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33-Year-Old with Young Children: How to Secure Retirement and Education?

Milind

Milind Vadjikar  |1197 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Feb 17, 2025

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
Venkat Question by Venkat on Feb 17, 2025Hindi
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Hello sir, I am 33years old and like to have a stable life with a good retirement corpus along with children education. I have 2 sons both are of 1 and 3years old respectively and my wife is a housewife. I am having FD of 16L, 10L in gold, bought a flat paying housing loan EMI of 25K, having term insurance for 1cr and health insurance for 4L. I am making investments in mutual funds SIP of 30k since last 1 year. Hdfc dividend yeild fund 1000 Icici bluechip fund 8000 Quant small cap fund 1000 Canara robecco small cap fund 1000 Uti nifty index fund 5000 Icici balanced advantage fund 5000 Jm flexicap fund 2000 Quant elss fund 5000 Parag pareekh flexicap fund 2000 Lumsum Investments Sbi healthcare fund 20K Quant infrastruture fund 10k Sbi magnum gilt fund 20k Plz advice....am i really doing good with these investments or shall i replan my investments....

Ans: Hello;

Having 12 funds(9 sip+3 lumpsum) in portfolio is not required.

You need to just 4 funds for your sip of 30 K(divided equally):
1. Flexicap fund
2. Large and midcap fund
3. Balanced advantage fund
4. Multi asset allocation fund

You may consider exiting the sectoral, thematic and debt fund owned by you and redeploy it in your regular funds.

This ensures equity(large cap oriented)is predominant asset class in your portfolio but it also has exposure to debt and gold for balance and risk mitigation.

Also keep a target to step up sip amount every year by 7-10% atleast.

This will go towards higher education provision for your kids. (~1.85 Cr in 15 years considering 7% annual top-up and 10% modest returns)

For your retirement planning you may consider NPS and start with a decent amount(~30 K pm) as regular investment since time is on your side(27 years to hit 60 age).[3.45 Cr in 27 years without any step up consideration. 8% returns assumed].

Consider buying home loan insurance and super top-up health cover.

Happy Investing;
X: @mars_invest
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  |8309 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 16, 2024

Asked by Anonymous - May 09, 2024Hindi
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I am 39 Years. Started investing in 38K in 10K PPAS flexi cap,10K Quant Momentum fund, 5K Nippon Index Fund,1K SBI smallcap Fund,1K Canara Robaco emerging equity,3KQuant Quantamental fund,1K Quant infrastructure fund,1K Whiteoak Large and Midcap fund,2K Tata Midcap Momentum fund,1K Mirare asset Multicap,1K Eddelwise Multicap, 1K Nippon Multicap and 1K Quant Multiasset fund in SIP mode. I have also around 2.5 Lacs Lumps MF in various MF invested. Besides I have RD of monthly 35K. I have corpus in NPS around 33 Lacs. Also I have direct equity around 2Lacs. I have one housing loan 17 lacs. Monthly emi 15k. I have health insurance of 15Lacs. My monthly income is 2Lacs. I have 2 son. One is 1oYr and another one is 2 yr. I need to retire early and want to expense in my child education. Does my portfolio is in right track or I should think differently.
Ans: Crafting a Comprehensive Financial Roadmap for Early Retirement and Children's Education
As a 39-year-old with a robust investment portfolio and a clear vision for early retirement and children's education, your proactive approach towards financial planning is commendable. Let's conduct a thorough review of your current portfolio and chart a strategic path towards achieving your aspirations.

Evaluating Your Investment Portfolio
Your investment portfolio exhibits a diversified mix of mutual funds, direct equity, NPS, and recurring deposits, reflecting a well-rounded approach to wealth accumulation. With a monthly SIP commitment across various funds and a substantial lump sum investment, you've positioned yourself for long-term growth potential.

Analyzing Asset Allocation and Risk Management
The allocation towards mutual funds spanning flexi-cap, momentum, index funds, and multi-cap categories demonstrates a balanced approach towards capital appreciation and risk mitigation. Additionally, the inclusion of direct equity and NPS further enhances portfolio diversification and resilience against market volatility.

