Sir,I have worked in private company from March 2011 to Sep 2021 where my pf amount was deducted.l have completed 10 years 5 months service and resigned but not withdrawn pf amount.I want to get pension after 60 years what should I do ?

Ans: If your daughter is career-focused and wants maximum exposure to the tech industry, BIT Bangalore is generally considered the better option for CSE, especially due to its location, placement record, and academic rigor. However, if she values campus life, a broader peer group, and a more relaxed academic environment, SRM KTR is also an excellent choice. Both colleges offer good opportunities, but BIT Bangalore has a slight edge for CSE due to its strong industry connections and reputation in the tech sector. All the best for your daughter's admission and a bright future!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

Ans: 01. Always receive Rent from Tenants through banking channels, which would be proof of actual rent received by you during the year. Still better, if you can get LEASE DEED from your tenants, for the period of their occupancy of your flats.
02. Claim VACANCY ALLOWANCE (for the period when your Flats remain vacant), under the head "Income from House Property", while filing your ITR.
Hope this will serve your purpose.
Most welcome for any further clarifications. Thanks.

Ans: Hi Akshaya,
We still have time to receive the results from the NTA. Based on your prediction of 351-368, it is difficult to achieve, so you must stay alert for notifications from the government regarding private medical college admissions.

BEST WISHES.
POOCHO. LIIFE CHANGE KARO!

Ans: Hi Shyam,
We still have time to receive the results from the NTA. Based on your prediction of 300, it is difficult to achieve, so you must stay alert for notifications from the government regarding private medical college admissions.
BEST WISHES.
POOCHO. LIFE CHANGE KARO!

Ans: There should not be any problem in accepting a cheque for return of Advance Paid to your landlord, at the time of vacating the house. Ask him or get an assurance from him about the time within which, you would deposit the cheque for clearing.
Most welcome for any further clarifications. Thanks.

Ans: Hi Mrunalini,
it is available. Google it.
best wishes.
POOCHO. LIFE CHANGE KARO!

Ans: You and your wife are already doing a good job by taking joint financial responsibility. Your EMI is currently manageable. The drop in repo rates gives a good window to restructure the strategy for early loan closure.

Let us now build a 360-degree strategy to help you close this home loan earlier than planned.

Present Financial Setup
Your home loan is Rs. 90 lakh.

Rs. 68.85 lakh is disbursed, and Rs. 21.15 lakh is yet to be released.

Your joint monthly income is Rs. 1.35 lakh.

EMI is Rs. 55,000 per month for now.

The interest rate has slightly reduced recently due to repo rate drop.

Your EMI burden has reduced a little, which helps.

Strategy 1: Prioritise Partial Prepayments
Any bonus, gift, or extra income can be used to prepay the loan.

Even a small prepayment once in 6 months reduces interest in the long run.

Prepay only from surplus, not from your emergency fund.

It helps to request the bank that all prepayments should reduce tenure, not EMI.

Strategy 2: Increase EMI Every Year
Every year, your income might rise slightly.

Use part of that rise to increase EMI voluntarily.

A 5% annual increase in EMI can save many years of tenure.

Even Rs. 2,000 more in EMI monthly can create strong impact.

Strategy 3: Build Prepayment Fund Separately
Open a recurring deposit or a debt mutual fund.

Deposit a fixed amount monthly.

Once in 12 or 18 months, withdraw and use for prepayment.

This is useful if you cannot prepay every month.

Strategy 4: Use Tax Refunds and Yearly Increments
Every year, you may get tax refund.

Instead of spending it, use it for loan prepayment.

Year-end salary increments should partly go towards EMI increase.

Avoid lifestyle inflation during raise in salary.

Strategy 5: Target Rs. 1 Lakh Prepayment Per Year
If both of you manage Rs. 50,000 each in a year, target is done.

Rs. 1 lakh annual prepayment cuts both tenure and total interest.

Consistency is more important than amount.

Strategy 6: Protect Emergency Fund
Maintain 6 to 9 months of expenses as emergency fund.

Do not touch this for prepayments.

It gives financial peace and avoids stress during job loss.

Strategy 7: Do Not Increase EMI Burden Too Much
Total EMI should not cross 40% of combined income.

Don’t stretch finances too tight for prepayment.

Balance is more important than aggression.

Strategy 8: Do Not Go for Higher Tenure Again
If interest rate drops, do not extend loan tenure again.

Ask bank to reduce EMI or keep EMI same but reduce tenure.

