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Ramalingam

Ramalingam Kalirajan  |5092 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 16, 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
Asked by Anonymous - May 08, 2024Hindi
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what are the avenues for generating regular income, for a person like me who retires in few months from now?

Ans: As you approach retirement, ensuring a steady stream of income becomes paramount to maintain financial stability and enjoy a comfortable lifestyle. Let's explore some avenues tailored to your needs:

1. Pension Plans: If you're eligible for a pension from your employer or government, it can serve as a reliable source of regular income in retirement. Evaluate the pension options available to you and understand the payout terms.

2. Annuities: Consider purchasing an annuity from a reputable insurance company. An annuity provides regular payments over a specified period or for life, offering a predictable income stream during retirement.

3. Fixed Deposits (FDs): Invest a portion of your retirement corpus in fixed deposits. FDs offer a guaranteed return at fixed interest rates, providing a steady income stream. Opt for cumulative or non-cumulative FDs based on your income requirements.

4. Senior Citizen Savings Scheme (SCSS): SCSS is specifically designed for individuals aged 60 and above, offering attractive interest rates and quarterly payouts. It provides a safe investment avenue with assured returns.

5. Dividend-Paying Stocks: Invest in dividend-paying stocks of established companies. Dividends can provide a regular source of income while offering the potential for capital appreciation over the long term. However, ensure a diversified portfolio to mitigate risks.

6. Systematic Withdrawal Plans (SWPs): If you have investments in mutual funds, consider setting up SWPs. SWPs allow you to withdraw a predetermined amount at regular intervals, providing a systematic income stream while keeping your investments intact.

7. Rental Income: If you own property, consider renting it out to generate rental income. Rental properties can provide a steady source of cash flow, supplementing your retirement income. However, be mindful of maintenance costs and tenant management.

8. Reverse Mortgage: If you own a home, explore the option of a reverse mortgage. A reverse mortgage allows you to borrow against the equity of your home while retaining ownership. It provides a regular income stream without the need to sell your property.

9. Freelancing or Consulting: Leverage your skills and expertise to take up freelancing gigs or consulting assignments. Part-time work can supplement your retirement income while keeping you engaged and productive.

10. Government Schemes: Explore government schemes targeted at senior citizens, such as the Pradhan Mantri Vaya Vandana Yojana (PMVVY). These schemes offer guaranteed returns and regular payouts, providing financial security in retirement.

Final Thoughts

As you transition into retirement, diversifying your income sources can help mitigate risks and ensure financial stability. Consider consulting with a Certified Financial Planner to tailor a retirement income plan aligned with your goals and risk tolerance.

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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Asked by Anonymous - Apr 24, 2023Hindi
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How do I earn monthly income of 2 lakhs post retirement which is 15 years away? Please suggest options
Ans: If we calculate using a few assumptions, like post-retirement life of 25 years; average inflation of 6% pa during that period, and portfolio returns of about 8% (assuming a judicious mix of equity and debt with a higher allocation to the latter), then you need to have a corpus of about Rs 4.8 Cr. This is to ensure that starting at Rs 2 lakh monthly (after 15 years), your monthly income from there on increases by at least 6% assumed inflation. And starting from zero, you need to invest about Rs 1.1 lakh per month assuming equity:debt 50:50 and this monthly investment amount should increase by at least 5% every year.

To reach this target corpus, you have a sufficiently long runway of 15 years. So you should be willing to invest a major chunk in equities via equity funds if your risk appetite allows for it. You may also have some of the existing assets, which too can be earmarked towards this retirement corpus.

As mentioned, for equity allocation, choose diversified equity funds categories like passive largecap funds, flexicap funds, and large&midcap funds (and if you have a sufficiently high-risk appetite, then mid-and-small cap funds as well). For debt, your EPF+VPF alongwith PPF should be sufficient.

