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Sanjeev Govila | Answer |Ask -Follow

Financial Planner - Answered on Nov 08, 2023

Colonel Sanjeev Govila (retd) is the founder of Hum Fauji Initiatives, a financial planning company dedicated to the armed forces personnel and their families.
He has over 12 years of experience in financial planning and is a SEBI certified registered investment advisor; he is also accredited with AMFI and IRDA.... more

Question by Rajeev on Nov 08, 2023Hindi

Money

sir my son has just started earning and i want to save some amount from his salary to send him for higher studies.Kindly advise how i could do so.Now i am putting 20 thousand in FD from his salary every month.Kindly advise

Ans: It is difficult to give my opinion on this since I have no idea of what is the likely time horizon of your investment.

If you wish to send him within next 1-2 years, then probably a Recurring Deposit (RD) in a bank or a SIP in a debt fund is right way to invest. If the time horizon is longer, then SIP in a Debt fund, Hybrid Fund or an equity fund would be better, more tax efficient and more flexible. Please consult a financial advisor if you feel you need professional help for this.

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 |7559 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 23, 2024

Question by Prashant - Nov 14, 2023Hindi

Money

Dear Sir, My son is in 7th grade and I want to save 15 lakhs when he completes his 12th grade for his higher education. Pls advise best investment options for this. How much should I save every month and in which funds. Regards

Ans: planning for your child's education is a heartfelt commitment. Here’s a tailored strategy for you:

Investment Horizon: You have approximately 5 years to reach your goal. This is a medium-term horizon, and considering this, a balanced approach is advisable.
Monthly Savings: To accumulate 15 lakhs in 5 years, you would need to save around 25,000 per month, assuming an annual return of 10%. This is a ballpark figure and can vary based on market conditions and fund performance.
Investment Options:
Equity Mutual Funds: Given the 5-year horizon, equity funds can offer potentially higher returns. Opt for a mix of large-cap, mid-cap, and multi-cap funds to diversify and spread risk.
Debt Mutual Funds: To add stability to your portfolio, consider allocating a portion to debt funds or fixed-income instruments.
Tax Efficiency: Look for tax-saving mutual funds under Section 80C if you haven’t exhausted the limit. This can provide tax benefits and align with your investment goal.
Asset Allocation:
Equity: 60-70% for growth potential.
Debt: 30-40% for stability and capital preservation.
Review & Adjust: Periodically review your investments to ensure they are on track to meet your goal. If needed, adjust your investments based on performance and market conditions.
Education Inflation: Keep in mind the inflation rate for education expenses, which tends to be higher than general inflation. Adjust your savings goal periodically to account for this.
Emergency Fund: While saving for your child's education, ensure you have an emergency fund to cover unexpected expenses. This will prevent you from dipping into your education savings.
Remember, the key to achieving your goal is disciplined saving, informed investing, and regular monitoring. Your dedication to your son’s education is commendable, and with prudent planning, you can certainly realize this dream. Best wishes for your savings journey!

Ramalingam Kalirajan |7559 Answers |Ask -Follow

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

Asked by Anonymous - Apr 16, 2024Hindi

Money

Sir , i am 35 yrs old earing 55k monthly , I am married and 2 son . I have no saving no sip ,my expenses are 25 k monthly so can you tell me how can I save for my child's future education .

Ans: Given your monthly income, expenses, and family responsibilities, it's essential to start saving and investing for your child's future education. Here's a simple plan to help you get started:

Budgeting and Savings:

Track Expenses: Monitor your monthly expenses to identify areas where you can reduce spending and increase savings.
Emergency Fund: Build an emergency fund equivalent to 3-6 months of expenses in a liquid and accessible form to handle unexpected expenses without tapping into your investments.
Start SIPs for Child's Education:

