Hi Anu , This Raaj here this side, I have seen your views on the relationship here on this site . so for that I need your help and your valuable expertise . About myself I am 42 yrs self employed businessman ,I got married in march 2010, it was a arrange marriage . from the day 1 there is a problem and it increases day after day. From the that wedlock I had baby girl . from 2012 situation got worsened matrimonial cases started it continued for next 4-5 yrs . after long battle I got divorced in 2016-17. This divorce cost me a lot , bcoz of that I lost my friends , social stigma, financial lost ( hefty alimony)and lot other problem which are associated with this . Now the main problem comes here , as after my divorce I was not ready to get re marry again but my parents are pressuring mr to get settle again ASAP. After long persuation I said ok …. I started searching my own and parents also started there own . In last 4 yrs I have seen lot of prospects ……..( kissi ko main nahi pasand , kissi ko mera kamm nahi pasand , kissi ko mere parents ke sath rehna nahi pasand …….. kissio ko meri income se problem hai,……………toa kuch mujhe nahi jachi.)there is lot of pressure on me that I should be perfect now after my divorce . after all this I had few good prospects ………….1. she was good but she wasnot happy with my income , she said no to me initially but continued talking and we are still in touch as she moved to Australia in APR 2019.As now we r really very good friends now ,Jab main usme interested tha toa usne na boll diya ………but jab usne dubarra reconsider karke propose kiya toa maine na boll diya. Than in 2020 COVID hits which upsets everybody’s life .360degree . In NOV 2020 I met 1 girl on one of the matrimonial sites ….we shared our details stated talking to each other , she liked me but didn’t responded her positively but continued our talks………in march2021 pata nahi kaise aur kyu …..maine use propose kiya…… maine use milne uske passd gaya ……….we talked …..shared our thoughts ….spend good time ……..but raat ko ghar vapis aa ke maine use NO kar diya . REASON is not known ya kahu toa main darr gaya tha .because of this she also got upst and that makes her depressed. For next 10 days I was so depressed I didn’t had my proper meal ……nothing all. I was in guilt ,that make me depressed for really long . I was only thinking about her only all the time nothing else, On 2nd JULY 21 ko maine pher user message kiya ………. After 2-3 days after my sorry and all that we started talking again. Everything stated good again .now in last week of july 2021 my father got severe heart attack ……and he had a surgery . Now they are pressuring me again that I should get settle soon ……..all my family members and sister and all. Maine Phir usko marriage ke liye tyar kiya aur phir batt ko STOP kar diya . and this tym mujhe gharwalo se aur sab se bahut anbun ho gayi. Ab mujhe samaj aa rahi ki main kya karu . main shaddi to karna chata hoon par kissi pe trust nahi kar pa raha hoon . mere ghar valo ka mujh pe bahut pressure hai . there are some other problem which I would like to disscuss in future . pls help me what should I do , I m feeling helpless . Thanks Raaj

Ans: Given your financial situation and aspirations, it's essential to devise a comprehensive retirement plan that addresses your income, expenses, investments, and retirement goals.

Starting with your income, considering your monthly salary of 29,484 after TDS, along with the additional support from your father and interest income from FDs and loans provided, you have a steady income stream.

Your investments, including RD, PPF, SBI pension investment, LIC endowment, and commercial property, provide a diversified portfolio. However, it's crucial to evaluate each investment's performance, risk, and suitability for your retirement goals.

Regarding your expenses, with an estimated monthly expense of 10,000, it's important to factor in inflation and potential lifestyle changes in retirement. Planning for contingencies and unexpected expenses is prudent.

To assess if your current investments are sufficient for retirement, consider your retirement goals, including travel expenses. With a target of 30 lakhs for travel over the next 5-6 years, it's essential to calculate the required investment amount to achieve this goal within the specified timeframe.

Since your salary varies due to the nature of your job, it's advisable to create a buffer or emergency fund to cover any income fluctuations or unforeseen expenses.