When the time comes for retirement (in 15 years), you may have to divide your portfolio into 2 buckets. One to take care of income needs (via SCSS, debt funds, PPF withdrawals, bonds, etc.) and the other for growth (via equity funds and ETFs)

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Ramalingam

Ramalingam Kalirajan  |5092 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 07, 2024

Asked by Anonymous - Apr 23, 2024Hindi
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Hello sir, I am 43 and concerned about getting regular income after retirement. Could you please suggest the best retirement plan?
Ans: Planning for retirement is essential to ensure a comfortable and financially secure future. Here's a step-by-step guide to help you choose the best retirement plan:
1. Assess Your Current Financial Situation: Start by evaluating your current income, expenses, savings, investments, assets, and liabilities. Understanding your financial position will help you set realistic retirement goals.
2. Determine Your Retirement Goals: Define your retirement lifestyle and financial objectives. Consider factors such as desired retirement age, annual income needed during retirement, healthcare expenses, and any other specific goals you may have.
3. Calculate Your Retirement Corpus: Estimate the amount of money you'll need to accumulate by retirement age to meet your expenses and achieve your financial goals. Consider factors like inflation, life expectancy, and expected returns on investments.
4. Explore Retirement Planning Options:
• Employer-Sponsored Retirement Plans: If you're employed, take advantage of employer-sponsored retirement plans like EPF, NPS, or any other pension schemes offered by your employer. Maximize your contributions to these plans to build a substantial retirement corpus.
• Personal Retirement Investments: Consider investing in retirement-specific investment vehicles such as Public Provident Fund (PPF), National Pension System (NPS), Senior Citizen Savings Scheme (SCSS), or Annuity Plans from insurance companies.
• Systematic Investment Plans (SIPs): Invest regularly in mutual funds or other investment avenues through SIPs to build wealth over the long term. Choose funds that align with your risk tolerance and investment goals.
• Equity Investments: Allocate a portion of your portfolio to equity investments for potential higher returns over the long term. However, ensure proper diversification and risk management to safeguard your investments.
• Health Insurance and Emergency Fund: Secure adequate health insurance coverage for yourself and your dependents to mitigate healthcare expenses during retirement. Maintain an emergency fund to cover unforeseen expenses and emergencies.
• Consult a Financial Advisor: Consider consulting a Certified Financial Planner or retirement planning specialist to develop a personalized retirement strategy tailored to your needs, goals, and risk profile. A professional advisor can help optimize your investment portfolio, minimize tax liabilities, and ensure a smooth transition into retirement.
5. Monitor and Review Regularly: Regularly review your retirement plan and make necessary adjustments based on changes in your financial situation, goals, and market conditions. Stay disciplined with your savings and investment strategy to achieve your retirement objectives.
By following these steps and investing wisely in retirement planning options, you can build a robust financial foundation for a secure and fulfilling retirement. Remember, it's never too early to start planning for retirement, so take action today to secure your future tomorrow!

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Asked by Anonymous - Jul 18, 2024Hindi
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What is better to choose between vet or bpharm (I am a gen category student).According to my research I came to know that in today's market the bpharm graduates are not even considered as reputated pharmacists,after the degree too they get placements of 12k-15k per month only and growth even after a master's is not much. Whereas in vet gov vacancies are open but will everyone get the gov jobs ? Also in coming years what are the demands of these both fields and what is better to choose
Ans: Hi,
It seems there may be some misunderstanding and disappointment regarding the analysis of job opportunities in the pharmaceutical field. It's important to note that the pharmaceutical sector still holds promising prospects. However, it is essential for candidates to acquire in-depth knowledge. Completing a B.Pharm alone does not guarantee comprehensive expertise. It's essential to delve beyond the basic surface-level knowledge obtained during undergraduate studies. I'm unaware of your state of residence and the college where you pursued your B.Pharm.

Key locations with a strong pharmaceutical industry presence include Mumbai, Bengaluru, Hyderabad, and Ahmedabad. Chennai also has a few reputable pharmaceutical companies, albeit in limited numbers. It's crucial to consider your career choice rather than just a job. What is your preference: IT, Marketing/Sales, or Core Pharma? In IT, the remuneration is considerably higher in comparison to core pharmaceutical roles, but sustainability may be a concern. On the other hand, Sales/Marketing requires hard work but offers significantly better remuneration, e.g., INR 6-8L per annum. If the pharmaceutical industry is your preference, starting packages for fresh B. Pharm graduates typically range between INR 15,000 to 25,000.

Ultimately, the decision is yours to make. I wish you the best for your future endeavors.

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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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