Legally Separated After 48 Years of Marriage: Seeking Advice for a New Relationship

Ans: Thank you for your question, and I'm glad you reached out regarding the footwear options. While I am a physiotherapist and not an orthotist or podiatrist, I can offer insights based on my experience and personal use of always wearing shoes to prevent injuries and heel pain. Using sports shoes with gel heel inserts is an effective strategy for managing heel pain and calcaneal spurs. These shoes often provide better cushioning, arch support, and shock absorption, which helps reduce strain on the heel. The gel inserts offer additional padding, alleviating pressure and making walking more comfortable.

For office wear, I recommend shoes with cushioned soles to reduce the impact on your heels, good arch support to help distribute pressure evenly, and a wide toe box for added comfort, especially if you're on your feet for long periods. At home, orthopedic chappals or sandals with cushioned insoles and soft soles can provide the necessary support. Look for options that have an ergonomic design to support proper foot alignment and soft cushioning, like memory foam or gel-based insoles, for added comfort. Also foot wear must be light weight and sturdy.

While this advice is based on my personal experience of always wearing shoes particularly sports shoes, I would still recommend consulting an orthotist for more personalized guidance. However, ensuring your footwear offers sufficient cushioning and support is a great approach to managing heel pain along with Physiotherapy. Unfortunately I cannot recommend brands however I use Redtape walking sports shoes. Hope that helps

Ans: Dear Anonymous,
You don't want this but this and that, that is okay but only if this happens. You can't solve a problem by putting so many constraints. You will reach a dead end.
Instead, be ready for some compromises that are inevitable given the outcome that you wish for.

What I mean is:
If you have decided to marry this person, be ready to accept that your father may never approve of the marriage and you may have to go through it without his approval
OR
You may have to go through the task of making both families meet and then ironing out their challenges with one another

Everything may not go as per plan so, do what's you can and then if things still don't work out, accept it...ultimately if you know your decision is right, well...

Okay, I am curious...if your boyfriend has not finished his graduation, how old is he and how old are you? Your father is then fully justified worrying about this as you two are quite young. Also, why are you going to depend on your boyfriend for your financial stability, Do you not have a job? Or do you not plan on working in the future?
Don't skirt around these questions as you know that doing anything rash and foolish can impact your entire life.

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

Ans: Dear Anonymous,
Well, firstly, you were okay with something that you were not okay to start with (him focusing on work mostly) and that has set a stage for your relationship that you are and will be okay with it and he will continue to be that way without addressing his role as a husband.
Now, what is the reason for the change in his behavior, you can just keep guessing by playing games in your mind. The only way to resolve this is: to actually learn how to communicate with each other as adults, as husband and wife. The two of you have never bothered with it, yeah? Then now bother yourself by learning this new skill. Talk, communicate, listen and then take on the role of a wife in the marriage. Do the things that you would have wanted to, small expectations, those little arguments...even these can be communication letting the man know that as a wife you care and you do want your man to fulfill little things for you.
He then will start to feel useful in the marriage which is a big thing for men and once he feels that is being valued, he will tear down his wall and show up as a man and as a husband and not just a father.
So, a lot of work from your end as well for him to reciprocate and then it's a constant momentum from thereon...

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

Ans: Hello;

It is certainly a good thought.

But please do some research on coverage, sub-limits and exclusions, if any.

Seek help of an insurance advisor, if needed.

Objective is to get the desired claim, if required, without hassles.

Best wishes;

Ans: At 24, you're already investing in SIPs, a recurring deposit, and stocks. This is a good start. You also support your parents, which is admirable. However, you currently lack an emergency fund and have a Rs 30,000 loan. Let’s explore how to manage your finances efficiently while building a secure future.

Creating an Emergency Fund
Your top priority should be building an emergency fund. This fund will act as a cushion for unexpected expenses, like medical emergencies or job loss. Without it, you may have to rely on loans or liquidate investments.

Ideally, aim to save 3 to 6 months of your expenses in this fund. Start small by setting aside Rs 1,000 to Rs 2,000 per month.

Keep this fund in a savings account or a liquid mutual fund for easy access. This will ensure your money grows while remaining accessible in case of emergency.

Clearing Your Loan
You have a loan of Rs 30,000. It’s important to clear this as soon as possible to free yourself from debt. Prioritize paying off this loan before increasing your investments.

Dedicate a portion of your income toward repaying this debt, even if it means temporarily lowering your investment amounts.

Paying off debt quickly saves you money on interest, which you can then redirect towards investments.