Investment Amount: Allocate a portion of your monthly savings towards SIPs in mutual funds to build a corpus for your child's education.
Asset Allocation: Consider a balanced allocation between equity and debt mutual funds based on your risk tolerance, time horizon, and financial goals.
Investment Duration: Start SIPs with a long-term perspective (e.g., 10-15 years) to benefit from the power of compounding and potential market growth.
Education Planning:

Calculate Future Expenses: Estimate the future cost of education for your children based on the current cost and expected inflation rate.
Investment Goal: Set a specific investment goal and target amount to achieve by the time your children reach college age.
Regular Review: Periodically review and adjust your SIPs and investment strategy to stay on track towards achieving your education savings goal.
Insurance Coverage:

Life Insurance: Ensure you have adequate life insurance coverage to provide financial security to your family in case of any unforeseen events.
Health Insurance: Invest in a comprehensive health insurance plan to cover medical expenses and ensure your family's well-being.
Recommendation:

Start Early: Begin investing as early as possible to benefit from the power of compounding and achieve your education savings goal.
Systematic Investment: Start SIPs in mutual funds to build a disciplined saving habit and accumulate wealth over time.
Financial Discipline: Maintain financial discipline, avoid unnecessary expenses, and stay committed to your investment plan to achieve your financial goals.
Consult with a financial advisor to create a personalized education savings plan tailored to your needs, helping you achieve your financial goals and secure your children's future.

Dev Ashish | Answer |Ask -Follow

MF Expert, Financial Planner - Answered on Jun 25, 2024

Asked by Anonymous - Jun 25, 2024Hindi

Money

Hello, I am 43 yrs old and have a govt job . M monthly salary is 1 lakhs. I have two kids of age 13yrs and 8yrs.. How can I save a good amount for higher studies if my kids.

Ans: While your monthly salary is Rs 1 lakh, the surplus available after expenses is not known. But to give you an idea about how much would the investment requirement for both kids, we can run a simulation.

For the elder child aged 13 years, you have about 5 years to save money. If we assume a goal cost of Rs 20 lakh (in today's value) and adjust it for 10% inflation over the next 5 years, then the corpus required in 5 years will be about Rs 32 lakh. And since details of existing savings aren't available, then at 50:50 Equity:Debt allocation, you will need to start investing Rs 37,500 per month. And this amount needs to be increased by at least 5% each year (assuming similar growth in income) for the next 10 years.

Similarly for the younger child aged 8 years, you have about 10 years to save money. If we assume a goal cost of Rs 20 lakh (in today's value) and adjust it for 10% inflation over the next 10 years, then the corpus required in 10 years will be about Rs 52 lakh. And since details of existing savings aren't available, then at 75:25 Equity:Debt allocation, you will need to start investing Rs 20,500 per month. And this amount needs to be increased by at least 5% each year (assuming similar growth in income) for the next 10 years.

We don't have information about your risk appetite. But assuming that it is at least moderately aggressive, then, you can start investing in a combination of largecap index funds, flexicap funds, midcap funds.

Thanks
Dev Ashish,
SEBI Registered Investment Advisor (Fee-Only RIA)
Founder, StableInvestor.com
Twitter (@Stableinvestor)

Note (Disclaimer) - As a SEBI RIA, I cannot comment on specific schemes/funds that are provided or asked for in the questions in the platform. And the views expressed above should not be considered professional investment advice or advertisement or otherwise. No specific product/service recommendations have been made and the answers here are for general educational purposes only. The readers are requested to take into consideration all the risk factors including their financial condition, suitability to risk-return profile and the like and take professional investment advice before investing.

Moneywize |174 Answers |Ask -Follow

Financial Planner - Answered on Sep 03, 2024

Asked by Anonymous - Sep 02, 2024Hindi

Money

I am 43-year-old and have a private job. My annual income is Rs 12 lakh and my monthly take home is 80,000. I have two kids of 15 and 8. How can I save a good amount for higher studies of my children?

