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Ravi Mittal  |628 Answers  |Ask -

Dating, Relationships Expert - Answered on May 08, 2025

Ravi Mittal is an expert on dating and relationships.
He founded QuackQuack, an online dating platform, in 2010 with just two people. Today, it has over 20 million users in India.... more
SAANVI Question by SAANVI on May 08, 2025
Relationship

My crush give me mixed signals till school time so what it means

Ans: Dear Saanvi,
I would suggest not to read too much into mixed signals- one thing, you might be reading them wrong. Second, it’s possible that they are confused and hence the mixed signals. Third, without verbal confirmation, it’s best not to get your hopes high. If you need further help understanding what the signals mean, please provide a little more details.
Hope this helps

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Ramalingam

Ramalingam Kalirajan  |9983 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2025

Money
I am working in tcs .I have a personal loan with emi 56000 and outstanding 17 lakhs.and a car loan with emi 20000 and outstanding 8 lakhs.ctedit cards with emis 1 lakhs.gold loan outstanding 6.9 lakhs and home loan with emi 36000.my salary is 1.7 lakhs.i was totally stuck.what should I do .any suggestions.
Ans: It takes courage to reach out when things feel stuck. That is the first step towards positive change. Your commitment to solve this shows strength. With the right structure, recovery is possible. Below is a detailed and structured response, created with deep understanding and long-term clarity in mind.

? Current Financial Snapshot Overview
– Monthly income is Rs 1.7 lakh.
– Total EMIs are nearly Rs 1.68 lakh.
– This includes personal loan, car loan, credit card dues, gold loan, and home loan.
– You are left with almost nothing after EMIs.
– No buffer for essentials or emergencies.
– This is a clear case of financial over-leverage.
– Action is needed fast to stop further financial stress.

? The Real Issue: Overcommitment and Interest Trap
– Most of your loans are unsecured and high-interest.
– Credit card EMI interest is highest.
– Gold loans and personal loans come next.
– Home loan is the only long-term productive loan.
– High EMIs and high interest will pull you deeper.
– You must act urgently to restructure and reduce EMIs.

? Immediate Priority: Protecting Monthly Essentials
– List fixed monthly needs: food, utility, kids, medical.
– Allocate at least Rs 25,000 per month for this.
– Do not compromise this.
– All further planning will be done after protecting this.

? Debt Restructuring is Must: Loan Consolidation First
– You are servicing 5 loans. Too many to handle.
– Approach your home loan bank.
– Ask for top-up loan or mortgage-based loan.
– Use that to close high-interest loans.
– Personal loan, credit card loan and gold loan must go first.
– Car loan can wait, if interest is manageable.
– Target one consolidated EMI under Rs 80,000.
– You will breathe easier with lower EMI burden.

? Loan Priority Plan: Which Loan to Close First
– First priority: Credit card EMIs. Very high interest.
– Second priority: Gold loan. Risk of asset loss.
– Third priority: Personal loan. Large EMI pressure.
– Fourth priority: Car loan. Shorter duration, medium interest.
– Last priority: Home loan. Long term, asset-based.

? Consider Loan Balance Transfer and Refinance Options
– Contact banks/NBFCs offering lower EMI options.
– Target longer tenure with same principal.
– Refinance personal loan into mortgage loan, if possible.
– Take help of Certified Financial Planner for negotiation support.

? Stop New Credit Use Immediately
– Stop using credit cards completely.
– Put all credit cards on auto debit minimum payment.
– Avoid spending on any EMI or Buy Now Pay Later.
– Do not take any new loan.
– Break this debt cycle first.

? Cut Lifestyle Costs Ruthlessly, Temporarily
– Reduce eating out, subscriptions, and fuel usage.
– Cancel OTT, gym, unnecessary services.
– Keep only essentials for next 12 months.
– Consider staying with family if rent is high.

? Emergency Fund Must Be Created
– Sell any unused gold or gadgets.
– Target Rs 1 lakh buffer fund.
– Keep it in FD or sweep-in savings.
– Use only for unavoidable emergencies.

