Rejoining Workforce at 65: Can I Opt Out of PF?

Ans: You are 40 years old. You have two children. One is 7 years old and another is 1 year old. You are earning Rs. 6 lakhs per year. You are paying Rs. 22,000 EMI per month on a Rs. 24 lakh home loan. You have Rs. 15 lakh in savings. You want to secure your family and children’s education. This is a very important step. You are thinking ahead. That is truly good and thoughtful.

Let us now take a complete view of your financial life. Let us make a structured and wise plan. We will look at:

Household security and financial protection

Debt handling and home loan

Ideal asset allocation from your Rs. 15 lakh savings

Monthly investments for long term wealth

Education planning for both children

Retirement planning for yourself

Role of Certified Financial Planner in this journey

Final suggestions for your financial safety and peace

Household Protection Is The First Step
Please ensure you have a health insurance of minimum Rs. 10 lakh

Cover should include your wife and both children also

Government cover or employer cover is not always enough

Take a personal family floater health cover separately

Hospital expenses can derail all your savings

Term insurance is equally important now

You must take a pure term life insurance

Choose a sum assured of 15 to 20 times your annual income

You are earning Rs. 6 lakh yearly

Your term cover must be at least Rs. 90 lakh to Rs. 1.2 crore

It will cost only Rs. 8000 to Rs. 12,000 per year approx

Do not take investment linked insurance like ULIPs or endowment

Those mix protection and investment and give poor results

If you already have such policies, check their returns

If returns are low, surrender them now and reinvest smartly

Health and term covers are base of financial security

Without these, your family’s future is always at risk

Home Loan And EMI Assessment
Your home loan EMI is Rs. 22,000 per month

That is Rs. 2.64 lakh per year on Rs. 6 lakh salary

EMI to income ratio is around 44% now

It is slightly high considering your other goals

Do not increase loan or take more loans now

Avoid buying second property or vehicle on loan

Check if interest rate is high – above 9% is costly now

If so, you can explore refinancing or part prepayment

Use bonus or yearly savings to reduce principal slowly

But do not use entire Rs. 15 lakh savings for loan repayment

We will keep that for important goals and wealth building

Investment Of Rs. 15 Lakh Savings
This is your main capital now

You must split this with proper thinking and goal view

First, keep Rs. 2 lakh aside as emergency fund

Park it in a liquid mutual fund or short term debt fund

This will cover 6 to 8 months of expenses

Next, use Rs. 1 lakh to buy term and health insurance

Now balance Rs. 12 lakh can be invested wisely

Do not invest in direct mutual funds yourself

Direct funds do not give any guidance or review support

People often make wrong fund selections on their own

Without Certified Financial Planner support, many miss goals

Invest only in regular mutual funds with guidance support

You will pay small fee, but peace and results are better

Do not invest in index funds also

Index funds do not have active managers to protect downside

When markets fall, they fall directly with no protection

Active mutual funds adjust strategy as per market and economy

They can beat index and save losses better

Let us now see how to invest this Rs. 12 lakh amount

Investment Plan For Rs. 12 Lakh
Divide the amount into short, medium, and long-term parts

For short term (3 years), allocate Rs. 2 lakh in balanced funds

For medium term (3–7 years), keep Rs. 4 lakh in hybrid equity funds

For long term (7+ years), invest Rs. 6 lakh in flexi cap mutual funds

Invest in regular plans via SIP + STP route

SIP means monthly investing slowly in long term funds

STP means shifting lump sum slowly to SIP over 6–9 months

This reduces risk of entering market at wrong time

Do not put all money in one go. Spread it properly

Monthly Investment Plan For Your Future
Apart from lump sum, monthly investment is important

Try to invest Rs. 5,000 to Rs. 10,000 monthly in SIP

Start small now and increase slowly every year

Use SIPs in hybrid, flexi cap, and large cap mutual funds

If possible, invest extra savings or bonuses yearly

Avoid recurring deposits or post office for long term wealth

They give poor returns and do not beat inflation

Children Education Planning
Your elder child is 7 years old now

College education will start in 10–11 years from now

Assume cost of Rs. 25–30 lakh minimum in future

Your younger child is 1 year old

His education will start after 16–17 years

Both education goals need planned SIPs now

Allocate Rs. 3 lakh from your savings to elder child education

Invest this in hybrid equity fund and continue SIP monthly

For younger child, assign Rs. 2 lakh from savings

Put in flexi cap fund and continue SIP for 15 years

As college years come closer, move funds to safer debt funds

Do not depend on loans or scholarships alone

Planning now gives stress-free education years later

Retirement Planning For Yourself
Many people ignore retirement at your age

But retirement planning must start now

You must be self-dependent after age 60

Pension or family support is not guaranteed today

Set aside Rs. 2 lakh from your Rs. 12 lakh corpus for retirement

Invest in hybrid and equity funds with 15–20 year view

Continue monthly SIP in separate retirement bucket

Avoid NPS if you are not comfortable with 60 years lock-in

Mutual funds give more flexibility and better liquidity

Add yearly bonus also to this goal as top-up

Review progress every 2 years with a Certified Financial Planner

Why Certified Financial Planner Support Is Must
You are managing many goals together now

