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Mihir

Mihir Tanna  | Answer  |Ask -

Tax Expert - Answered on Sep 20, 2023

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more
VA Question by VA on Sep 19, 2023Hindi
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I have pension income of Rs 15000 pa under salary head and interest from savings & FD Rs 13000 pa and Rs 32000 as LIC pension under income from other sources. There is no other income as I am a senior citizen and till now I was selecting Old regime. I want to encash my Mutual Funds for my personal use. My querry : 1. Should I choose New tax regime, will it be beneficial or the Old can be continued ? 2. After all the above incomes my Mutual fund Long term Capital Gains on redemption can be set off against Rs 7 lacs pa in new tax regime on which no tax is to be paid. OR we need to pay 10% LTCG tax (after deducting 1 Lac) even if LTCG is below 7 Lac limit. Thanks in anticipation ......

Ans: Selection of tax regime will depend on certain factors. Usually, old scheme is beneficial, if substantial amount is eligible for deduction/exemption. You can do exact comparison through Income tax calculator available at https://incometaxindia.gov.in/Pages/tools/income-tax-calculator-234ABC.aspx

Person is not required to pay any tax if tax liability for FY 23-24 under old tax regime is less than or equal to Rs.25000. Accordingly, if tax liability on Capital gain, Salary and Other sources is less than or equal to Rs.25,000; no tax is required to be paid.
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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Tejas

Tejas Chokshi  | Answer  |Ask -

Tax Expert - Answered on Apr 25, 2023

Asked by Anonymous - Mar 31, 2023Hindi
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Hi Expert, My CTC is 12 Lakhs. I have home loan interest of INR 1,60,000 and principle of approx INR 80,000, ELSS 36,000, Life Insurance 12,000, Tuition Fee 60,000, Medical Insurance 26,000, PPF 50,000 to1,00,000. these are my planned annual investments. I need you help to choose new tax regime or old tax regime. can you help, please.
Ans: Based on the information you have provided, you can calculate your tax liability under both the old tax regime and the new tax regime to see which one is more beneficial for you.

Under the old tax regime, you can claim deductions under Section 80C for your home loan principal repayment, ELSS, life insurance premium, tuition fees, and PPF, which amounts to a total deduction of up to INR 1.5 lakh. In addition, you can claim a deduction of up to INR 25,000 for medical insurance premium under Section 80D. Your total deductions would be INR 1.75 lakh, which reduces your taxable income to INR 10.25 lakh.

Your tax liability under the old tax regime would be as follows:

Up to INR 2.5 lakh: Nil
INR 2.5 lakh to INR 5 lakh: 5% of (taxable income - INR 2.5 lakh)
INR 5 lakh to INR 7.5 lakh: INR 12,500 + 10% of (taxable income - INR 5 lakh)
INR 7.5 lakh to INR 10 lakh: INR 37,500 + 15% of (taxable income - INR 7.5 lakh)
INR 10 lakh to INR 12.5 lakh: INR 75,000 + 20% of (taxable income - INR 10 lakh)
Above INR 12.5 lakh: INR 1,25,000 + 30% of (taxable income - INR 12.5 lakh)
Under the new tax regime, you cannot claim the deductions under Section 80C, Section 80D, and other sections. However, you can claim a standard deduction of INR 50,000. Your taxable income would be INR 11.1 lakh.

Your tax liability under the new tax regime would be as follows:

Up to INR 2.5 lakh: Nil
INR 2.5 lakh to INR 5 lakh: 5% of (taxable income - INR 2.5 lakh)
INR 5 lakh to INR 7.5 lakh: INR 12,500 + 10% of (taxable income - INR 5 lakh)
INR 7.5 lakh to INR 10 lakh: INR 37,500 + 15% of (taxable income - INR 7.5 lakh)
INR 10 lakh to INR 12.5 lakh: INR 75,000 + 20% of (taxable income - INR 10 lakh)
Above INR 12.5 lakh: INR 1,25,000 + 30% of (taxable income - INR 12.5 lakh)
Based on the above calculations, it seems like the old tax regime may be more beneficial for you as your taxable income would be lower due to the deductions under Section 80C and Section 80D. However, you should consult a tax expert or a financial advisor to make an informed decision based on your individual circumstances.

