramalingam Kalirajan  |7363 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 27, 2024

Asked by Anonymous - Oct 22, 2024Hindi
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Money
I have lost money around 8 lakhs in gambling now i want to restart my life fresh i need to settle my debts and loan with bank and NBFCs is it possible to settle money at 70 percent waived off
Ans: Restarting your life after financial setbacks is possible with a disciplined approach. Settling your debts with banks and NBFCs requires a strategic plan, negotiation, and commitment. Here's a 360-degree approach to help you resolve your situation:

Assess Your Current Financial Position
List All Debts: Create a detailed list of all outstanding loans and debts, including principal, interest, and penalties.

Identify Income Sources: Calculate your monthly income and any other sources of funds.

Evaluate Essential Expenses: Identify non-negotiable expenses such as rent, food, utilities, and transport.

Determine Negotiable Debts: Focus on debts with higher interest rates or legal implications.

Negotiating with Lenders
Possibility of Settling at 70% Waiver
Banks and NBFCs Are Open to Negotiation: They prefer recovering some amount rather than declaring a loan as non-performing.

Settlement Terms Vary: Each lender may have unique policies. Some might agree to 70% waiver, but others may not.

Present Your Case Transparently: Show proof of your financial hardship. Explain your inability to pay in full.

Request a One-Time Settlement (OTS): Offer to pay a lump sum of the waived-off amount to close the debt.

Steps to Negotiate Effectively
Reach Out to the Right Department: Contact the collections or recovery department of your lender.

Seek Professional Help: A certified financial planner or debt resolution expert can negotiate on your behalf.

Prepare a Settlement Plan: Propose a realistic amount you can pay. Mention the sources for this payment.

Ask for Written Confirmation: Ensure the lender provides a formal agreement on the waived-off amount.

Negotiate for Reduced Interest and Penalties: Request removal of penalties and reduction of interest rates.

Managing Your Financial Obligations
Repayment Strategy
Prioritise High-Interest Loans: Focus on clearing loans with higher interest rates first.

Consolidate Debts: Consider consolidating multiple loans into one with a lower interest rate.

Use Liquid Assets Wisely: If you have savings or assets, use them to reduce your debt burden.

Building a Fresh Financial Foundation
Avoid Gambling and High-Risk Activities
Adopt Healthy Habits: Seek professional help if gambling is an addiction. Join support groups like Gamblers Anonymous.

Focus on Financial Literacy: Learn to manage your money effectively through courses or books.

Create a Budget and Emergency Fund
Track Income and Expenses: Use apps or spreadsheets to monitor your financial activity.

Save for Emergencies: Set aside 3–6 months of expenses as a safety net.

Restart Investments Gradually
Start with SIPs: Begin investing small amounts in mutual funds. Avoid direct stock trading initially.

Build a Retirement Corpus: Plan for long-term financial security systematically.

Final Insights
Rebuilding your life after a financial setback takes effort but is achievable. Focus on negotiating your debts transparently and settling them systematically. Learn from past mistakes and adopt disciplined financial habits. Restart your journey with renewed confidence and a commitment to avoid risky behaviours. Seek professional guidance when needed to make informed decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...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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