Ans: Saving for Your Children's Higher Education

Understanding Your Needs

Given your annual income and monthly take-home, saving for your children's higher education is a commendable goal. To create a solid plan, consider the following:

• Estimated Costs: Research the projected costs of higher education for the courses your children might pursue. This includes tuition fees, living expenses, and other related costs.
• Time Horizon: Determine how many years you have to save. This will depend on your children's ages and their planned start dates for higher education.

Investment Strategies

Here are some effective investment strategies to consider:

1. Systematic Investment Plan (SIP) in Equity Mutual Funds:

• Benefits: Offers regular investment, potential for higher returns, and tax benefits under Section 80C of the Income Tax Act.
• Considerations: Involves market risk, and returns can fluctuate.

2. Public Provident Fund (PPF):

• Benefits: Provides guaranteed returns, tax benefits, and a long-term investment horizon.
• Considerations: Lower potential returns compared to equity funds.

3. National Pension Scheme (NPS):

• Benefits: Offers tax benefits, a pension plan, and the option to invest in various asset classes.
• Considerations: Lock-in period and potential for lower returns in certain asset classes.

4. Child Education Plans:

• Benefits: Often offer a combination of insurance and investment components.
• Considerations: Can be more expensive and may have limited flexibility.

5. Additional Tips

• Start Early: The earlier you start saving, the more time your investments have to grow.
• Diversify Your Investments: Spread your investments across different asset classes to manage risk.
• Review and Adjust Your Plan: Regularly assess your financial situation and adjust your investment strategy as needed.
• Consider Education Loans: As a backup plan, explore education loan options if you fall short of your savings goals.

6. Consulting a Financial Advisor

For personalised advice and to create a tailored plan, consider consulting a financial advisor. They can help you assess your risk tolerance, recommend suitable investment options, and track your progress toward your savings goals.

By following these guidelines and making consistent contributions to your savings, you can significantly increase your chances of providing your children with the financial resources they need for their higher education.

Latest Questions

Ramalingam Kalirajan |7559 Answers |Ask -Follow

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

Question by ANWAR - Dec 19, 2024Hindi

Money

My Dad is in possession of two two rooms in a pagdi system which has completed all formalities for redevelopment(Dad has given n registered 1 room each to me n my sister) Redevelopment awaiting IOD. Now suddenly my Dads brother comes n claims he has share in the property possessed by my dad for 40-50 years since my dads father passed away 50yrs back and my Dads mother passed away 40 years back. He is just trying to harass us.... Principally my Dad has given his brothers n sisters share without ne documentation long long back. Can my Uncle harm us legally?

Ans: Your father appears to have been in possession of the property for over 40 years.

Pagdi properties often carry rights based on tenancy rather than ownership.

If the property was transferred to your father under the pagdi system and he has been paying rent, he holds legal possession.

Registered documentation for the division between you and your sister strengthens your claim.

Possible Claims by Your Uncle
Your uncle may claim a share based on inheritance rights under Hindu Succession Law.

If your grandfather owned the property, and no formal division occurred, heirs may claim rights.

However, your father’s possession for decades under the pagdi system may override such claims.

Legal Strength of Your Position
Proof of Possession: Your father’s long possession and rent payment history are critical.

Documented Transfers: Registered division of rooms to you and your sister strengthens legal standing.

No Recent Claims: Your uncle has not raised this issue for decades, weakening his claim.

Actions to Protect Your Rights
Obtain Legal Documentation
Gather all proof of rent payment under the pagdi system.

Secure redevelopment-related documents, including agreements and registration.

Consult a Property Lawyer
Seek advice from a property lawyer with expertise in inheritance disputes.

The lawyer can assess the specific facts and prepare for legal defense if needed.

File a Declaratory Suit
If the uncle continues harassment, consider filing a declaratory suit.

This will establish ownership rights and protect against frivolous claims.

Redevelopment Considerations
Ensure the redevelopment agreement includes clear clauses protecting your rights.

Involve a lawyer to review the redevelopment agreement for legal safeguards.

Final Insights
Your uncle’s claim may not hold much legal weight if there is no supporting documentation.

