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Ramalingam

Ramalingam Kalirajan  |2750 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 10, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
argha Question by argha on Apr 27, 2024Hindi
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I have a home loan pending 11 lacs in 6 yrs and car loan pending 3 lacs, my current saving is 0 and total monthly emi around 35000. Should I draw around 6-7 lacs from epf account and do downpayment ?

Ans: Given your situation, it's understandable to seek ways to manage your loans effectively. Drawing from your EPF account can seem like a tempting option to make a substantial down payment. However, it's crucial to assess the long-term implications before making a decision.

Taking a significant chunk from your EPF can impact your retirement savings. It's like borrowing from your future self. While it may alleviate immediate financial strain, it could compromise your financial security later on.

Consider the interest rates of your home and car loans. If the interest on these loans is higher than what your EPF is earning, it might make sense to prioritize paying off those loans gradually rather than depleting your EPF savings.

Moreover, exhausting your EPF prematurely means missing out on potential compounding growth. This growth could significantly augment your retirement corpus over time.

Exploring alternative strategies to manage your loans, like restructuring your EMIs or increasing your income, could be more sustainable approaches. It might require some adjustments, but it's crucial to protect your long-term financial well-being.

Remember, financial decisions should align with your overall goals and priorities. While it's essential to address immediate concerns, it's equally vital to safeguard your future financial stability.

I encourage you to consult with a Certified Financial Planner to devise a comprehensive financial plan tailored to your needs and aspirations.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
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  |2750 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 07, 2024

Asked by Anonymous - Apr 30, 2024Hindi
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Hello Sir, I m 44 year old women having 29 lakhs in equity & ELSS, 6 lakhs in PPF and 25 lakhs in FDs...I have retired now as was tired of doing sales job ..my question is I have 12 lakhs home loan to repay...my monthly expenses is 25k ...shall I pay that loan amount entirely now or the emi of 23 k till 2029 is feasible in my case?..
Ans: Considering your financial situation and retirement status, let's evaluate both options:

Paying off the Home Loan Entirely:
Advantages:
Eliminates the burden of debt and interest payments, providing peace of mind and financial freedom.
Saves on interest payments over the loan tenure, potentially resulting in significant savings in the long run.
Considerations:
Paying off a substantial portion of your savings (12 lakhs) may reduce your liquidity and emergency fund.
Evaluate whether you'll have enough savings left for emergencies and to maintain your desired lifestyle.
Continuing with EMI Payments:
Advantages:
Preserves your savings and liquidity, allowing you to maintain a financial cushion for emergencies and unexpected expenses.
The EMI of 23k per month may be manageable given your monthly expenses of 25k, allowing you to maintain your lifestyle.
Considerations:
You'll continue to have the burden of debt and interest payments for the duration of the loan tenure.
Evaluate whether you're comfortable with the ongoing financial commitment and potential interest payments over the long term.
Factors to Consider:

Emergency Fund: Ensure you have an adequate emergency fund to cover at least 6-12 months of living expenses.
Investment Opportunities: Consider whether you can potentially earn higher returns by investing the lump sum amount elsewhere.
Peace of Mind: Assess the psychological benefit of being debt-free versus having ongoing loan payments.
Ultimately, the decision depends on your individual preferences, risk tolerance, and financial goals. If being debt-free brings you peace of mind and you have sufficient savings for emergencies and retirement, paying off the loan entirely may be a prudent choice. However, if you prefer to maintain liquidity and have confidence in managing the EMI payments comfortably, continuing with the EMI payments could also be a viable option. Consider consulting with a financial advisor to assess the best course of action based on your specific circumstances.

..Read more

Ramalingam

Ramalingam Kalirajan  |2750 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

Asked by Anonymous - May 11, 2024Hindi
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Sir, I have availed Home Loan of 68 lacs for which me & my wife together pay an emi of INR 68k per month (45k I pay, 23k my wife pays). We took a 15 year loan, but the idea is to prepay it in 7-10 years. For 10 years, we will have to pay extra 6 emi each year. I am planning to start sip of 10k per month so that at end of each year I have some reasonable returns and paying those 6 extra emi don't affect much. Is this a good way to start separate savings for this or you suggest something else.
Ans: It's commendable that you're planning ahead to manage your home loan effectively. Paying off your loan early can save you a substantial amount in interest. Starting a SIP of 10k per month is a wise move towards building savings for this purpose.

SIPs are a disciplined approach to investing, allowing you to invest small amounts regularly, which can accumulate into significant savings over time. By investing in SIPs, you're harnessing the power of compounding, where your returns generate further returns.

However, before diving in, let's evaluate your strategy. While SIPs can offer decent returns, they're subject to market risks. Market fluctuations can impact your returns, affecting your ability to meet your financial goals. Additionally, investing solely in SIPs may not offer sufficient diversification.

As a Certified Financial Planner, I recommend a diversified investment approach tailored to your specific needs and risk tolerance. Consider investing in a mix of asset classes like equities, debt, and potentially other alternatives. This diversification can help mitigate risks and optimize returns over the long term.

Moreover, explore other avenues for saving on your home loan, such as making lump sum payments whenever feasible. This can help reduce the principal amount and interest burden, accelerating your loan repayment.

