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Ajit

Ajit Mishra  | Answer  |Ask -

Answered on Dec 08, 2020

Sauris Question by Sauris on Dec 08, 2020Hindi
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Money

I would like to know about these stocks which I hold

Ans:

CDSL 44 - Hold

INDIGO 37 – highly cyclical, look to exit

MUTHOOT FINANCE 75 - Hold

TATAELEXSI 25 - Hold

ZYDUS WELLNESS 45 - Hold

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  |3914 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 22, 2024

Money
Hi I m 49 year old I have monthly income of 1 lakh . I have 25 thousand of investment monthly. I have personal loan of 9 lakh I will retired at 60 . I have a planning of purchasing home of 50 lakh . Kindly suggest.
Ans: First of all, it's great to see you're proactive about your financial future. At 49, with a monthly income of Rs 1 lakh and investing Rs 25,000 monthly, you're on a solid path. Let's plan how you can manage your personal loan, save for retirement, and purchase a home worth Rs 50 lakh.

Understanding Your Current Financial Position
You have a monthly income of Rs 1 lakh and a personal loan of Rs 9 lakh. You invest Rs 25,000 monthly, which is commendable. Your goal is to retire at 60 and buy a home worth Rs 50 lakh. Let's break down how you can achieve these goals.

Managing Your Personal Loan
Importance of Reducing Debt
Your personal loan of Rs 9 lakh is a significant liability. Paying off this loan should be a priority to free up your cash flow and reduce financial stress. Personal loans usually have high-interest rates, which can eat into your savings.

Accelerating Loan Repayment
Consider allocating more funds towards your loan repayment. This might mean temporarily reducing your monthly investments. Paying off the loan faster will save you money on interest and improve your financial stability.

Balancing Loan Repayment and Investments
You don't want to stop investing altogether. Find a balance where you can pay extra towards your loan while still investing a portion of your income. This ensures you continue to build your future corpus while managing your debt.

Strategic Investment Planning
Review Your Investment Portfolio
Review your current investments to ensure they align with your long-term goals. Are you investing in a mix of equity and debt instruments? Diversification is key to managing risk and maximizing returns.

Benefits of Actively Managed Funds
Actively managed funds can offer higher returns compared to index funds. Fund managers actively select stocks, aiming to outperform the market. This can be beneficial for growing your investments faster.

Regular Investments and SIPs
Continue with your SIPs, but ensure they are in high-performing funds. Even small, regular investments can grow significantly over time due to compounding. Review the performance of your funds periodically.

Saving for Retirement
Estimating Retirement Corpus
You aim to retire at 60, which gives you 11 years to save. Estimate how much you will need for a comfortable retirement. Consider inflation and your expected lifestyle expenses.

Increasing Retirement Contributions
If possible, gradually increase your monthly investment contributions. Even a small increase can make a big difference over time. Automate your investments to ensure consistency.

Asset Allocation for Retirement
A good mix of equity and debt can help you achieve a balance between growth and stability. As you approach retirement, gradually shift towards safer, more stable investments.

Planning for Home Purchase
Evaluating Home Purchase Decision
Buying a home worth Rs 50 lakh is a big financial commitment. Ensure it fits within your long-term financial plan without straining your finances. Consider all costs, including down payment, EMIs, maintenance, and property taxes.

Saving for Down Payment
Start saving for the down payment. Typically, a down payment is 20% of the property's value, so for a Rs 50 lakh home, you'll need Rs 10 lakh. Allocate a portion of your monthly savings towards this goal.

Home Loan Considerations
If you plan to take a home loan, compare interest rates and terms from different lenders. Aim for a shorter loan tenure to save on interest. Ensure your EMI is manageable within your monthly budget.

Tax Efficiency and Benefits
Utilizing Tax-Saving Instruments
Maximize your tax-saving investments under Section 80C. This includes contributions to PPF, EPF, and ELSS. Tax savings can enhance your overall returns and help you build a larger corpus.

Regular Fund Investments
Investing through a certified financial planner can provide professional advice. Regular funds, despite higher expense ratios, come with expert guidance, which can optimize your portfolio and returns.

Creating an Emergency Fund
Importance of an Emergency Fund
An emergency fund is crucial to cover unexpected expenses. This ensures you don't have to dip into your long-term investments during financial crises.

Building the Fund
Aim to save at least 6-12 months' worth of expenses in a liquid account. Allocate a portion of your monthly savings until you reach this target. This fund should be easily accessible in emergencies.

Insurance and Risk Management
Adequate Life Insurance
Ensure you have adequate life insurance coverage to protect your family financially. Term insurance is a good option as it provides high coverage at a low premium.

Health Insurance
A comprehensive health insurance plan is essential to cover medical emergencies. This prevents large out-of-pocket expenses that can disrupt your savings and investments.

Regular Monitoring and Rebalancing
Periodic Portfolio Review
Regularly review your investment portfolio to ensure it aligns with your goals. Markets and personal circumstances change, requiring adjustments to your strategy. A certified financial planner can assist with these reviews.

Rebalancing Your Portfolio
Rebalancing involves adjusting your investments to maintain your desired asset allocation. For example, if equities have grown significantly, sell some and reinvest in underperforming assets. This helps manage risk and stay on track with your goals.

