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Ramalingam Kalirajan  |5108 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 13, 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
Asked by Anonymous - Jun 08, 2024Hindi

I am Naman Laval I am 59 years due for retirement shortly I have close 4 crores in cash/fd/MF/PPF/PF I have 3 houses from which I get a rental of 1 lakh per month , apart from the house i stay I have 2 daughters nearing their CA education and both to be married in the next 2-4 years You think my financial position is good enough to have a peaceful retired life .

Ans: Understanding Your Current Financial Position
Naman, it's impressive to see your diligent financial planning. You have accumulated close to Rs 4 crores in cash, fixed deposits, mutual funds, PPF, and PF. Additionally, owning three houses and earning Rs 1 lakh per month in rental income is commendable. Such diverse investments indicate a solid foundation for a comfortable retirement.

Assessing Your Income Sources
Having multiple income streams provides financial stability. The Rs 1 lakh monthly rental income is significant. This passive income will supplement your retirement funds, reducing the need to dip into your savings prematurely. Your existing investments in various instruments also generate returns, ensuring a steady flow of income.

Evaluating Your Financial Goals
Your immediate goals include financing your daughters' CA education and their marriages within the next 2-4 years. These are significant expenses that require careful planning. Given your financial position, it's essential to allocate funds appropriately to meet these obligations without compromising your retirement corpus.

Planning for Education and Marriage Expenses
To ensure smooth funding for your daughters' education and marriages, earmark a portion of your savings. Fixed deposits and PPF can be useful for these short to medium-term goals due to their stability and guaranteed returns. Mutual funds with a conservative approach can also be considered for potentially higher returns.

Ensuring a Stable Retirement Corpus
After setting aside funds for your daughters, focus on your retirement corpus. Rs 4 crores is a substantial amount, but it's crucial to manage it wisely to ensure a peaceful retirement. Diversifying your investments is key. While you have significant real estate holdings, maintaining liquidity is also important.

Diversification for Risk Management
Diversification helps in managing risks and enhancing returns. A mix of fixed income, equity, and real estate investments ensures stability and growth. Consider keeping a balance between these asset classes to protect your capital and generate sufficient returns.

Fixed Income Instruments
Fixed income instruments like fixed deposits, PPF, and PF provide stability and guaranteed returns. These are crucial for preserving your capital and ensuring regular income. Given your age and risk tolerance, maintaining a significant portion in these instruments is wise.

Equity Investments for Growth
Equity investments, though riskier, offer higher returns over the long term. Allocating a portion of your retirement corpus to mutual funds, particularly actively managed ones, can help in combating inflation and growing your wealth. Actively managed funds, overseen by professional fund managers, can outperform the market and provide superior returns.

Regular Review and Rebalancing
Regularly reviewing and rebalancing your portfolio is essential. Market conditions change, and your investment strategy should adapt accordingly. A Certified Financial Planner (CFP) can assist in this process, ensuring your investments remain aligned with your goals and risk tolerance.

Importance of Liquidity
Maintaining liquidity is crucial for meeting unexpected expenses and ensuring financial flexibility. Keeping a portion of your investments in liquid funds or short-term instruments can provide quick access to cash when needed. This prevents the need to liquidate long-term investments prematurely.

Creating a Contingency Fund
A contingency fund acts as a safety net during financial emergencies. Setting aside at least six months' worth of expenses in a highly liquid form ensures you are prepared for unforeseen situations. This fund provides peace of mind and financial security.

Tax Planning
Efficient tax planning can enhance your retirement corpus. Understanding the tax implications of different investments helps in maximizing post-tax returns. Equity investments held for more than a year qualify for long-term capital gains tax, which is lower. Consulting a tax advisor can help optimize your tax strategy.

Estate Planning
Estate planning ensures your wealth is distributed according to your wishes. Preparing a will and considering trusts or other estate planning tools can provide clarity and reduce potential disputes. It also ensures your daughters' financial future is secured.

Health Insurance
Having adequate health insurance is crucial in retirement. Medical expenses can be significant, and insurance helps in mitigating these costs. Ensure you have comprehensive health coverage to avoid financial strain due to health issues.

Aligning Investments with Life Goals
Aligning your investments with life goals provides direction and purpose. Setting specific goals for education, marriage, and retirement helps in creating a focused investment strategy. It ensures that your financial resources are used effectively to meet these objectives.

Risk Management
Effective risk management is crucial for a secure retirement. Diversifying your investments, maintaining liquidity, and having a contingency fund are key components. Regularly reviewing your portfolio and adjusting based on market conditions helps in managing risks.

Leveraging Professional Advice
Consulting with a Certified Financial Planner provides valuable insights and guidance. Their expertise helps in navigating complex financial decisions and optimizing your investment strategy. Regular consultations ensure your financial plan remains on track.

