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Ramalingam

Ramalingam Kalirajan  |7209 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 21, 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
Karthick Question by Karthick on Jun 12, 2024Hindi
Money

HI. Myself Karthick aged 36 years. As a couple we are earning 2.5lacs per month with Two daughters. Currently we have 28k Home loan till 2039 and car loan of 10k per month. Investment portfolio RD-5000, SSY -5000, SIP 7000 LIC 10000 Physical Gold coins - 20 sovereigns. Both have been covered in NPS and working in Central Govt.sofar 28lacs maturity amount for each. We are sure that 4.5 CR as Lumpsump and 3.5 crore for monthly pension will come based on 9-15%returns for each. We are planning for Childs education and marriage expenses from the investment. Please clarify how to improve further

Ans: Hi Karthick,

I appreciate you reaching out for financial advice. You’re in a strong position with your combined income and existing investments. Let's dive into how you can further improve your financial situation.

Current Financial Overview
Your combined monthly income is Rs 2.5 lacs. That’s a solid foundation. Your monthly obligations include:

Home loan: Rs 28,000 (till 2039)

Car loan: Rs 10,000

Your investments include:

Recurring Deposit (RD): Rs 5,000 per month

Sukanya Samriddhi Yojana (SSY): Rs 5,000 per month

Systematic Investment Plan (SIP): Rs 7,000 per month

Life Insurance Corporation (LIC): Rs 10,000 per month

Physical Gold Coins: 20 sovereigns

Both of you are covered under National Pension Scheme (NPS) with a maturity amount of Rs 28 lacs each. You anticipate Rs 4.5 crore as a lump sum and Rs 3.5 crore for monthly pension returns.

Child's Education and Marriage Planning
Your primary goal is to plan for your daughters' education and marriage. Here’s how you can streamline and enhance your investment strategy to meet these goals:

Enhancing Existing Investments
1. Systematic Investment Plan (SIP)

You are currently investing Rs 7,000 per month in SIPs. Consider increasing this amount. SIPs offer the benefit of rupee cost averaging and compound interest. Diversify your SIPs across different funds to balance risk and returns.

2. Sukanya Samriddhi Yojana (SSY)

SSY is a good investment for your daughters’ future. It offers tax benefits and attractive interest rates. Ensure you continue this until it matures to maximize benefits.

Evaluating Insurance Plans
1. Life Insurance (LIC)

Evaluate your current LIC policy. Traditional LIC policies offer lower returns compared to mutual funds. If your LIC policy is an investment-cum-insurance plan, consider surrendering it and redirecting the funds into higher-yielding SIPs. Pure term insurance is more cost-effective for life coverage.

Increasing Your Investment Corpus
1. Increasing SIP Contributions

With your substantial monthly income, consider increasing your SIP contributions. SIPs in actively managed mutual funds can potentially offer better returns than other investment options. Avoid direct funds due to the complexities in managing them. Regular funds with guidance from a Certified Financial Planner (CFP) ensure professional management and better performance.

2. Recurring Deposits (RD)

RDs are safe but offer lower returns. Gradually reduce RD contributions and redirect funds to SIPs. This shift can significantly improve your overall returns over time.

Retirement Planning
1. National Pension Scheme (NPS)

NPS is a good retirement tool, providing tax benefits and a decent corpus. Ensure you continue contributing to it regularly. For better retirement planning, also consider other retirement-focused mutual funds which can offer higher returns.

Gold Investments
1. Physical Gold

You hold 20 sovereigns of gold. While gold is a safe investment, it does not generate regular income. Consider holding a portion of your gold in more liquid forms like Gold ETFs or Sovereign Gold Bonds. These forms offer better liquidity and sometimes interest income.

Emergency Fund
1. Establishing an Emergency Fund

Ensure you have an emergency fund covering at least 6-12 months of living expenses. This fund should be in a highly liquid and safe investment like a savings account or liquid mutual fund. This will provide a financial cushion against unexpected expenses or loss of income.

