Seeking Advice on Whether to Continue Loan on Third Property | Reader Question

Ans: To control glucose levels and manage diabetes, yoga can be highly beneficial, as it helps improve insulin sensitivity, balance blood sugar levels, and enhance overall well-being.

Specific Yoga Poses for Glucose Control:
Setu Bandhasana (Bridge Pose): Stimulates the pancreas and improves blood circulation.
Dhanurasana (Bow Pose): Strengthens the abdominal muscles and improves insulin production.
Vrikshasana (Tree Pose): Enhances balance and reduces stress, which is important for controlling blood sugar levels.
Paschimottanasana (Seated Forward Bend): Stretches the pancreas and aids in glucose metabolism.
Surya Namaskar (Sun Salutation): A sequence of poses that enhances overall body function and improves glucose utilization.
In addition to these, Pranayama (breathing exercises) like Anulom Vilom and Bhastrika are excellent for managing stress and improving lung and heart function, which indirectly helps control blood sugar levels.

Incorporating these practices into a daily routine, along with dietary and lifestyle changes, can support better glucose control and overall health.

R. Pushpa, M.Sc (Yoga)
Online Yoga & Meditation Coach
Radiant YogaVibes
https://www.instagram.com/pushpa_radiantyogavibes/

Ans: Yes, snoring can sometimes be reduced through yoga, as it helps improve breathing and strengthen muscles around the throat and nasal passages. Here are some yoga practices that can help alleviate snoring:

1. Bhramari Pranayama (Bee Breathing)
How to do: Sit comfortably, close your eyes, and place your index fingers on your ears. Inhale deeply, and while exhaling, produce a humming sound like a bee.
Benefits: Calms the mind, reduces stress, and improves airflow in the nasal passages.
2. Simhasana (Lion Pose)
How to do: Kneel on the floor, place your hands on your knees, open your mouth wide, stick your tongue out, and roar like a lion while exhaling.
Benefits: Tones throat muscles, reduces snoring caused by throat relaxation.
3. Ujjayi Pranayama (Ocean Breath)
How to do: Inhale deeply through both nostrils, slightly constricting the throat to create a soft "ocean-like" sound as you breathe.
Benefits: Strengthens throat muscles and improves breathing control.
4. Anulom Vilom (Alternate Nostril Breathing)
How to do: Sit in a comfortable position. Close one nostril with your thumb, inhale through the open nostril, then switch and exhale through the opposite nostril.
Benefits: Clears nasal passages and promotes balanced airflow.
5. Bhujangasana (Cobra Pose)
How to do: Lie on your stomach, place your hands under your shoulders, and lift your chest while keeping your elbows slightly bent.
Benefits: Strengthens respiratory muscles and opens the chest, improving airflow.
6. Kapalbhati Pranayama
How to do: Sit in a comfortable position with a straight spine. Inhale deeply, then exhale forcefully, focusing on contracting your abdominal muscles with each exhalation. The inhalation happens passively.
Benefits: Clears nasal passages, detoxifies the respiratory system, and improves lung function.
Important Note:
These practices should ideally be learned and performed under the guidance of a qualified yoga instructor or guru, especially Kapalbhati, which involves forceful breathing. Proper guidance ensures you practice safely and effectively.

Incorporating these yoga practices into your daily routine, along with lifestyle changes like maintaining a healthy weight and sleeping on your side, can help reduce snoring over time.

R. Pushpa, M.Sc (Yoga)
Online Yoga & Meditation Coach
Radiant YogaVibes
https://www.instagram.com/pushpa_radiantyogavibes/

Ans: Hello;

Assuming monthly expenses of around 60 K, I recommend you the following:

1. PPF investment 12.5 K per month for 10 years for elder child education needs.

2. Begin a 10 K monthly sip into flexicap type mutual fund say for eg PPFAS flexicap fund for 15 years for education needs of younger child.

3. Increase per month NPS investment to 50 K for ensuring decent corpus and pension at retirement (60 age).

Happy Investing!!

You may follow us on X at @mars_invest for updates.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

Ans: Hello;

Firstly if you are the guardian for the PPF account in the name of your minor child then the yearly contribution to your own PPF account and the minor account of your child for which you are the guardian cannot exceed 1.5 L in a financial year cumulatively (75 K each max).

Keep this in mind to avoid refund without interest by the bank later.

The current monthly expenses of around 1 L will be 1.8 L after 10 years considering 6% inflation.

After getting rid of 70 K rent+ 70 K education loan EMI, I would recommend you to enhance monthly sip to 1.25 K per month. The bonus amount of 15 L also should go into MF investments to achieve retirement target in 10 years.

Any increase in income should have commensurate increase in monthly sip to ensure target fulfillment in 10 years.