Maximizing Your Savings
Budgeting and Expense Management
Track your expenses to identify areas where you can save more. Create a budget and stick to it. This ensures you have more funds available for investments and loan repayment.

Increasing Savings Rate
As your income grows, aim to increase your savings rate. Even small increments can significantly impact your final corpus due to the power of compounding. Automate savings to ensure consistency.

Leveraging Employer Benefits
Provident Fund Contributions
Ensure you maximize your contributions to the Employee Provident Fund (EPF). This is a safe and tax-efficient way to build your retirement corpus.

Voluntary Provident Fund (VPF)
Consider contributing to the Voluntary Provident Fund (VPF) if you can save more. VPF offers the same benefits as EPF, with guaranteed returns and tax benefits.

Long-Term Investment Strategies
Compounding Power
The power of compounding cannot be overstated. The earlier you start investing, the more your money grows over time. Regular investments and reinvesting returns accelerate growth.

Staying Invested
Market fluctuations are normal. Stay invested for the long term to ride out volatility. Equity markets tend to deliver good returns over extended periods.

Avoiding Emotional Decisions
Investment decisions should be based on logic, not emotions. Avoid making impulsive decisions based on market movements. A certified financial planner can provide an objective perspective.

Planning for Inflation and Taxes
Inflation Protection
Inflation can erode your purchasing power over time. Ensure your investments grow faster than inflation. Equities and other high-growth investments generally outpace inflation.

Tax Planning
Tax-efficient investing is crucial. Utilize available tax deductions and exemptions. For instance, investments in PPF, EPF, and certain mutual funds offer tax benefits. Consult with a tax advisor to optimize your tax strategy, ensuring you retain more of your returns.

Final Insights
Managing your personal loan, saving for retirement, and planning to buy a home are significant financial goals. With disciplined savings and strategic investments, you can achieve these goals. Focus on reducing your personal loan, maximizing your savings, and investing wisely. Regularly review and adjust your financial plan to stay on track. With consistent efforts and careful planning, you can secure a comfortable retirement and fulfill your dream of purchasing a home.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Kanchan

Kanchan Rai  |253 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jun 22, 2024

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Relationship
I am 37 and my husband is 41....married for 13 years have a son ....12...and a daughter 10....want to have more kids ...but he has lots of familial...social and business responsibilities...also ...he smokes...but financially we both r comfortably well off..right now his business is a little difficult as he has to be in Mizoram...I am from central I doa n he is from Bangalore...I have lost both my parents....but have support of my siblings ..he has lots of issues with his mom sister... He has another wife n two daughters from her 6 and 4...that was a situation it happened...which I can't explain...right now...but anyways ...I have come to terms with it... What do I do to.convince him...he has already taken a lot of money and jewellery from me...plus inhave always been fulfilling joint family responsibilies...as all relatives kept coming to our house...wedding s engagements.and all...at our house....some wud even stay for months...now it's better but still our sex life...is very bad....very rare ..hardly any...he is good to me n is an upright man and an upright father ...
Ans: First, it’s important to take a step back and consider the broader context of your marriage. You’ve been together for 13 years and have built a life that includes managing extensive familial and social responsibilities. Your husband's current challenges with his business in Mizoram, coupled with his obligations from his other marriage and children, add layers of complexity. Recognizing and acknowledging these pressures is essential in understanding his potential hesitations.

When approaching the topic of expanding your family, try to create a space for open and honest dialogue. Choose a time when you both are relaxed and not distracted by daily stresses. Start by expressing your own feelings and desires gently. Share why having another child is important to you and how you envision it enriching your family. It’s helpful to frame this in terms of shared dreams and the joy that children bring, rather than focusing on it as a need or demand.

However, it’s equally important to listen to his perspective. Given the strain of his business and the complexities of managing multiple familial commitments, he might have valid concerns about adding more responsibilities. Explore these concerns with empathy and without judgment. Understanding his fears and pressures can open up avenues for finding solutions together.

Discussing his health, particularly his smoking, can also be a sensitive but necessary topic. Smoking can affect both his health and fertility, and it’s something that should be addressed openly. Encourage a conversation about his well-being, focusing on how improving health can benefit him personally and potentially improve your sex life, which you’ve noted has been infrequent. This could lead to exploring ways to enhance intimacy and connection, which might be a critical factor in your decision to have more children.

Financial stability, as you mentioned, is a positive aspect, but it’s essential to ensure that both of you feel emotionally and mentally prepared for another child. It might help to discuss how the financial aspects can support hiring help or making other arrangements to ease the burden of additional responsibilities.

Given the complexities with his other family, it's vital to consider how another child will impact all involved, including your existing children and his daughters from his other marriage. Ensuring that your household can provide the emotional support and stability for another child is crucial.

Given your supportive siblings, perhaps they could help in some ways, providing a bit of relief from your joint family responsibilities. This could potentially make the idea of expanding your family seem less daunting to your husband.

Finally, reflecting on your own needs and boundaries is equally important. If there are aspects of your relationship or family dynamics that feel unbalanced or unaddressed, consider seeking professional counseling. A therapist can provide a neutral space for both of you to explore these issues and find a path forward that honors both your desires and the realities of your life together.

In conclusion, approaching this conversation with empathy, understanding, and a readiness to listen and compromise is key. It’s about finding a balance that respects both of your wishes and the practicalities of your shared life.

...Read more

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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