Staying Informed
Staying informed about market trends and economic indicators is important. Continuous learning and staying updated with financial news helps in making informed decisions. It enables you to adjust your strategy based on changing conditions.

Long-Term Perspective
Investing with a long-term perspective is essential. Equity investments, while volatile in the short term, tend to deliver higher returns over the long term. Patience and discipline are crucial in achieving long-term financial success.

Maintaining Financial Discipline
Maintaining financial discipline involves consistent investing and avoiding impulsive decisions. Sticking to your plan during market fluctuations is important. Trusting the process and remaining committed to your goals leads to financial success.

Understanding Market Cycles
Understanding market cycles helps in making informed decisions. Recognizing the phases of expansion, peak, contraction, and trough guides your investment strategy. A well-timed entry and exit can significantly impact your returns.

Leveraging Technology
Leveraging technology enhances your investment experience. Using investment apps and platforms for tracking your portfolio, setting alerts, and conducting transactions saves time and effort. Many platforms offer research tools and insights that aid decision-making.

Regular Monitoring and Reporting
Regularly monitoring your portfolio's performance is necessary. Setting up a system for monthly or quarterly reporting helps in tracking progress towards your goals. It ensures transparency and accountability in your investment journey.

Ensuring Peace of Mind
Ensuring peace of mind involves a holistic approach to financial planning. Adequate insurance, a well-diversified portfolio, and a contingency fund contribute to financial security. Aligning your investments with life goals and regularly reviewing your strategy provide clarity and confidence.

Final Insights
Your financial position indicates a strong foundation for a peaceful retirement. With Rs 4 crores in diversified investments and Rs 1 lakh in monthly rental income, you have a robust portfolio. Focusing on education and marriage expenses, maintaining liquidity, and diversifying further ensures financial stability. Regularly reviewing your portfolio, consulting with a Certified Financial Planner, and staying informed about market trends are crucial. Trusting the process, maintaining discipline, and leveraging professional advice will guide you towards achieving your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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 Kalirajan  |5108 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 08, 2024

Asked by Anonymous - Apr 23, 2024Hindi
Hello I plan to retire in next 4 years. I will be 52 years old at that time. I have 2, 3 BHK houses in Mumbai out of which one is required for our stay and other can be put up for rent which can fetch a monthly rent of 1lakh (today's date). I will get around 1 lakh(in hand as pension) and will have corpus of around 2 Cr at the time of my retirement. I have a daughter who will be fishing her graduation after 4 years. I will need money for her higher education and her marriage (I do not need gold as I already have). I have upper middle class life style at present. My question is will question is will the amount as I described earlier be sufficient for me to retire at an age of 52. I want to retain the present lifestyle.
Ans: Retiring at 52 with a sufficient corpus and a rental income from one of your properties is indeed a significant milestone. Let's assess your situation to determine if your current plan aligns with your retirement goals and lifestyle expectations:
1. Corpus and Income Sources: With a projected corpus of 2 Cr and an additional monthly pension of 1 lakh, you have a substantial financial base to support your retirement. The rental income from your property further adds to your income stream.
2. Expenses and Lifestyle: It's essential to evaluate your expected expenses post-retirement and compare them with your projected income. Since you aim to maintain your upper-middle-class lifestyle, factor in expenses related to healthcare, travel, leisure activities, and any unforeseen emergencies.
3. Daughter's Education and Marriage: Planning for your daughter's higher education and marriage is crucial. Estimate the future costs for these milestones and ensure that you allocate a portion of your corpus towards meeting these expenses. Consider inflation-adjusted estimates for a more accurate assessment.
4. Inflation and Investment Strategy: Given your retirement horizon of 4 years, focus on a balanced investment approach that prioritizes capital preservation while aiming for moderate growth. Consider allocating a portion of your corpus to safer investment avenues such as debt instruments, while also diversifying into equities and real estate for potential growth.
5. Regular Review and Adjustments: Regularly review your financial plan to ensure it remains aligned with your retirement goals and lifestyle aspirations. Make adjustments as necessary based on changes in your income, expenses, and market conditions.
6. Consultation with Financial Planner: Consider seeking advice from a certified financial planner who can provide personalized guidance based on your specific financial situation, retirement goals, and risk tolerance.
In summary, while your current financial situation appears promising for retirement at 52, it's essential to conduct a thorough assessment of your income, expenses, and investment strategy to ensure long-term financial security and fulfillment of your retirement objectives.

