I am paying 100000 premium per year for SBI wealth builder for a tenure of 21 years. So far I have paid 7 premiums. I would like to know whether it would be taxable at the end of the tenure with an assumed returns of 12% per annum?

Ans: You are 37 years old with a stable income of Rs. 1.10 lakh per month.

Monthly expenses are Rs. 35,000, leaving Rs. 75,000 as surplus.

There are no savings currently, which means you need to start from scratch.

Retirement at age 55 leaves 18 years for financial planning.

Set Your Retirement Goal
Decide your retirement corpus based on lifestyle needs.

Consider inflation and plan for 30+ years post-retirement.

Assume monthly expenses of Rs. 35,000 today. Adjust them for inflation.

A Certified Financial Planner can help calculate your retirement corpus.

Determine Savings Target
Start saving at least 50-60% of your surplus.

Target saving Rs. 50,000 to Rs. 60,000 monthly consistently.

Increase savings as your income grows in the future.

Early and disciplined saving will ease the burden later.

Create a Diversified Investment Portfolio
Equity Mutual Funds
Equity mutual funds offer long-term growth.

Invest 70% of savings here for higher returns.

Choose actively managed funds for wealth creation.

Invest regularly through monthly SIPs.

Debt Mutual Funds
Allocate 20% of savings to debt mutual funds.

These funds ensure stability and lower risk.

Use them for medium-term goals and rebalancing.

Public Provident Fund (PPF)
Invest 10% of savings in PPF for tax-free returns.

PPF is a secure, long-term investment option.

Regular Review and Rebalancing
Review your portfolio yearly to track progress.

Rebalance investments to maintain equity and debt ratio.

Adjust for changing income, expenses, and market conditions.

Emergency Fund and Insurance
Build an emergency fund with 6 months of expenses.

Keep this fund in liquid instruments like FDs or savings accounts.

Get adequate health and term insurance coverage.

Avoid Common Mistakes
Do not invest in real estate for retirement planning.

Avoid ULIPs or investment-cum-insurance policies.

Focus on investments aligned with your goals.

Tax Efficiency in Investments
Use tax-saving instruments under Section 80C.

Stay updated on mutual fund capital gains taxation.

Use the guidance of a Certified Financial Planner for tax planning.

Final Insights
Start saving Rs. 50,000-60,000 monthly immediately.

Invest in equity, debt, and PPF for diversification.

Review and adjust your plan regularly for better results.

Stay disciplined and focus on long-term goals for retirement at 55.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: Long term in investing generally refers to a horizon of 5 to 7 years or more. For equity investments, this time frame allows you to ride out market volatility and benefit from potential compounding. A period of 7 years and above is ideal for equity investments, as it offers better growth opportunities and helps mitigate short-term risks, making it suitable for wealth accumulation and long-term financial goals.
Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

Ans: Planning early retirement requires careful assessment and structured allocation. Your current assets form a strong foundation. Let us assess your portfolio and refine your strategy.

1. Evaluate Existing Assets

Equity Investments: Rs 62 lakh in equity is a positive start. Equity is ideal for growth over the long term.

Fixed Deposits: Rs 27 lakh in FDs ensures stability but offers low returns.

Post Office Schemes: Monthly income from post office schemes is a stable source of passive income.

Real Estate: Owning a shop and land worth Rs 25 lakh adds diversification to your portfolio.

Cash in Hand: Rs 2 lakh provides liquidity for immediate needs.

Self-Owned House: Owning a house reduces living expenses post-retirement.

2. Establish Financial Goals

Early Retirement Corpus: Estimate annual post-retirement expenses and multiply by expected retirement years.

Emergency Fund: Maintain 12-18 months of expenses in liquid assets.

Inflation Protection: Plan to cover rising costs over the years.

3. Optimise Equity Portfolio

Diversification: Spread investments across large-cap, mid-cap, and small-cap funds.

Active Management: Focus on regular funds through a Certified Financial Planner. Active funds outperform during market volatility.

Tax Efficiency: Plan withdrawals to optimise tax on long-term capital gains. LTCG above Rs 1.25 lakh is taxed at 12.5%.

4. Fixed Deposits: Reassess Returns

Reallocate Part of FD: Move a portion into debt mutual funds. They offer better tax efficiency and higher returns.

Keep Liquidity: Retain funds for emergency and short-term needs.

5. Maximise Post Office Schemes

Continue Income Schemes: They provide assured monthly returns. This reduces dependency on other sources.

Reinvest Excess: Surplus post-office income can be allocated to equity or hybrid funds for growth.

6. Real Estate Management

Shop Rental Income: If not already rented, consider leasing the shop. This generates steady cash flow.

Land Utilisation: Evaluate selling or developing the land. Reinvest proceeds into growth-oriented investments.

7. Comprehensive Insurance

Health Insurance: Ensure coverage of Rs 25-50 lakh for you and your family. Upgrade if necessary.

Term Insurance: If dependents rely on you, maintain a term insurance policy.

8. Expense Management

Track Current Expenses: This helps estimate post-retirement needs accurately.

Cut Unnecessary Costs: Redirect savings into investments.

9. Passive Income Strategies

Hybrid Funds: Allocate part of your corpus to balanced advantage funds. These provide regular payouts and growth.