The long possession under the pagdi system and your father’s actions strengthen your position.

Take legal action if harassment continues to avoid disruptions during redevelopment.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Anu Krishna |1447 Answers |Ask -Follow

Relationships Expert, Mind Coach - Answered on Jan 20, 2025

Question by niveditha - Jan 19, 2025Hindi

Relationship

hi maam im in love with a guy who i met in hyd im 24 years nd he is 28 we both r in love with eachother and wanna marry eachother but the prblm is that i come from a christian family and he comes from a hindu family my mom is not ready to accept him just because he is a hindu and my family r forcing me to get married to a christian guy itself they r mentally forcing me everyday to leave him just because he is a hindu nd our caste is different my family seperated me from him and forcing me to get married to a guy of their choice and in my family there r 16 members who have had love marriages i took help of my relative who also had a love marriage to convince my parents and help us to get married but she is the one who add more fake rumors and more fuel about him that he is doing timepass even if they talk to him in calls they say that he is not lifting our calls at all i have all the recordings but still they r lying to me nd my mom saying that he is not ready to talk about her it became difficult for me to convince them my mom listen to my relatives as they say and so they do i dont have anyone to support me to get married to my bf plz help i wanna marry him only and i see future with him he is the only one who make me laugh play with me like how a dad plays with his daughter i havent got the love from my parents when im getting the love from him they seperated me from him and forcefully bought me to my native place nd not letting me meet or see him im depressed asking my parents to meet him but they r like no we dont like him my parents r not ready to understand and they r saying he is with u only for ur money he also told my relatives that i dont want money but still they r keeping on adding fuel and mentally harrasing me to get married to someone else they r forcefully trying to get me married to someone else i wanna marry him only what should i do plz help i love him so does he

Ans: Dear Niveditha,
What caught my eye was the fact that you seem to have found the love that parents give their children with this person. This is not healthy as you are searching for what you lack in someone else. Work on this...and if this is the reason that you actually are in love with this person, you really need to work it.
Now when it comes to your parents' acceptance, your partner has to put in efforts to win them over and on your part rather than playing this emotionally with them, make your parents see what you see in your partner in terms of traits, qualities etc...And the less you involve family members into this circus, the better. At times, people come to have their share of fun by making things worse...So, be wise about who you involve.

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

Dr Nandita Palshetkar |42 Answers |Ask -Follow

Gynaecologist, IVF expert - Answered on Jan 20, 2025

Asked by Anonymous - Jan 09, 2025Hindi

Health

I haven’t yet shared this with anyone close to me because I’m too embarrassed, but I know I need to do something about it. I’m a 35-year-old woman, and recently I’ve been dealing with some embarrassing and uncomfortable issues related to urinary and fecal leakage. It started happening gradually, and at first, I thought it was just a one-off situation. But now, it’s becoming more frequent. It happens more often when I’m exercising or when I laugh or cough too hard, and sometimes I even feel a little leakage while I’m just sitting down or going about my daily activities. I’m wondering if this is something that’s common, or if it’s more serious than I think. Please advice. Thank you in advance

Ans: History noted
You are being 35 years
It is advisable to
Diagnostic evaluation should include maternal and paternal karyotypes, assessment of the uterine anatomy, and evaluation for thyroid dysfunction and immunological causes, APS, and selected thrombophilia's. In some women, evaluation for insulin resistance, ovarian reserve, antithyroid antibodies, and prolactin disorders may be indicated.
To do semen analysis also
To check for DNA FRAGMENTATION
TO DO hysteroscopy to evaluate the uterine cavity and rule out chronic endometritis

Dr Nandita Palshetkar |42 Answers |Ask -Follow

Gynaecologist, IVF expert - Answered on Jan 20, 2025

Asked by Anonymous - Jan 06, 2025Hindi

Health

My husband is 39, I am 38. We are married for 5 years. My in-laws are always asking us when we're going to have a baby. Truth is, we are trying all options. Every family gathering turns into an uncomfortable conversation, and there's so much pressure. I know they mean well, but it triggers a lot of stress and sometimes even guilt on my part. I feel judged, and it makes me uncomfortable sharing the truth about our fertility struggles. How can I explain our situation to them in a way that they understand, without feeling embarrassed or judged?