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Anu

Anu Krishna  |1471 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jan 31, 2025

Asked by Anonymous - Jan 27, 2025Hindi
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Anu mam, I am 21 about to graduate this year. So I am a single child and I just got to know that my parents are planning to separate. They are both seeing different people but none of them have cared to sit down and discuss this with me. I am old enough to make decisions. But I feel betrayed by my own parents. I don't have siblings or cousins with whom I can discuss this. I mean, what happens to me after my parents separate? Where will I stay? What about home? Both my parents are travelling or working late so we hardly spend time together at home to have a conversation. I have suggested several times that I want to talk but there is no response from either of them. There is always some urgent work to attend, some family event coming up and this gets brushed aside. I feel like I am not even their child any more. They have both mentally moved on... and I feel betrayed, lonely. I don't know what to do. Can you help?
Ans: Dear Anonymous,
I am sorry to hear that. It is never easy to understand when your parents are planning to separate and it leaves you with a lot of questions when left unanswered can lead to a very unsettled feeling.
Perhaps they are still wondering how to break the news to you. If they have been avoiding this topic, then it is evident that they are not ready to tell you or it's still in an awkward phase.
You are 21 and obviously there's no point hiding this from you anymore. Make a dinner plan outside of home where they will not be able to move about and cite urgent work etc. Mid-way through dinner, ask them...they may deny or one of them may walk out; but at least they know that you are aware and will want to talk about it eventually. The path to a conversation has opened then and then you can make a plan about how to go about it.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

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Anu

Anu Krishna  |1471 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jan 31, 2025

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Me 38ki hu mera bf 28ka wo mujhse sucha pyar krta hai shaadi bi Krna hai usko but bola ki me 2cr kmalu tb krunga t shaadi usne ghr me baat bhi ni ki apne na mere ki confirm krde ki shaadi t krunga or sagai krle usne BTech science kri hai wo mera office me lga jha selry 18k hai but maine kha ki tum apni qualification me hisaab se khi or job krlo jha 50k mile taki tum mere ghr walo se shaadi ki baat kr sko humre riste ko 4saal ho gye hai but usko m bhoat smjhaya ki khi or job krlo set ho jaye but ni ki or is office me job krha jha 18k milre hai usko fir bolta hai ki me 2cr acount me ho tb me Shaadi krunga tumse but mere ghr wale pressure krhe hai alg or ye koi faisla ni lera hai me kya kru
Ans: Dear Tiya,
Uske paas tumse zyaada waqt hai umar ke hisaab se isiliye woh yeh bol paa raha hai. Woh galat nahin na tum galat ho. Dono apni apni jagah sahi ho.
Aapko apni life mein kya chahiye? Shaadi aur ek pariwaar? Toh aapko yahi sochna chahiye ki kya yeh aapka bf samajhta hai aur kya is waqt woh yeh aapko de paayega. Kamaai ki baare mein bol rahaa hai woh; woh 2 Cr kitne saal aur lagenge? Kya aap intezaar karna chahoge? Agar nahin, toh is waqt woh bhi shaadi nahin karna chahte...toh aap unko majboor nahin kar sakte...Aaraam se soch vichaar kar lijiye aur ek nateeje par aana. Aap intezaar hi karte rahoge aur umar bhi nikla jaayega...