Assessing Debt Obligations and Financial Commitments
While your housing loan entails a manageable monthly EMI of ?15,000, it's essential to evaluate its impact on your overall financial health and retirement planning. Striking a balance between debt repayment and wealth accumulation is paramount to ensure sustained progress towards your financial goals.

Planning for Early Retirement and Children's Education
Your aspiration for early retirement necessitates a proactive savings and investment strategy, augmented by prudent asset allocation and systematic contributions to long-term wealth-building avenues. Additionally, earmarking funds for your children's education underscores your commitment to their future well-being and academic pursuits.

Providing Strategic Recommendations
To align your portfolio with your overarching objectives of early retirement and children's education, consider the following recommendations:

Optimize Asset Allocation: Review and rebalance your portfolio periodically to ensure alignment with your risk tolerance and investment horizon.

Prioritize Debt Repayment: Explore strategies to expedite housing loan repayment while maintaining a steady pace of wealth accumulation towards retirement and education goals.

Maximize Tax-Efficiency: Leverage tax-saving opportunities offered by instruments like NPS and equity-linked savings schemes (ELSS) to optimize your tax liabilities and enhance overall returns.

Enhance Contingency Planning: Ensure adequate emergency funds and insurance coverage to safeguard against unforeseen expenses and mitigate financial risks.

Conclusion: Navigating Towards Financial Freedom and Family Well-being
In conclusion, your proactive approach towards financial planning, coupled with a diversified investment portfolio and clear goals, lays a solid foundation for achieving early retirement and securing your children's education. By adhering to a disciplined savings regime, prudent asset allocation, and strategic decision-making, you're well-positioned to navigate the journey towards financial freedom and family well-being with confidence.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8309 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - May 12, 2024Hindi
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Hi sir, im 41. Started my investment a couple of months ago. 3 lacs in motilal midcap, quant small cap together. And a monthly sip of 5000 each on Canara robeco infrastructure, franklin templeton focused , icici prudential bond fund, sbi magnum income fund, uti nifty 200 index, parag parikh flexicap,JM flexicap , 300 in quant flexicap, and 2000 in hdfc flexicap.. i have 2 daughters aged 12 and 10. I require funds for education and marriage.. are my choices ok? Anything to switch? And howlong to hold these funds.. pls suggest
Ans: It's commendable that you've started investing and are thinking ahead for your daughters' education and marriage. Let's review your current investment choices and see if any adjustments are needed.

Your portfolio seems diversified across various mutual funds, covering different segments of the market. However, it's essential to ensure that your investments align with your financial goals and risk tolerance.

Given your daughters' ages and the timeframe for their education and marriage, you have a reasonably long investment horizon. This allows you to consider a balanced approach between growth-oriented and stable investments.

Regarding specific funds, while I can't provide detailed recommendations on individual schemes, I can offer some general guidance. Evaluate each fund's performance, expense ratio, and consistency over time. Ensure that the funds you've chosen have a track record of delivering returns in line with your expectations and risk profile.

Regularly monitor your portfolio's performance and make adjustments as needed. As your daughters' milestones approach, you may consider gradually shifting your investments to more conservative options to safeguard the capital.

Remember, investing is a long-term commitment, and patience is key. Stick to your investment strategy, and avoid making impulsive decisions based on short-term market fluctuations.

Consider consulting with a Certified Financial Planner to get personalized advice tailored to your financial goals and family needs. They can help you fine-tune your investment strategy and ensure you're on track to meet your objectives.

Keep up the good work with your investments, and stay focused on your long-term financial goals!

Best Regards,

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

..Read more

Ramalingam

Ramalingam Kalirajan  |8309 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 18, 2024

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Am 34 yr old, I hav 60k income monthly & EPF 4k monthly. Am investing in PPF 2k, maxlife insurance Savings plan - 5k, UTI flexi cap fund - 2k, SBI contra- 0.5k & nippan India small cap- 0.5k since from year. Pls suggest any changes are required or else can i continue
Ans: You are on the right track by investing regularly and diversifying your portfolio. Your disciplined approach to saving and investing is commendable. Let’s assess your current investments and suggest any necessary changes.