Family protection, loan, children education, retirement all need balance

You need guidance to avoid over-risk or under-investing

CFP brings structure, plan, and experience into your decisions

CFP helps in goal mapping and asset allocation

You get reviews every year and portfolio corrections when needed

You do not fall into emotional or herd investing

With CFP support, you stay focused and stress-free

CFP also helps with tax saving, capital gain handling, and fund switches

Tax Treatment For Investments
Equity mutual funds held over 1 year have LTCG

LTCG above Rs. 1.25 lakh taxed at 12.5%

Less than 1 year gains taxed at 20% as STCG

Debt mutual funds gains taxed as per your slab

Track all redemptions and gains properly

Certified Financial Planner can help optimise tax planning too

Finally
You are thinking long term for your family

That is the most important step at age 40

You have Rs. 15 lakh savings now

Use it carefully across multiple goals

Create emergency, insurance, and investment pillars first

Avoid risky options like index funds, direct funds, or ULIPs

Do not buy second property as investment

Avoid annuities. They lock money and give low return

Use mutual funds smartly for growth and safety balance

Link each fund to a goal like education or retirement

Do yearly review and fund change if needed

Trust Certified Financial Planner for steady growth

Keep your family protected and future peaceful

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: Shinchan, With a VITEEE rank of 1.6 lakh, getting CSE, CSE(s), ECE, or ECE(s) in VIT-AP in Category 1 or 2 is highly unlikely. Generally, ranks under 1 lakh are considered for Vellore and Chennai campuses, while higher ranks might have possibilities in VIT-AP, but at higher fee categories . Check the official VIT website for category-wise cutoffs to confirm your chances . All the best for your admission and a bright future!

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Ans: Hello dear
Prefer CSE with AI + ML or AI+DS any combination is welcome.
Best of luck to you.
Follow me if you like the reply. Thanks
Radheshyam

Ans: Yogesh Sir, With a 98.89 percentile in JEE Mains, your son has secured offers from reputed institutes: CSE at IIIT Guwahati and COEP Pune, Mechanical Engineering at NIT Warangal, and EEE at VNIT Nagpur. CSE at IIIT Guwahati and COEP Pune provides strong career prospects in software, IT, and emerging technologies, backed by good placements and industry connections. NIT Warangal’s Mechanical branch is highly respected with diverse roles in manufacturing and core sectors, suitable if he prefers traditional engineering. VNIT Nagpur’s EEE branch offers versatility in electronics and power sectors but generally has fewer high-paying opportunities compared to CSE. Considering current industry trends and future growth, CSE at IIIT Guwahati or COEP Pune is recommended for better placement packages and evolving tech roles. However, if your son has a strong inclination towards mechanical engineering, NIT Warangal is an excellent choice. EEE at VNIT is a good alternative but ranks below the others in terms of demand and salary prospects. Ultimately, the decision should align with his interests and career goals. All the best for your son's admission and a bright future!

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Ans: You have done excellent savings for your age. Most 29-year-olds do not even start. You have no EMIs. You have gold and bank savings. You also have three properties. This gives you a strong financial base.

Let us now focus on your early retirement plan. You want to retire in 5 to 6 years. That means by age 35.

You have a wife and two kids. So we need to plan with care and clarity.

We shall now discuss the following:

Understanding your current situation

How much corpus is required for early retirement

Safe investment options

Role of stocks in your portfolio

Planning for your kids' future

Insurance and emergency cover

Final insights for your 360-degree financial life

Understanding Your Current Situation:

You earn Rs. 90 lakhs per annum from business

You have passive income of Rs. 8 lakhs annually

You have Rs. 1 crore in bank and FDs

You have gold worth Rs. 20 lakhs

You own three houses, loan-free

Your wife is a homemaker and you have two kids aged 7 and 14

You wish to retire at 35, in another 6 years

You prefer a safe and stable approach to investments

This is a powerful combination. But early retirement is a long journey. We must look at long-term income too.

How Much Corpus Is Needed:

You want to stop active work at 35

You may live for 50 years after retirement

So the retirement corpus must generate monthly income for 50 years

With kids, you need extra for their education and marriage

You also need medical funds for family needs

Inflation will increase your living costs every year

Post-retirement, your monthly needs may be around Rs. 2.5 to 3 lakhs

That means Rs. 30 to 36 lakhs per year for family expenses

You need an investment plan that can support this for 50 years

Based on all this, a corpus of Rs. 10 to 12 crores is safer to aim

This amount should be liquid and productive, not stuck in real estate

This is just a broad guideline, not a fixed rule. You may require more if lifestyle costs rise. But this gives a fair goal.