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

Ramalingam

Ramalingam Kalirajan  |7741 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 31, 2025

Asked by Anonymous - Jan 30, 2025Hindi
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I am 60 yrs old retired lady. I have 50 lakhs in mutual funds. Around 50 lakhs in equity. In cash I have 1 crore. How I should manage to get pension of Rs. 1 lakh per month because I have no pension from government. Please advice. Partially I should go in property investment.
Ans: You have Rs. 2 crore in investments. You need Rs. 1 lakh per month for expenses. Your goal is to create a stable and tax-efficient income. Let’s plan carefully.

Current Financial Position
Rs. 50 lakh in mutual funds.

Rs. 50 lakh in direct equity.

Rs. 1 crore in cash.

No government pension.

Goal: Rs. 1 lakh monthly income (Rs. 12 lakh per year).

Key Challenges
Your investments should last for 25+ years.

Inflation will increase expenses every year.

Fixed deposits and traditional plans may not keep up with inflation.

Real estate can lock funds and reduce liquidity.

Step-by-Step Financial Plan
1. Build an Emergency Fund
Keep Rs. 15 lakh in liquid funds or bank deposits.

This covers 12-18 months of expenses.

Avoid using emergency funds for investments.

2. Allocate Funds for Monthly Income
Keep Rs. 85 lakh in safe, income-generating investments.

Choose options that give regular and stable returns.

Returns should beat inflation but stay low-risk.

3. Invest for Growth and Wealth Protection
Invest Rs. 50 lakh in balanced mutual funds.

These provide growth and moderate risk.

Withdraw 4-5% yearly to support expenses.

4. Optimise Direct Equity Portfolio
Rs. 50 lakh in direct stocks needs review.

Retain only strong dividend-paying companies.

Shift risky stocks to safer mutual funds.

5. Tax-Efficient Withdrawals
Plan withdrawals to minimise tax liability.

Use long-term capital gains to reduce tax impact.

Avoid withdrawing large lump sums at once.

Why Real Estate is Not Ideal
Property investment reduces liquidity.

Rental income is uncertain and taxable.

Maintenance costs and legal issues can arise.

Selling property in emergencies can take time.

Final Insights
You can generate Rs. 1 lakh per month with smart planning.

Avoid locking money in real estate.

Diversify into stable income options.

Review investments every year for adjustments.

Consult a Certified Financial Planner for execution.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

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Ramalingam

Ramalingam Kalirajan  |7741 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 31, 2025

Asked by Anonymous - Jan 30, 2025Hindi
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I am 40 year old, have 38 lakhs in FD, 60 lakh in EPF, 40 lakh in PPF, 30 lakh in Mutual fund and 10 lakh in NPS. Have own house and another house earning rent of rs 15000 per month. Monthly expenses is 1 lakh. Son is in class 7. Can I retire ?
Ans: You have built a solid financial base. Let's assess if early retirement is feasible for you.