..Read more


Ramalingam Kalirajan  |5108 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 04, 2024

Asked by Anonymous - Jun 03, 2024Hindi
Hi Sir. I am a professional accountant with various qualifications aged 56 years and currently working in a Pvt Sector Co. I am due for my retirement at the age of 58 years. My current monthly salarly is around Rs 5 lacs. As far as my financial wellness is concerned, I currently have my own house in which I live and another two houses/flats which are on rent and together earn around Rs 1.50 lacs rental income. Apart from this I have equity share investments totalling around Rs 1 crs. Further, on my retirement in another two years I would be having a retirement corpus of around Rs 2 crs which include my PF/Gratuity etc. My wife is a home maker and I have two grown up daughters who are both MBAs from A-Grade Management Institutes and are in well settled jobs and doing quite well for themselves, but both are yet to get married. Although, I feel that I am financially quite secure to handle my retired life but would like to seek your kind advice whether you feel that I have provided well for my retired second innings. I would also like to add that I do not have any plans to continue working in any capacity after my retirement and me and my wife plan to spend our times following our passion of travelling and delving more into spirituality and meditation. Thanks in advance for your time pls.
Ans: Evaluating Your Retirement Preparedness
Your disciplined financial planning and successful career are commendable. With your retirement approaching, let's assess whether your financial resources will support your retirement goals.

Current Financial Position
Income and Assets:

Monthly salary: Rs 5 lakhs.
Rental income: Rs 1.5 lakhs.
Equity investments: Rs 1 crore.
Retirement corpus (including PF/Gratuity): Rs 2 crores.
Property Holdings:

Own house (primary residence).
Two rental properties generating Rs 1.5 lakhs monthly.
Retirement Goals and Lifestyle
Travel and Spiritual Pursuits:
Your plan to travel and delve into spirituality and meditation indicates a need for a flexible and comfortable financial cushion.

Family Considerations:
With two well-settled daughters, your primary focus can remain on you and your wife's retirement lifestyle.

Evaluating Income and Expenses
Post-Retirement Income:

Rental income: Rs 1.5 lakhs/month.
Potential interest/dividend income from investments.
Expected Expenses:

Travel and leisure.
Healthcare and insurance.
Day-to-day living expenses.
Projected Retirement Corpus
Retirement Savings:
Your retirement corpus of Rs 2 crores and equity investments of Rs 1 crore provide a substantial financial base.

Growth Potential:
Investments in equity can continue to grow, but consider a balanced approach to reduce risk.

Recommendations for Financial Security
1. Diversify Investments:

Ensure your equity portfolio is diversified.
Consider balanced mutual funds to reduce risk and provide stable returns.
2. Establish a Contingency Fund:

Set aside an emergency fund for unexpected expenses.
This should cover at least 1-2 years of living expenses.
3. Health Insurance:

Ensure comprehensive health insurance coverage.
Consider a top-up policy for additional security.
4. Regular Income Stream:

Allocate part of your corpus to debt instruments.
This provides regular interest income with lower risk.
Planning for Inflation
Inflation Impact:
Factor in inflation when planning your expenses. Ensure your income grows to match rising costs.

Cost of Living Adjustments:
Regularly review and adjust your investment strategy to maintain purchasing power.

Estate Planning
Will and Estate Plan:

Create a will to ensure smooth transfer of assets.
Consider estate planning to minimize taxes and legal complications.
Final Considerations
Lifestyle Adjustments:
Prepare for a lifestyle change post-retirement. Ensure your budget reflects your new routine.

Periodic Reviews:
Regularly review your financial plan with a certified financial planner. Adjust based on market conditions and personal needs.

Your current financial position indicates strong preparation for retirement. With disciplined planning and strategic adjustments, you can enjoy a secure and fulfilling retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more


Ramalingam Kalirajan  |5108 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 17, 2024

Asked by Anonymous - Jul 11, 2024Hindi
At present my age is 66 years and I have Rs.2 Cr in the form of FD. Cash in hand Rs. 4L. I have my own house to live. I have rental income Rs.50K per month. I have medical insurance of Rs.10 L. There is no liabilities of any kind. Kindly advise me for a comfortable peaceful life in future.
Ans: Evaluating Your Current Financial Situation
Fixed Deposits (FD)
Rs. 2 crore in FD ensures stability and regular interest income.
Cash in Hand
Rs. 4 lakh provides liquidity for emergencies.
Rental Income
Rs. 50,000 per month adds to your monthly cash flow.
Medical Insurance
Rs. 10 lakh cover offers some security against medical emergencies.
No Liabilities
Being debt-free allows you to focus on your financial planning without worry.
Assessing Your Financial Needs
Monthly Expenses
Calculate your average monthly expenses, including living costs and medical expenses.
Emergency Fund
Ensure you have 6-12 months of expenses readily available.
Investment Recommendations
Diversify Your Portfolio
Debt Funds: Invest a portion in debt funds for regular income and low risk.

Equity Mutual Funds: Consider a small portion in equity funds for growth.

Hybrid Funds: A mix of equity and debt provides balance and reduces risk.

Reduce Direct Fund Exposure
Direct funds lack professional guidance.

