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How to invest retirement benefits of 52 lakhs for mentally challenged son?

Ramalingam

Ramalingam Kalirajan  |8221 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 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
V Question by V on Jun 10, 2024Hindi
Money

I will retire from my job in next three months. I will get a pension of rs 56000, and pf and other benefits for rs 52 laks. Have my own house and will get rent of rs 35000. Daughter is married but i have a mentally challenged son. Can you suggest me how to invest my retirement benefits of 52 lakhs.

Ans: You are retiring soon and will receive a pension of Rs 56,000 per month, along with Rs 52 lakhs in provident fund (PF) and other benefits. You also own a house that generates Rs 35,000 in rent. Your daughter is married, but you have a mentally challenged son who will need long-term financial support.

Assessing Your Monthly Income and Expenses
Total Monthly Income: Your combined income from pension and rent is Rs 91,000. This provides a stable monthly cash flow.

Essential Expenses: It's crucial to assess your monthly living expenses, including medical care for your son. This will help determine how much of your monthly income is needed for daily expenses and how much can be saved or invested.

Emergency Fund Allocation
Creating a Safety Net: Allocate a portion of your Rs 52 lakhs to an emergency fund. This fund should cover at least 12 months of living expenses and any unforeseen medical costs for your son.

Safe Investment Options: Keep this emergency fund in safe and liquid options like fixed deposits or short-term debt funds. This ensures quick access to funds without risking capital.

Long-Term Care for Your Son
Dedicated Corpus: Set aside a significant portion of your Rs 52 lakhs for your son's long-term care. This corpus should be invested in low-risk options to ensure steady growth while preserving capital.

Consider Trusts: Explore setting up a trust for your son. This ensures that his financial needs are met even after your lifetime. A Certified Financial Planner (CFP) can guide you on how to structure this trust effectively.

Investment Strategy for Retirement Corpus
1. Conservative Debt Funds
Capital Preservation: Invest a portion of your retirement corpus in conservative debt funds. These funds provide steady returns with minimal risk, making them ideal for retirees.

Regular Income: Debt funds can also generate a regular income stream, supplementing your pension and rent.

2. Monthly Income Plans (MIPs)
Additional Monthly Income: Monthly Income Plans (MIPs) invest primarily in debt with a small equity component. They offer the potential for higher returns while still prioritizing safety.

Supplement Your Pension: MIPs can provide an additional income stream to cover any shortfalls in your monthly expenses.

3. Senior Citizens' Savings Scheme (SCSS)
Safe Investment: The Senior Citizens' Savings Scheme (SCSS) is a government-backed scheme offering regular interest payments. It is one of the safest options for retirees.

Regular Payouts: SCSS provides quarterly interest payouts, ensuring a steady cash flow. You can invest up to Rs 15 lakhs in this scheme.

4. Post Office Monthly Income Scheme (POMIS)
Fixed Monthly Income: The Post Office Monthly Income Scheme (POMIS) offers a fixed monthly interest payout, providing a reliable income stream.

Low Risk: POMIS is a low-risk investment, making it a good option for preserving capital while earning steady returns.

5. Balanced Mutual Funds
Controlled Risk: Balanced mutual funds invest in a mix of equity and debt. They offer moderate growth potential with controlled risk, suitable for retirees looking for some equity exposure.

Potential for Growth: While these funds are riskier than debt funds, they offer better returns. A small allocation can help grow your corpus over time.

Insurance and Health Care Planning
Health Insurance: Ensure that you and your son have adequate health insurance coverage. Medical costs can be a significant burden, especially in retirement. Consider top-up or super top-up plans to enhance your existing coverage.

Term Insurance: If you don’t already have term insurance, consider getting a policy. It can provide financial security to your family in your absence.

Planning for Inflation
Inflation Protection: It's important to invest a portion of your corpus in options that can outpace inflation. This ensures that your purchasing power is maintained over time.

Balanced Portfolio: A mix of debt and balanced funds can help manage inflation risk while providing stability.

Avoiding High-Risk Investments
Stay Away from High-Risk Options: Given your need for financial stability, avoid high-risk investments like equities, commodities, or volatile funds. These can lead to significant losses, which could be detrimental in retirement.

Focus on Capital Preservation: Prioritise investments that protect your capital and provide steady, reliable income.

Estate Planning and Will Preparation
Creating a Will: Ensure you have a will in place to clearly outline how your assets should be distributed. This will prevent legal complications and ensure your son's needs are met.