Diversification and Risk Management
1. Diversify Investments

Diversification reduces risk. Spread your investments across different asset classes such as equity, debt, and gold. This balance ensures stability and growth in your portfolio.

2. Risk Assessment

Regularly assess your risk tolerance. Your risk tolerance will change with age, financial goals, and responsibilities. Adjust your investment strategy accordingly.

Tax Planning
1. Efficient Tax Planning

Utilize tax-saving instruments under Section 80C, 80D, and others. Investments in ELSS funds, PPF, NPS, and health insurance can help reduce your taxable income. Efficient tax planning increases your investable surplus.

Children's Education Fund
1. Education Fund

Open a separate education fund for your daughters. Regularly invest in a mix of equity and debt mutual funds. Start early to benefit from the power of compounding. Monitor and adjust the fund based on market conditions and your financial situation.

Children's Marriage Fund
1. Marriage Fund

Similar to the education fund, start a dedicated marriage fund. Invest systematically in a mix of equity and debt instruments. Consider the time horizon and risk tolerance while planning.

Monitoring and Review
1. Regular Monitoring

Regularly monitor your investments. Ensure they align with your financial goals. Adjust allocations based on performance and changing goals.

2. Annual Review with CFP

Conduct an annual review with a Certified Financial Planner. This review will help in assessing your financial health, adjusting strategies, and ensuring you are on track to meet your goals.

Final Insights
You have a solid foundation with a good income and diverse investments. By increasing SIP contributions, evaluating insurance policies, diversifying investments, and efficient tax planning, you can significantly enhance your financial health. Regular monitoring and professional advice are key to staying on track.

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.
Money

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Financial Planner - Answered on Feb 06, 2024

Asked by Anonymous - Jan 16, 2024Hindi
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Hi I'm 28 years old with 1 kid as of now will plan 2nd after 3 years, I want to build a decent education and marriage corpus for children, planning to take flat in 2024 year end , my salary is 1.2lakh p/m Currently my investment are as follows Mutual fund - 3.5lakh lumsump in 4 funds Quant infrastructure 50k Pgim india mid cap 1lk Hdfc s&p bse 500 1lk ICICI prudential comodity 1lk Started NPS of 25k yearly payment since 2023 I need more suggestions My target is have some decent education fund for children and decent fund for children marriage
Ans: It's commendable that you're already planning for your children's education and marriage and taking steps to build their corpus. Based on the details you've provided.
Your current portfolio seems sufficiently diversified across various fund categories, including mid-cap, large-cap, commodity, and NPS. However, it is worth reviewing their performance and suitability for your goals.

• Investments should be allocated based on each child's specific goals, considering timelines and child-specific mutual funds with longer horizons for education

• If you have good research skills and risk tolerance, consider adding direct equity for higher returns. Remember, this carries a higher risk.

• Even a small increase can significantly impact your corpus over time due to compounding. If possible, try to increase your monthly investments

• It is important to regularly review your portfolio's performance and adjust your asset allocation as needed to maintain your desired mix.

..Read more

Ramalingam

Ramalingam Kalirajan  |7209 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 15, 2024

Asked by Anonymous - Jul 02, 2024Hindi
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I am 40-year-old Software Engineer with 1.9L pm in hand salary with 2 daughters, elder one is in 8th standard and younger in 2nd. WIfe is not working. Let me first tell you about my saving and investment: 1. I have loan free 3BHK flat in Noida and also a car.. No current EMI liability. 2. Around 32L in PF and counting.. 3. Around 23L in PPF (wife and own account) and counting.. 4. Around 14.5L in Sukanya for both the kids and counting... 5. Around 22.5L in FD 6. Around 16L in MF, share, Gold bond and counting.. 7. Last year only started investing in NPS, fund value is around 1.5L and counting.. 8. I have company provided health insurance only and personal term plan for 60L I am doing monthly investment of 50K in PF+Sukanya, 30K in MF , 20k in Share and 10% of basic in NPS. I have to ask: 1. Am I doing right investment considering needed funds for elder daughter's higher education (in 4 yrs from now) and then for marriage? 2. Am I saving wisely and enough month-on-month basis? 3. How to reach 5cr corpus by the age of 50? and is it enough if wanted to retire? 4. What else I need to do to save more and increase my portfolio? I have less risk appetite. Please suggest
Ans: Firstly, it’s impressive to see your disciplined approach towards saving and investing. Having a clear financial plan and taking proactive steps shows great financial acumen. Let’s evaluate your current financial status and provide suggestions to reach your goals.