Consulting with a Certified Financial Planner can provide personalized insights and recommendations tailored to your financial situation, retirement goals, and risk tolerance. They can help you optimize your investment strategy, identify potential gaps, and create a roadmap for achieving your retirement aspirations.

Remember, retirement planning is a dynamic process that requires periodic review and adjustments. Stay proactive, monitor your investments, and make informed decisions to ensure a secure and fulfilling retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Certainly, selecting the right mutual fund schemes is crucial for achieving your long-term financial goals. Let's evaluate the schemes you've chosen and suggest some additional options:

Quant Active Fund: This fund follows an active investment strategy, aiming to outperform the market by selecting stocks based on quantitative analysis. While active funds can potentially generate higher returns, they also come with higher expense ratios and manager risk. Keep an eye on its performance relative to its benchmark and peers.
Quant Mid Cap Fund: Mid-cap funds invest in companies with medium market capitalization, offering growth potential but with higher risk compared to large-cap funds. Quant Mid Cap Fund's performance may fluctuate with market conditions, so ensure it aligns with your risk tolerance and investment horizon.
ICICI Retirement Fund: Retirement funds are designed to provide a suitable asset allocation based on your retirement age. ICICI Retirement Fund offers different options based on your risk appetite and retirement horizon. Evaluate its suitability based on your retirement goals and risk tolerance.

Considering your long-term investment horizon, it's crucial to maintain a diversified portfolio aligned with your risk tolerance and financial goals. Regular review and rebalancing are essential to adapt to evolving market dynamics.

Remember, investing is a journey, and staying disciplined during market fluctuations is key to long-term success. Keep your focus on your goals, and with careful planning and guidance, you can achieve financial security and peace of mind.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Your mutual fund portfolio appears to be well-diversified across different categories, offering exposure to large-cap, flexi-cap, and mid-cap segments. Let's delve into some insights and recommendations:
1. UTI Nifty 50 Index Fund: Investing in an index fund tracking the Nifty 50 provides broad exposure to India's top 50 companies. It's a reliable choice for long-term wealth accumulation, especially considering its low expense ratio and consistent performance.
2. Parag Parikh Flexi Cap Fund: This fund follows a flexible investment approach, allowing it to invest across market capitalizations. Its global diversification and focus on quality stocks make it suitable for investors seeking a balanced approach to wealth creation.
3. Quant Flexi Cap Fund: Flexi-cap funds offer the flexibility to invest across market segments based on market conditions. However, Quant Flexi Cap Fund's performance may vary due to its quantitative investment approach. Keep an eye on its performance relative to peers.
4. ICICI Midcap 150 Index Fund: Mid-cap funds have the potential for higher returns but come with increased volatility. Investing in a mid-cap index fund like ICICI Midcap 150 can provide exposure to mid-sized companies while mitigating individual stock risk.
5. Kotak Large & Midcap Fund: This fund combines investments in both large and mid-cap stocks, offering diversification across market segments. It's crucial to monitor the fund's performance and ensure it aligns with your investment objectives.
Active vs. Passive Management:
While you've included both actively managed mutual funds and index funds (ETFs) in your portfolio, it's important to understand the differences between the two. Actively managed funds aim to outperform the market through active stock selection and portfolio management, while index funds passively track a specific index's performance.
Benefits of Actively Managed Funds:
Actively managed funds offer the potential for higher returns compared to index funds, especially during market inefficiencies or when skilled fund managers can identify lucrative investment opportunities. Additionally, active management allows for flexibility in portfolio construction and adjustments based on market conditions.
Potential Disadvantages of Index Funds:
While index funds offer low expense ratios and broad market exposure, they may lack the potential for outperformance compared to actively managed funds. Additionally, they're subject to tracking error, which occurs when the fund's performance deviates from the index it's designed to replicate.
Considering your investment horizon of 2-3 years for SIP and a plan to hold the accumulated amount for the next 5 years, it's essential to review your portfolio periodically. Keep an eye on fund performance, market conditions, and your financial goals to make necessary adjustments.
Given your diversified investment portfolio with equity shares, Sovereign Gold Bonds (SGBs), and Fixed Deposits (FDs), ensure a balanced allocation aligned with your risk tolerance and retirement goals. As you approach retirement in 6-7 years, consider gradually shifting towards more conservative investment options to safeguard capital.
Consulting with a Certified Financial Planner can provide personalized guidance tailored to your financial situation and retirement aspirations.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: Hello Geo, I'm doing well, thank you for asking. It sounds like you have several factors to consider in your retirement planning, especially regarding your children's education expenses and your retirement goals.