SWP in Mutual Funds: Systematic withdrawal plans ensure consistent income without depleting capital.

Dividend Income: Consider dividend-yielding equity funds. This offers periodic cash flow.

10. Tax Planning

Tax Efficiency: Utilise exemptions and deductions to minimise tax liabilities.

Reinvest LTCG: Gains reinvested in specified instruments avoid tax.

11. Retirement Corpus Assessment

Assess if the current portfolio aligns with your early retirement goals. Adjust investments for longevity and growth.

12. Long-Term Wealth Protection

Estate Planning: Prepare a will for seamless asset transfer.

Trusts: Consider creating a trust for dependents, if applicable.

13. Regular Reviews

Monitor Portfolio: Revisit allocations annually.

Adjust Investments: Rebalance to maintain desired asset allocation.

Final Insights

Your current assets provide a solid base for early retirement. Strategic allocation will ensure sustainability. Diversify, optimise returns, and secure passive income. Regular reviews are crucial for aligning investments with goals. With discipline, early retirement is achievable.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.inhttps://www.youtube.com/@HolisticInvestment

Ans: 01. You may keep your PF Account & earn interest.
02. Interest earned on PF account is tax free, but you have to disclose the same in your ITR.
03. You may withdraw the amount & deposit the same in PPF account, with any bank or Post Office & keep earning interest. This account would be for 15 years & you can get it renewed under certian conditions.
Please note that in case of EPF Interest is not paid after 3 years, if there is no further contribution.
Most welcome for any further clarifications. Thanks

Ans: Hi Anjali, navigating a new marriage with the goal of building a lasting, loving, and trustworthy relationship is a beautiful aspiration. It's natural to have concerns about past experiences, but it's important to remember that your relationship is a fresh chapter that you and your partner are writing together.

To foster loyalty, love, trust, and happiness, start by focusing on open and honest communication. Share your thoughts and feelings with each other, even when they're difficult. This helps build a foundation of trust and understanding. It's also crucial to practice empathy, recognizing that both of you bring unique experiences to the relationship.

Make a conscious effort to leave the past in the past. Instead of dwelling on previous relationships or mistakes, focus on the present and the future you're building together. This doesn't mean ignoring past lessons but rather using them to strengthen your current bond.

Prioritize spending quality time together, nurturing your emotional connection. Be intentional about supporting each other’s growth, both individually and as a couple. Celebrate each other's achievements and offer comfort during challenges.

Lastly, don't hesitate to seek help or advice if you ever face difficulties. Whether through counseling or trusted friends, getting an outside perspective can help maintain a healthy and happy marriage. By working together with commitment and understanding, you can create a fulfilling and enduring partnership.

Ans: Hello Krish.
You are just 18 years old. There is no need to do everything at this stage. You already cleared the 12th Board and appeared for JEE once but scored in the lower percentile. Yet you got admission to DTU. But with a predetermined mind, you think the branch allotted to you is lower. Let me be clear, none of the branches is higher and lower. Every branch has equal opportunities. If you were unsatisfied with the allotted branch, why not opt for your favorite branch from another private college?
Suggestion: First you get admission to any good private college to B.Tech. and complete the engineering with your preferred branch. At least you will have a solid degree in your hand. While studying engineering, you can prepare for CGL, which would be a better option. Even if you fail to crack CGL, you will have B.Tech. degree in your hand. Do engineering and CGL preparation simultaneously. Many students follow this path and have success also.
Best of luck for the upcoming bright future.

If satisfied, please like and follow me.
If dissatisfied with the reply, please ask again without hesitation.
Thanks.

Radheshyam

Ans: Your partner's expressed devotion to you before her marriage shows that the bond you shared was significant to her. It's likely she will think of you and miss the connection you had, especially as she navigates this new chapter. However, it's important to remember that her circumstances have changed, and she now faces her own set of challenges and adjustments.

For your emotional and mental well-being, it’s crucial to focus on processing your feelings. It's okay to feel the loss and mourn what might have been. At the same time, try to avoid getting stuck in the "what ifs" or self-blame. Instead, channel your energy into healing, understanding that you both had to make difficult choices given the circumstances.

If you find it hard to cope, seeking support from a counselor or trusted friends can provide a space to express your emotions and start to move forward. Remember, even in the midst of heartbreak, it's possible to find strength and clarity.

Ans: Sir, Your question is not clear.
When your company is earning Net Profit of Rs.10.00 Cr, how it could incur loss at the same time.
Kindly ask question with full details.
Most welcome for any further clarifications. Thanks

Ans: Kalyan Jewellers' stock prices have been declining due to a combination of factors. Here are some key reasons:

Allegations of Misconduct: There have been social media allegations suggesting misconduct involving fund managers at Motilal Oswal Asset Management Company (AMC) in relation to Kalyan Jewellers' shares. These allegations have created uncertainty and negatively impacted investor sentiment.

Promoter Share Pledges: Promoters Ramesh Trikkur Kalyanaraman and Seetharam Trikkur Kalyanaraman have increased their pledged holdings. Pledging shares is a common practice to secure loans, but it can also lead to selling pressure if margin requirements are not met.