You have a stable financial foundation with no loan liabilities, a solid mix of investments, and a focus on future goals. Your current assets and monthly investments are commendable.

Here’s a detailed analysis and suggestions tailored to your needs:

Analysis of Current Investments
Provident Fund (PF)
You have Rs 32 lakh in PF, which is a substantial amount. PF offers a stable and relatively safe return. It is a great way to secure your retirement.

Public Provident Fund (PPF)
With Rs 23 lakh in PPF, you are benefiting from tax-free returns and a safe investment vehicle. PPF is ideal for long-term goals like retirement due to its 15-year lock-in period.

Sukanya Samriddhi Yojana (SSY)
Investing Rs 14.5 lakh in Sukanya Samriddhi for your daughters is a wise decision. It offers good interest rates and tax benefits. This will help in funding their education and marriage.

Fixed Deposits (FD)
You have Rs 22.5 lakh in FDs. While FDs are safe, the returns are generally lower compared to other investment options. It's a good idea to keep some funds in FDs for emergencies, but diversifying might yield better returns.

Mutual Funds, Shares, and Gold Bonds
You have Rs 16 lakh invested in a mix of mutual funds, shares, and gold bonds. Diversification here is beneficial as it balances risk and returns. Continue this approach but review the performance regularly.

National Pension System (NPS)
Starting with Rs 1.5 lakh in NPS is good for building a retirement corpus. NPS offers tax benefits and the potential for higher returns due to its market-linked nature.

Insurance
You have a Rs 60 lakh term plan which is essential for your family’s security. However, consider increasing the coverage based on your family’s future financial needs.

Monthly Investment Analysis
You are investing Rs 50,000 in PF and Sukanya, Rs 30,000 in mutual funds, Rs 20,000 in shares, and 10% of your basic salary in NPS. This diversified approach is commendable, but let’s delve deeper into each aspect.

Evaluating Your Investment Strategy
Higher Education and Marriage of Elder Daughter
Your elder daughter’s higher education is a priority. With four years to go, you need to ensure sufficient funds. Sukanya Samriddhi and other investments should be assessed to meet this goal.

Monthly Savings Assessment
You are saving a significant amount monthly, which is excellent. However, it’s essential to ensure these savings align with your goals and risk tolerance.

Building a Rs 5 Crore Corpus by Age 50
Reaching a Rs 5 crore corpus in ten years requires strategic planning. Your current investments and returns need to be evaluated and optimized.

Suggestions to Enhance Your Financial Portfolio
Health Insurance
Relying solely on company-provided health insurance may not be sufficient. Consider purchasing a comprehensive personal health insurance plan. This ensures coverage even if you change jobs.

Increasing Term Insurance
Reevaluate your term insurance. Based on your current lifestyle and future needs, a higher coverage might be necessary.

Reviewing Mutual Fund Investments
Actively managed mutual funds can potentially yield higher returns compared to index funds. Ensure your mutual funds are well-chosen and periodically review their performance.

Share Investments
With a lower risk appetite, consider limiting direct investments in shares. Actively managed equity funds can offer exposure to equity markets with professional management.

Gold Bonds
Gold bonds are a good hedge against inflation. Continue investing but ensure it aligns with your overall asset allocation strategy.

NPS Contributions
Increasing your NPS contributions can be beneficial. It offers a mix of equity, corporate bonds, and government securities, balancing growth and safety.

Detailed Action Plan for Financial Goals
Higher Education for Daughter
Estimate the total cost of higher education, considering inflation. Review your current investments in Sukanya Samriddhi and other savings to ensure they meet this goal. If needed, redirect some investments towards education-focused funds or fixed-income securities.