? Income Side: Explore Additional Support
– Speak to your HR for salary advance support.
– Try for TCS employee debt counselling.
– Check if spouse or family can contribute monthly.
– Freelance or gig work can add Rs 5,000 to Rs 10,000.

? If Loans Are Not Consolidated: Use Snowball Method
– If restructuring fails, try debt snowball method.
– Pay minimum EMI on all loans.
– Use all surplus to close smallest loan first.
– That frees up one EMI quickly.
– Use that freed EMI to attack next loan.
– Momentum builds as EMIs reduce.
– It gives hope and psychological progress.

? Do Not Stop Home Loan EMI at Any Cost
– Home loan gives tax benefit.
– It is secured.
– It is productive.
– Missing this EMI can impact your CIBIL badly.
– Avoid defaulting on home loan.

? Credit Score Protection Tips
– Try never to delay EMI.
– Avoid cheque bounce or auto-debit failures.
– Keep communication open with banks.
– Show them your repayment intent.
– This helps later during restructuring.

? Gold Loan Caution and Alternatives
– Do not allow gold loan to lapse.
– Consider part-pay with smaller amounts.
– If defaulted, you may lose family asset.
– If needed, liquidate other non-sentimental gold first.

? Role of a Certified Financial Planner Now
– CFP can help you compare refinance offers.
– They will prepare a 3-year recovery plan.
– They bring structure to repayment and savings.
– Their help saves interest, time, and mental stress.
– Avoid trying to do everything alone.

? Future Readiness: Learn From This Phase
– Once stable, avoid taking personal loans again.
– Build a Rs 3 lakh emergency fund slowly.
– Avoid credit cards for lifestyle use.
– Track your monthly expenses through app or notebook.
– Stick to cash flow positive planning always.

? SIP or Investment Plans Must Wait
– Do not invest until debt EMIs are under control.
– Right now, investments will not work for you.
– First create peace and stability.
– Then you can do long-term SIPs and retirement plans.

? Avoid Direct Plans and Index Funds
– Direct mutual funds give no personalised advice.
– Mistakes are costly in recovery phase.
– Regular funds through MFD with CFP support are better.
– They help avoid panic withdrawal or misaligned investments.
– Index funds give no downside protection.
– They fall when market falls. No cushioning.
– Actively managed funds give downside protection and strategic calls.
– Your journey needs such human-guided support now.

? Avoid Real Estate or Annuity Ideas for Now
– Do not buy plots or flats to recover.
– That locks capital and gives no liquidity.
– Also avoid annuities. They lack flexibility and returns.
– You need control and liquidity now.

? Debt Can Be Reversed With Plan
– Many professionals face this phase once.
– Your job in TCS gives strength.
– Focus on 12-24 months correction plan.
– Avoid guilt or regret. Take focused action instead.

? Debt Is Not Permanent. Structure Is.
– Structure your loans.
– Reduce interest burden.
– Stick to a plan.
– Celebrate small wins.
– This is a season. It will pass.

? Finally
– You are not alone.
– This situation is reversible with effort.
– You have job stability.
– Focus on debt restructuring, income protection, and cash flow.
– Bring structure now.
– Then you can build wealth again later.

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

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Ramalingam

Ramalingam Kalirajan  |9983 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2025

Asked by Anonymous - Jul 11, 2025Hindi
Money
My husband is 63 years old retired.He has 2.17 cr in mutual funds 15 lacs inscss,and 15 lacks inpmvy,and 60 laks in FD,4.5 lacs in poand gets pension of22000/, how can we sustain for another 20 years.and i am 55 years old ,ihave 1.20 cr in mutual fund and 30 lacs in ppf an4.5 lacs inpo.please advice how we both ca sustain another 20 years
Ans: Thank you for sharing such clear financial details.
You both have built a strong and diversified retirement base.
This shows great financial discipline and foresight.

Here is a detailed assessment of your portfolio and step-by-step guidance.

? Current Financial Strength

– Combined mutual fund corpus is over Rs 3.37 Cr.
– Fixed deposits total around Rs 60 lakhs.
– Government schemes (SCSS, PMVVY, PPF, PO) total around Rs 69 lakhs.
– Pension inflow is Rs 22,000 monthly for your husband.