Nominees and Beneficiaries: Review and update the nominees on all your financial accounts and investments. This will ensure a smooth transfer of assets to your son or other family members.

Finally
Your retirement plan should focus on stability, regular income, and long-term security for your son. Prioritize low-risk investments, ensure you have an adequate emergency fund, and consider setting up a trust for your son. With careful planning, your Rs 52 lakhs can be invested wisely to secure your family's future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam Kalirajan  |8221 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 29, 2025

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Sir i am 49 yrs, i want guidance on investments. Presently i am investing in PPF, NPS and Mutual Fund which i started very late. Kindly suggest investment for retirement so after retirement i can get monthly income of 35000-40000 rupees.
Ans: Understanding Your Current Financial Position
You are 49 years old and planning for retirement.

You have started investing in PPF, NPS, and mutual funds.

Your goal is to secure a monthly income of Rs. 35,000-40,000 after retirement.

You need a structured investment strategy to achieve this goal.

Analysing Your Investment Approach
Starting late means you need a disciplined approach.

You must optimise your current investments for better growth.

A mix of equity and fixed-income assets is essential.

Proper asset allocation ensures stability and long-term wealth creation.

Assessing Your Retirement Goal
To generate Rs. 35,000-40,000 monthly, you need a strong corpus.

Inflation must be considered when planning.

Your corpus should sustain you for 25-30 years post-retirement.

A mix of growth and income-generating assets is necessary.

Strengthening Your Investment Strategy
1. Increase Equity Exposure for Growth
Equity mutual funds provide better long-term returns than fixed-income options.

A mix of large-cap, mid-cap, and flexi-cap funds is recommended.

Actively managed funds perform better than index funds.

Regular funds through an MFD with CFP guidance offer better support.

2. Continue PPF but Avoid Over-Allocation
PPF is safe but offers limited returns.

Extend contributions till retirement for tax-free benefits.

Do not over-invest in PPF, as liquidity is restricted.

Keep equity as a significant part of your portfolio.

3. Optimise NPS Investments
NPS provides tax benefits and market-linked returns.

Maintain a higher equity allocation till retirement.

Systematic withdrawals post-retirement ensure a stable income.

Annuity purchase is mandatory, but choose the lowest allocation.

4. Increase SIP Contributions in Mutual Funds
Increase monthly SIPs to build a strong retirement corpus.

Invest in a diversified portfolio for better risk-adjusted returns.

SIPs provide rupee cost averaging and long-term wealth creation.

Avoid direct mutual funds as they lack expert guidance.

5. Build a Fixed-Income Portfolio for Stability
Debt funds provide stability and predictable returns.

Senior Citizen Savings Scheme (SCSS) is a good post-retirement option.

Corporate bonds and RBI floating-rate bonds add security.

Avoid excessive allocation to low-yield instruments.

Creating a Retirement Withdrawal Plan
1. Systematic Withdrawal Strategy
SWP in mutual funds can generate regular monthly income.

Equity mutual funds provide tax-efficient withdrawals.

Debt instruments ensure stability during market fluctuations.

A mix of growth and income funds maintains corpus longevity.

2. Emergency Fund for Financial Security
Maintain an emergency fund for unexpected expenses.

Keep at least 12-18 months of expenses in liquid assets.

Fixed deposits and liquid funds provide easy access to funds.

Do not rely solely on investments for emergency needs.

3. Managing Inflation and Rising Expenses
Your monthly expenses will rise over time.

Equity investments help beat inflation over the long term.

Adjust withdrawal amounts as per market conditions.

Maintain a portion of funds in high-growth assets.

Securing Your Family’s Future
1. Health Insurance is a Priority
Medical costs rise with age, making health insurance crucial.

Choose a high coverage policy with lifetime renewability.

Critical illness insurance adds extra financial security.

Avoid relying solely on employer-provided health coverage.

2. Ensure Adequate Life Insurance
Term insurance protects your family’s financial future.

If dependents are financially stable, coverage can be reduced.

Do not mix insurance with investment.

Avoid ULIPs and endowment policies for retirement planning.

3. Estate Planning and Will Creation
Create a will to avoid legal complications later.

Nominate beneficiaries for all financial assets.

Keep documents updated and accessible to family members.

Consider a trusted financial executor if needed.

Finally
Retirement planning needs a balanced investment approach.

Equity mutual funds help build wealth faster than fixed-income options.

A structured withdrawal plan ensures a steady post-retirement income.