Assessing Your Current Financial Position
You have Rs 38 lakh in Fixed Deposits (FD).
Your Employee Provident Fund (EPF) balance is Rs 60 lakh.
You have Rs 40 lakh in Public Provident Fund (PPF).
Your mutual fund investments total Rs 30 lakh.
Your National Pension System (NPS) corpus is Rs 10 lakh.
You own a second house generating Rs 15,000 per month in rental income.
Monthly Expense Requirement
Your monthly expense is Rs 1 lakh.
Annually, this totals Rs 12 lakh.
After rent income, you need Rs 10.2 lakh per year.
Your corpus should generate this amount without running out.
Key Retirement Considerations
1. Longevity of Your Corpus
You may live for another 40–50 years.
Your investments should last for this period.
A balanced approach is necessary to sustain wealth.
2. Inflation Impact on Expenses
Your current Rs 1 lakh per month will increase over time.
Inflation reduces the value of money.
Your investments must grow faster than inflation.
3. Education & Future Responsibilities
Your son is in Class 7 and will need higher education funds.
Higher education costs rise significantly over time.
You must set aside a separate fund for this.
4. Healthcare & Emergency Fund
Medical costs rise with age.
Health insurance is essential.
A dedicated emergency fund prevents financial stress.
Evaluating Your Passive Income Sources
Rental income of Rs 15,000 per month covers only a small portion of expenses.
Your existing assets must generate regular income.
Safe withdrawals should sustain your retirement.
Investment Strategy for a Secure Retirement
1. Equity Mutual Funds for Growth (40–50%)
Your corpus should continue to grow.
Equities provide long-term wealth creation.
Actively managed funds can beat inflation.
A mix of large-cap, mid-cap, and hybrid funds balances growth and safety.
2. Debt Instruments for Stability (30–40%)
FDs, EPF, and PPF provide safety.
Keep some funds in liquid debt instruments.
Target maturity funds and short-duration debt funds can provide regular income.
3. Systematic Withdrawal Plan (SWP) for Monthly Cash Flow
Instead of withdrawing lump sums, use an SWP strategy.
This ensures regular income without depleting capital fast.
It also provides tax efficiency.
4. Gold as a Hedge (5–10%)
Gold protects against economic fluctuations.
Consider Sovereign Gold Bonds (SGBs) for better returns.
SGBs also provide annual interest.
Insurance & Risk Management
Ensure you have term insurance for family security.
Maintain a comprehensive health insurance plan.
Keep a separate emergency fund for unexpected expenses.
Final Insights
Early retirement is possible but needs careful planning.
Your corpus must be structured for growth and stability.
Inflation and future expenses must be factored in.
Investment allocation should balance risk and liquidity.
Regular reviews are essential to keep your plan on track.
Would you like a detailed withdrawal strategy based on your exact needs?

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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Ramalingam

Ramalingam Kalirajan  |7741 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 31, 2025

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I am 42 staying in Pune with my wife and two daughters 7 years and 1 year old. I have 70 lakh in MF , 12 lakh in nps, 18 lakh in pf and 31 lakh in stocks. I have additional investment in 62 lakh in FD that is pledged to trade in derivatives through a consultant. Wife has physical gold worth 5 lakh. I have recently bought a land on loan and current liability is 25 lakh @8.5% ( total 70(land+construction)lakh is sanctioned for construction). My current expense is 1 lakh a month and i stay in rented house. My monthly income is 2.5 lakh from salary. Can I quit my job and move to my hometown in Ranchi. What is the financial plan if i want to quit.
Ans: You want to quit your job and move to Ranchi. Your current investments and expenses need careful planning. Let’s evaluate your financial situation.

Current Financial Position
Rs. 70 lakh in mutual funds.

Rs. 12 lakh in NPS.

Rs. 18 lakh in PF.

Rs. 31 lakh in stocks.

Rs. 62 lakh in FD (pledged for derivatives trading).

Rs. 5 lakh in wife’s gold.

Rs. 25 lakh loan at 8.5% interest (out of Rs. 70 lakh sanctioned).

Monthly salary of Rs. 2.5 lakh.

Monthly expenses of Rs. 1 lakh.

Staying in a rented house.

Key Challenges in Quitting Job
You need a stable income source after quitting.

Loan repayment should not burden your finances.

Derivatives trading involves high risk.

Relocation to Ranchi should not disrupt financial stability.

Step-by-Step Financial Plan
1. Build a Strong Emergency Fund
Keep Rs. 20 lakh as a buffer for 2 years of expenses.

Use FD or liquid mutual funds for this.

This ensures financial security after quitting.

2. Secure a Passive Income Source
You need at least Rs. 1 lakh per month in passive income.

This can come from investments, consulting, or business.

Rental income or dividends alone may not be enough.

3. Restructure Your Loan
Your land loan at 8.5% interest adds financial pressure.

Repaying Rs. 25 lakh from FD or stocks reduces the burden.

Avoid using risky derivative profits to pay loans.

4. Reallocate Investments for Stability
Reduce exposure to high-risk derivatives trading.

Convert Rs. 62 lakh FD into a mix of mutual funds and bonds.

Equity mutual funds can generate higher long-term returns.