The 12.5x3=37.5 K monthly investments in PPF and SSY should continue for kids higher education, marriage financial goals.

After 10 years your monthly sips+ lumpsum may reach a corpus of around 6 Cr. Also your existing MF corpus of 60 L may grow into a sum of around 2 Cr. So total corpus for retirement is 8 Cr. (A modest return of 13% is assumed from pure equity mutual fund schemes)

You should use 2 Cr + pf balance to pre close outstanding home loan. The balance 6 Cr corpus you may use to buy an immediate annuity from a life insurance company and you may expect monthly payment of 2.1 L(post tax).[ 6% annuity rate considered)

Hope you both have adequate term life insurance cover(upt 60 age) with suitable riders and adequate personal healthcare cover apart from any group health policy from the company.

Happy Investing!!

You may follow us on X at @mars_invest for updates.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

Ans: Dear Aarti,

Thank you for your query. For increasing stamina, you don't need vitamin supplements, but rather a focus on strength, endurance, and protein. To improve stamina, it's important to engage in regular exercise, such as running, strength training, and cardio workouts. Additionally, a protein-rich diet is crucial as it helps with muscle recovery and growth.

Vitamins by themselves do not directly boost energy or stamina; instead, they support overall health. If you are following a balanced diet, you typically do not need extra vitamin supplements. However, if you have a specific deficiency, such as Vitamin D or B12, you can consider supplements after consulting a doctor.

For strength training and to ensure you’re doing the right exercises safely, it’s recommended to visit a physiotherapist. They can guide you through exercises tailored to your needs, helping you build strength and improve stamina effectively.

Ans: Dear Mr. Dilip Kumar . Thank you for your query. It sounds like you are experiencing intermittent knee pain that worsens after walking about 100 meters, intensifies for the next few hundred meters, and then gradually subsides as you continue. Pain associated with walking in the knee can occur for various reasons, and without knowing your age and medical history, it's essential to consider a few common possibilities. It could be due to osteoarthritis, especially in older adults, where the wear and tear of knee joint cartilage causes pain that may decrease after warming up. Another possibility is patellar tendinitis, involving inflammation of the tendon connecting the kneecap to the shinbone, which causes pain during walking. Iliotibial Band Syndrome (ITBS) might also be a factor, especially if the pain is on the outside of the knee. In some cases, pain that starts with walking and improves gradually could point to vascular issues, such as claudication, or a past meniscal injury or ligament strain affecting the knee's stability.

Given the variety of potential causes, it’s crucial to consult with a physiotherapist for a thorough assessment. They can perform a detailed physical examination, recommend appropriate imaging if necessary, and develop a targeted plan for managing the pain. This will help you address the root cause and ensure a quicker and safer recovery.

Ans: Hi Ajay. Thank you for your query. Both pursuing a Master's in Physiotherapy in India and abroad have unique advantages, depending on your career goals and interests. A Master's in India provides a strong focus on the clinical aspects of physiotherapy, allowing you to gain extensive hands-on experience with a high volume of patients in hospitals, clinics, and rehabilitation centers. This exposure can enhance your practical skills and clinical decision-making. Additionally, if you aim to build a career in teaching within Indian institutions, having a Master’s degree from India is often preferred, as colleges tend to recognize and value domestic qualifications.

On the other hand, pursuing a Master’s abroad, especially in countries like the UK, Australia, or the US, often emphasizes research and evidence-based practice. This approach helps build a strong foundation in scientific methodologies and research skills, which can be valuable if you're interested in contributing to academic research or pursuing a PhD later. International programs can also offer global exposure, advanced technology, and varied healthcare systems, which can be an asset if you aim to work in a multicultural environment or pursue international job opportunities.

Overall, both paths have their benefits. If your interest lies in practical experience and patient care, studying in India could be a better fit. But if you are inclined toward research and global opportunities, pursuing a Master’s abroad might align with your goals. Wishing you best for your future endeavors.

Ans: At 51, with retirement planned in 2034, it’s important to structure your finances to secure both long-term growth and post-retirement stability. Your current investments are well-diversified, but I will address each area in more depth and help you evaluate your approach further.

Mutual Fund Investments
You have already invested Rs 10 lakhs in mutual funds, which is a great start. I suggest you continue focusing on actively managed funds. Actively managed funds can outperform index funds over time, especially when selected carefully by a Certified Financial Planner (CFP).

Disadvantages of index funds include:

Limited flexibility: They mimic the index, offering no opportunity to outperform the market.

Poor in volatile markets: Actively managed funds can be better in volatile times, as fund managers have the flexibility to adjust strategies.

With Rs 1 lakh per month to invest, consider adding diversified equity mutual funds, hybrid funds, or international funds to your portfolio.