With your investments totaling 2.6 crores in stocks, mutual funds, and portfolio management services, along with 40 lakhs in your Provident Fund and a monthly rent of 2 lakhs, you seem to have built a substantial corpus for retirement. Additionally, having the option to liquidate one of your properties for 3 crores provides flexibility in case of unforeseen circumstances.

Considering your monthly expenses of 1 lakh, your retirement income from investments and rental income should comfortably cover your basic needs. Your medical insurance coverage also seems robust, which is crucial for maintaining financial security during retirement.

However, it's essential to account for inflation and potential fluctuations in investment returns. While your current investments may suffice for your retirement needs, periodic reassessment and adjustments may be necessary to ensure your financial security throughout retirement.

Regarding your children's education expenses, it's commendable that you've earmarked funds for their education. By carefully planning the timing and allocation of these expenses, you can minimize the impact on your retirement corpus.

Your estimated travel expenses during retirement are reasonable and can be accommodated within your budget.

Overall, with prudent financial management and careful planning, it seems feasible for you to retire comfortably without touching your real estate investments. However, consulting with a Certified Financial Planner can provide personalized insights and recommendations tailored to your specific financial situation and goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Given your goals of becoming debt-free and retiring comfortably by age 50 with either a monthly income of 6 lakhs or a corpus of 30 crores, it's crucial to devise a strategic financial plan.

Firstly, let's address your loans. With a total outstanding home loan of 44 lakhs and a car loan of 4 lakhs, your monthly EMIs sum up to 140k. Your current monthly expenses are 142k, leaving little room for savings.

Considering your 7 lakhs in the PF account, utilizing a portion of it to reduce your high-interest loans can be beneficial. However, completely depleting your PF may not be advisable due to its impact on retirement savings.

Refinancing your loans to lower interest rates or increasing your income through side hustles could help manage the debt burden. Redirecting a portion of your monthly expenses towards loan repayment can also accelerate the process.

Now, regarding your investments, while Tata AIA Fortune Plus Plan can provide returns, it's essential to ensure that your insurance needs are adequately met separately. Avoid mixing investments with insurance to optimize both aspects.

For retirement planning, achieving a monthly income of 6 lakhs at age 50 or accumulating a corpus of 30 crores necessitates a disciplined approach. You may need to increase your investment contributions substantially and explore diverse investment avenues to achieve such ambitious targets.

Consulting with a Certified Financial Planner can provide personalized guidance tailored to your financial situation and goals. They can help structure a comprehensive financial plan encompassing debt management, investment strategies, and retirement planning.

Remember, achieving financial freedom requires dedication, patience, and informed decision-making. Stay committed to your goals, and with prudent financial management, you can realize your aspirations.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Given your situation, it's understandable to seek ways to manage your loans effectively. Drawing from your EPF account can seem like a tempting option to make a substantial down payment. However, it's crucial to assess the long-term implications before making a decision.

Taking a significant chunk from your EPF can impact your retirement savings. It's like borrowing from your future self. While it may alleviate immediate financial strain, it could compromise your financial security later on.

Consider the interest rates of your home and car loans. If the interest on these loans is higher than what your EPF is earning, it might make sense to prioritize paying off those loans gradually rather than depleting your EPF savings.

Moreover, exhausting your EPF prematurely means missing out on potential compounding growth. This growth could significantly augment your retirement corpus over time.

Exploring alternative strategies to manage your loans, like restructuring your EMIs or increasing your income, could be more sustainable approaches. It might require some adjustments, but it's crucial to protect your long-term financial well-being.