5. Plan for Child’s Future
Your daughters are 7 years and 1 year old.

Set aside Rs. 25 lakh for education in safe investments.

Avoid blocking funds in low-return FDs.

6. Address Housing Needs
If moving to Ranchi, consider staying in a rented house initially.

Construction should not strain your savings.

Use part of your investments if you decide to build.

Final Insights
Quitting your job is possible but needs careful planning.

Ensure passive income before quitting.

Clear high-interest liabilities to reduce stress.

Invest wisely for long-term financial security.

Moving to Ranchi should not affect your financial freedom.

Consult a Certified Financial Planner for proper execution.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

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Ramalingam

Ramalingam Kalirajan  |7741 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 31, 2025

Asked by Anonymous - Jan 30, 2025Hindi
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Hi team, I am working professional currently I received 10L lumsum amount from fd and lic can you please suggest where can I invest this amount for long term like 10-12 years, specifically for my kids any children education plan my 1st kid is 10 years old and 2nd is 1.5 yrs old ssy is alredy in place for both
Ans: Here’s a structured approach to investing your Rs 10 lakh lump sum for your children’s education over the next 10–12 years.

Assessing Your Financial Goals
Your primary goal is to secure funds for your children’s higher education.
Your elder child will need funds in approximately 8–10 years.
Your younger child will need funds in approximately 16–18 years.
Sukanya Samriddhi Yojana (SSY) is already in place for both children, which is a good step.
Key Investment Principles
Since the investment horizon is long, equity investments can provide higher returns.
Diversification across different asset classes ensures stability.
A mix of lump sum and systematic investments (SIP/STP) helps in managing risk.
Ensure liquidity for unforeseen expenses while keeping the majority of the funds in long-term instruments.
Allocating the Rs 10 Lakh Investment
1. Equity Mutual Funds (60–70%)
Actively managed equity mutual funds provide potential for higher growth.
Choose a mix of large-cap, mid-cap, and small-cap funds.
Large-cap funds provide stability, mid-cap and small-cap funds offer growth.
Consider splitting the lump sum into a Systematic Transfer Plan (STP) over 6–12 months.
This helps reduce market volatility risk.
2. Debt Mutual Funds (20–25%)
This ensures safety while still offering better returns than FDs.
Suitable for your elder child’s education needs in 8–10 years.
Short-duration debt funds or target maturity funds can be considered.
3. Gold Investment (5–10%)
Gold has historically been a hedge against inflation.
Consider Sovereign Gold Bonds (SGBs) for long-term appreciation.
SGBs also provide an additional fixed interest every year.
4. Fixed Income Instruments (10–15%)
Since you have LIC proceeds, check if any existing policies should be continued.
If any are underperforming, consider surrendering and reallocating to mutual funds.
Senior Citizen Savings Scheme (SCSS) or Post Office Monthly Income Scheme (POMIS) can be considered for your parents’ support if needed.
Systematic Planning for Education
Start a dedicated SIP from the debt portion for the elder child’s education.
Keep a mix of debt and equity to manage risk for the younger child.
By the time your elder child reaches college, start shifting funds to safer instruments.
Insurance & Contingency Planning
Ensure you have a sufficient term life insurance plan.
Health insurance should cover all family members.
Maintain an emergency fund with at least 6 months of expenses.
Final Insights
Equity investments can provide higher growth for long-term goals.
Debt investments provide stability and liquidity for short-term needs.
Diversification across asset classes ensures balanced risk management.
Systematic investments (STP/SIP) help manage market fluctuations.
Regular reviews every year will help in rebalancing based on market conditions.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

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

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Ramalingam

Ramalingam Kalirajan  |7741 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 31, 2025