Balancing Investments with Savings
Once your emergency fund and loan are under control, focus on increasing your investments. Your current SIP of Rs 500 is a good start but increasing it over time will help you build wealth faster.

You are also investing in stocks, which can offer high returns but come with risk. It's important to balance this with stable investments like mutual funds to diversify your portfolio.

You can consider redirecting some money from the recurring deposit towards mutual funds for better long-term growth. Actively managed mutual funds, in particular, can help you benefit from professional expertise.

Avoid Direct Funds
If you are considering direct mutual funds, remember that they may not be suitable for everyone. Without expert advice, you could choose funds that don’t match your financial goals or risk profile.

Investing through a Certified Financial Planner (CFP) or Mutual Fund Distributor (MFD) ensures you get tailored advice. Regular mutual funds give you access to this expertise, which is worth the slightly higher expense ratio.

Allocating Your Monthly Income
With a salary of Rs 25,000 and after supporting your parents, you still have room to save and invest. Once your loan is cleared and your emergency fund is set, aim to allocate around 30% of your salary to investments.

Start by increasing your SIPs over time, gradually moving from Rs 500 to Rs 2,000 or more per month. SIPs offer the benefit of rupee cost averaging, which reduces the risk of market volatility over the long term.

Systematic Investment Plan (SIP) Benefits
SIPs are a disciplined way to invest. By investing a fixed amount every month, you buy more units when prices are low and fewer when prices are high. Over time, this can yield significant returns.

Actively managed mutual funds offer better growth potential than passive options like index funds, as fund managers make informed decisions to optimize returns.

Continue with your SIP and gradually increase your contribution as your income grows.

Controlling Expenses and Budgeting
Since you’re sending money to your parents and also paying off a loan, it’s important to track your expenses. Keep your spending minimal, focus on needs over wants, and try to save more each month.

Creating a simple budget can help you manage your expenses and ensure you are saving and investing consistently.

Avoid Overexposure to Stocks
Stocks can be volatile, and putting too much money into individual stocks can expose you to risk. It’s better to have a diversified portfolio with exposure to different asset classes.

Mutual funds provide a good balance between risk and reward. They also spread your money across multiple companies, reducing the risk compared to investing in individual stocks.

You can continue investing in stocks, but limit it to a small portion of your portfolio while focusing more on mutual funds.

Tax Benefits of Investments
SIPs in mutual funds, especially in tax-saving schemes like Equity-Linked Savings Schemes (ELSS), can provide tax benefits. ELSS allows you to save on taxes while growing your wealth through equity exposure.

These funds come with a lock-in period of 3 years but offer better returns compared to traditional tax-saving options.

Use the tax benefits to your advantage while ensuring your investments are aligned with your long-term goals.

Health Insurance as a Safety Net
While you are young and healthy, it’s still important to consider getting health insurance. Medical expenses can drain your savings quickly, and having insurance ensures you don’t have to use your emergency fund or investments for healthcare costs.

Even a basic health insurance plan will provide peace of mind and protect your finances from unexpected medical bills.

Reviewing Your Financial Plan Regularly
It’s essential to review your financial plan at least once a year. As your income increases, your financial goals may change, and you will need to adjust your investments accordingly.

A Certified Financial Planner can help you make the right choices based on your changing needs and risk tolerance.

Finally
You’re in a good position to build a strong financial future. Focus on creating an emergency fund, paying off your loan, and gradually increasing your investments.

Diversify your investments to balance risk and reward, and take advantage of tax-saving opportunities.

Health insurance and a disciplined approach to saving and investing will ensure you stay on track to meet your financial goals.

Best Regards,

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

Ans: Broadly there are two types of Life Insurance Policy (1) ULIP (2) others
[ULIP insurance plan offers the dual benefit of investment to fulfil your long-term goals, and a life cover) and other policies]

1. Policy taken before 1st February 2021

The amount received on the maturity of your ULIP is free from tax as per section 10(10D) of the Income Tax Act, 1961, if the amount of premium paid is less than 10% of the sum assured you will receive [For the ULIPs that are purchased before April 2012, the rate is 20%].

2. Policy taken on or After 1st February 2021

After the amendments that were made with the 2021 budget, the returns from your ULIP will be taxed if the premium paid by you in a year exceeds Rs 2.5 lakhs. ULIP proceeds will now be charged as a Capital gain (whether long-term or short-term will be decided by the tenure)

Payouts from life insurance policies (excluding ULIPs) issued after April 1, 2023, will be taxable if the total annual premium exceeds Rs. 5 lakhs.

