Hello Sir, My name is Prashanth Kulkarni. I had joined a company at the age of 59, and the company started deducting my PF and also they made contribution to EPS also. Which I came to know that the EPS ceases at the age of 58. I resigned from the company and have applied for PF refund after cooling period. Now my claim is being rejected for want of clarification of EPS contribution after the age of 58. Please advise. Thanks and regards, Prashanth Kulkarni.

Ans: Computer Science

Ans: Current Income and Cash Flow

Your main income is family pension.

FD interest and rent add further cash.



Household spends about Rs 60,000 each month.

You keep a small monthly surplus.

Preserve this gap and try widening it.

Track every expense in a notebook.

Record cash, card, and online payments daily.

Small leaks can shrink your retirement corpus.

Build a yearly cash flow statement.

Compare planned versus actual spending each quarter.

Commit any annual bonus or arrears to investments.

Avoid lifestyle creep when income rises later.

Emergency Fund and Liquidity Buffer

An emergency fund shields against shocks.

Keep at least twelve months’ expense reserve.

For you, that equals nearly Rs 7,50,000.

Hold half in sweep-in savings account.

Hold half in liquid mutual fund.

Sweep-in adds flexibility and full safety.

Liquid fund offers little higher return.

Review fund rating and portfolio quality yearly.

Refill the buffer whenever you withdraw.

Never risk emergency money in equity.

Link this fund to a separate bank card.

This prevents mixing with daily spending.

Inflation and Long-Term Living Costs

Inflation silently erodes cash power.

Your expenses will double in twenty years.

Medical inflation runs even faster today.

Pension and FD interest rarely beat prices.

Equity and balanced funds help fight inflation.

Plan for rising utility and healthcare bills.

Budget annual family trips and celebrations too.

Build a realistic post-retirement expense chart.

Include home repairs and gadget replacements.

Cushion for unpredictable events like legal fees.

Risk Profile and Capacity

You rely on fixed income sources.

Your risk tolerance stays moderate.

Yet your risk capacity is decent.

Large FD reserve supports gradual equity exposure.

Being single parent increases need for safety.

Balance growth and capital protection carefully.

Review risk appetite every three years.

Big life events may shift your comfort.

Assessment of Current Assets

Rs 1 crore sits in multiple FDs.

FD rates barely cross 7% per year.

Post-tax return trails inflation over time.

Ten lakh in equity may be scattered.

Two lakh mutual funds very small proportion.

Fourteen lakh PPF is tax free and safe.

One LIC policy for son is traditional.

Such policies yield low single digit returns.

House still held in husband’s name.

Title transfer is pending and important.

Action on LIC Policy

Traditional LIC plans mix cover and savings.

Maturity value often lags other options.

Check policy surrender value today.

Compare with future premiums still payable.

If returns below 6%, consider surrendering.

Reinvest proceeds into diversified mutual funds.

Ensure separate pure term cover for son.

Term cover gives high protection, low cost.

Pure Protection Needs

You are main guardian for son.

Term insurance of at least Rs 1 crore advised.

Annual premium affordable at your age.

Choose regular premium, level cover.

Avoid return-of-premium variants.

Select insurer with high claim ratio.

Disclose health details honestly in proposal.

Add critical illness rider for extra safety.

Medical Insurance Coverage

Government health schemes help but can delay settlements.

Private health cover gives quicker cashless service.

Opt for Rs 10 lakh base policy.

Add Rs 20 lakh super top-up on it.

Premium remains low at your present age.

Renew without breaks to avoid waiting periods.

Insure your son on same family floater.

This shields corpus from large hospital bills.

Education Planning for Son

Engineering or medical costs keep soaring.

Overseas study can cost Rs 25 lakh plus.

Your son enters college within two years.

Set aside goal corpus separately now.

Current equity holding of Rs 10 lakh earmark here.

Add Rs 15,000 monthly SIP towards this goal.

Choose two active diversified equity funds.

MFD with CFP support will shortlist schemes.

Review performance half-yearly, course correct early.

Gradually shift funds to low risk debt fund.

Start shifting three years before fee payment.

This reduces market volatility impact.

Retirement Horizon and Goal Amount

You are 43 today.

Expect retirement at 60 by choice.

That leaves 17 investing years.

Target monthly expense in retirement maybe Rs 1 lakh.

Inflation-adjusted corpus around Rs 3.5 crore needed.

This corpus should support 30 years post-retirement.

Corpus assumes 8% return and 5% inflation gap.

Regular review will refine these assumptions.

Asset Allocation Strategy

Follow core-satellite approach for simplicity.

Core: 50% diversified equity mutual funds.

Satellite: 20% dynamic asset allocation fund.

