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Sunil Lala  |201 Answers  |Ask -

Financial Planner - Answered on May 04, 2024

Sunil Lala founded SL Wealth, a company that offers life and non-life insurance, mutual fund and asset allocation advice, in 2005. A certified financial planner, he has three decades of domain experience. His expertise includes designing goal-specific financial plans and creating investment awareness. He has been a registered member of the Financial Planning Standards Board since 2009.... more
Rajeev Question by Rajeev on May 03, 2024Hindi
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Hello sir I am 33 and started sip last year October of 10000/month and business loan with emi 34000/month premium for health insurance 18000 life insurance 5962 quarterly.my monthly income is 120000 I want to invest in such a way that I can retire at 50 with monthly return of 1.5 lav

Ans: To have monthly 1.5 Lakh from the age of 50 you need to have a Corpus of minimum 3 crores. To have this corpus you need to do SIP of 45K for 17 years
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  |6986 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 23, 2024

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My age is 57 years old. You may please advise me to invest in some SIPs of Rs. 15000/- per month for 5 years.
Ans: starting an SIP at 57 is a commendable step towards securing your financial future. Here’s a thoughtful approach tailored for you:

Risk Assessment: At this stage, capital preservation becomes paramount. Opt for balanced funds or hybrid funds that provide a blend of equity and debt. This offers growth potential while cushioning against market volatility.
Asset Allocation: Diversify your SIPs across asset classes to spread risk. Consider allocating a portion to equity for growth and the remainder to debt for stability.
Tenure Consideration: A 5-year SIP is relatively short-term in the investment horizon. However, it's essential to align with your retirement plans. Ensure the chosen funds have a consistent track record over this period.
Tax Efficiency: Look for tax-saving SIPs under Section 80C, if you haven’t exhausted the limit. This can provide tax benefits while growing your wealth.
Periodic Review: Regularly monitor the performance of your SIPs. If any fund underperforms consistently, consider switching to a better-performing fund.
Stay Informed: Keep yourself updated with the market trends and financial news. This helps in making informed decisions and staying ahead of potential risks.
Emergency Fund: Ensure you have an emergency fund equivalent to 6-12 months of expenses. This will provide a financial cushion during unforeseen circumstances without liquidating your investments.
Remember, the goal is not just to invest but to invest wisely. It's essential to strike a balance between growth and stability, ensuring your investments align with your financial goals and risk tolerance. Your commitment to investing at this stage reflects prudence and foresight. Best wishes for your investment journey!

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Ramalingam

Ramalingam Kalirajan  |6986 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  |6986 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 11, 2024Hindi
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My age is 35 i want to start investment with sip of 25000 per month ,and retire by 55,plz guide ,i have lic of 1 cr in maturity ,ppf, plz guide for 5 cr in retirement
Ans: You aim to retire at 55 with a corpus of Rs. 5 crore. Your current age is 35, giving you a 20-year investment horizon. You plan to invest Rs. 25,000 per month through SIP.

Current Financial Situation
Monthly SIP: Rs. 25,000
Existing Investments: LIC policy maturing at Rs. 1 crore, PPF
Importance of Diversified Investment
Diversification: Essential for risk management and optimal returns.
Balanced Portfolio: Combining equity and debt for growth and stability.
Benefits of Actively Managed Funds
Expert Management: Professional fund managers actively handle investments.
Higher Returns: Potential for better returns compared to index funds.
Flexibility: Adjust investments based on market conditions.
Disadvantages of Direct Funds
No Guidance: Lack of professional advice.
Higher Risk: Increased risk without expert management.
Time-Consuming: Requires significant time and knowledge to manage.
Advantages of Investing Through MFD with CFP Credential
Customized Advice: Tailored to your financial goals and risk profile.
Regular Monitoring: Professional oversight ensures investments stay on track.
Expertise: Benefit from the knowledge and experience of certified planners.
Investment Strategy
Step 1: Start with SIP in Diversified Mutual Funds
Equity Funds: High-growth potential over the long term.
Debt Funds: Stability and lower risk to balance equity exposure.
Step 2: Increase SIP Contributions Annually
Annual Increase: Raise SIP amount by 5-10% each year.
Benefit of Compounding: Higher contributions lead to substantial growth.
Step 3: Lump Sum Investments
Bonus or Windfall Gains: Invest any additional funds received.
PPF and LIC: Continue contributions for tax benefits and assured returns.
Step 4: Regular Review and Rebalancing
Quarterly Review: Monitor fund performance and market trends.
Annual Rebalancing: Adjust portfolio to maintain desired asset allocation.
Estimated Growth
Assuming a 12% average annual return on mutual fund investments, your SIP of Rs. 25,000 can potentially grow to achieve your target of Rs. 5 crore in 20 years. Regularly increasing your SIP and making lump sum investments can enhance this growth.

Health and Emergency Fund
Maintain an Emergency Fund
Emergency Fund: Keep at least 6 months of expenses in liquid form.
Health Coverage: Ensure adequate health insurance coverage for unforeseen medical expenses.
Final Insights
To achieve Rs. 5 crore for retirement:

Start with Rs. 25,000 monthly SIP in diversified mutual funds.
Increase SIP contributions annually by 5-10%.
Invest any additional funds from bonuses or windfalls.
Regularly review and rebalance your portfolio.
Maintain an emergency fund and adequate health insurance.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Anu

Anu Krishna  |1281 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 07, 2024

Asked by Anonymous - Oct 07, 2024
Anu

Anu Krishna  |1281 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 07, 2024

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Help me!!! 1.I'm starting new "work" on my own(challenging for me) but my mind says quit it, be quite & do nothing. I myself don't know that wether the result of work will be +ive or uncompleted like alws. 2. My mind has become like order seeker type, when someone orders me, I do those things with dedicated(but sad from inside) manner. But when myself will try something different(which i fear, but necessary) then. "I QUITS IT" & sometimes I don't even start. 3. I'm like stuck no clue what/whom I want to do in life, I'm in cllg(1 yr) doing (CSE) ,. 4. I want to do/try (sports,talking girls,study,stocks,coding..) many things, but myself, my thoughts(overthinker), R like just be in the place where u are[confused,po*n,think about past/future(being billio..re,olympics..), girl (that u liked & never talked), abusive/beating self,.. sometimes feels like end life, but don't hv courage for that also.. 5. I tried self help books, spirituality, god, self affirmation, writing... & thay affected me(sometimes) but for only some time, then again that devil me comes up &these things never get completed. As no one in my family knows about all these, so that's Y ,I hv to fight/loose/try again, the battles with myself.
Ans: Dear Harsh,
If in the past you have had the urge to QUIT, how is this time going to be different? This is not to discourage you from taking up 'new work' but pointing out that there is some amount of work that you need to put to clear the mind out of blockages.
-What is limiting you?
- What is the reason for putting off things?
- What comes first to the mind when you start something new?
Also, focus on one thing at a time; study and go deep into it...what's this thing with work? I don't understand. When the mind is unsettled, take one thing/activity, pursue it and finish it. It could simply be studying for Year 1 of your college...just only do that...once your mind is trained in completing an activity, you can add another one the next year along with studying and then pursue both...it could be some sport and studying...then the next year, you could add a third activity. This is called 'training the mind in discipline'. Discipline will make sure that you start and finish things...So, go slow and do one thing at a time.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

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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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