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Ramalingam

Ramalingam Kalirajan  |5173 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 23, 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
PADMAKUMAR Question by PADMAKUMAR on Oct 27, 2023Hindi
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i have taken voluntary retirement presently the age is 56 and plan to invest about 20-25 Lakhs, I shall also be earning a monthly pension of Rs. 32,000/- approx. Can you please suggest how to invest about 20-25 lakhs

Ans: Congratulations on taking the step towards voluntary retirement! With your pension providing a steady monthly income, investing your retirement corpus wisely can help ensure a comfortable and secure future.

Given your age and the desire for a stable investment, consider a mix of both equity and debt instruments to balance growth and safety. Here's a suggested allocation:

Emergency Fund: Ensure you have 6-12 months of living expenses in a liquid fund or a high-yield savings account for unforeseen expenses.
Fixed Deposits: Consider allocating a portion, say 30-40%, in fixed deposits or short-term debt funds. These provide stability and predictable returns.
Debt Funds: For another 30-40% of your corpus, consider investing in diversified debt funds or corporate bond funds. They offer better returns than FDs with moderate risk.
Equity Mutual Funds: With the remaining 20-30%, you can consider investing in balanced funds or hybrid equity funds. These funds provide exposure to equity markets while also having a debt component to reduce volatility.
Pension Plans: Given your pensionable age, consider investing a small portion in an immediate annuity plan or a pension scheme to further secure your monthly income.
Remember, the key is diversification and periodic review. As you move forward in your retirement journey, it might be beneficial to consult with a financial advisor to tailor this strategy further to your needs and goals.
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

Ramalingam Kalirajan  |5173 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

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I am 36 years old. i want to invest rs. 7500 per month for 12 years to get per month rs. 20 thousand as a pension scheme. can you give me a suggestion where should i invest?
Ans: Your aspiration for a pension scheme is commendable, and it's wise to plan for your future financial security at an early age. Considering your age and investment horizon of 12 years, let's explore suitable options to achieve your goal.

Given your preference for a monthly pension of Rs. 20,000, you would need to accumulate a significant corpus over the investment period to ensure a sustainable income stream post-retirement.

While traditional pension plans and annuities offer guaranteed income, they may not provide optimal returns considering inflation and taxation. Additionally, they often lack flexibility and liquidity.

Instead, you may consider investing in a combination of mutual funds and other growth-oriented assets to build a substantial corpus over time. Equity-oriented mutual funds have historically delivered higher returns compared to traditional investment avenues, making them suitable for long-term wealth creation.

You can allocate a portion of your monthly investment towards equity mutual funds, which offer the potential for capital appreciation over the long term. To mitigate risk, diversify your portfolio across large-cap, mid-cap, and multi-cap funds based on your risk tolerance and investment objectives.

Simultaneously, consider investing in debt mutual funds or fixed-income instruments to provide stability and generate regular income post-retirement. These investments can serve as a source of passive income to supplement your pension.

Moreover, systematic investment planning (SIP) allows you to invest a fixed amount regularly, ensuring discipline and consistency in your investment approach. By staying invested over the long term and leveraging the power of compounding, you can potentially achieve your desired pension goal.

However, it's crucial to periodically review your investment strategy and make necessary adjustments based on changing market conditions and your evolving financial goals.

In conclusion, by adopting a diversified investment approach tailored to your risk profile and investment horizon, you can work towards realizing your goal of a monthly pension of Rs. 20,000. Consider consulting with a Certified Financial Planner for personalized advice and guidance to optimize your investment strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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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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