This gives you income stability and liquidity comfort.
Your base is solid enough to sustain for the next 20 years.
But smart allocation and gradual withdrawal will be the key.

? Assessing Your Regular Income Need

– Let us assume your monthly expenses are around Rs 80,000.
– Yearly this becomes Rs 9.6 lakhs.
– Over 20 years, inflation-adjusted expenses can cross Rs 3 Cr.

So the focus should be on balancing:
Safety for today + Growth for tomorrow.

? Categorise Assets into Buckets

Segmenting helps reduce risk and improves income stability.
You can think in 3 layers:

– Safety bucket (next 3–5 years needs)
– Stable bucket (5–10 years)
– Growth bucket (beyond 10 years)

Let’s allocate your assets accordingly.

? Safety Bucket (Rs 80–90 lakhs)

This should cover regular income.
Suggested sources:

– SCSS: Rs 15 lakhs
– PMVVY: Rs 15 lakhs
– Fixed Deposits: Rs 40–50 lakhs
– Post Office deposits: Rs 4.5 lakhs
– Husband’s pension: Rs 2.64 lakhs/year

Together, this creates a stable income cushion.
You can expect Rs 6–7 lakhs yearly from this bucket.
Add pension to reach about Rs 9–9.5 lakhs yearly.

This covers your current lifestyle comfortably.

? Stable Bucket (Rs 70–90 lakhs)

This is for mid-term expenses in 5 to 10 years.
These can be:

– Low-volatility mutual funds (mix of large cap + hybrid)
– 5-year laddered FDs or debt mutual funds
– Consider withdrawing small part of equity mutual fund gains every 3–4 years
– Reinvest partially in safer options to refill the safety bucket

This helps balance return and liquidity.

Withdraw only what you need.
Don’t disturb this bucket unless the safety bucket runs low.

? Growth Bucket (Rs 1.3–1.5 Cr)

This is meant for growth over 10–20 years.
Mainly comprises your equity mutual funds.

– Maintain this for long-term inflation beating growth
– No need to withdraw this now
– Let compounding work here quietly

This will be your future backup in your 70s and 80s.

You have the luxury of not touching this till 2035 or beyond.
This is your silent protector against healthcare inflation and longevity.

? Withdrawal Strategy to Sustain 20 Years

A sustainable withdrawal strategy is essential.

– Withdraw only from SCSS, PMVVY and interest of FD in early years
– Delay withdrawing from mutual funds for 5+ years
– Withdraw not more than 4–4.5% per annum from total corpus
– Review portfolio and expenses every year

This helps avoid running out of funds early.

Avoid panic selling during market falls.
Your safety bucket ensures you don’t need to.

? Tax Efficiency Planning

Optimising taxes can extend the life of your corpus.

– Use Rs 1.25 lakh LTCG exemption from equity MFs every year
– Sell funds after one year holding period to enjoy LTCG rates
– Shift FD maturity into senior citizen saving options wherever possible
– Keep taxable income under Rs 3–5 lakh slab with 87A benefit

Mutual fund CG tax rules:
– Equity funds: LTCG above Rs 1.25 lakh taxed at 12.5%
– STCG taxed at 20%
– Debt funds: Taxed as per slab

Keep track of redemption timing to manage taxes smartly.

? Insurance & Health Planning

Do not ignore medical and longevity risks.

– Ensure both of you have a family floater health insurance
– Add critical illness or top-up plans if possible
– Keep Rs 5–7 lakhs cash equivalent for sudden medical needs
– Avoid depending only on FDs for medical emergencies

This protects your growth corpus from being drained.

Also consider creating a medical fund from debt MF or FD interest.

? Emergency Fund Allocation

Despite having FDs, keep a separate fund.

– Allocate Rs 3–4 lakhs in a sweep-in FD or savings account
– Use this only for unexpected urgent needs
– Replenish it if you ever withdraw from it

This brings peace and avoids panic withdrawals from long-term assets.

? Role of PPF and Post Office Investments

These are safe and tax-efficient.