Ans: Such transaction will be reported by Bank through statement of financial transaction to income tax.

There are various restrictions for cash receipt like an individual cannot receive a cash loan or deposit of Rs 20,000 or more from another person within a single day, individual can not receive an amount of Rs. 2 lakh or more in cash from Single Person in a Day, against Single Transaction and for a Single Event

Ans: The LIC Pension Plus Plan is designed to provide a pension after the policyholder retires. However, let's take a closer look at its features and suitability for your retirement goals.

Key Features of LIC Pension Plus Plan
Regular Contributions: You invest Rs. 1.5 lakh annually. This amount is accumulated and invested over the policy term.

Investment Choices: The plan usually offers a choice of funds (typically debt and equity). You can select according to your risk profile.

Maturity Benefit: At the end of the term, the accumulated amount is used to purchase an annuity for your pension. Only one-third of the corpus can be withdrawn as a lump sum.

Annuity Purchase: The remaining two-thirds must be used to purchase an annuity, which will provide you with regular income post-retirement.

Is LIC Pension Plus a Good Choice for Pension?
1. Returns May Be Lower
LIC Pension Plus is largely conservative in its investment approach. The returns are typically lower compared to other pension plans or mutual funds. This means the corpus you accumulate may not grow as much as it could in higher-return investments.

Action Point: If your risk appetite allows, consider higher-return investment options to accumulate a larger retirement corpus.
2. Liquidity Constraints
One key limitation of LIC Pension Plus is its lack of flexibility. You are required to use two-thirds of the accumulated amount to purchase an annuity, which may not provide the highest return or flexibility in the future.

Action Point: You could explore more flexible investment vehicles that give you full control over the corpus and payout methods at retirement.
3. Taxation on Annuity
Annuity income is taxable, meaning the pension you receive from this plan will be added to your income and taxed as per your slab. This can reduce the actual post-tax income you receive in retirement.

Action Point: Other retirement products, like equity mutual funds, may offer more tax-efficient options for withdrawals, especially if you need a lump sum for post-retirement needs.
Comparing to Mutual Funds for Retirement Planning
1. Flexibility in Withdrawal
Equity mutual funds, especially those designed for long-term retirement planning, offer more flexibility. You can withdraw your entire corpus when needed, or structure it in a way that suits your specific financial needs in retirement.

2. Higher Return Potential
Actively managed equity funds have historically provided higher returns than traditional pension plans. This means your retirement corpus can grow much faster, giving you more financial security in your later years.

Avoid Direct Mutual Funds: While direct funds have lower costs, they lack professional guidance. It’s advisable to use a Certified Financial Planner for better decision-making and monitoring your retirement portfolio.
3. Tax Efficiency
With mutual funds, especially if held long term, you benefit from tax-efficient withdrawals. Long-term capital gains (LTCG) are taxed favorably, with gains above Rs. 1.25 lakh taxed at 12.5%. Compared to annuity income, this is a more tax-efficient way to manage retirement income.

Other Retirement Planning Considerations
1. Diversify Investments
Instead of locking all your retirement savings into one plan, consider diversifying into multiple instruments like mutual funds, hybrid funds, or even debt funds for stability. This diversification will help reduce risk and offer you better control over your retirement corpus.

2. Review Your Asset Allocation
At your age of 54, you’re approaching retirement, but still have time to grow your investments. Ensure that your portfolio is well-balanced between equity (for growth) and debt (for safety). Too much exposure to conservative products like LIC Pension Plus may limit your corpus growth.

3. Consider Inflation
Pension plans often fail to keep pace with inflation. What seems like a good monthly pension today might not be enough 10 years into your retirement. Equities and growth-oriented mutual funds are better at helping your retirement savings outpace inflation.

Final Insights
The LIC Pension Plus Plan offers some security, but it lacks flexibility and growth potential. While it provides a safe route for those who are risk-averse, it may not be the best way to maximize your retirement corpus.

Here’s what you can consider:

Keep the LIC Pension Plus if you prefer security and a guaranteed annuity. However, balance it with growth-oriented investments like mutual funds for higher returns.

Consider redeeming or switching a part of your portfolio into actively managed equity funds or hybrid funds for more balanced, long-term growth.

Consult a Certified Financial Planner to guide you through these decisions, helping you adjust your portfolio to ensure maximum returns, liquidity, and flexibility for your retirement.