Health and life insurance secure your family’s financial well-being.

A diversified investment strategy protects against risks and inflation.

Consistent investments and disciplined planning lead to financial freedom.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

..Read more

Ramalingam

Ramalingam Kalirajan  |8221 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 20, 2025

Asked by Anonymous - Feb 19, 2025Hindi
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I'm 44, i want to retire now. Having two own houses 1cr and 2 cr value which gives 80K per month rent and have one to stay. Having agricultural land giving 1 lakh per month income. No loans . One son studying engineering and have 20 L separately for his studies. Having LIC endomenr policy wirh 50 L return and four years term to to paid ,1L per year. Having 70 L cash. Having three fixed asset plots which im not getting any income as of now and may value 15L, 40L and 2 Cr. Having health insurance of 25 L.Now i want to invest 50 L for wealth creation for my son. Please suggest me how to invest. im thinking to dispose one of my fixed asset like house and invest . Please suggest how can i grow my wealth. I have ppf 40L amount , gold 200 grams as coins and 5kg silver as bars which i can consider for investment. My monthly expenses would be 50K. What way i can invest my remaining income
Ans: You have built a strong financial base. Your rental income, agricultural income, and existing assets give you financial security. Now, let's focus on wealth creation and investment strategies for your son and yourself.

Investment of Rs 50 Lakh for Your Son
Invest Rs 30 lakh in actively managed equity mutual funds. Choose funds based on long-term growth potential.

Allocate Rs 10 lakh in a mix of mid-cap and small-cap funds for higher returns.

Put Rs 5 lakh in debt funds for stability and liquidity.

Keep Rs 5 lakh in a liquid fund for emergencies related to his education.

What to Do with LIC Endowment Policy?
Endowment policies give low returns. They are not good for wealth creation.

Surrender the policy and reinvest the maturity amount in mutual funds.

Use part of this money for equity mutual funds and part for debt funds.

Should You Sell a Fixed Asset for Investment?
Selling the Rs 2 crore plot can give a large capital for investment.

Real estate lacks liquidity and does not generate income.

Invest the sale proceeds into a combination of equity mutual funds and debt funds.

Keep a portion in REITs (Real Estate Investment Trusts) if you want real estate exposure.

Investing the Remaining Income
Your total passive income is Rs 1.8 lakh per month.

Expenses are Rs 50,000 per month.

You have a surplus of Rs 1.3 lakh per month.

Invest Rs 80,000 per month in SIP of actively managed mutual funds.

Keep Rs 50,000 in a debt fund or bank account for liquidity.

Managing PPF, Gold, and Silver
Your PPF balance of Rs 40 lakh is safe and tax-free. Let it grow.

Gold and silver are good for wealth preservation, but not wealth creation.

Convert part of your gold (Rs 10 lakh worth) into Sovereign Gold Bonds (SGBs) for interest income.

Final Insights
Invest your wealth in actively managed mutual funds through an MFD with CFP credentials.

Sell one of your fixed assets to increase liquidity and investment returns.

Reinvest LIC policy maturity into high-growth investments.

SIP investments will help in consistent wealth growth.

Keep a mix of equity, debt, and gold bonds for a balanced portfolio.

Review your investments every year to align with financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

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Ramalingam

Ramalingam Kalirajan  |8221 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 12, 2025

Asked by Anonymous - Apr 12, 2025Hindi
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I am 38 year old in IT, draws a little over 3L per month, married and 3 kids. First one in 5th standard, second in UKG and third is in play school. Wife working in IT as well drawing 2L per month. We have Two houses - one individual house estimated value (1.5 CR) with 18L loan pending paid by me (26.5k per month EMI) and other apartment nearing completion estimated value (1CR) with 50L loan pending paid by my wife (47k per month EMI). As far as other savings are concerned I have around 50L in MFs and my wife has 20L. I have 5L in stocks, 5L in FDs and 5L in other markets. My PF value is around 25L. My wife PF and Gratuity together around 20L. We have Vehicles estimated to give 10L. Currently living in a metro city for our work with expenses upto 2L per month including loans, kids education, rent etc Please tell us what more needed for us to retire and move to less expensive tier 2 place where living expenses can be between 50k - 1l name month.
Ans: Current Financial Overview
Age: 38 years

Monthly Income: Rs. 5 lakh (combined)

Monthly Expenses: Rs. 2 lakh (including EMIs)

Assets:

