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Reuniting with First Love After 55 Years: Should I Move in at 77?

Anu

Anu Krishna  |1321 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Aug 08, 2024

Anu Krishna is a mind coach and relationship expert.
The co-founder of Unfear Changemakers LLP, she has received her neuro linguistic programming training from National Federation of NeuroLinguistic Programming, USA, and her energy work specialisation from the Institute for Inner Studies, Manila.
She is an executive member of the Indian Association of Adolescent Health.... more
Asked by Anonymous - Jun 07, 2024Hindi
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Relationship

I am 77 years man. Lost my wife 4 years ago. Accidentally I met my First Love after 55 years. She is currently two time divorces with well settled 2 married children staying independently and separately. I have two well settled children and i stay with them alternatively n they take care of all my expenses. I am happy and spend time with my grandchildren. The question is that NOW my love of 55 years ago want me to shift and live with her. She assures to take care of me completely in all aspects of old age life n ailments. She has her own house n she is stlll working in very high position and is independent. Please advise.

Ans: Dear Anonymous,
You seem to have a good set-up for yourself. The question is: Why would you want to stir things up, move away from what feels comfortable at your age?
Especially when you know that your expenses have been covered by your children, would you be willing to give up a roof over your head, leave your family and move in with her?
She does mention that she will take care of you; my suggestion is...go n experience it for a few weeks for yourself. At 77, there are a few things that you may find difficult to adjust to and you really don't need to mend backwards to adjust. At the same time, it maybe a welcome change for you to have a companion.
Talk to your children; they may resist this at first and reprimand you for having such thoughts but at the end of the day, it's your life...You can tell them that you will try the arrangement for a few weeks and then come to a decision...that will also give the lady an idea whether she is able to take on your responsibility as well. Talking about things and experiencing them are two different things. Just that, you must look ta your comfort and stability in this phase of your life before making any decisions.

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

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Asked by Anonymous - Jun 10, 2024Hindi
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I'm 77,my wife 74,married for 47 years We are well settled. My wife doesn't like intimacy now because she is secure because of our son who manages family and business very well. I'm retired with just ok income. Family got settled due to my earning for 50 years. I feel neglected and insulted. To find some solace I'm considering to join some old age home. I can manage my expences. Please suggest about my plan.
Ans: Assessing Financial Readiness:
Moving to an old age home is a major financial decision. It’s important to ensure that your current income and savings can comfortably cover all associated costs, including monthly fees, medical expenses, and any additional services. Make sure your financial plan is sustainable for the long term.

Estate Planning:
Before making any major life changes, ensure your estate planning is up to date. This includes having a clear will, power of attorney, and healthcare directives in place. Proper planning will provide peace of mind and ensure your wishes are respected.

Maintaining Financial Flexibility:
Even if you move to an old age home, maintaining a financial buffer is crucial. Ensure that you have liquid assets available for any unexpected expenses. This could include a combination of savings accounts, fixed deposits, and short-term debt funds.

Final Insights
Evaluate your financial situation carefully before deciding to move to an old age home. Ensure your income, investments, and estate plans are in order to support this new phase of life comfortably.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 17, 2024

Asked by Anonymous - Jun 20, 2024Hindi
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Money
Hi , I am a 42+yrs man ,working in a BPO,dealing with Domestic violence case imposed on me for not paying maintenance(Almost emptied my saving still accused me of that),filed divorce in my defense apart from DV case.daughter of 7yrs. Wife not allowing me to do any savings but she is making savings,Gold,flats ,renovating maternal home .She is not contributing in non-profit expense .she even asked for 30lacs to get relieved from her. I got involved with a 36yr old lady who had a bad breakup and she needed emotional support and I had too due to my personal family issues and no good terms with wife . 55k monthly income TATA AIA 2 Lakhs yearly investement PF 4.5lakhs 2.5 lakh Life insurance investment against return of 5lakhs in 10yrs KVP-5 lakhs(India post) An undivided property. Not sure how to approach retirement financial security with my 69yrs old mother . Please advise an approach in this situation.
Ans: Current Financial Position
You earn Rs. 55,000 monthly. You invest Rs. 2 lakhs annually in TATA AIA. Your Provident Fund (PF) balance is Rs. 4.5 lakhs. You have life insurance with a return of Rs. 5 lakhs in 10 years. Your Kisan Vikas Patra (KVP) is worth Rs. 5 lakhs. Additionally, you have an undivided property. These assets need careful management for future security.