Asked by Anonymous - Jan 31, 2025Hindi
Money
I am 47 year old. Having 32 lakh in my PPF. 28 lakh in my wife's PPF.Having sukanya smruddhi of my 10 year old daughter 25 lakh. Having Nps 10.5 lakh. (Equity 50 remaining 50 % debt in nps). Just invested 28 lakh in banking and psu debt growth fund in 3 diffrent fund house. 70 lakh cash at bank. Wife house wife having equity mutual fund mix of large cap small cap and medium cap having 24 lakh current market value holding through broker. Wife is having 1.5 lakh in direct equity of mid and large cap bluechip.Wife is having NPS account for monthly pension of 5000 post retirement. Life insurance Endowment plan bharti axa elite advantage 10 lakh for 12 years primium 1 lakh for self.Insurance of daughter 10 lakh : 80,000 premium elite advantage policy. No loan. Goals: Education of daughter and marriage of daughter after 15 yearrequire 50 lakh. Want to purchase house 1 to 1.2 cr after 5 to 6 year.currently living in parental house. Retirement after 8 to 10 years -58 or 60 year. Current monthly expense 40,000 to 50,000. Yearly income varible from 3 lakh to 20 lakh depend upon consultancy work. Health insurance for family 10 lakh. Policy HDFC optima secure. No term plan. Please advice investment stratagy, for retirement and other goals.
Ans: Your financial position is strong, but you need a structured plan.

Understanding Your Current Financial Position
You are 47 years old and plan to retire by 58 or 60.

You have no loans, which is a great advantage.

Your PPF has Rs. 32 lakh, and your wife’s PPF has Rs. 28 lakh.

Your daughter’s Sukanya Samriddhi account has Rs. 25 lakh.

Your NPS balance is Rs. 10.5 lakh, with a 50:50 equity-debt mix.

Your wife has Rs. 24 lakh in equity mutual funds.

Your wife has Rs. 1.5 lakh in direct equity.

You recently invested Rs. 28 lakh in banking and PSU debt funds.

You have Rs. 70 lakh in cash in the bank.

Your wife’s NPS will give her Rs. 5,000 monthly after retirement.

You have an endowment plan with a Rs. 10 lakh sum assured, with Rs. 1 lakh annual premium.

You also have a similar Rs. 10 lakh policy for your daughter with an Rs. 80,000 premium.

Your annual income varies between Rs. 3 lakh and Rs. 20 lakh from consultancy work.

Your current monthly expenses are Rs. 40,000 to Rs. 50,000.

You have a Rs. 10 lakh family health cover through HDFC Optima Secure.

You do not have a term insurance plan.

Key Financial Goals
Daughter’s Education and Marriage: You need Rs. 50 lakh after 15 years.

House Purchase: You want to buy a Rs. 1 crore to Rs. 1.2 crore house in 5-6 years.

Retirement: You want to retire in 8-10 years while maintaining your current lifestyle.

Step 1: Restructure Your Insurance Policies
Your endowment plan is not a good investment.

The returns are low, and they don’t provide enough life cover.

Surrender these policies and reinvest in better options.

Buy a term insurance plan for at least Rs. 1.5 crore coverage.

This ensures your family’s financial security in case of any emergency.

Step 2: Optimize Your Cash Reserves
Keeping Rs. 70 lakh idle in a bank is not a good strategy.

Inflation will erode its value over time.

Maintain Rs. 10 lakh in liquid form for emergencies.

Invest Rs. 60 lakh in a balanced mix of debt and equity.

This will improve your long-term returns.

Step 3: Plan for Your Daughter’s Education and Marriage
You need Rs. 50 lakh after 15 years.

Sukanya Samriddhi Yojana (SSY) is a good start.

Continue contributions for tax-free returns.

However, SSY alone is not enough.

Invest Rs. 15,000 per month in high-growth assets.

This ensures you meet the target without stress.

Step 4: Investment Plan for House Purchase
You need Rs. 1 crore in 5-6 years.

Avoid putting all savings in a low-return debt fund.

Allocate 60% in safe debt instruments.

Invest 40% in high-quality large-cap equity mutual funds.