Remember, financial decisions should align with your overall goals and priorities. While it's essential to address immediate concerns, it's equally vital to safeguard your future financial stability.

I encourage you to consult with a Certified Financial Planner to devise a comprehensive financial plan tailored to your needs and aspirations.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Here's how interest is applied on your PF if you claim it after March 2024:

Interest Rate:

The interest rate for the financial year 2023-24 (ending March 2024) has been declared as 8.25%. This will be applied to your PF balance until March 31st, 2024.
Broken Period Interest:

Interest for the period after March 2024 will be credited at a rate notified by the EPFO (Employees' Provident Fund Organisation) for that specific period. This rate is usually lower than the declared annual rate.
The EPFO typically announces the interest rate for the broken period later in the year.
Crediting Interest at Claim Approval:

When your PF claim is approved, the interest for the financial year 2023-24 (8.25%) will be automatically calculated and credited to your account.
The broken period interest will also be calculated based on the notified rate and credited at the time of claim settlement.
Here are some resources for further information:

The EPFO website might not have the latest broken period interest rate yet, but you can check for updates on their official site: https://www.epfindia.gov.in/
I hope this clarifies how interest is handled on PF claims made after March 2024.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: It's great to hear about your proactive approach towards retirement planning. Let's assess your current financial position and estimate the funds required for a comfortable retired life after 5 years:
1. Existing Assets:
• Own house and a plot worth Rs. 50 lakhs: These assets provide stability and potential for appreciation over time.
• Fixed Deposit of 1 crore: Offers liquidity and stability in your portfolio.
• Mutual fund investment of Rs. 5 lakhs: Provides diversification and growth potential.
2. Monthly Savings:
• Your tax-free savings of Rs. 2,25,000 per month are impressive and will contribute significantly towards building your retirement corpus.
3. Future Expenses:
• Consider your anticipated expenses post-retirement, including living expenses, healthcare, travel, and other leisure activities.
• Estimate your children's education and marriage expenses if any.
4. Income Sources in Retirement:
• Assess your expected income sources in retirement, such as pension, rental income, interest from investments, and any other sources.
5. Gap Analysis:
• Calculate the shortfall between your estimated expenses in retirement and your expected income sources.
• Determine how much additional funds you need to bridge this gap.
Given your current financial assets, monthly savings, and future income sources, it seems you're well-positioned for a comfortable retired life. However, it's essential to consider inflation and potential healthcare expenses in retirement.
As a Certified Financial Planner, I recommend consulting with a professional to conduct a detailed analysis of your retirement needs and develop a customized financial plan. They can help you determine the additional funds required and suggest suitable investment strategies to achieve your retirement goals.
By continuing your disciplined savings approach and investing wisely, you can ensure a financially secure and fulfilling retired life for you and your family.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: It's impressive to hear about your consistent returns from mutual funds over the past several years. A 10% CAGR is indeed a commendable achievement and reflects your prudent investment decisions.

Considering your investment horizon of 3-5 years, shifting to 2-3 ELSS funds by SIP can be a strategic move. Here's an evaluation of this approach:

• ELSS funds offer the dual benefit of tax savings under Section 80C and potential wealth creation through equity investments.
• By diversifying your portfolio across multiple ELSS funds, you can spread your risk and potentially enhance your returns.
• SIPs in ELSS funds allow you to invest systematically, taking advantage of rupee-cost averaging and reducing the impact of market volatility.

However, it's essential to consider a few factors before making this shift:
• ELSS funds have a lock-in period of 3 years, which may affect liquidity if you need to access funds before that period.
• Ensure that ELSS funds align with your risk tolerance and investment objectives. They predominantly invest in equities, which can be volatile in the short term.

As a Certified Financial Planner, I recommend conducting a comprehensive review of your financial goals, risk tolerance, and investment strategy before making any changes to your portfolio. Seek professional advice to ensure that your investment decisions are in line with your overall financial plan.

Remember, the key to successful investing is to stay informed, stay disciplined, and seek guidance when needed.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in