Immediate Financial Needs
Legal Expenses

You are facing legal issues, including domestic violence and divorce cases. Allocate a portion of your savings for legal fees. This ensures you have resources to defend yourself properly.

Daily Living Expenses

Your wife is not contributing to non-profit expenses. It is crucial to budget carefully. Track your monthly expenses and cut unnecessary costs. Ensure basic needs for you and your daughter are met.

Emergency Fund

Create an emergency fund. This should cover at least six months of living expenses. Given your legal situation, this fund is essential. It will help you manage any unforeseen expenses without financial strain.

Investment Strategy
Review Current Investments

You have significant investments, but they need reevaluation. The TATA AIA investment and life insurance policy might not yield the best returns. Consider consulting a Certified Financial Planner (CFP) to explore better options.

Kisan Vikas Patra (KVP)

KVP is a safe investment but offers moderate returns. Assess if this aligns with your long-term goals. It might be beneficial to diversify your investments for better growth.

Undivided Property

This property can be a valuable asset. Evaluate its potential for sale or rental income. This can provide additional financial support.

Future Financial Security
Retirement Planning

At 42, it is vital to plan for retirement. Start by estimating your retirement needs. Consider inflation and future living expenses. Increase your PF contributions if possible. Look into diversified mutual funds for better growth.

Mother’s Financial Support

Your mother is 69 years old. Ensure she has adequate financial support. This includes healthcare and living expenses. Set aside funds specifically for her needs.

Education Fund for Daughter

Your daughter is 7 years old. Start an education fund for her. Consider child education plans or mutual funds. This ensures her future education expenses are covered.

Dealing with Personal Issues
Emotional and Legal Support

You are dealing with significant personal stress. Seek professional legal and emotional support. This can help you manage the situation better. Join support groups or seek counseling for emotional well-being.

New Relationship

Your new relationship should be approached with caution. Ensure it does not complicate your legal issues. Prioritize resolving your current family situation first.

Investment Advice
Actively Managed Funds

Avoid index funds due to their limited flexibility. Actively managed funds, with a Certified Financial Planner’s guidance, offer better growth potential. They are managed by experts who make informed decisions, aiming for higher returns.

Regular Funds vs. Direct Funds

Direct funds might seem cost-effective but lack professional guidance. Regular funds, managed by a CFP, ensure expert handling of your investments. This can lead to better performance and peace of mind.

Final Insights
Your situation is complex, involving financial, legal, and personal issues. Prioritize legal and daily living expenses. Build an emergency fund and plan for future security. Consult a CFP for personalized investment advice. This ensures a 360-degree approach to managing your finances and securing your future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

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

Money
My age 62, male, getting rental income Rs. 90k nett. Already subscribing 12.5k in PPF for the past 2 1/2 years. No other investments. My target is 5 crores in 10 years. I already have Mediclaim Rs.50 lakhs for me & wife . Please advice me what to do.
Ans: Your current financial foundation is strong and shows promise:

A rental income of Rs. 90,000 per month provides consistent and predictable cash flow. This stability can serve as the backbone for your investment strategy.

PPF contributions of Rs. 12,500 per month for 2.5 years reflect disciplined saving. However, its returns may be insufficient to achieve a high-growth target like Rs. 5 crores in 10 years.

A robust Mediclaim policy of Rs. 50 lakhs for you and your wife ensures adequate health coverage. This safeguard allows you to focus on wealth-building without worrying about medical emergencies.

Despite these positive factors, achieving Rs. 5 crores in 10 years requires a carefully crafted and growth-oriented strategy.

Defining and Prioritising Your Financial Goals
Achieving Rs. 5 crores is ambitious yet achievable with a focused approach:

Define this target as your primary financial goal over the next decade.

Break it into manageable milestones: for example, Rs. 50 lakhs every 1-2 years in cumulative investments and growth.

Prioritise high-return investments that align with your risk tolerance and financial capacity.

Optimising Existing PPF Contributions
While PPF is a secure investment, its growth potential is limited:

Returns: PPF currently offers an interest rate of approximately 7-7.5%, which barely outpaces inflation.

Contribution Review: Consider capping your PPF contributions at Rs. 1.5 lakh annually (to utilise the Section 80C benefit). This ensures that excess funds are redirected to higher-return investments.

PPF can serve as a low-risk component of your portfolio but should not dominate your investment strategy.

Building a Diversified Investment Portfolio
A diversified portfolio will provide a balance of risk and reward. Include the following components:

1. Equity Mutual Funds for Growth
Equity mutual funds are essential for achieving high returns over the long term:

Large-Cap Funds: These invest in established companies and offer stability with moderate growth. They are ideal for a portion of your portfolio to reduce risk.