– Your PPF (Rs 30 lakhs) can be extended in 5-year blocks
– Let it grow untouched till 65+ age
– Use it later as a tax-free income source
– Post Office deposits are good for capital safety

No urgency to withdraw from these now.
Keep these as a late retirement cushion.

? Don’t Chase Direct Mutual Funds or Index Funds

Avoid direct plans and index funds in retirement.

– Direct plans give no support or review by a CFP
– In retirement, you need guidance, not just products
– Index funds don’t protect in market falls
– Active funds are better for risk-managed wealth

Stick with regular plans and stay in touch with a Certified Financial Planner.
He or she can rebalance your portfolio every year for safer retirement.

? Avoid Annuities or Insurance-Based Investments

Do not lock large amounts into annuities.

– Low returns
– No liquidity
– No inflation protection
– Not suitable for long-term planning

You already have PMVVY and SCSS which serve the same role but better.

ULIPs or investment-cum-insurance are also not suitable now.
They block money and give poor returns with high charges.

? Nomination, Joint Holdings, and Will

Retirement planning is not complete without documentation.

– Make sure all investments have updated nominations
– Keep most holdings in joint names with ‘Either or Survivor’
– Prepare a simple Will to avoid future confusion
– Talk to your children about your financial wishes

Peace in retirement also comes from clear paperwork.
This ensures your assets reach the right hands smoothly.

? Review Yearly and Keep a Dashboard

Track your finances every 6–12 months.

– Keep a simple Excel sheet for assets and withdrawals
– Monitor fund performance and rebalance if needed
– Avoid panic actions during market correction
– A CFP can help monitor changes and adjust your buckets

Even in retirement, periodic review gives control and peace.

? Finally

You already have Rs 5 Cr+ in total retirement corpus.
This is more than sufficient for a 20–25 year retired life.

But safety lies in smart execution and disciplined withdrawals.

Don’t chase high returns.
Focus on consistent income, tax planning and capital protection.

Let your mutual funds grow silently in the background.
Use safe options for regular cash flow.

Avoid direct plans, index funds, or complex products.
Stick to regular plans and work with a Certified Financial Planner.

That’s how you’ll enjoy financial peace, dignity, and independence.

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

...Read more

Ramalingam

Ramalingam Kalirajan  |9983 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2025

Asked by Anonymous - Jul 11, 2025Hindi
Money
I am 59 yrs old, retirement is due in 2026 . My corpus will be 2 cr approx. Wish to draw 1.50 lac per month. How do in plan in order to achieve my requirement withought eroding my corpus Wish that my corpus also grows to beat inflation .
Ans: ? Retirement readiness with strong foundation

You have Rs 2 crore as your retirement corpus.

You aim to withdraw Rs 1.5 lakh per month.

Your retirement starts in 2026, just one year away.

It is good you are planning early. This gives clarity.

You want monthly income without touching the capital.

You also want your corpus to grow to beat inflation.

? Understanding income and return requirements

Annual withdrawal is Rs 18 lakh (Rs 1.5 lakh x 12).

That’s 9% withdrawal on Rs 2 crore corpus.

To sustain this, your return must exceed 9% post-tax.

That’s a bit aggressive. But possible with the right mix.

The key is to balance growth and regular income.

You should take calculated risks, not avoid risk completely.

? Investing strategy with bucket approach

Use a 3-bucket strategy. Short-term, medium, long-term.

This helps ensure stable income and long-term growth.

Bucket 1: Emergency and first 3 years income

Keep Rs 54 lakh here (Rs 1.5 lakh x 36 months).

Use bank FDs, ultra-short debt funds, arbitrage funds.

Liquidity is key. Returns are not the priority here.

Income from here covers 3 years. No stress during market dips.

Bucket 2: 4 to 10 years income

Allocate Rs 60 to 65 lakh here.

Use conservative hybrid and equity savings funds.

These offer 6-8% returns with less volatility.

Rebalance regularly to refill bucket 1 from here.

Bucket 3: 10+ years horizon

Invest Rs 80 to 85 lakh here.

Use diversified flexi cap, balanced advantage, multi asset funds.

Stay with regular plans through MFD + CFP.

These funds are managed actively. Beat inflation over time.

Avoid index funds. Index funds give average returns.