Safe Investment Options to Build Retirement Corpus:

Bank FDs are safe, but do not beat inflation

Keeping Rs. 1 crore in bank for long is a loss after tax and inflation

Gold is useful for emergency, but returns are uncertain

Real estate does not give monthly cash flow and is hard to sell fast

You need safer, long-term growth options with regular income

Actively managed mutual funds are ideal in this case

Choose a mix of equity and hybrid mutual funds for growth and safety

Debt funds are useful for income and stability

Avoid direct stocks if you don’t have time or skill

SIP in mutual funds gives discipline and long-term wealth

Use mix of large cap, flexi cap and hybrid funds based on goals

Avoid investing in index funds. They blindly follow markets

Index funds do not protect in falling markets.

Active funds have expert fund managers who manage based on economy

Also avoid direct plans. Choose regular plans with Certified Financial Planner

They guide you with regular reviews and help you align with goals

Rebalance portfolio every year to manage risk and returns

Taxation in mutual funds is also friendly for long term

Use 60–70% in equity mutual funds and rest in debt/hybrid funds

Create multiple buckets – short, medium and long term

This approach gives growth, income and safety for early retirement.

Should You Invest in Stocks?

You can, but only if you have skill and time

Stocks are risky for safe investors who need steady returns

Business profits should not be fully put into direct equity

If you like equity, better use mutual funds for expert guidance

Stocks can form 10-15% of overall corpus only if you understand risks

Better stay focused on mutual funds for now

Planning for Your Children:

Your kids are 7 and 14 now

They will need funds for college in 4–5 years and 11–12 years

Allocate a separate corpus for each child’s education

Do not mix kids’ goals with retirement fund

Education funds need to grow fast but be safe at withdrawal time

Use SIP in mutual funds based on each child’s timeline

As the time nears, reduce equity exposure slowly

For child marriage, plan separate long-term funds

Estimate inflation-adjusted cost and save monthly accordingly

Track progress yearly and adjust amounts as needed

Insurance and Emergency Cover:

Early retirement must include risk cover

Take term life cover for yourself till kids become independent

Your wife depends on you. So secure her future through insurance

Term insurance is low cost and covers big risks

Take health insurance for family – minimum Rs. 15 to 20 lakhs

Take a separate personal accident policy as well

Medical costs are rising every year. So don’t ignore this

Build an emergency fund of Rs. 10 to 15 lakhs

This should be liquid and not in fixed deposits

Use short term liquid mutual funds for this fund

This money is for emergencies only – not to be touched otherwise

Early retirement without emergency and insurance is not safe

Final Insights:

You are already financially strong. That is rare at age 29

You are thinking long-term and safe. That is good

Real estate is not enough for retirement. Liquidity matters

Avoid index funds. Active funds give better handling in tough markets

Avoid direct plans. Regular plans through Certified Financial Planner give better results

Focus on inflation-adjusted, steady income post-retirement

Split your goals – retirement, kids’ education, marriage, emergency

Plan separately for each goal. Avoid mixing funds

Review plan every year. Adjust funds based on market and goals

Maintain discipline and patience. Wealth builds slowly but surely

Retirement at 35 is possible. But requires detailed planning and focus

You already have strong base. Now build smart investments around it

Protect your wealth with good insurance and financial habits

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: Hello Fasil
Moderate chances are there but not impossible. Keep hopes alive.
Best of luck to you.
Follow me if you like the reply. Thanks
Radheshyam

Ans: It is a decent option for both courses.

Ans: You are going through a sensitive issue. Losing a parent is deeply painful. Facing a dispute with a sibling after that is more painful. I respect your courage in raising this matter. You are doing the right thing by exploring a legal route.

Let me guide you clearly and fully.

This answer will focus on:

Legal meaning of nomination

Jewellery taken away without consent

Rights of other legal heirs

Steps to claim rightful share

Documents and proof needed

Role of the bank in nominee disputes

Steps if the jewellery was misappropriated

What not to do during the legal process

How to act as a united family (if possible)

Role of Certified Financial Planner in family money

Final insights for long-term peace

Legal Meaning of Nomination:

Nominee is not the owner of the asset

Nominee is only a trustee of the money or asset

He must distribute it to legal heirs as per law

If there is no Will, all legal heirs get equal share

In your mother’s case, if there was no Will, all children are equal legal heirs

Nomination does not remove the rights of other heirs

So, even if your brother is nominee, he must share money

You can legally stop him from taking all funds

Banks often think nominee is full owner. But this is not correct by law

If challenged, nominee has to prove that the money belongs only to him

Otherwise, he must give others their rightful share

You can take legal action in civil court if needed

Jewellery Taken Without Family Consent:

Jewellery gifted to your mother is her self-acquired asset

If she carried jewellery with her during stay, that’s fine

But if your brother took it away forcefully or without sharing, that’s wrong

He must give it back or its value to all legal heirs

You can file police complaint if it was taken without consent

You can also file case for recovery in civil court

If he got mother’s signature by trick or pressure, that is invalid

Any property or jewellery taken by fraud can be recovered legally

You may need to show that others were not informed or consulted

This becomes stronger if other siblings support you

Statement from close relatives helps in such cases

Proofs like photos, bills, or locker details also help

Do not worry if you don’t have full documents. Legal process can still work

Your brother must prove he got it fairly. Not the other way around

Even if there was oral gift or Will, it must be valid under Indian law

Rights of Other Legal Heirs:

If your mother died without a Will, it is called “intestate death”

In such case, her children and spouse (if alive) are legal heirs

Each legal heir gets equal share in movable and immovable assets

Jewellery, money in bank, FDs and other valuables are all included

Nominee cannot claim 100% ownership unless proven by Will or gift deed

If you are 3 children, each gets one-third share

If there is father also alive, then all get equal share including him

You can file a case to divide the assets equally

No one has extra right unless mother gave it in writing properly

Steps to Claim Your Share:

Write to the bank asking not to release the money to nominee alone

Attach death certificate and legal heir certificate with the letter

If money is already released, ask for a copy of nomination form

File an application in civil court for partition and injunction

Ask court to freeze further movement of funds and assets

In court, ask for share in jewellery and bank balance

Share all available details of jewellery and assets

Court will call your brother to submit his reply

You must show you were unaware of the nomination and jewellery transfer

If he does not give satisfactory answer, court can order fair division

Legal heirs can also file a combined case if all agree

Documents and Proof Needed:

Death certificate of your mother

Legal heir certificate from Tehsildar or Municipality office

Identity proof of all legal heirs

Bank passbook copy of the account with nomination

Application form of nomination from bank (ask bank to share)

Statements, SMS records or any written exchange on jewellery

Bills or photos of the jewellery with mother if available

Affidavit from family members on ownership of jewellery

Any letter or note left by your mother regarding assets

Medical proof if your mother was not well during signing the nomination

All these documents support your case in court

Role of Bank in Nominee Disputes:

Banks follow nominee instructions as per form on record

They are not responsible to divide between heirs

But they must not release funds if legal heirs object before withdrawal

You can submit a stay request from civil court to block funds

Once bank is informed of the dispute, they must act neutral

They will not release full funds till matter is settled legally

If they release funds after dispute is known, you can hold them accountable

Try to communicate in writing and take stamped copies from bank

Steps if Jewellery Was Taken:

Try to collect basic proof of jewellery taken

Get statements from family or neighbours if needed

File a complaint with police if theft or misappropriation is suspected

Mention that she was under influence or pressure during that time

Police may ask your brother to explain his side

You can also go to civil court to demand value of jewellery

Court can ask him to return value or the items themselves

All legal heirs must sign this complaint jointly for faster results

What Not To Do:

Do not get into verbal fights or emotional threats

Do not block other heirs from attending rituals or family talks

Avoid public humiliation or WhatsApp group fights

Court looks at behaviour of both sides. Keep your calm

Let lawyer speak. You speak only with documents

Do not assume nominee becomes full owner – that is incorrect belief

Do not delay action – assets may be withdrawn or sold

How to Act as United Family (If Possible):

If other siblings support you, file a joint petition

Try talking to your brother before going to court

Explain that nominee is not sole owner by law

If he agrees, split wealth peacefully

If he does not, take legal action without delay

Family peace is always better than court, if possible

But if cheating is done, then court is the right option

Role of Certified Financial Planner in Family Assets:

CFP helps families keep joint asset records

CFP can guide on family wealth planning during life

CFP also advises on how nominations should be done properly

CFP ensures no confusion after death of any member

CFP can also guide heirs on division based on law

Certified Financial Planner is not just investment expert

He works with family goals, safety and legacy planning

Your family can benefit from one even after this legal case

Finally:

Your brother is nominee. That does not make him full owner

All legal heirs have equal rights if there is no Will

You must protect your family’s rightful share

Court can help divide bank money and jewellery fairly

Gather documents and file a legal claim

Try for family settlement, but prepare legally too

You are taking the right step by asking these questions

It is never too late to stand for fairness and truth

Family wealth must stay within all rightful members

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: Hello Kasugurthi
Difficult to predict about the rank. With the mentioned score, he has chance to get Manipal but may have to compromise with the branch.
Best of luck to you.
Follow me if you like the reply. Thanks
Radheshyam