Debt: 20% high quality short duration fund.

PPF and EPF: 10% safe anchor.

Gold exposure can stay at 5% within satellite.

Review allocation yearly with market changes.

Rebalance if deviation exceeds 5% per block.

Restructure Fixed Deposits

Ladder FDs for liquidity and better rates.

Break Rs 1 crore into four equal parts.

Each part gets maturity one year apart.

Renew maturing tranche based on rate outlook.

Move two tranches gradually into debt funds.

Debt funds taxed on slab; plan accordingly.

Systematic transfer plan spreads market entry risk.

Keep one ladder tranche always as rainy-day cash.

Building Equity Exposure

Shift Rs 25 lakh from FDs over two years.

Use monthly STP into three active equity funds.

Select one flexicap, one large-midcap, one midcap.

Avoid index funds because of passive structure.

Index funds mirror market ups and downs exactly.

They give average returns without risk control.

Active funds offer professional stock selection.

Fund managers switch sectors when risks rise.

Active funds may beat index after fees long term.

MFD with CFP tag helps pick consistent performers.

Evaluate fund consistency beyond short rankings.

Look at rolling five-year return history.

Debt Mutual Fund Basket

Place Rs 15 lakh into short duration funds.

High credit quality is non-negotiable.

Avoid credit risk funds due to default danger.

Short duration funds match two-three year needs.

Tax on gains matches your slab now.

Use gains to top up equity in weak markets.

Redeploy matured debt for son’s college payments.

Dynamic Asset Allocation Fund

Allocate Rs 20 lakh lump sum here gradually.

This fund shifts between equity and debt automatically.

It smoothens return journey for conservative investors.

No need for constant personal rebalancing.

Retain it as satellite block for flexibility.

Gold as Portfolio Hedge

Gold protects during extreme equity crises.

Limit total gold to five percent of corpus.

Choose an active gold savings fund, not ETF.

Fund manager may optimise hedge cost.

Avoid overexposure; gold returns trail equity overall.

Cash Flow Gap Management

You still face monthly surplus roughly Rs 15,000.

Direct this entire amount into equity SIPs.

Increase SIP by 10% each April with inflation.

Channel every rent hike into the same SIP.

Avoid parking surplus in savings account idly.

Tax Efficiency Measures

PPF interest is tax free; keep it alive.

Fresh contribution qualifies under Section 80C.

Debt funds taxed at slab after April 2024 change.

Plan redemptions in years with lower income.

Equity LT-gains above Rs 1.25 lakh taxed 12.5%.

Spread sale across multiple years to save tax.

Harvest profits every March when limits allow.

Record all investment statements for accurate filing.

Estate and Succession Planning

Flat still in husband’s name needs mutation.

Initiate name transfer with municipal office soon.

Keep property papers in fireproof locker.

Write a simple registered Will listing assets.

Name your son primary beneficiary clearly.

Mention guardian for him if below age 18 yet.

Add alternate beneficiary as safety.

Update nominees on all bank and fund accounts.

Maintain one sheet listing account numbers and contacts.

Inform trusted family member about document location.

Protection Against Identity and Cyber Fraud

Use two-factor login for all online accounts.

Keep separate email for banking alerts.

Activate SMS alerts for every card swipe.

Never share OTP or PIN with callers.

Check CIBIL report once each year.

Dispute unknown enquiries immediately.

Freeze credit if scam suspected.

Regular Portfolio Review Process

Conduct half-yearly meeting with CFP-backed MFD.

Compare portfolio weights against target allocation.

Replace funds consistently ranking bottom quartile.

Watch expense ratios, exit loads, mandate changes.

Study fund manager change announcements.

Keep diary for reasons behind each switch.

Avoid emotional decision during market hype.

Education Loan Contingency

If higher studies cost exceed corpus, use education loan.

Interest qualifies under Section 80E; offers tax relief.

Keep loan small by saving upfront as planned.

Do not compromise retirement corpus for education excess.

Insurance for Home and Assets

Insure house structure and contents now.

Natural calamities and fire risks are rising.

Premium is small yet protects big asset.

Renew policy annually without lapse.

Photograph valuables and store receipts online.

Lifestyle Control and Mindset

Differentiate needs and wants each month.

Avoid upgrades just because peers upgrade.

Teach son money values early.

Encourage part-time projects for him in college.

Family involvement reinforces disciplined saving culture.

Skill Development and Earning Potential

Explore remote freelancing to supplement income.

Use existing skills like tutoring or translation.

Even Rs 5,000 extra monthly boosts SIP by much.

Upskill through online government sponsored courses.

Continuous learning keeps you employable post retirement.

Retirement Withdrawal Strategy

Keep three years’ expenses in short duration debt.