Lastly, ensure you have an emergency fund in place to cover unexpected expenses and avoid tapping into your investments prematurely.

In conclusion, while starting a SIP is a step in the right direction, it's essential to review and adjust your investment strategy periodically. Consulting with a Certified Financial Planner can provide personalized guidance to help you achieve your financial goals efficiently.

Best Regards,

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

..Read more

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Ravi

Ravi Mittal  |198 Answers  |Ask -

Dating, Relationships Expert - Answered on May 20, 2024

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May 07, 2024 Hlo sir I am 25 year old and graduated Now preparing for government job . And the boy I love is in defence (navy) we were in a relationship since last 3 years and he decided to tell abouts us to his family and he did .He told about us to his family but his family rejected our relationship due to intercaste marrige as he is jaat and I am saini we both are from Rajasthan where intercaste marrige is a big issue. And his family not only rejected but is behaving very badly to him .not talking to him properly since last 4 months his mother didn't talk to him she stops talking to him. It is very tough for us as well as we didn't expect this reaction from his family.He thought as they love him so much if he try to convince them they will but nothing happened like this . He is very sad and broken and try to make distance from me but can't I also tried but we both can't live each other it's been very tough for both of us to live each other as we don't want to live and also his parents are not accepting this Even though he told me that I tried all ways to convince them but they aren't.and I don't want to give you false hope for future So now we don't have any future but still we want each other as is it not possible to live him at least for me it's not possible. Vo apne parents k against ja nhi skata aur na unke khilaf khada ho sakta aur mai bhi ye nhi chahti ki vo esa kare kyuki atlast family chaiye hum dono ko mai bhi meri family k against to nhi jaugi but ha meri family man jayegi agar mai unhe manugi to uske family jyada orthodox hai . Usne bich Mai 7 - 8 dino tak mujhse distance banne ki kosis kari thi mujhe block kar diya tha har jgh se humari sari photos bhi delete kar di but bad mai mere bhut jyada manage par vo vapis aya gya ap mujhse bat karta hai .maine use pucha ki kya plane hai phr to usne bola ki maine puri koshish kar li har taraf se nhi man rhe ab future ki koi hope nhi hai apni aur meri galti hai maine bat hi kyu kyu tumse starting mai ...mai relationship maj aya hi kyu .. Lekin mai phr bhi use bat kar rhi aur vo bhi kyuki hum dono ek dusre k bine nhi rh pa rhe ab smaj nhi aya rha kya kare .....vo preshna bhi hai jo Banda humesha hasta rhta tha ab vo ek dam udas ho gya hai chup rhene lag gya ye mujse dekha bhi nhi ja rha kya karu kuch smaj nhi aya rha
Ans: Hi Shruti,

I am sorry that you are in this situation. First of all, please try to look at it from your partner's perspective. It isn't easy to confront your parents and it's even harder when they stop communicating altogether. Having said that, I also understand how it is for you. It is not fair, especially in today's day and age, to face discrimination based on caste.

You have two options:
One, you wait patiently, emotionally support your boyfriend, and hope that his parents come to their senses and realize that we are living in 2024, and caste-based discrimination is ridiculous. In this scenario, you do have to let go of your self-respect and have to face many more hardships, that much is guaranteed.

The second option is you hold your head high and move on. Yes, it isn't what you hoped for when you emotionally invested in building this relationship, but unfortunately, these things are still happening. In this scenario, you will be sad for a long time, but you don't have to compromise on your self-respect and you will move on and live to see happier days with someone who respects you and sees you for who you are and not your caste.

Now, the choice is yours.

Best Wishes!

...Read more

Ravi

Ravi Mittal  |198 Answers  |Ask -

Dating, Relationships Expert - Answered on May 20, 2024

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Hello . I am Samrat and in past I have asked many questions. Recently I have gone through a lot of infidelity cases. The one thing that crosses my mind is that ", Are those people who cheat in their relationship have some common personality traits " , not everyone but most of them ? Because I used to think that anyone can cheat based on circumstances and no one should judge earlier whether one is cheater or not and neither all the cheater are necessarily bad persons. But the more I am delving into it the more I am getting a feeling that these are specific kind of person not all but most of them like they basically withdraw themselves from relationship no what his/her partner is doing for them. they are mostly self-centred etc. because if any reason can support their argument about cheating it should be apply to everyone. But as we all know both male and suffer but don't get indulge into such kind of activities. I request please respond Hope you're fine Regards Samrat
Ans: Hello Samrat,

That's an interesting take and thanks for sharing your thoughts. Infidelity is very complex and though inexcusable, there are certain circumstances when people are forced to make choices that they would not normally. For instance, couples in unhappy marriages are often seen cheating on their partners. Even though it's unethical, we don't have a clear idea of what pushed them to make such a decision. Having said that, I agree that you might be onto something- in fact, research shows that there are, at certain times, some common attributes in people who tend to cheat. Narcissism, commitment issues, impulsivity, and the like are often observed among people who indulge in infidelity.

But even though these traits might be common among some individuals, it does not apply to all. Situational factors should be weighed in before evaluating.

I hope this helps.

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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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