Ans: Explain the situation: Let them know that infertility is a life crisis that can affect many aspects of a person's life.
Ask for support: Let them know what you need from them, such as phone calls or questions.
Be respectful: Respect their need for privacy and don't ask leading questions.
Acknowledge their feelings: Don't minimize their feelings or compare their experience to others.
Be present: Meet them where they are at and be available to talk or hug.
Be patient: Infertility can be a life-long journey, so don't expect them to share everything right away.
Educate them: You can teach them about the medical aspects of infertility and how to deal with the emotional side.

Dr Nandita Palshetkar |42 Answers |Ask -Follow

Gynaecologist, IVF expert - Answered on Jan 20, 2025

Asked by Anonymous - Jan 05, 2025Hindi

Health

I had my periods on 21 dec and then on 27 dec I took ipill n now I hav periods on 3rd Jan.. so it okay or hav some problem

Ans: If you had periods in 7 days with history of i pill taken,
There are chances if menstrual irregularities, spotting or having irregular periods due to hormonal imbalance

Anu Krishna |1447 Answers |Ask -Follow

Relationships Expert, Mind Coach - Answered on Jan 20, 2025

Question by HVM - Jan 11, 2025Hindi

Relationship

Hi Sir/madam, I am married from 2 years my husband husband and my parents have issues as when they meet have fights so no peace could you please advice.

Ans: Dear HVM,
All of them are grown-ups; if they can't behave like one, please don't let them meet at all...It unnecessarily stresses you out.
Can your parents not understand what these fights are doing to you? If they don't, please tell them...
Can your husband not understand what these fights are doing to you? If he doesn't, please tell him...

Hopefully they stop acting immature and at least move into a place where they can just tolerate one another and act neutral. That's enough.

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

Anu Krishna |1447 Answers |Ask -Follow

Relationships Expert, Mind Coach - Answered on Jan 20, 2025

Question by minu - Jan 11, 2025Hindi

Relationship

Hi Anu I m married got last 18 years . I have 2 daughters .Elder us in 11th std science and younger is in 5th std . I more attached yo my younger daughter. I am always scolding my elder daughter as she doesn’t listen to me at all and always acts the opposite of what I tell her . She also doesn’t share anything about her life or any events or her plans with me or my husband. I come to know from her friends or there parents which annoys me a lot . Also myself and my husband relationship is not at all good . We are having lots of financial issues . He has incurred major loss in stock market and he wants to set it right and is involved with wrong people for making things proper. He’s hot zero knowledge of stock market and has taken multiple loans and now my parents are repaying the loans . He’s not ready to listen to anyone and also trying to avoid any kind if communication or conversation with me . Even our daughters are not getting good family support during there crucial age . I Ann confused and don’t understand how yo handle him and due to this issues I am always stressed and all my anger is on my daughter. Please guide me

Ans: Dear Minu,
It's possible that your older daughter has been a witness to many arguments between you and your husband in her growing years and that could have caused her to shut down and be within herself.
Whatever the reason, what's the point in being angry with her? When we want to see a behavior change from our children, it's our turn first. So, as parents work on your relationship first. When children grow up in a loving environment, they feel loved and are able to trust their parents. Work on building that trust with her where she feels safe to share things with you and her father...
It comes right back to the two of you as parents...
About his financial issues, I cannot suggest what he can do or not...but you can certainly talk to him about how it has begun to eat into your savings and how much it is bothering you. Hopefully when the two of you work on your relationship, he will be in a place where he will hear you out better.