Regular Funds: Managed by professionals, ensuring better performance.

Tax Efficiency
Tax-Free Bonds: Consider tax-free bonds for steady, tax-efficient income.

Senior Citizen Savings Scheme (SCSS): Offers regular income and tax benefits.

Health and Medical Coverage
Increase Medical Insurance
Rs. 10 lakh may not be sufficient for major treatments.

Consider a top-up plan or super top-up insurance for additional cover.

Estate Planning
Will Preparation
Ensure you have a will in place to avoid legal complications.

Clearly state your wishes for asset distribution.

Check and update nominations for all your financial assets.
Additional Income Streams
Monthly Income Plans (MIPs)
MIPs: Offer regular income and are suitable for retirees.

Provides a mix of debt and equity for balanced growth.

Systematic Withdrawal Plan (SWP)
SWP: From mutual funds, it allows you to withdraw a fixed amount regularly.

Provides regular income while keeping the principal invested.

Financial Advisory
Certified Financial Planner
Consult a Certified Financial Planner for personalized advice.

Regular reviews ensure your investments align with your goals.

Enjoying a Peaceful Life
Regular Health Check-ups
Prioritize your health with regular medical check-ups.

Stay active and maintain a healthy lifestyle.

Maintain a monthly budget to keep track of your expenses.

Ensure you live within your means to avoid financial stress.

Family Support
Communicate with family about your financial plans.

Ensure they are aware of your wishes and any important financial documents.

Final Insights
Diversify your investments to balance income and growth. Increase your medical insurance for better coverage. Ensure your estate planning is in place. Regularly review your financial plan with a Certified Financial Planner. Stay healthy and enjoy a peaceful, comfortable life.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,


..Read more


Ramalingam Kalirajan  |5108 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 17, 2024

Asked by Anonymous - Jul 13, 2024Hindi
I am 53 years old having assets as below: 1 house loan of 24 lacs having emi 40000 per month, mf of 13 lacs and monthly sip of 24100, fd of 31 lacs, 10lacs due to be paid to builder, 3 lacs of soverign gold bond, have salary in hand of 143000 pm. One house I own with value of 70 lacs. pf amount is 9 lacs. Is it sufficient for getting comfortable retirement?
Ans: Evaluating Retirement Readiness
Assessing your current financial status and retirement preparedness:

Income and Expense Analysis
Monthly salary of Rs. 1,43,000 supports your current lifestyle.
EMI for house loan is substantial at Rs. 40,000 per month.
Asset Evaluation
Assets include a house valued at Rs. 70 lakhs and investments in MF, FDs, and gold bonds.
PF balance of Rs. 9 lakhs contributes to retirement savings.
Liability Assessment
Outstanding loan of Rs. 24 lakhs and Rs. 10 lakhs due to builder.
Manageable with current income, but consider repayment strategies.
Retirement Planning
MF investments and SIPs totaling Rs. 13 lakhs are a good start.
FDs provide liquidity but consider diversifying for better returns.
Financial Security Check
Evaluate retirement corpus goal based on current expenses and future needs.
Factor in inflation and health care costs for retirement planning.
Increase SIPs gradually to build retirement corpus.
Consider downsizing or rental income from property post-retirement.
Ensure adequate health and life insurance coverage.
Final Insights
Your assets and income are substantial, but consider optimizing investments and managing liabilities for a more comfortable retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more

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Chocko Valliappa  |356 Answers  |Ask -

Tech Entrepreneur, Educationist - Answered on Jul 22, 2024

Asked by Anonymous - Jul 21, 2024Hindi
A doctorate from IIT Bombay in Metallurgy and masters from NIT in Manufacturing with 5 years of experience including 2 years in academics and currently working from past 3 years in industry where I work mostly on finite element analyst of forging and bulk extrusion process and New product development as manager heading a team of 5 people. I have working knowledge of 3-4 FE software related to metal forming domain along with ANSYS STRUCTURAL. Despite that I am not getting any interview calls as I am currently looking for a job switch and have put up my profile both on NAUKRI AND LINKEDIN. Some calls are coming to me but that are all irrelevant profiles in which my expertise is not there. I have been trying for the past 6 months but have not got any positive response. Despite such a highly educated person from premier institute and not getting any response is highly depressing. Could you suggest how to apply and where to apply and any other website where I shall make my profile to get a positive response ? Thanks. .................
Ans: You have accomplished academic background and work in a very specialised area. You may have to expand your job search to a broader field of Metalurgy, Product Managment, Operations and not be limited to Finite Element analysis. Think through again and look for companies active in the field of metallury and users and producers of Steel, Metals. You may also look at academics. Use your academic contacts in the two IIT--IIT B and NIT, previous employers and seek their help in connecting you with possible openings. You also need to give yourself more time and be optimistic.

...Read more

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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