Actively managed funds aim for above-average performance.

Direct plans are not ideal either.

Regular plans offer advisor support, hand-holding, rebalancing.

This helps protect emotions during volatile markets.

? Avoiding mistakes that hurt income

Don’t keep the full corpus in FDs.

FD interest is taxable. Real return is low post-tax.

Don’t fall for annuities. Low return and no growth.

Don’t chase high-dividend funds blindly.

Dividends are taxable at your slab rate.

Don’t take very high risk at this age.

Stick to quality mutual funds with proven track record.

? Role of Systematic Withdrawal Plans (SWP)

SWP is your best option for regular income.

Choose growth option in mutual funds.

Withdraw Rs 1.5 lakh monthly from a mix of equity and debt funds.

This keeps taxation efficient and smooth.

SWP helps preserve capital if growth continues.

In equity funds, LTCG up to Rs 1.25 lakh/year is tax-free.

Beyond that, taxed at 12.5% only.

Short-term gains are taxed at 20%.

In debt funds, gains are taxed as per your tax slab.

? Managing inflation

Inflation is your biggest long-term enemy.

Assume 6% inflation long-term.

Your Rs 1.5 lakh today becomes Rs 3 lakh in 12 years.

Only equity mutual funds can beat inflation.

Your third bucket should grow faster than inflation.

Rebalance every year. Shift profits from equity to debt.

This keeps the buckets full and your income safe.

? Rebalancing and reviews

Review portfolio once a year.

Refill bucket 1 every 3 years from bucket 2.

Shift gains from bucket 3 to bucket 2.

This keeps the cycle of income flowing.

Rebalancing avoids panic selling during market falls.

A Certified Financial Planner and MFD will help you stay on track.

Stay disciplined. Avoid unnecessary risk or greed.

? Tax planning with SWP and mutual funds

Tax-saving is part of the plan.

Mutual fund SWP is more tax-efficient than FD interest.

LTCG in equity funds above Rs 1.25 lakh taxed at 12.5%.

Short-term capital gains taxed at 20%.

Debt funds taxed as per your slab.

Plan withdrawals smartly to reduce tax.

Don’t withdraw from equity funds early.

Hold for 3 years or more.

Get help from CFP to optimise.

? Avoiding risky products and common traps

Don’t invest in new age products like crypto.

Stay away from PMS and ULIP products.

These have high costs and low flexibility.

Avoid direct equity stocks at this stage.

You need steady income, not market drama.

Don’t lend money to relatives hoping for returns.

Protect your capital. It has to last 30 years.

? Health insurance and emergency corpus

Keep a separate emergency fund of Rs 6 lakh.

Health costs rise fast. Inflation hits this more.

Maintain Rs 10 to 25 lakh medical insurance cover.

Don’t rely only on employer-provided cover.

Buy separate individual cover.

This protects your retirement corpus from sudden shocks.

? Planning for legacy and family needs

Keep nominations updated in all investments.

Write a registered Will with legal help.

Make sure your spouse understands the plan.

Educate them on how income will flow.

Build a contingency plan if one spouse passes early.

Avoid joint ownership with extended family.

Keep things simple, clean, and documented.

? Role of Gold and Physical Assets

If you own gold, treat it as an emergency back-up.

Don’t depend on gold for monthly income.

Gold doesn't offer fixed returns.

Avoid using real estate for income.

It brings risk, tenant hassles, and poor liquidity.

? Working with a Certified Financial Planner

A Certified Financial Planner brings structure and expertise.

Helps you align goals with market realities.

Plans cash flow, tax, risk, rebalancing, and legacy.

Uses mutual fund MFDs to manage investments well.

Protects emotions during market highs and lows.

Makes your retirement peaceful and planned.

? Finally

You have a strong corpus. That is a good start.

Rs 1.5 lakh monthly income from Rs 2 crore is ambitious.

With careful planning, it is possible.

Use bucket system to manage flow and growth.

Use mutual fund SWP for tax-efficient income.

Avoid real estate, annuities, and risky products.

Rebalance every year. Stay disciplined.

Focus on income + inflation protection.

Work with a CFP and MFD team.