Evaluating Your Current Investments
PPF Contribution: Investing ?2,000 monthly in PPF is a good choice for stable, tax-free returns. PPF is a safe investment with government backing.

EPF Contribution: Your EPF contribution of ?4,000 per month is a secure and tax-efficient way to build a retirement corpus.

Max Life Insurance Savings Plan: The ?5,000 investment in a savings plan combines insurance and savings. However, the returns on such plans are often lower compared to pure investment products. Ensure you have adequate life cover through term insurance.

UTI Flexi Cap Fund: Investing ?2,000 in a flexi cap fund offers good diversification across large, mid, and small-cap stocks, providing a balanced risk-reward ratio.

SBI Contra Fund: The ?500 investment in a contra fund can be beneficial as it follows a contrarian investment strategy, buying stocks that are currently out of favour but have growth potential.

Nippon India Small Cap Fund: Small cap funds, though risky, can offer high returns over the long term. Your ?500 investment here adds to your growth potential.

Suggested Changes for Optimal Growth
Review Insurance Plan: Consider whether the Max Life Savings Plan meets your financial goals. Pure term insurance combined with higher returns from mutual funds might be more efficient. Term plans offer high coverage at a lower premium.

Increase SIP in Diversified Funds: You might consider increasing your SIP amount in diversified funds like the UTI Flexi Cap Fund. This fund balances risk and return by investing across different market capitalisations.

Balanced Asset Allocation: Ensure your portfolio has a good mix of equity and debt. You may consider investing in a balanced or hybrid fund, which provides exposure to both equities and debt, offering growth with reduced risk.

Regular Monitoring: Review your portfolio periodically to ensure it aligns with your financial goals. Market conditions and personal circumstances can change, necessitating adjustments.

Emergency Fund: Ensure you have an emergency fund covering 6-12 months of expenses. This fund should be easily accessible and can be kept in a savings account or liquid fund.

Additional Recommendations
Health Insurance: Ensure you have adequate health insurance coverage. This protects your savings from unforeseen medical expenses.

Retirement Planning: Given your age, consider long-term retirement planning. Increase contributions to retirement-specific investments like PPF and EPF. You could also look at the National Pension System (NPS) for additional retirement savings.

Tax Planning: Maximise your tax-saving investments under Section 80C and other relevant sections. This optimises your tax liabilities and increases your disposable income.

Final Thoughts
Your current investment strategy shows a good start, but a few adjustments can optimise your portfolio for better returns and reduced risk. Consider reviewing your insurance plans, increasing SIPs in diversified funds, and maintaining a balanced asset allocation. Regularly monitor your investments and seek professional advice to stay on track with your financial goals. Your disciplined approach will help you achieve financial stability and growth.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8309 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 31, 2025

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Hi Sir, I am 37 year old. I have 2 kids. My Monthly Income is around 84000Rs. I am doing one monthly Regular plan SIP 20000 Rs in mutual fund through financial adviser over 6 years (Totally invested 130000 Rs and corpus is 175000Rs) and another Regular plan SIP 30000Rs started in 2024 (Totally invested is 350000 and total corpus is 380000Rs). Also i am doing Yearly 50000 Rs in NPS and 5000 SIP in SSA and 1000Rs in PPF. My total corpus in last 6 years is around 25L. I have 1L in Liquid fund. I have no debt & loan EMI etc as of now. Can you please advice whether i am going right way or anything i need to improve? Please advice .
Ans: You earn Rs. 84,000 per month.

You invest Rs. 20,000 per month in one mutual fund SIP. This has been ongoing for six years. Your total investment is Rs. 13,00,000, and the current corpus is Rs. 17,50,000.

You started another mutual fund SIP of Rs. 30,000 per month in 2024. You have invested Rs. 3,50,000, and the corpus is Rs. 3,80,000.

You invest Rs. 50,000 per year in NPS.