Tenure reduction saves maximum interest.

Strategy 9: Avoid Unnecessary Loans
Avoid buying car or electronics on EMI during this period.

More loans will delay your goal of early closure.

Strategy 10: Invest Only After Building Stability
Prepay loan first before going for long-term investments.

You can start SIPs and other goals once EMI is under control.

But keep PF, insurance, and child education savings intact.

Strategy 11: Avoid Interest Rate Shock in Future
If possible, shift to fixed rate after 3 to 5 years.

That will protect you from rate increase cycles.

Discuss with your bank when most of disbursal is done.

Strategy 12: Track and Stay Focused
Keep a simple Excel sheet to track balance and prepayments.

Visual tracking helps stay motivated.

Reward yourself after every prepayment milestone.

Finally
Early loan closure is fully possible with your current income level.

You and your wife are already doing well by maintaining a balance between EMI and lifestyle.

Using surplus income for prepayment, increasing EMI step by step, and avoiding unnecessary expenses can reduce your 30-year loan to 12-15 years.

Loan closure should be done with balance and planning, not stress or over-commitment.

You don’t need to be aggressive. You need to be consistent.

Focus on liquidity, stability, and controlled prepayments.

You are on the right path. Just stay focused and structured.

Once the home loan is cleared, your long-term wealth building journey will be very strong.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: He has shown good discipline by investing Rs. 13 lakh in mutual funds, now valued at Rs. 19 lakh. However, using the entire mutual fund corpus to buy a Rs. 55 lakh apartment may not be the best decision. Let’s explore this further.

Current Financial Snapshot
Combined monthly income: Rs. 1.10 lakh

Mutual fund corpus: Rs. 19 lakh (initial investment: Rs. 13 lakh)

Proposed apartment cost: Rs. 55 lakh

Proposed home loan: Rs. 36 lakh

Dependent: 3-month-old daughter

Assessing the Home Loan Affordability
With a combined income of Rs. 1.10 lakh, a Rs. 36 lakh loan over 20 years would result in an EMI of approximately Rs. 30,000.

This EMI would consume about 27% of their monthly income, which is within the generally recommended limit of 30-40%.

Evaluating the Decision to Liquidate Mutual Funds
Selling the entire mutual fund corpus would eliminate their emergency fund and long-term investment growth potential.

They would also incur a long-term capital gains tax of 12.5% on gains exceeding Rs. 1.25 lakh.

Alternative Strategies
Partial Liquidation: Consider selling a portion of the mutual funds to reduce the loan amount, while retaining some investments for future growth and emergencies.

Emergency Fund: Maintain at least 6 months' worth of expenses in a liquid form to cover unforeseen circumstances.

Child's Future: Start a separate investment plan for the child's education and other future needs.

Final Insights
While purchasing a home is a significant milestone, it's essential to balance this with financial stability.

Retaining some mutual fund investments can provide financial security and growth.

It's advisable to consult with a Certified Financial Planner to tailor a plan that aligns with their financial goals and responsibilities.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Ans: You already have a good income and discipline. Let’s look at how to move ahead wisely.

Here is a full plan that is practical and complete from all sides.

 

Cash Flow and Current Liabilities

Your income is Rs. 3.2 lakhs per month. That is very strong.

 

EMI outflow is Rs. 45,000. That’s about 14% of your salary.

 

You also receive Rs. 6,500 rent, used for household expenses. That is fine.

 

Current emergency fund is Rs. 7 lakhs. Your target is Rs. 15 lakhs.

 

This goal is important. You must prioritise this fully before new investments.

 

Your home loan is long, 200 months remaining. That’s about 16.5 years.

 

Emergency Fund Planning

Your goal of Rs. 15 lakhs is suitable based on your lifestyle.

 

Continue building it with part of your monthly surplus.

 

Keep this fund in safe, liquid FDs or liquid mutual funds.

 

Don’t invest this fund into risky or long-term assets.

 

Emergency fund must be ready for any medical or job loss event.

 

Review of Existing Commitments

You’re paying Rs. 1 lakh per year in LIC for your parents. That’s a total of Rs. 10 lakhs in 10 years.

 

These traditional policies give poor returns. Usually below 5% annual returns.

 

You may consider stopping these if possible. Check surrender value from LIC.

 

If you surrender, reinvest in mutual funds through Certified Financial Planner.

 

That can give you much better long-term wealth creation.

 

Term Insurance Planning

You are thinking of term insurance. That is a wise step.

 

Just one term plan is enough. Multiple term policies are not required.