Protect your future, and keep your lifestyle intact.

Enjoy your golden years without stress.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |9983 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2025

Asked by Anonymous - Jul 11, 2025Hindi
Money
Hi I am 32 . I am earning 1.10 L Per month. I have personal loan of 3.5 L out of which 2 L is paid as of now(12k per month). Have 4.5 k per month for term insurance, have 25k as lumpsum in less, have 2.5k per month for index fund. No kids as of now and planning for it. How to plan my investment for the future to have better retirement and have good returns from the age of 45
Ans: At age 32, you are already doing many things right.
You are earning well. You are paying your loan regularly.
You have term insurance. You are saving and investing.
That shows clarity and responsibility.

With better planning, you can achieve early financial freedom.
Let us go step by step and explore a full 360-degree plan.

? Focus on Closing Personal Loan Early
– Personal loan interest is very high.
– Even 12% interest eats your returns.
– Try to pay off the remaining Rs.1.5 lakh soon.
– Use your annual bonus or extra income to close it.
– Once loan is over, you free up Rs.12,000 every month.
– This amount can be used for long-term wealth building.

? Avoid Investing in Index Funds Going Forward
– Index funds just copy the market, they do not beat it.
– They have no active fund manager to protect you in a crash.
– Market corrections will hurt you more in index funds.
– Index funds suit foreign markets, not Indian retail investors.
– You need better risk-adjusted performance.
– Actively managed funds do better in a growing market like India.

? Stop Future SIPs in Index Funds
– Redeem the index fund once you see profit.
– If gains are more than Rs.1.25 lakh, 12.5% LTCG applies.
– For short term, 20% STCG applies.
– After exit, switch to actively managed regular mutual fund.
– This will give you better control and higher growth.

? Always Invest Through Certified Financial Planner’s MFD Channel
– Direct plans save commission, but lose expert guidance.
– You end up doing guesswork alone.
– You may miss rebalancing, tax planning, or asset shift.
– Regular plans via CFPs give full-service support.
– You get annual review, performance check, goal mapping.
– This helps in both return and peace of mind.

? Build Emergency Fund First Before More Investments
– You need 4–6 months of expenses in liquid mutual fund.
– It must be easy to access during job loss or emergency.
– You are planning to start a family. So expenses may rise.
– Emergency fund will protect your SIPs during tough times.
– Without this fund, you may stop SIPs midway.

? Shift the Rs.25,000 Lumpsum in Savings Account
– Savings account returns are very low.
– Keep only Rs.10,000 in savings for routine expenses.
– Rest Rs.15,000 can be shifted to liquid fund.
– From there, do weekly STP to equity mutual funds.
– This builds better returns with low risk.

? Start Long-Term SIP for Retirement from Now
– Retirement is 28 years away if you plan till 60.
– But since you want returns from age 45, we plan till then.
– That’s only 13 years left. So time is limited.
– Start SIP in equity mutual fund now with Rs.5,000–7,000 monthly.
– Use actively managed flexicap or multi-cap funds.
– Over 13 years, this SIP can build huge corpus.

? After Loan Closure, Increase SIP Aggressively
– You will save Rs.12,000 every month after loan is over.
– Use this full amount for long-term SIP.
– That means total SIP becomes Rs.17,000 or more monthly.
– This is the most powerful wealth creation method.
– Early SIP gives strong compounding.

? Invest Separately for Child-Related Goals
– You are planning for a child soon.
– Child education will need funds from age 3 onwards.
– Start a separate SIP of Rs.2,000–3,000 monthly.
– Use balanced advantage fund or hybrid fund.
– This gives safety with growth.
– Increase it over time as income grows.

? Don’t Mix Insurance with Investment
– Only term insurance is needed.
– No need for ULIP, endowment, or LIC saving plans.
– They give poor returns and lock-in.
– If you already have them, surrender and shift to mutual funds.
– Keep insurance and investment separate always.

? Review and Rebalance Your Portfolio Yearly
– Funds don’t perform equally every year.
– Your goals and life also change yearly.
– Rebalancing helps you stay aligned with your targets.
– Your Certified Financial Planner will review and guide every year.
– This improves long-term performance and reduces risk.