You invest Rs. 5,000 per month in Sukanya Samriddhi Account (SSA).

You invest Rs. 1,000 per month in PPF.

Your total corpus over the last six years is Rs. 25 lakh.

You hold Rs. 1 lakh in a liquid fund.

You have no loans or EMIs.

Your disciplined approach to investing is a positive step. You are creating long-term wealth and securing your financial future.

Strengths in Your Financial Plan
? Consistent Investments: You are investing 60% of your income in mutual funds and other instruments. This is a strong savings habit.

? Debt-Free Status: You have no EMIs or loans. This gives you financial flexibility.

? Diversified Portfolio: You invest in mutual funds, NPS, PPF, and SSA. This balance is good for risk management.

? Emergency Fund: You have Rs. 1 lakh in a liquid fund. This is helpful for unexpected expenses.

Areas of Improvement
1. Emergency Fund Needs Strengthening
Your emergency fund should be at least six months of expenses.

If your monthly expenses are Rs. 40,000, your emergency fund should be Rs. 2.4 lakh.

Increase your liquid fund to Rs. 2.5 lakh. You can add money gradually.

Keep it in a mix of savings accounts, fixed deposits, and liquid funds.

2. Optimising Mutual Fund Strategy
Your corpus in SIPs has grown, but the returns seem moderate.

The Rs. 20,000 SIP has a corpus of Rs. 17.5 lakh after six years. This suggests a moderate return.

Your Rs. 30,000 SIP started in 2024 has a small return so far.

Review your fund selection with a Certified Financial Planner.

Actively managed mutual funds help in wealth creation.

Continue SIPs but monitor performance regularly.

3. Retirement Planning Review
NPS is good for long-term retirement savings.

However, it has a lock-in period, and withdrawals have restrictions.

You should also build a separate mutual fund corpus for retirement.

Consider investing more in mutual funds for better liquidity.

Increase your PPF contributions if possible.

4. Child’s Education and Future Planning
SSA is a great step for your daughter’s education.

However, SSA has a long lock-in period.

Also, the returns are fixed and may not beat inflation.

Increase mutual fund investments to balance this.

Plan a dedicated education corpus in mutual funds.

This will give you flexibility when your children need funds.

5. Health and Life Insurance Check
You did not mention health insurance.

Ensure you have a good health policy for yourself and your family.

A Rs. 10-20 lakh floater health insurance policy is recommended.

If you have dependents, check if you need life insurance.

Term insurance is the best option for financial protection.

Optimising Tax Efficiency
Your PPF, SSA, and NPS contributions give tax benefits under Section 80C.

NPS also gives an additional Rs. 50,000 tax benefit under Section 80CCD(1B).

Review your tax-saving strategy for maximum benefits.

If you are in the new tax regime, some deductions may not apply.

Consult a tax expert to optimise your strategy.

How to Improve Your Wealth Creation Strategy
???? Increase your emergency fund to Rs. 2.5 lakh.

???? Continue SIPs, but review fund performance annually.

???? Increase investments for children’s education in mutual funds.

???? Consider increasing PPF contributions for stable returns.

???? Check your health and life insurance coverage.

???? Make sure your tax-saving investments align with your goals.

Final Insights
You are on the right track with disciplined investments.

However, some areas need improvement for long-term wealth creation.

Strengthen your emergency fund to avoid liquidity issues.

Review your mutual funds and optimise for better returns.

Build a strong education corpus for your kids in mutual funds.

Ensure proper health and life insurance coverage.

Keep monitoring your investments and stay updated on financial strategies.

With these improvements, you can achieve financial security and long-term wealth.