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

Ans: You have a steady income of Rs 41,000 per month, with 10% going into NPS, and your monthly spending is only Rs 8,000. You also own your home, which reduces your expenses. This means you have a good surplus to invest.

Let’s assess how you can best use this surplus to build long-term wealth while keeping your financial goals and risk tolerance in mind.

Importance of Diversified Investments
With your low monthly expenses, you have a significant amount available for investment. This is a great opportunity to diversify into multiple asset classes for both growth and stability.

Instead of relying solely on fixed deposits or traditional savings, a well-diversified portfolio can give you higher returns while balancing risk.

Diversifying your investments into a mix of equity and debt ensures you grow your wealth and protect it from market volatility.

Increasing Your NPS Contribution
As you are already contributing 10% to the NPS, increasing this contribution is a great way to build your retirement corpus. The NPS offers tax benefits and can provide good returns due to its exposure to equity and debt.

Increasing your voluntary contribution can boost your retirement savings while giving you additional tax deductions.

Over time, the compounding effect in NPS can significantly add to your retirement security.

Investing in Mutual Funds for Long-Term Growth
Since you don’t have a high immediate need for liquidity, you should consider investing a significant portion in mutual funds. Mutual funds offer flexibility and higher returns than traditional savings methods.

Actively managed mutual funds have the potential to outperform index funds because fund managers make active decisions based on market conditions. This helps you get the most out of your investment, especially over the long term.

It is better to work with a Certified Financial Planner (CFP) and invest through an MFD. They can help you select the right actively managed mutual funds based on your financial goals and risk appetite.

Avoid Direct Funds
Direct mutual funds may seem attractive because of lower fees, but without proper guidance, you might pick funds that don’t perform well or don’t suit your goals.

Regular mutual funds, on the other hand, come with expert advice through an MFD. This advice can be invaluable in optimizing your portfolio, even if the expense ratio is slightly higher.

Building an Emergency Fund
Since your monthly expenses are Rs 8,000, it’s wise to keep 6 to 12 months' worth of expenses in an emergency fund. This fund can be kept in a liquid investment, such as a savings account or a liquid mutual fund, to ensure you have quick access to cash if needed.

Having an emergency fund is crucial so that you don’t need to dip into your long-term investments during unforeseen situations.

Equity and Debt Allocation for Balanced Growth
You can allocate a higher percentage to equities since you don’t have any major liabilities and your monthly spending is low. Equity mutual funds will help grow your wealth in the long term.

However, some exposure to debt is also important to stabilize your portfolio and provide predictable returns. You can invest in debt mutual funds or continue with your NPS, which already has a debt component.

A 70% equity and 30% debt allocation is a good starting point, given your risk tolerance and financial stability.

Maximize Tax Benefits
You are already getting tax benefits from NPS contributions. Additionally, investing in tax-saving instruments like Equity-Linked Savings Schemes (ELSS) can help reduce your tax liability while offering equity exposure.

ELSS funds have a lock-in period of 3 years, but they offer higher returns compared to traditional tax-saving instruments like PPF and NSC.

It is important to balance tax-saving goals with long-term growth when selecting investments.

Consider Increasing Your SIP Contributions
If you are not already doing so, you should consider starting a Systematic Investment Plan (SIP). Since you have a low monthly expenditure, you can easily allocate Rs 10,000 to Rs 15,000 towards SIPs in mutual funds.

As your income increases, you can progressively increase your SIP contributions. SIPs allow you to invest in a disciplined manner, reducing the impact of market volatility.

Health Insurance for Financial Protection
Ensure you have adequate health insurance coverage. Medical expenses can eat into your savings quickly if not planned for. As a government employee, you may already have some coverage, but it is always safer to have an additional personal health insurance policy.

This will protect your savings in case of any medical emergencies and ensure that you don’t have to compromise your financial goals.

Periodic Portfolio Review
It’s important to review your portfolio at least once a year. As markets and your financial situation change, your investment strategy may need adjustments.

A Certified Financial Planner can help you rebalance your portfolio based on market conditions and personal financial goals.

Final Insights
You are in a strong financial position, with minimal expenses and a steady income. By increasing your NPS contributions and investing in mutual funds, you can effectively grow your wealth.

Focus on a balanced portfolio of equity and debt to manage risk while maximizing returns. SIPs in actively managed mutual funds will allow you to achieve long-term growth.

Make sure to build an emergency fund and secure adequate health insurance. Regularly reviewing your investments will help you stay on track to meet your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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