? Increase SIP by 10% Each Year
– As salary grows, increase SIP also.
– If your SIP stays flat, your goals may fall short.
– Use bonus, hike, or incentives to boost SIP yearly.
– This keeps your investments ahead of inflation.

? Avoid Real Estate for Wealth Creation
– Real estate is illiquid and expensive.
– No proper return tracking.
– Maintenance costs, taxes, and delay in selling are major issues.
– Mutual funds offer better transparency, growth, and liquidity.

? Consider Health Insurance for Family
– Don’t depend only on company insurance.
– Buy a family floater health plan outside.
– As your family grows, this becomes more useful.
– It also protects your investments from medical emergencies.

? Don’t Chase Fancy or Trendy Funds
– Sectoral or theme-based funds are risky.
– They give returns in short bursts, then fall sharply.
– For wealth creation, use diversified funds only.
– Avoid NFOs or fund offers without strong history.

? Use SIP in Growth Option Only
– Don’t choose IDCW (dividend) options.
– Dividends are now taxed as per your slab.
– Growth option helps full compounding.
– This is the best way to build retirement corpus.

? Tax Planning Must Be Done Smartly
– ELSS funds are useful for tax saving.
– They also give better returns than PPF or LIC.
– Invest only in one or two ELSS funds.
– Don’t mix ELSS with long-term SIP. Keep them separate.

? Avoid Investing in Gold for Retirement
– Gold is not a wealth builder.
– It is a hedge, not a growth tool.
– Keep gold only for consumption, not retirement.
– Equity mutual funds will beat gold over long term.

? After Age 40, Start Shifting to Low-Risk Funds
– From age 45, you need returns regularly.
– Shift 25% of your portfolio to hybrid or balanced fund.
– In next few years, increase the portion step by step.
– This reduces risk when nearing your usage age.

? Don’t Touch Retirement Corpus for Any Other Goal
– Keep this investment separate and untouched.
– Use separate SIPs for short goals like car or travel.
– Mixing goals creates confusion and shortage later.
– Treat retirement as non-negotiable.

? Create a Written Financial Plan With Goals and Review Points
– Put your income, expenses, loan, SIPs, and goals in one place.
– This gives clarity and commitment.
– Update it every year with a Certified Financial Planner.
– Without a plan, your investment gets directionless.

? Don’t Compare Your Returns With Others
– Every investor has different goals and risk level.
– Focus on your own path.
– Returns depend on time, discipline, and asset mix.
– Comparing only brings doubt and poor decisions.

? Don’t Delay. Start Today
– The earlier you start, the stronger the growth.
– Each year’s delay reduces the final amount heavily.
– No need to wait for market low.
– Start SIP with what you have now. Increase later.

? Finally
– You are on a very good path at age 32.
– Clear off the personal loan soon.
– Stop index funds and shift to regular, actively managed funds.
– Don’t go for direct plans. Use Certified Financial Planner-guided channel.
– Build emergency fund. Start goal-based SIPs.
– Increase SIP every year. Review yearly.
– Plan for child, insurance, and retirement separately.
– Avoid distractions like real estate, gold, or fancy funds.
– Build wealth with clarity, patience, and guidance.

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

...Read more

Ramalingam

Ramalingam Kalirajan  |9983 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2025

Asked by Anonymous - Jul 11, 2025Hindi
Money
I am retired, 70 years old. My retirement corpus is as follows: Rs.1.25 crores in scss, pmvvy etc giving me about 8.5 lakhs per annum interest income. This is sufficient for my present annual expenses. I live in my own flat and have no plans. I have another 1.5 crores in ppf iny and my wife's accounts. Untouched do far. I have another 1.1 crores in mutual funds - current CAGR of 14%. Yet another 15 lakhs in sweep accounts as emergency fund. I and my wife are healthy and may live into our 90s. We have no insurance. My needs are Living at same comfort level upto the end. Covering any emergency medical expenses. Annual travel around 2 to 3 lakhs. Leave whatever possible for my next generation. I am thinking how to reallocate my assets. Could you please suggest?
Ans: You have built a strong foundation. Your diversification and income clarity are admirable. You’ve also ensured peace of mind by being debt-free, owning your home, and planning for future generations. That’s truly praiseworthy.

