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Jinal

Jinal Mehta  | Answer  |Ask -

Financial Planner - Answered on Mar 12, 2024

Jinal Mehta is a qualified certified financial professional certified by FPSB India. She has 10 years of experience in the field of personal finance.
She is the founder of Beyond Learning Finance, an authorised education provider for the CFP certification programme in India.
In addition, she manages a family office organisation, where she handles investment planning, tax planning, insurance planning and estate planning.
Jinal has a bachelor's degree in management studies. She also has a diploma in in financial management from NMIMS, Mumbai.
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Asked by Anonymous - Feb 20, 2024Hindi
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Hello Sir, I am 46 Y Old , and I lost my Job . I have 2 kids . One require money from 2024-2028 ( 6L per annum) other kid require money from 2028-2032. I saved and keep aside 60 L for their education . I have today 71 L of EPF . My wife earn 50 K per month which is sufficent for us to run the home and some money put in health insurance and term insurance. I will reinvest any interest earn from these two invest ments ( 60 L and 71 L). 60 L Break Up is 14.5 L Mutual fund , 25L PPF maturing in 2026, 10 L Government Bond maturing in 2024 3.4 L NSC maturing in 2032, 2.3L gold bond, 2 L Shares, 4 L FD. Please let me know can I have retirement life with 70 K from interests earning if i do not get job

Ans: Looking at your situation, i suggest do not try any DIY investment plans Please meet a Professional who will be in a better position to understand your situation and make a customised financial plan for you.
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  |6922 Answers  |Ask -

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

Asked by Anonymous - Feb 20, 2024Hindi
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Money
Hello Sir, I am 46 Y Old , and I lost my Job . I have 2 kids . One require money from 2024-2028 ( 6L per annum) other kid require money from 2028-2032. I saved and keep aside 60 L for their education . I have today 71 L of EPF . My wife earn 50 K per month which is sufficent for us to run the home and some money put in health insurance and term insurance. I will reinvest any interest earn from these two invest ments ( 60 L and 71 L). 60 L Break Up is 14.5 L Mumtual fund , 25L PPF maturing in 2026, 10 L Government Bond maturing in 2024 3.4 L NSC maturing in 2032, 2.3L gold bond, 2 L Shares, 4 L FD. Please let me know can I have retirement life with 70 K from interests earning if i do not get job.
Ans: It's understandable that you're concerned about your financial security after losing your job, especially with two children's education expenses to consider. Let's assess your current financial situation and retirement prospects:

Education Fund:

With 60 lakhs set aside for your children's education, you have a significant portion of their expenses covered. Ensure that these funds are invested appropriately to generate returns that align with the time horizon of their education needs.
EPF and Other Investments:

Your EPF corpus of 71 lakhs, along with your other investments in mutual funds, PPF, government bonds, NSC, gold bonds, shares, and FDs, forms a substantial part of your financial assets.
Review the performance and asset allocation of these investments to ensure they are diversified and positioned to provide growth and stability over the long term.
Retirement Planning:

With a monthly interest income target of 70,000 rupees, you'll need to calculate the rate of return required on your investments to achieve this goal. Given the current interest rate environment, it may be challenging to generate such high returns without taking on significant risk.
Consider consulting with a financial advisor to assess your risk tolerance, investment options, and retirement goals. They can help you develop a personalized retirement plan that balances risk and return effectively.
Contingency Planning:

While your wife's income covers household expenses, it's essential to have a contingency plan in case of unexpected expenses or emergencies. Maintain an emergency fund equivalent to 6-12 months' worth of living expenses to provide financial stability during challenging times.
Reassessing Retirement Income:

Depending solely on interest income from your investments for retirement may not be sufficient, especially considering inflation and rising living costs. Explore additional income streams or part-time work opportunities to supplement your retirement income.
In conclusion, while your current investments provide a solid foundation, achieving your retirement income target solely through interest earnings may require a review of your investment strategy and retirement goals. Consider seeking professional financial advice to optimize your portfolio and plan for a secure retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6922 Answers  |Ask -

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

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Hello Sir. I am 42 years old.my monthly earning rs.95000.I am investing 40,000 per month from July,24 in mutual funds and 5L in lumsump MF in ICICI prudential energy opportunities fund.rs.24000 in RD in bank.Currently corpus is 25L in ppf, 25L in PF,20L in FD ,45L in LIc.i have one son age 8 yrs.i have own car, bike. I have parental house.If I have to retire at the age of 60 and require monthly 5 lakhs, is it possible, and if yes, what should be my strategy?
Ans: Current Financial Situation
You have a stable monthly income of Rs. 95,000.

You invest Rs. 40,000 per month in mutual funds since July 2024.

You have invested Rs. 5 lakhs in a lump sum mutual fund.

You save Rs. 24,000 monthly in a recurring deposit.

Your corpus includes:

Rs. 25 lakhs in PPF
Rs. 25 lakhs in PF
Rs. 20 lakhs in FD
Rs. 45 lakhs in LIC
You have an 8-year-old son.

You own a car, a bike, and have a parental house.

Goal: Retirement at 60
You wish to retire at 60 and need Rs. 5 lakhs monthly post-retirement.