Multi-Cap or Flexi-Cap Funds: These provide exposure to companies of all sizes, offering growth and diversification.

Sectoral and Thematic Funds: Avoid these unless you have a high risk tolerance and understand market dynamics.

ELSS Funds: These not only provide tax savings under Section 80C but also deliver market-linked returns.

Why Avoid Index Funds?

Index funds may offer simplicity and lower expense ratios, but they lack flexibility. They cannot adapt to market conditions or capitalise on outperforming sectors. Actively managed funds, on the other hand, have the potential to outperform the market, especially in a developing economy like India.

Start with a Systematic Investment Plan (SIP) in selected funds to build wealth steadily.

2. Debt Mutual Funds for Stability
Debt funds add stability to your portfolio and reduce overall risk:

Choose funds with low credit risk and moderate duration to ensure safety and predictable returns.

Debt funds are suitable for short- to medium-term goals or as a fallback during market corrections.

Taxation Note: Both LTCG and STCG on debt funds are taxed as per your income tax slab. This should be factored into your planning.

3. Balanced Advantage Funds
Balanced advantage funds (BAFs) dynamically allocate assets between equity and debt. They:

Provide exposure to equity while minimising downside risk.

Offer a suitable option for someone nearing retirement but seeking growth.

4. Gold Investments for Diversification
Allocate a small portion (5-10%) of your portfolio to gold:

Gold serves as a hedge against inflation and currency depreciation.

Choose gold ETFs or sovereign gold bonds for ease of liquidity and better returns.

Emergency Fund Creation
Having an emergency fund is non-negotiable:

Maintain at least 6-12 months of expenses in liquid investments like liquid mutual funds or high-interest savings accounts.

This ensures liquidity for unforeseen events without disturbing your long-term investments.

Focus on Retirement Planning
At 62, balancing growth and safety becomes critical:

Estimate your monthly retirement expenses, considering inflation over the next 10-15 years.

Your target of Rs. 5 crores should primarily serve as your retirement corpus.

Allocate assets thoughtfully:

60-70% in equity funds for growth.
30-40% in debt funds for stability.
Periodically rebalance your portfolio to maintain this allocation.

Strategic Tax Planning
Tax efficiency can significantly impact your returns:

Continue using Section 80C to its full potential, including ELSS funds and PPF.

Consider the National Pension System (NPS) for an additional Rs. 50,000 deduction under Section 80CCD(1B).

Be mindful of the new taxation rules for mutual funds:

Equity Mutual Funds: LTCG above Rs. 1.25 lakh is taxed at 12.5%; STCG at 20%.
Debt Funds: LTCG and STCG are taxed as per your income slab.
Consult a Certified Financial Planner to optimise your tax strategy.

Regular Portfolio Monitoring and Rebalancing
Investing is not a one-time activity:

Review your portfolio every six months or annually to track performance.

Rebalance your asset allocation periodically to align with your financial goals and risk appetite.

Stay committed to SIPs even during market downturns, as this ensures cost-averaging.

Additional Suggestions
Avoid Over-Reliance on PPF
While PPF is safe, it is not sufficient for wealth creation. Shift excess contributions to equity-based investments for better returns.

Avoid Direct Stocks
Direct equity investing requires time, expertise, and constant monitoring. It carries higher risk and may lead to losses without proper research. Instead, rely on equity mutual funds managed by professionals.

Avoid Mixing Insurance and Investments
Do not invest in ULIPs or endowment plans, as they offer suboptimal returns. Stick to pure insurance products for protection and mutual funds for growth.

The Role of a Certified Financial Planner
To achieve Rs. 5 crores, a well-crafted financial plan is essential. A Certified Financial Planner (CFP) can:

Analyse your current investments and recommend improvements.

Design a customised strategy tailored to your income, expenses, and goals.

Provide periodic reviews to ensure you stay on track.

Finally
Achieving Rs. 5 crores in 10 years is a realistic goal if you adopt a disciplined and diversified approach.

Optimise your PPF contributions and channel excess funds into higher-growth investments.

Build a diversified portfolio with equity and debt mutual funds.

Include a small allocation to gold and maintain an emergency fund.

Stay consistent with your SIPs and review your investments regularly.

Work with a Certified Financial Planner to create a personalised roadmap.

By following these steps, you can secure your financial future and meet your goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...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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