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

Ramalingam Kalirajan |7559 Answers |Ask -Follow

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

Asked by Anonymous - Jan 19, 2025Hindi

Money

Hello Sir I am at 49 and would like to retire at 52 . Need your opinion for better quality life till 75 year atleast . SIP approx 40k per month My monthly expenses approx - 50-60k Normal living ,spend 1-2 lacs on travels on tourism every year . My assets and liabilities as below Assets - As on date Cash - 2.25 cr Pf and gratuity- 1.5 cr Pension funds - 80 lacs approx Own house Liability - Daughter studing graduation ( 1.5 lacs per annum ) Son at class 10th . Would like to pursue engineering . Marriages for Son and daughter . Kindly guide ..

Ans: Retiring at 52 and ensuring a comfortable life until 75 is achievable with focused financial planning. Here’s a comprehensive plan tailored to your goals.

Current Financial Situation
Assets
Cash Savings: Rs. 2.25 crore

PF and Gratuity: Rs. 1.5 crore

Pension Funds: Rs. 80 lakh

Own House: Secure asset, no housing liability

Liabilities
Children’s Education: Rs. 1.5 lakh per annum for your daughter’s graduation; son’s engineering yet to begin

Marriages: Undefined costs; planning for two weddings

Lifestyle Expenses
Monthly Expenses: Rs. 50,000 to Rs. 60,000

Travel Budget: Rs. 1 lakh to Rs. 2 lakh annually

Recommendations for Retirement Planning
Goal Assessment
Maintain monthly expenses of Rs. 60,000 until age 75.

Budget for Rs. 20 lakh each for children’s weddings.

Allocate Rs. 1.5 lakh annually for children’s education.

Retirement Corpus Requirement
You need a retirement fund generating Rs. 60,000 monthly.

Factor in inflation, healthcare, and lifestyle upgrades.

A well-diversified portfolio will sustain these requirements.

Investment Strategy
Systematic Investment Plan (SIP)
Continue Rs. 40,000 SIP monthly for the next three years.

Allocate SIPs across equity funds for growth and debt funds for stability.

Asset Reallocation
Cash Reserves: Set aside Rs. 1 crore in debt mutual funds.

Equity Allocation: Invest Rs. 80 lakh from pension funds in equity mutual funds.

PF and Gratuity: Keep Rs. 1.5 crore intact for long-term use.

Emergency Fund: Maintain Rs. 20 lakh in a liquid fund.

Children’s Education and Marriage
Education Planning
Allocate Rs. 10 lakh for daughter’s remaining education.

Start investing Rs. 20,000 monthly in balanced advantage funds for son’s education.

Marriage Planning
Invest Rs. 10 lakh each in hybrid mutual funds for weddings.

Target 7–8% annual returns with moderate risk.

Travel and Lifestyle
Annual Travel Budget
Invest Rs. 10 lakh in a short-term debt fund.

Withdraw from this fund annually to support travel plans.

Lifestyle Upgrades
Allocate Rs. 5 lakh for one-time home or lifestyle improvements.
Insurance Planning
Life Insurance
Review your term insurance coverage of Rs. 50 lakh.

Consider increasing coverage to Rs. 1 crore until 65.

Health Insurance
Ensure family coverage of at least Rs. 20 lakh.

Upgrade health insurance policies if needed.

Tax Optimisation
ELSS for Tax Savings
Invest in ELSS funds under Section 80C.

Target Rs. 1.5 lakh annual deduction for tax benefits.

Mutual Fund Taxation
Equity fund LTCG above Rs. 1.25 lakh taxed at 12.5%.

Debt fund LTCG taxed as per your income slab.

Additional Recommendations
Emergency Planning
Keep Rs. 20 lakh in fixed deposits or liquid funds.

Ensure accessibility during health or family emergencies.

Contingency Fund
Create a Rs. 10 lakh contingency fund for unplanned expenses.
Periodic Review
Review financial plans annually with a Certified Financial Planner.

Adjust investments as per changing family needs.

Finally
Retirement at 52 with a secure future is realistic with disciplined investments.

Focus on balancing lifestyle, children’s needs, and wealth creation.