Retirement Planning
To achieve a Rs 5 crore corpus by age 50:

Increase your investments in high-growth potential assets, such as actively managed equity funds.
Regularly review and rebalance your portfolio to stay on track with your goals.
Consider professional advice from a Certified Financial Planner for tailored strategies.
Emergency Fund
Maintain an emergency fund to cover at least six months of expenses. This should be in a liquid and safe investment like a savings account or short-term FD.

Enhancing Your Investment Portfolio
Avoiding Direct Funds
Direct mutual funds require active management and market knowledge. Regular funds, managed by professionals, can provide better returns with less effort on your part.

Diversifying Further
While you have a diversified portfolio, consider further diversification to mitigate risks. Explore options like balanced advantage funds which adjust between equity and debt based on market conditions.

Systematic Investment Plan (SIP)
Continue and potentially increase your SIP in mutual funds. This disciplined approach helps in averaging out market volatility and building wealth over time.

Tax Planning
Efficient tax planning can enhance your returns. Utilize tax-saving instruments under Section 80C, 80D, and 80CCD. This reduces tax liability and increases investable surplus.

Regular Review and Adjustment
Portfolio Review
Conduct a bi-annual review of your portfolio. Ensure your investments align with your financial goals and risk tolerance.

Adjusting Strategy
Based on market conditions and personal circumstances, be ready to adjust your investment strategy. This proactive approach helps in optimizing returns and minimizing risks.

Final Insights
You have a strong financial foundation and a disciplined approach towards saving and investing. By fine-tuning your strategy and focusing on your financial goals, you can achieve your targets.

Ensure adequate health and life insurance coverage for family security. Regularly review and adjust your portfolio to stay aligned with your goals.

Seek guidance from a Certified Financial Planner for personalized advice and strategies.

Your commitment to securing your family’s future is commendable. With careful planning and strategic investments, you can achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7209 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Asked by Anonymous - Jul 19, 2024Hindi
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Hi sir, i work in a bank my monthly net take home after deductions of house loan n car loan in around 60k. I have two daughters and am a single parent. I brought two plots which costs around 1crore beside the house. My montly expenses are 40k. Monthly I save 5k in postal n 5k in SIP emerging equities. I invest 3k each in SSA account of my daughters. I already have 10lakhs in my PPF account. 3lakhs in my SIP, 25lakhs gold. Iam having other income around 25k. My health insurance cover is 4lakhs , kids included. My House loan in for 50lakhs , with 25yrs repayment of 25k everymonth. Is there anything else i need to modify to make my kids education, marriage n my post retirement better. Am 35yrs now n i have 25 yrs of service.
Ans: Current Financial Overview
You are a single parent with two daughters.

You have a net monthly take-home pay of Rs 60k after house and car loan deductions.

Your monthly expenses are Rs 40k.

You save Rs 5k in postal savings and Rs 5k in SIP emerging equities.

You invest Rs 3k each in SSA accounts for your daughters.

You have Rs 10 lakhs in your PPF account and Rs 3 lakhs in SIPs.

You possess Rs 25 lakhs worth of gold.

You have an additional monthly income of Rs 25k.

Your health insurance covers Rs 4 lakhs for you and your kids.

You have a house loan of Rs 50 lakhs with a 25-year repayment of Rs 25k monthly.

Financial Goals
Kids' Education
Kids' Marriage
Post-Retirement Corpus
Investment Strategy
Increasing Savings and Investments
Emergency Fund: Create an emergency fund. It should cover 6-12 months of expenses. You can use liquid funds or a savings account for this.

Diversified Mutual Funds: Invest Rs 5k in diversified equity mutual funds. This balances risk and return.

Debt Mutual Funds: Invest Rs 5k in debt mutual funds for stability and lower risk.

Increase SIPs: Gradually increase SIP amounts in your existing funds.

Kids' Education and Marriage
SSA Accounts: Continue investing in SSA accounts for your daughters. This offers good returns and tax benefits.