Rest corpus stays invested earning balanced growth.

Withdraw yearly amount at start of each year.

Replenish debt bucket during market highs.

This bucket strategy reduces sequence of return risk.

Inflation-Linked Income Streams

Consider systematic withdrawal plan post 60.

Use balanced advantage fund for SWP source.

Start with 5% withdrawal on corpus first year.

Increase withdrawal by inflation rate yearly.

Monitor corpus sustainability every five years.

Documents and Record Keeping

Scan all policy bonds, passbooks, and deeds.

Store copies in encrypted cloud folder.

Keep original documents in safe deposit locker.

Maintain one page emergency contact list on fridge.

Include policy, bank, doctor, and lawyer numbers.

Monitoring Legislative Changes

Tax rules often change each budget.

Keep informed through reliable finance bulletins.

Adjust investments quickly when tax impact appears.

Your MFD will issue alerts after every union budget.

Behavioural Discipline

Market falls will test your resolve.

Remember corpus target and stay invested.

Avoid chasing high returns promises.

If any product sounds too good, pause.

Discuss with CFP before signing forms.

Sleep over big money decisions overnight.

Environmental, Social, Governance Angle

Consider ESG rated equity funds for a slice.

They invest in responsible companies.

Returns can match mainstream funds.

It aligns wealth with ethical values.

Digital Nominee Service

Register e-nominee on investment platforms.

It speeds up claim settlements for heirs.

Keep nominee contact updated when phone changes.

Self-Care and Mental Wellbeing

Financial health links to mental peace.

Practice yoga or brisk walk daily.

Good health reduces future medical spending.

Travel modestly with family each year.

Happy memories surpass material gifts.

Role of Certified Financial Planner

A CFP analyses goals in holistic manner.

They bring structured cash flow modelling.

They recommend suitable active mutual funds.

They guide tax efficient redemption strategy.

They review and rebalance without bias.

Choosing an MFD with CFP adds reliability.

Fee is small compared to mistakes avoided.

Finally

Strengthen emergency fund to full twelve months coverage.

Transfer house title smoothly for peace of mind.

Realign FDs into ladder and debt funds gradually.

Build active equity exposure through systematic transfers.

Top up SIPs using every extra rupee saved.

Surrender low-yield LIC plan and buy pure term cover.

Secure private health insurance before age-based premiums soar.

Keep education, retirement, and protection goals separate.

Review portfolio and goals every six months.

Stick to disciplined asset allocation journey.

Allow active fund managers to beat passive indices.

Avoid direct funds without professional handholding.

Your steady steps now craft a secure retired life.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: With an 88.97 percentile in MHCET, you have a good chance of getting into several well-regarded engineering colleges in Pune for CSE and E&TC. While top-tier colleges like COEP, VJTI, and PICT may require higher percentiles, you can explore options like Vishwakarma Institute of Information Technology (VIIT), Dr. D.Y. Patil Institute of Technology, and Rajarshi Shahu College of Engineering, among others.

Ans: Hello dear.
We can't mention the name of a particular college(s). Sorry. But you have bright chances to get a seat in tier 1 colleges in computer related branches.
Best of luck.
Follow me if you like the reply. Thanks
Radheshyam

Ans: Hello Smarth
Prefer CSE @ IPU if possible. The final decision will be yours.
Best of luck.
Follow me if you like the reply. Thanks
Radheshyam

Ans: You both have laid a solid financial foundation. Your combined efforts show discipline and focus. Let’s build on this with a comprehensive 360-degree plan. We will examine assets, SIP strategy, insurance, debt, goals, and then fine-tune for retirement and future children’s needs.

Your Combined Financial Snapshot

Combined monthly income: Rs 1.8 lakh

Housing loan EMI: Rs 55,000 for 10 years

Liquid assets:

You: FD Rs 5 lakh, stocks Rs 1.5 lakh, MF Rs 3.7 lakh, EPF Rs 1.6 lakh

Spouse: FD Rs 10 lakh, MF SIP Rs 10,000, RD Rs 10,000

Monthly SIPs: You Rs 15,000 (MF) + Rs 5,000 (stocks); spouse Rs 10,000

RD total each: Rs 10,000 monthly each

Health insurance: Each Rs 4 lakh total (2 lakh self + 2 lakh employer)

Life insurance: Adequate cover

You both are 30, no kids currently, planning for retirement and children later.