Reassess your plan every year to stay aligned with goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ramalingam Kalirajan |7559 Answers |Ask -Follow

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

Asked by Anonymous - Jan 19, 2025Hindi

Money

I am 49 year old with 1 daughter 16y and wife family. My daughter is studying 11th std. she want go for CS engg. after 12th. I have currently 32 L PPF. term plan 50L. some FD of about 3L My current salary is 75K/month and monthly expenditure is about 30K I have following Mutual fund. 1. parag parikh flexi cap fund 5000/- 2. CR blue cheap fund 5000/- 3. PGIM midcap fund 5000/- 4. Quant small cap fund 5000/- 5. Mirac asste ELSS fund 5000/- I want to increase ELSS fund for tax rebate benefit. Upto this year i invest in PPF 12.5K every month. i want minimize the amount in PPF and increase amount in ELSS fund. I require corpus of 2L each year for next 4 year for daughter education in next to next year. Also i want to generate about 1 cr for my daughter marriage and after retirement life. Kindly provide some suggestion.

Ans: Your financial situation shows a commendable focus on disciplined savings and investments. Below is a 360-degree plan to meet your daughter’s education, marriage, and retirement needs effectively.

Current Financial Snapshot
Key Highlights
PPF Balance: Rs. 32 lakh

Term Insurance: Rs. 50 lakh (adequate for current needs)

FD Balance: Rs. 3 lakh

Mutual Fund SIPs: Rs. 25,000 monthly across diversified categories

Salary: Rs. 75,000 monthly

Monthly Expenses: Rs. 30,000

Observations
Your existing investments are diversified and balanced.

Current SIPs are aligned with long-term wealth creation.

PPF allocation is high and could be moderated.

ELSS investment can help optimise tax savings further.

Recommendations to Meet Education Needs
Target Amount
You require Rs. 2 lakh yearly for the next four years.
Strategy
Allocate the FD balance of Rs. 3 lakh towards education.

Redirect Rs. 5,000 monthly from PPF to a short-term debt mutual fund.

Debt mutual funds provide stable returns and liquidity.

Additional Tips
Keep funds easily accessible to avoid breaking long-term investments.

Plan withdrawals from PPF strategically to preserve its tax-free benefits.

Building Rs. 1 Crore for Marriage and Retirement
Marriage Corpus
Set a target to accumulate Rs. 50 lakh in 15 years.
Retirement Corpus
Aim for an additional Rs. 50 lakh over 15-20 years.
Asset Allocation
Equity Mutual Funds: Allocate 60% for long-term growth.

Debt Mutual Funds: Allocate 30% for stability and diversification.

ELSS Funds: Increase contribution to Rs. 10,000 monthly.

Fund Allocation
Keep existing SIPs in flexi-cap, mid-cap, small-cap, and ELSS funds.

Consider adding a balanced advantage fund for dynamic equity-debt allocation.

Redirect Rs. 7,500 monthly from PPF to new ELSS and debt funds.

Tax Efficiency
ELSS investments offer up to Rs. 1.5 lakh deduction under Section 80C.

For equity funds, LTCG above Rs. 1.25 lakh is taxed at 12.5%.

Debt funds are taxed based on your income tax slab.

Optimising PPF Contributions
Reduce PPF Contributions
Reduce monthly PPF contributions to Rs. 5,000.

Use the freed amount for ELSS and short-term goals.

Plan Withdrawals
PPF allows partial withdrawals after 7 years.

Use this option for education expenses, if needed.

Insurance Evaluation
Term Insurance
Rs. 50 lakh is sufficient currently.

Reassess coverage every five years.

Health Insurance
Ensure adequate health insurance for your family.

Minimum Rs. 10 lakh coverage is recommended for unforeseen medical needs.

Emergency Fund Planning
Current Status
Rs. 3 lakh FD serves as an emergency fund.
Recommendation
Maintain six months’ expenses (around Rs. 1.8 lakh) as liquid reserves.