Direct vs. Regular Funds
If you are currently investing in direct mutual funds, I recommend considering switching to regular funds. While direct funds have lower expense ratios, regular funds give you access to the expertise and advice of a Mutual Fund Distributor (MFD) with CFP credentials. Having professional guidance ensures that your investments align with your goals and changing market conditions. A certified planner can optimize your portfolio for the best long-term results.

Stock Market Exposure
Your Rs 20 lakhs in the stock market represents a high-risk portion of your portfolio. It’s good for growth, but I would advise you to review and balance this investment carefully. Stocks can be volatile, and as you approach retirement, you may want to gradually reduce exposure to direct equities and shift toward more stable options like mutual funds or debt funds.

Post Office MIS
Your Rs 18 lakhs in Post Office MIS is a safe, fixed-income investment. It’s a good choice for steady returns, especially for those looking for a risk-averse portion of their portfolio. However, I would suggest exploring options that offer inflation-beating returns. The returns from the MIS may not be enough to keep pace with inflation, which is crucial for retirement planning.

Real Estate Purchase
You mentioned purchasing a 3 BHK flat or villa in Mysore, Karnataka. Real estate is not an ideal investment for everyone. It is an illiquid asset and may not provide the best returns compared to financial instruments like mutual funds or stocks.

Here are some disadvantages of real estate as an investment:

Illiquidity: You can't sell quickly if you need funds.

High maintenance costs: Owning property involves additional costs, including maintenance, taxes, and potential repairs.

Market dependency: Real estate markets can be unpredictable, and appreciation may not always meet expectations.

If your goal is to buy the house for personal use post-retirement, ensure you’re comfortable with the potential financial outlay and that it aligns with your overall retirement goals. Real estate shouldn’t make up a significant portion of your retirement corpus if you are looking for long-term financial growth.

Retirement Planning
You have 10 years until retirement, and it's the perfect time to optimize your savings and investments. Here’s a balanced strategy to help you meet your retirement goals:

Continue your monthly SIPs: With Rs 1 lakh per month available for investment, I recommend allocating a significant portion to diversified mutual funds for long-term growth.

Build a retirement corpus: Given your timeline, aim to build a large enough corpus to sustain your post-retirement lifestyle. You should look to invest in a mix of equity mutual funds, hybrid funds, and debt funds to balance growth and stability.

Consider adding debt funds: As retirement approaches, you should start shifting some investments from equities to debt funds to reduce risk.

Health Insurance: Ensure you have adequate health insurance coverage that can support you and your family during your retirement years.

Taxation on Mutual Fund Gains
It’s also important to consider the taxation of your mutual fund investments as they grow. Under the current rules:

Long-term capital gains (LTCG) on equity mutual funds above Rs 1.25 lakh are taxed at 12.5%.

Short-term capital gains (STCG) on equity funds are taxed at 20%.

For debt funds, both LTCG and STCG are taxed according to your income tax slab.

Planning ahead with a Certified Financial Planner can help you minimize taxes on your retirement withdrawals.

Final Insights
To sum up:

Continue investing Rs 1 lakh per month in actively managed mutual funds for long-term growth.

Review your stock market exposure and ensure you gradually reduce risk as you near retirement.

Post Office MIS provides safe returns but consider other investment avenues that outpace inflation.

Think carefully about the real estate purchase, and consider its role in your overall retirement planning. Real estate shouldn’t form the bulk of your retirement corpus.

Consult a Certified Financial Planner (CFP) to review your investment strategy regularly and make adjustments as you approach retirement. They can help you build a retirement corpus that meets your goals and secures your future.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

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

Ans: Building a corpus of Rs. 2 crores in 5 years through Systematic Investment Plans (SIPs) is a goal that can be achieved with disciplined and strategic investments. At 46, you have a clear target and a relatively short time frame, so an aggressive investment approach is necessary. Let’s explore how you can approach this:

1. Setting Realistic Expectations
With a 5-year investment horizon, aiming for Rs. 2 crores means your investments need to grow at a significant rate. Considering the time frame, equity mutual funds are your best option to achieve high returns, but you must also balance the risk.

Equity mutual funds have historically given annual returns between 10-15% over the long term.

In a 5-year period, you need to invest in funds that have the potential for higher returns, like mid-cap or small-cap funds. However, be prepared for volatility.

2. Required Monthly SIP Investment
To achieve Rs. 2 crores in 5 years, your SIP contributions will need to be substantial. Without going into complex formulas, we can estimate the monthly investment needed based on a 12-15% return assumption.

At 12% return: You would need to invest approximately Rs. 2.7 lakh per month.

At 15% return: You would need to invest approximately Rs. 2.5 lakh per month.

These are broad estimates and can vary based on market conditions. If you start with a lower SIP amount, consider increasing it over time with step-up SIPs, where you gradually increase your SIP amount each year.