This balance will help you reach your goal faster.

Step 5: Retirement Planning Strategy
Your NPS balance is Rs. 10.5 lakh.

Increase equity exposure to at least 70%.

This will help in long-term growth.

Start SIPs of Rs. 50,000 per month in equity mutual funds.

This will help you build a strong retirement corpus.

Your wife’s Rs. 5,000 pension will not be enough.

Ensure she also invests for retirement growth.

Step 6: Secure Your Family with Health Insurance
Your Rs. 10 lakh health cover is good but may not be enough.

Healthcare costs are rising.

Consider adding a super top-up plan of Rs. 20 lakh.

This will protect your family from unexpected medical expenses.

Step 7: Increase Passive Income Sources
Your consultancy income is variable.

You must create stable income sources.

Invest in assets that generate regular returns.

Monthly income plans can be an option.

This ensures financial stability even if work income reduces.

Step 8: Reduce Risk in Your Wife’s Investments
Your wife’s Rs. 24 lakh mutual fund portfolio is spread across small, mid, and large caps.

Small caps are high-risk for a family’s primary corpus.

Shift some amount to safer investments.

Ensure she has a stable long-term investment plan.

Finally
Your financial position is strong but needs better structure.

Optimize your insurance policies for higher returns.

Invest idle cash wisely to grow wealth.

Plan separate strategies for each financial goal.

Focus on increasing stable income for retirement security.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

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

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Ramalingam

Ramalingam Kalirajan  |7741 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 31, 2025

Asked by Anonymous - Jan 31, 2025Hindi
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Money
I have 4 Crores in FD'S. Can you please advise me how to use that money so i can make atleast 10% PA after taxes..
Ans: You have Rs. 4 crores in fixed deposits. FDs are safe but give low returns. You want at least 10% per year after tax. Achieving this needs smart asset allocation.

Issues with Keeping Money in FDs
FD interest is fully taxable as per your tax slab.

If you fall in the 30% tax bracket, a 7% FD return reduces to 4.9%.

Inflation further erodes real returns.

FDs are not ideal for long-term wealth creation.

Step-by-Step Strategy for Higher Returns
1. Keep a Part in Debt for Stability
Keep Rs. 50 lakhs in short-term debt mutual funds for liquidity.

They give better tax efficiency than FDs.

You can withdraw anytime without a penalty.

These funds provide stable returns with lower risks.

2. Invest in Actively Managed Mutual Funds
Allocate Rs. 2.5 crores in actively managed equity mutual funds.

These funds outperform index funds over long periods.

They help in capital appreciation and wealth creation.

A mix of flexi cap, mid-cap, and small-cap funds is ideal.

3. Consider Hybrid Mutual Funds
Hybrid funds balance growth and stability.

Allocate Rs. 50 lakhs here for a mix of equity and debt.

These funds reduce volatility while providing steady returns.

Long-term taxation is also favourable.

4. Tax-Free Bonds for Fixed Returns
Allocate Rs. 50 lakhs in tax-free bonds.

These provide stable, tax-efficient income.

Government-backed bonds ensure safety.

Returns are lower than equity but higher than FDs after tax.

Expected Outcome from the New Portfolio
Equity mutual funds can give 12-15% long-term returns.

Debt and hybrid funds provide 6-9% with tax efficiency.

Tax-free bonds give stable tax-free income.

This mix ensures safety, liquidity, and wealth creation.

Why This Strategy is Better Than FDs
FDs give post-tax returns lower than inflation.

Mutual funds provide inflation-beating growth.

Tax-efficient debt options improve returns.

This plan balances risk and reward.

Final Insights
Keeping all money in FDs limits growth.

Diversifying into mutual funds and bonds improves returns.

A mix of equity, debt, and hybrid funds works best.

This approach helps in reaching 10% after-tax returns.

Investing through a Certified Financial Planner ensures proper fund selection.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

...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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