Move any excess FD amount to a debt mutual fund.

Investment Discipline
Automate Investments
Continue with systematic investment plans (SIPs).

Increase SIP amounts annually with salary hikes.

Avoid Emotional Decisions
Stick to planned investments during market fluctuations.

Focus on long-term goals and avoid frequent withdrawals.

Final Insights
Your financial planning is on the right track with a disciplined approach.

Balancing education, marriage, and retirement goals is achievable with focused investments.

Reallocate funds strategically to optimise returns and tax benefits.

A Certified Financial Planner can guide you further in portfolio optimisation.

Stay consistent and reassess your plan annually.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ramalingam Kalirajan |7559 Answers |Ask -Follow

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

Asked by Anonymous - Jan 19, 2025Hindi

Money

What should I do when I have to much loan. At the moment am not working.

Ans: Having too much loan and no current income is challenging but not unmanageable. By following a structured approach, you can regain financial stability. Below is a detailed step-by-step plan to address this situation.

Assess Your Loan Situation
List All Loans
Write down all loans with outstanding amounts.

Include home loans, personal loans, car loans, and credit card debts.

Note the interest rates and EMI amounts for each loan.

Prioritise Debts
Prioritise high-interest loans like credit card debts and personal loans.

Low-interest loans can be managed later.

Check Loan Tenure
Understand the remaining tenure of each loan.

This will help in planning repayments effectively.

Create a Temporary Budget
Analyse Monthly Expenses
List essential expenses like food, utilities, and rent.

Avoid unnecessary spending like dining out or online shopping.

Cut Costs
Reduce discretionary expenses to free up cash flow.

Look for cheaper alternatives in daily living.

Allocate for Loan Repayment
Use any available funds to cover immediate EMIs.

Ensure timely payments to avoid penalties.

Explore Alternative Income Sources
Leverage Skills
Identify skills that can help you earn part-time income.

Freelancing, tutoring, or consulting can bring immediate cash flow.

Sell Unused Assets
Sell assets like gold, gadgets, or a second vehicle.

Use the proceeds to repay high-interest loans.

Liquidate Non-Essential Investments
Check for liquid investments like FDs or mutual funds.

Use these funds to reduce your debt burden.

Restructure Loans
Request Loan Moratorium
Approach your bank for a temporary moratorium on EMIs.

This provides breathing space for a few months.

Consolidate Loans
Combine high-interest loans into a single low-interest loan.

This simplifies repayment and reduces monthly outflows.

Extend Loan Tenure
Request lenders to increase the loan tenure.

This lowers EMIs but increases total interest.

Negotiate with Lenders
Request Reduced EMIs
Speak with lenders about lowering EMI amounts temporarily.

They may agree based on your repayment history.

Waive Penalties
Request lenders to waive penalties for delayed payments.

Many lenders are flexible during financial hardships.

Avoid Common Mistakes
Do Not Ignore Payments
Skipping payments will increase penalties and impact your credit score.
Avoid New Loans
Do not take additional loans to repay existing ones.

This creates a debt trap.

Avoid Loan Sharks
Do not borrow from informal sources with exorbitant interest rates.
Seek Professional Guidance
Certified Financial Planner Support
Work with a Certified Financial Planner to create a structured debt repayment plan.

They will help you balance short-term and long-term needs.

Debt Counsellors
Consider debt counselling services for expert negotiation with lenders.

They provide tailored solutions to manage your debt.

Emergency Measures
Borrow from Family or Friends
Request a short-term loan from family or friends without interest.

Use this only as a last resort and repay promptly.

Tap into Savings
Use savings cautiously for essential loan repayments.

Do not exhaust emergency funds completely.

Final Insights
Managing high loans without income requires careful planning and action.

Prioritise high-interest loans and negotiate with lenders for relief.

Explore alternative income sources to create cash flow.

A Certified Financial Planner can help you achieve long-term stability.

Stay disciplined, and avoid impulsive financial decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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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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