Assessment of Current Asset Allocation

Equity exposure: Your SIP and stock holdings (~Rs 1 lakh monthly investment potential)

Debt exposure: FDs, RDs, EPF, loan EMI

Combined investments show good diversification

But future goals need more structured allocation

Housing Loan Impact and Cash Flow

EMI Rs 55,000 takes ~30% of income

Remaining Rs 1.25 lakh covers all expenses and savings

Liquid investments and SIPs still sustainable

Emergency fund must be maintained alongside EMI

Debt is well-managed but needs periodic review

Insurance Cover Sufficiency

Health cover Rs 4 lakh per person is decent now

Group cover may not renew post employment

Consider increasing health cover to Rs 10 lakh each

Add maternity or critical illness riders later

Life cover: you said it is sufficient

Ensure the total covers liabilities and dependents

Check that spouse’s premiums are stable

Emergency Fund and Liquidity

Current FDs and RDs total around Rs 15 lakh + EPF

Maintain liquid or ultra-short debt fund equal to 6–9 months’ expenses

Approx Rs 3 – 4 lakh

Excess FDs beyond liquidity can be reallocated

RDs are for fixed goals; leave them as is

SIP Strategy and Funds Review

Total SIPs: Rs 25,000 monthly (you + spouse)

Your stock SIP Rs 5,000 adds risk without guidance

Direct stock investing needs constant monitoring

Consider reducing or shifting to equity mutual funds

Equity mutual funds are better via regular plans

Direct plans lack advice and discipline

Regular plans via certified financial planner add value

Avoid index funds

They lack active risk management

Actively managed funds adapt to markets

Goals Overview

Retirement Corpus of Rs 3 crore

30 years horizon gives time for growth

Regular equity SIPs are essential

Goal-specific SIP structure recommended

Child Future / Education Funding

If planning kids in next 5–7 years, start small SIP bucket now

Link with periodic increase and aligned fund strategy

EMI and Debt-Free Timeline

EMI ends in 10 years

At that point, more investable surplus will free up

Asset Allocation Strategy

Given your horizon and risk, suggested allocation:

Equity Mutual Funds (via regular plans): 60%

Direct Stocks: 5% max

Debt Instruments (PPF, debt funds): 25%

Liquid / Emergency: 10%

Your current FDs and RDs act as debt and liquidity.
Eigenize reallocation gradually to align:

Keep RDs as debt/income bucket

Shift some FD surplus to equity via systematic transfer

Monitor equity weight annually

Goal-Wise Investment Structure

1. Retirement Goal (25–30 years)

Use multi-cap and flexi-cap active mutual funds (regular)

Allocate Rs 10,000–15,000 monthly initially

Increase SIP by Rs 1,000–2,000 annually or with raises

2. Child / Education Goal (if applicable)

Create separate SIP of Rs 5,000 monthly

Use hybrid or balanced funds for moderate return and risk

Increase as income grows

3. Liquidity & Debt Management

Keep Rs 3–4 lakh in liquid/ultra-short debt fund

RDs and EPF remain untouched for discipline

4. Direct Stocks

Limit to 5% max of total equity

Allocate through regular plan equity funds for core growth

Tax Efficiency and Capital Gain Management

Equity long-term gain taxed at 12.5% above Rs 1.25 lakh annually

Short-term gain taxed at 20%

Debt funds taxed as per slab rate

Redeem based on gain threshold to minimise tax

Using regular plans brings CFP guidance for timing

Annual Review and Rebalancing

Review fund performance yearly with your CFP

Rebalance allocation to maintain % split

Shift equity to debt as risk appetite changes or new goals arise

Avoid top-up changes during market peaks

Policy and Expense Monitoring

Track monthly expense; ensure it stays within Rs 55–60k

Evaluate FD interest vs inflation; many may underperform

Shift underperforming debt to better instruments with CFP help

Maintain healthy ratio between secured and growth assets

Scaling Your Plan Over Time

As EMI ends, redirect surplus to goal SIPs

Add retirement corpus SIP to utilize freed cash

Increase health insurance to Rs 10 lakh each

Consider child education needs when family grows

Final Insights

Your current savings habit and risk control are strong.
You both earn and save well, even after loan EMI.
Insurance needs enhancement, especially health cover.
Emergency fund creation is needed.
Asset rebalancing will align with your medium and long-term goals.
Regular SIPs, via CFP-managed plans, will support both retirement and future goals.
Gradual increase in SIP and insurance forms the backbone of your future financial stability.

With disciplined monitoring and structured planning, reaching a Rs 3 crore corpus is realistic.
Post-EMI, your surplus can accelerate this growth further.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: Hello Jatin
Drop the idea of taking a drop. Go with CSE AI ML @ Chandigarh university. The final decision will be yours.
Best of luck.
Follow me if you like the reply. Thanks
Radheshyam

Ans: Yes, your decision is correct.

Ans: Hello dear.
Prefer Mech @ SRM. The final decision will be yours.
Best of luck.
Follow me if you like the reply. Thanks
Radheshyam