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   |353 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on Apr 28, 2025

Asked by Anonymous - Apr 28, 2025
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Sir I am feeling very uncertain about my career, i am very much interested in medical field, i gave my HS in 2024, this is my 1st drop for neet, i tried a lot but due to family issues and negativity i couldnot do well, neet is jst after 5days , but my syllabus not yet done, mock test are not good, but still i want to pursue medical field ans study in a government medical college, i know where my preparation was lagging{my class 11 12 were weak, those who taught me they all jst told m,e "u cant do anything " and leave and never used to teach properly but i did everything by my own , and then took drop but i how to prepare in a coaching class i didnt know all network isuues for almost 6months ,but i keep on doing and now i am standing in a uncertain phase where i still want to become a doctor, i dont have anproblem in studying those again but the problem is what others will say , its like a fear, as even though my parents enrolled in a coaching online previous year but they also sometimes used to say that i should have also enrolled i a college, its a fear, so my question is this path really for me? should i take a partial drop and go for neet 2026 too, {dob: 14/10/2005}.....i feel like hopeless , but still want to follow my dreams, is this possible?
Ans: Hi,

Before I address your query, please avoid mentioning your date of birth on social media; it's not necessary at this point. However, I noticed that some other details are missing.

In addition to the educational concerns, it seems like you may have a bit of a psychological issue in that you tend to worry excessively about others. This mentality is quite common in our country. Prior to the NEET exam, entry into the medical field, specifically for MBBS and BDS, was mainly reserved for aspirants with high marks. Additionally, those with significant wealth could gain admission through management quotas or at times via NRI quotas. However, the situation has changed completely after the introduction of NEET.

As you know, the major advantage of NEET is that the marks aspirants score in their HSC examinations are now less relevant. Candidates from any part of the country, of any category or state, and even those taking the exam for a second time can attempt NEET, regardless of their HSC performance. If aspirants have talent, they can succeed in NEET, which provides a standardized syllabus across the nation. So, even if you are currently struggling with your HSC studies, you can still perform well on the NEET.

Apart from percentile scores, various factors will influence admission, including community status, creamy or non-creamy layer, physical challenges, and more.

Therefore, NEET is the best solution for aspirants, and you can take the exam as many times as you need.

There are no barriers to preparing for the exam, so please go ahead.

You mentioned that you feel weak in the subject and have difficulty concentrating. I suggest starting yoga and meditation. By practicing these, you'll be able to relieve stress and work towards achieving your goals.

Regarding your desire to enter the medical field (I believe you want to become a doctor), is that correct?

If so, in addition to MBBS, there are other medical courses known as Indian Medicine, including BAMS, BHMS, BSMS, and BNYS. If you find MBBS challenging, consider focusing on these options as well. Many people have started to embrace Indian medicine after the COVID pandemic, so it’s not a problem at all.

Prepare for NEET 2025, analyze your situation, and send your details to the Rediffguru. We can discuss this further.

Wishing you all the best!
POOCHO. LIFE CHANGE KARO.

...Read more

Milind

Milind Vadjikar  |1197 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Apr 28, 2025

Money
We are a Private Limited Company with an employee strength of 60, and we strictly follow all PF rules. As per the applicable salary criteria, we contribute to the Provident Fund wherever required. Recently, we discovered that an employee who joined our company two years ago has an existing UAN linked to their Aadhaar. However, at the time of joining, the employee declared in Form 11 that they did not have a PF account. Based on this declaration, we did not contribute to their PF account. Now, the employee states that they were unaware of their PF account, and the UAN linked to their Aadhaar is currently inactive. Furthermore, they do not wish to activate their PF account. Given this situation, should we present Form 11 as valid proof for non-contribution, or are there any corrective actions required to comply with PF regulations? Kindly guide us on the appropriate steps to take in this matter.
Ans: Hello;

If the organisation is such that EPFO laws are applicable and if employee 's salary is as per the threshold given by EPFO (15 K basic +DA) then you don't have an option to avoid EPF.

The EPFO commissioner may issue your organisation a show cause notice as to why the form-11 submitted by the employee was not scrutinized thoroughly when it was submitted.

You may furnish joint declaration in the prescribed format to correct the mistake in form 11 and deposit all employer employee contributions till date with penalty as decided by the EPF Commissioner.

Actually such willful suppression of facts by the employee, which bring the employer into legal issues, deserves termination.

Seek advice from a lawyer specializing in labour and EPF laws, if required.

Best wishes;

...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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