 

Term plan is pure protection. There is no maturity value. Only death benefit.

 

Buy only from a trusted insurer. Use online or offline method. Either is fine.

 

Choose coverage 15 to 20 times of your annual income. That will protect your family.

 

Ensure the term insurance covers till age 60 or 65.

 

Gold Investment Review

Buying 20 grams gold every year is a habit you follow.

 

You have already saved around Rs. 15 lakhs in gold.

 

Please do not increase gold allocation further. Already enough is done.

 

Gold does not grow like equity. It does not give interest or dividends.

 

Keep it only as 5% to 10% of your total wealth. Not more.

 

Home Loan Repayment vs. Investing

You are repaying a long-term home loan.

 

Loan interest gives tax benefit on interest and principal.

 

Don’t rush to repay the home loan early.

 

Instead, use monthly savings to build assets.

 

Good investments will grow more than the loan interest rate.

 

So wealth creation is better than early loan closure.

 

Once your emergency fund is done, focus on investments.

 

Investment Strategy to Build Wealth

Start monthly SIPs in actively managed mutual funds.

 

Don’t go for direct plans. They don’t give guidance or tracking.

 

Invest through regular plans with a Certified Financial Planner.

 

That gives personal help, portfolio review, goal mapping and tax planning.

 

Direct funds don’t provide this support.

 

SIP should be spread across large cap, flexi cap and midcap categories.

 

You can add hybrid funds too. Based on your risk level.

 

Actively managed funds do better than index funds.

 

Index funds don’t beat inflation. They only copy the index.

 

In active funds, skilled fund managers try to beat the market.

 

Start with Rs. 50,000 SIP monthly if you can.

 

After full emergency fund, you may increase further.

 

Debt Reduction Strategy

Continue EMI payments for now without lump sum repayment.

 

Your surplus should go to wealth creation, not loan prepayment.

 

But after 8-10 years, you can consider partial prepayment.

 

That will save interest and reduce loan term.

 

Keep this flexible. Don’t make it a fixed goal now.

 

Retirement and PF

Your PF corpus is around Rs. 2.5 lakhs now.

 

This is a long-term saving. Continue it as per company policy.

 

PF should be part of your retirement plan.

 

But don’t rely only on PF. Inflation will reduce its real value.

 

Mutual funds can help create more retirement wealth.

 

Review retirement plan with your Certified Financial Planner every 3 years.

 

Health Insurance Check

You have Rs. 50 lakh coverage across two policies.

 

That is a strong and wise decision.

 

Review if your parents are covered. If not, consider separate policy for them.

 

Health costs are rising. Good coverage is a must.

 

Ideal Monthly Saving Target

Your monthly income is Rs. 3.2 lakhs.

 

Your fixed outflow (EMI and essential expenses) is around Rs. 1.2 lakhs.

 

You can comfortably save Rs. 1.5 lakh per month.

 

Split it into emergency fund, SIPs and short-term goals.

 

Prioritise goal-based investing, not random saving.

 

Track your net worth every year to monitor progress.

 

Suggested Investment Buckets

Emergency Fund: Top up from 7 lakhs to 15 lakhs first.

 

SIP in Mutual Funds: Start with Rs. 50,000 monthly.

 

Gold: Stop buying more. Keep current holding only.

 

Short Term Goals: Use recurring deposit or ultra-short debt fund.

 

Tax Saving: Use ELSS mutual funds, not insurance or ULIPs.

 

Retirement: Long-term equity mutual funds for high growth.

 

Important Financial Habits to Maintain

Always save before you spend. Make saving automatic.

 

Don’t mix insurance and investment. Keep both separate.

 

Review your plan every 12 months.

 

Avoid personal loans and credit card EMIs.

 

Take help from Certified Financial Planner when required.

 

Finally

You have good income and financial discipline already.

 

Emergency fund, term cover and SIP should be top focus now.

 

Do not increase gold allocation anymore.

 

Don’t buy another term plan from second insurer. One is enough.

 

No need to rush with loan prepayment. Focus on wealth creation.

 

Mutual funds through MFD and CFP guidance is better than DIY plans.

 

Avoid traditional LIC policies. Use that money for mutual funds instead.

 

If you follow this path, you can become debt-free and wealthy in 12-15 years.

 

Best Regards,
 
K. Ramalingam, MBA, CFP,
 
Chief Financial Planner,
 
www.holisticinvestment.in
 
https://www.youtube.com/@HolisticInvestment