Mutual Funds: Rs. 70 lakh

Stocks: Rs. 5 lakh

Fixed Deposits: Rs. 5 lakh

Other Investments: Rs. 5 lakh

Provident Fund: Rs. 45 lakh (combined)

Vehicles: Rs. 10 lakh

Liabilities:

Home Loan 1: Rs. 18 lakh (EMI: Rs. 26,500)

Home Loan 2: Rs. 50 lakh (EMI: Rs. 47,000)

Retirement Corpus Estimation
Target Monthly Expenses Post-Retirement: Rs. 1 lakh

Expected Retirement Age: 50 years

Life Expectancy: 85 years

Inflation Rate: 6%

Expected Return on Investments Post-Retirement: 8%

Based on these assumptions, you would require a retirement corpus of approximately Rs. 6 crore to maintain your desired lifestyle in a tier-2 city.

Children's Education Planning
Child 1: Currently in 5th standard

Child 2: Currently in UKG

Child 3: Currently in play school

Assuming higher education costs of Rs. 25 lakh per child in today's terms and considering an education inflation rate of 10%, the future cost for each child could be significantly higher. Therefore, it's essential to start dedicated investments for each child's education.

Action Plan
Increase Savings: Aim to save at least 40% of your combined monthly income.

Debt Reduction: Prioritize paying off high-interest debts to reduce financial burden.

Investment Strategy:

Continue investing in mutual funds with a focus on long-term growth.

Diversify your portfolio to include a mix of equity and debt instruments.

Emergency Fund: Maintain an emergency fund equivalent to 6 months of expenses.

Insurance:

Ensure adequate life insurance coverage for both you and your wife.

Obtain comprehensive health insurance for the entire family.

Final Insights
You're on a solid financial path with a strong income and investment base.

Focus on increasing your savings rate and reducing liabilities.

Plan systematically for your children's education expenses.

Regularly review and adjust your investment portfolio to align with your retirement goals.

Consider consulting a Certified Financial Planner to tailor a comprehensive financial plan for your family's needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

...Read more

Nayagam P

Nayagam P P  |4417 Answers  |Ask -

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Hii sir muje aaose puchhna hai mere bete ne ssc kiboard ki exam fi hai aage ki padhai k bare me thoda confuse hai hambe dmit bhi karvaya ...to dmit k councelar ne hame science stram lene se mana kar diya hai aur engineering me bhi dalne se mana kiya hame use cse diploma me karvana chahte the lekin councelar ne commers aur arts me jane ki salah di hai dmit test par kitna trust karna chahiye kya kare
Ans: Uday Sir, thank you for reaching RediffGURU. Your concern is completely valid — and many parents face the same confusion after 10th, especially after taking a DMIT test. Let me explain everything in a clear and practical way: DMIT (Dermatoglyphics Multiple Intelligence Test) is based on fingerprint patterns and claims to assess a child’s inborn talents, personality, and learning style. While it can give some general insights, it is not scientifically proven and should not be the sole basis for career decisions. However, to some extent, Psychometric Test will be more helpful, compared to DMIT, providing some suitable career options for your son. So, use DMIT as a guidance tool, not as the final decision-maker. What Should You Focus on Instead? His Interest + Aptitude + Effort — These matter more than any test. Look at your son's performance in Maths, Science, English, etc. during SSC. Has he shown any interest in: Coding or Computers? Business or Finance? Design or Creativity? Communication or Language? Based on this, you/he can help select the right stream (Engineering | Medical | Commerce | Arts-Humanities) or he prefers Diploma (like CSE Diploma after 10th) if he's not confident about handling 11th-12th Science, then a diploma in Computer Engineering (CSE) is a good alternative. After 3 years of diploma, he can join 2nd year of Engineering (B.E/B.Tech) through lateral entry. But again, it should be based on his interest in technology or computers — not pressure.

Talk to your son — ask what he enjoys or dreams about. Use DMIT + school marks + family guidance together to decide. Don’t choose a stream only because “DMIT said so” or “log kya kahenge.” All the best for your Son's Bright Future!

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sir mene 2022-2023 baords diya tha pass nhi hua 2023-2024 diya hn pass hoga but percentage km aye then 2024-2025 krliya hn 90 percent aaye hn isme mene as a regular students karya hn naaki ki improvemnt likha nhi aayega school balo ne confirm kiyaa hn kya ab jee de skta mains and adv 2026 mein iwant to scoore good in adv sir 2026 with good rank
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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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