Analysis of Current Investments
Your current investments are diversified:

Mutual funds for growth
PPF and PF for safety
FD for liquidity
LIC for insurance and savings
This is a balanced approach. However, to meet your goal, adjustments are needed.

Mutual Funds
Continue with mutual funds for growth. They provide higher returns over time. Consider diversifying into large-cap, mid-cap, and balanced funds. This reduces risk and ensures steady growth.

Recurring Deposit
Recurring deposits offer fixed returns. However, they are less effective for long-term growth. You might consider redirecting some RD funds into equity mutual funds. This can potentially provide better returns.

PPF and PF
These are excellent for long-term safety. They provide tax benefits and guaranteed returns. Continue these for stability and safety in your portfolio.

Fixed Deposits
FDs provide liquidity but offer lower returns. Consider reallocating some funds into more growth-oriented investments. This can help in building a larger retirement corpus.

LIC Policies
LIC policies often offer lower returns compared to mutual funds. Consider reviewing your policies. If they are investment-cum-insurance, think about surrendering and investing in mutual funds. Use a term insurance plan for pure risk cover.

Lump Sum Investment
Your lump sum investment in a sector-specific fund is high risk. Consider diversifying into diversified equity funds. This reduces risk and ensures better long-term growth.

Strategy for Achieving Retirement Goal
Increase SIP Contributions
Increase your monthly SIP contributions. Aim for at least 50% of your monthly income. This ensures a larger corpus over time.

Diversify Investments
Diversify across various mutual funds. Include large-cap, mid-cap, and balanced funds. This spreads risk and maximizes returns.

Regular Review and Rebalancing
Review your portfolio every six months. Rebalance to maintain the desired asset allocation. This helps in staying aligned with your goals.

Emergency Fund
Maintain an emergency fund of at least 6 months of expenses. Park this in liquid funds for easy access. This ensures financial stability during emergencies.

Retirement Planning
Start planning for retirement expenses. Consider inflation and rising costs. Use retirement calculators to estimate the required corpus. Adjust your investments accordingly.

Professional Guidance
Seek advice from a Certified Financial Planner. They can provide tailored strategies. A CFP ensures your investments are aligned with your retirement goals.

Final Insights
Your current investments are on the right track.

Increase your SIP contributions for better growth.

Diversify your mutual fund investments.

Review and rebalance your portfolio regularly.

Seek professional guidance for a tailored approach.

With disciplined investing, achieving your retirement goal is possible.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Radheshyam

Radheshyam Zanwar  |1021 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Nov 04, 2024

Asked by Anonymous - Nov 03, 2024Hindi
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Career
Hello Sir, I am an MBA graduate with a specialization in Marketing and HR. However, I feel that my communication skills are not up to the mark, which has made it challenging for me to secure a well-paying job. I am now considering a career switch to either the IT or Banking sector, as I have a solid foundation in digital marketing. I'm still uncertain about which path to choose. Could you suggest which industry might be better suited for me, along with the recommended courses and the process to get started? Thank you.
Ans: Hello
You completed an MBA with a specialization in Marketing and HR. You are lagging in communication skills. It seems that you have not tried to improve your communication skills hence you might have failed to get a good job in Marketing, as the marketing field is dependent on communication skills. You put two options IT and Banking Sector, Even though you have a solid foundation in Digital Marketing, you may fail in the IT sector. it would be better for you to try the Banking sector, as it has wide applications that IT. Bank is the need of each person, hence have more potential for the person who has less communication skills. Almost all the reputed banks do their advertisements on all types of media platforms. Hence a marketing person working for the banking sector has to explain less as compared to IT marketing. While working in the Banking sector, side by side you can do Digital Marketing also on a part-time basis. There is no need to do more courses as you have already done specialized courses in Marketing and HR. It would be better to keep a close watch on reputed banks' websites for the latest updates on employment.

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  |1021 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Nov 04, 2024

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Career
Hi Sir, I am tensed as JEE Main Examination is approaching and i am scared that i would only be able to score 100/300 at best. Please suggest me some good regional colleges. I am female single girl child in Delhi. Engineering was never my first priority yet I chose it because it seemed a safe option. I would also try and give CUET. One more concern is that my 5th subject in class 12 is GST or Geospatial Technology. Is there any scope for this subject through which I can enter a decent college. I dont want to spend my parents money..Please help. I am distressed
Ans: Hello Shaamhavi
First I would like to say that without any fear in mind and a predetermined score, you appear for JEE 2025 in 1st session. To improve your score/performance, you have 2nd attempt also.
You said, engineering was never your 1st priority. Then, why not have discussed this fact with your parents or parents have forced you to go for engineering? It is not clear from your question. How you can say, it is a safe option is also not clear.
If you are scared about JEE preparation, then it would be better to try CUET. GST i.e. Geospatial Technology is a good subject and there is scope in this field.
Now, I would like to suggest you: (1) Focus more on JEE preparation or CUET (2) Try to excel in GST subject (3) Try to score more and more in the respective examinations on a priority basis, (4) No need to take the stress about parents money as the expenses are already done on your classes + college tuition fees, etc. (5) Leave up all other aspects of Regional College availability, descent college in GST field etc. (6) For all your problems, only one answer: SCORE HIGH IN THE EXAMIANTIONS IN WHICH YOU ARE APPEARING.

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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