3. Investment Strategy: Diversified and Balanced
Since your time frame is short, it’s important to balance risk and returns. Here’s how you can allocate your investments:

3.1 Equity Mutual Funds
Equity mutual funds are the most suitable for achieving your goal. Within this category, you can focus on:

Large-Cap Funds: These funds invest in well-established companies, providing relatively stable growth with lower risk than small-cap funds. These funds should form about 30-40% of your portfolio to provide stability.

Mid-Cap and Small-Cap Funds: These funds invest in medium and smaller companies. While they are riskier, they have the potential to deliver higher returns. Allocate around 30-40% to these funds to boost your returns. Be aware that small-cap funds can be volatile, especially in the short term, but they can significantly contribute to your goal over 5 years.

3.2 Aggressive Hybrid Funds
These funds invest in a mix of equity (around 65-80%) and debt (20-35%). They provide a balance between risk and return. This is ideal for someone nearing retirement but still looking for aggressive growth. You can allocate around 20-30% of your investment to such funds.

3.3 Sectoral and Thematic Funds
If you are willing to take additional risk, you could consider investing in sectoral or thematic funds. These funds focus on specific sectors like technology, healthcare, or banking. These funds are risky but can provide high returns if the sector performs well. Limit this to 10-15% of your portfolio, as these funds can be volatile.

4. Avoid Index Funds
You may come across suggestions for index funds, but they are not suitable for your goal. Index funds aim to replicate the performance of the stock market index, like Nifty or Sensex. While they are passive and have lower management costs, their returns are often moderate compared to actively managed funds. Your goal of Rs. 2 crores in 5 years requires higher returns, which can be achieved through active management.

5. Avoid Direct Funds
While direct funds are cheaper since they don’t involve distributor commissions, they lack the guidance and expertise of an experienced Certified Financial Planner (CFP). You will benefit more from regular funds, where an expert can help you navigate market fluctuations, adjust your portfolio, and rebalance based on your goals.

6. Review and Adjust Portfolio Regularly
Since the market can be volatile, especially in the short term, you must review your portfolio every 6 months. A Certified Financial Planner can help you with this by adjusting your investments based on performance. Regular reviews also ensure that you’re on track to reach your Rs. 2 crore goal.

Rebalance your portfolio if certain funds are underperforming.

Increase your SIP amount if necessary.

Switch between funds as market conditions change, focusing on areas of higher growth potential.

7. Surrender LIC Policies and Focus on Mutual Funds
If you hold traditional insurance products like LIC or ULIP plans, their returns typically range around 6-8%, which won’t help you achieve your aggressive goal of Rs. 2 crores in 5 years. It’s advisable to surrender such policies and redirect the funds towards high-growth mutual funds. Pure insurance plans such as term insurance are a better option for covering risk.

8. Tax Planning
As you invest in equity mutual funds, be aware of the new capital gains tax rules:

LTCG (Long-term capital gains) above Rs. 1.25 lakh are taxed at 12.5%.

STCG (Short-term capital gains) are taxed at 20%.

For debt mutual funds, both short-term and long-term capital gains are taxed according to your income tax slab. Factor this into your planning when deciding when to redeem your investments. Tax-efficient strategies, such as holding your investments for over one year, can help you minimise tax.

9. Emergency Fund
Ensure you maintain an emergency fund before committing to aggressive SIPs. Since your time horizon is only 5 years, it’s crucial to have enough liquidity to handle unexpected expenses without disturbing your investments. Typically, an emergency fund should cover 6-12 months of living expenses. You could park this in low-risk debt funds or fixed deposits for easy access.

10. Insurance Cover
Before focusing on your investment goals, it is important to have adequate life and health insurance cover. A term insurance policy with adequate cover can safeguard your family's financial future. Health insurance is equally important to cover any medical emergencies. If you have existing LIC policies, evaluate if they offer sufficient cover. Otherwise, opt for a term plan.

11. Stay Disciplined and Patient
Achieving Rs. 2 crores in 5 years is possible, but it requires commitment and discipline. Avoid panic selling during market corrections and keep your long-term goals in mind. SIPs inherently provide rupee cost averaging, so market volatility works to your advantage over time.

Finally, while an aggressive approach is needed, avoid putting all your eggs in one basket. Diversification is key to mitigating risk and ensuring your money grows steadily.

Final Insights

Building a Rs. 2 crore corpus in 5 years through SIPs is a challenging yet achievable goal with a disciplined and strategic approach. You will need to make significant monthly investments in a diversified portfolio of equity mutual funds, hybrid funds, and sectoral funds. Regular portfolio reviews, combined with disciplined investing, will help you stay on track.

Work closely with a Certified Financial Planner to review your progress and make the necessary adjustments to your portfolio as market conditions change.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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