Dedicated Education Fund: Start a dedicated mutual fund for your kids' education. Invest Rs 5k monthly. Choose a mix of equity and balanced funds.

Marriage Fund: Create a separate fund for your kids' marriage. Invest Rs 5k monthly in balanced and debt funds.

Retirement Planning
PPF Account: Continue contributing to your PPF account. This offers safe and tax-free returns.

Equity Funds: Increase investment in equity funds. They offer higher returns over the long term.

NPS: Consider investing in the National Pension System (NPS) for additional retirement savings and tax benefits.

Insurance Coverage
Health Insurance: Your current cover is Rs 4 lakhs. This may not be sufficient. Consider increasing it to at least Rs 10 lakhs.

Term Insurance: Ensure you have adequate term insurance. It should cover your outstanding loans and future financial needs of your children.

Review and Adjust
Annual Review: Regularly review your financial plan. Adjust your investments based on performance and changing goals.

Loan Repayment: Aim to prepay your home loan whenever possible. This reduces the interest burden and frees up resources for investment.

Final Insights
Your current financial plan is solid. However, increasing your investments and insurance coverage will secure your future and your children's future. Create dedicated funds for education, marriage, and retirement. Regularly review and adjust your financial plan to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Dr Anshuman

Dr Anshuman Manaswi  |6 Answers  |Ask -

Plastic-Aesthetic Surgeon, Emergency Care Consultant - Answered on Dec 05, 2024

Asked by Anonymous - Dec 05, 2024Hindi
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Dear Doctor, I work as a corporate lawyer in Delhi. I’ve been considering undergoing a cosmetic procedure for my skin for some time now, but I’m feeling a bit overwhelmed by the number of surgeons available. I want to ensure that I choose someone who is experienced, as this is a big decision for me. Could you advise what I should look for when selecting a plastic-aesthetic surgeon? Are there any specific red flags I should be aware of when researching potential surgeons? I want to make sure I’m in safe hands. I’m 40 years old.
Ans: This is a beautiful question.
Before I dwell on your question, there are a few points which are very important for the patient to know.
1. You should roughly know what result you wish to have.
2. Never think of a perfect result. There is no such result.
3. You must think in terms of improvement and if you are sble to achieve more than 90% approx, it can be considred good.
4. Dont compare your results with any celebrity's result. There body structure is different, they have probably taken better care till now and importantly, the result you see on a public platform is after make up and not the real result. Some times it may be a photoshopped image
5. Let your doctor know if you have any medical history and addictions.
6. Don't go with pre concieved notion (especially if you have researched a lot online). Discuss with the doctor, listen to his/ her views and raise your concerns if any
7. Try and see some results of the doctors work (Remember, too good a result may not be the true result). Realistic result is what you should want to look at and believe.
8. Don't fall for less budget! its obvious a meticulous job needs more surgical time. This means that the doctor may charge more. Seniority also adds to the cost.
What I mean, there is a price to be paid for a good job.(whether medical or anywhere).
Now coming to the Plastic surgeon's choice.
1. Research well, but dont fall prey to only advertisement. Small and big centers, both advertise,
2. Dont fall for glamour. You are going to a surgeon. A plastic surgeon's clinic is clean but not lavish generally. At least I believe that the person coming is not a client, but a patient. A patient - Doctor relationship is more pure than a client-Professional relationship.
3. Talk and discuss with the doctor. A too busy doctor may not always be the best doctor for you. Plastic surgery is about thinking, planning and execution. A doctor who thinks aloud about your problem ( especially if ut us face, nose, breast etc) is applying his/ her knowledge for your betterment, because every oerson is different.
4. Check the resilts? Look for genuinity.
5. Be wary of arrogant, loud and boisterous people. There is a difference between confidence and fambloyence.
6. Doctors who are attached to reputed hospitals are generally good in their work.
7. A doctor who can talk about probable complications is also a doctor worth trusting.
I hope I am able to do justice to this difficult question. All the best. You can write again if you need any other clarifications.
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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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