Let us now assess and structure your allocation to give a 360-degree perspective.

? Current Asset Allocation Snapshot

Rs 1.25 crore in SCSS, PMVVY, etc., generating Rs 8.5 lakh yearly income.

Rs 1.5 crore in PPF (self and spouse) — untouched.

Rs 1.1 crore in mutual funds — showing 14% CAGR.

Rs 15 lakh in sweep FD — kept as emergency fund.

Own house — no rent burden or housing worry.

No life/health insurance — needs addressing.

Annual expenses fully covered by interest income.

Extra needs: Rs 2–3 lakh travel per year + future health costs + legacy goals.

This overall picture is stable, but rebalancing can improve safety, efficiency, and legacy planning.

? Reassessing Needs and Objectives

You’ve clearly mentioned your goals:

Continue living with current lifestyle comfort.

Be prepared for future medical emergencies.

Enjoy travel (Rs 2–3 lakh yearly).

Preserve and grow wealth for your next generation.

Since both you and your wife are healthy at 70, planning till age 95–100 is prudent. That means you may need financial resources for 25–30 more years.

Your total retirement corpus is Rs 4 crore+. This gives scope to reallocate with a mix of:

Stability and guaranteed income

Controlled equity growth

Emergency liquidity buffer

Inheritance structuring

? Retirement Income Security

You’re generating Rs 8.5 lakh yearly from safe instruments. That’s about Rs 70,000 per month. As your expenses are comfortably within this, your base requirement is met.

Still, inflation will catch up. If your annual inflation is even 5%, then in 10 years, your current Rs 8.5 lakh income will feel like Rs 5 lakh.

Hence, partial reinvestment and equity exposure become important.

? Role of PPF – How to Optimise

PPF of Rs 1.5 crore is untouched.

You cannot withdraw full amount at once, but phased withdrawals are possible.

Interest is tax-free, and compounding is powerful.

Let this act as your secondary cushion. Begin partial withdrawal after age 75 or earlier if interest rates fall.

Avoid using this for regular withdrawals now, but plan to tap into this for large expenses like:

Hospitalisation

Travel

Unexpected family needs

Let this remain your passive accumulator and slow withdrawal reserve.

? Mutual Funds – Optimisation & Safety

Your mutual fund corpus of Rs 1.1 crore is doing very well with a 14% CAGR. That’s excellent long-term performance. However, your current life stage needs a little more risk control.

Here’s how to realign:

Divide the corpus into 3 layers:

Rs 40 lakh – continue in equity-oriented hybrid funds with moderate growth focus.

Rs 40 lakh – move to balanced advantage and conservative hybrid funds. These provide lower volatility and regular withdrawal flexibility.

Rs 30 lakh – keep in short-duration or ultra-short debt mutual funds for 3–5 years of travel and medical liquidity.

Use systematic withdrawal plans (SWP) from the hybrid category — about Rs 25,000/month — to fund your travel and additional comfort expenses.

This allows equity to grow, while you enjoy benefits monthly.

New MF taxation (2024 onwards) applies as:

Equity fund LTCG above Rs 1.25 lakh taxed at 12.5%.

STCG at 20%.

Debt fund gains as per your tax slab.

As a retiree with no major income, your taxable slab may be minimal. Hence, continue with mutual funds. Don’t switch to traditional taxable products.

Also, continue using regular plans through a Mutual Fund Distributor who is also a Certified Financial Planner. This ensures:

Handholding during volatility

Regular rebalancing

Tax-efficient withdrawals

Emotional discipline and professional oversight

Avoid direct funds, as they don’t offer human guidance. DIY investing at your stage adds risk and confusion.

? Emergency Fund

Rs 15 lakh in sweep FD is ideal.

Maintain this corpus always for:

Sudden hospitalisation

Family emergency

Unforeseen costs

Ensure one joint savings account is fully liquid. Keep sweep amount minimal and instantly accessible.

This gives peace of mind.

? Health Insurance – A Missed Area

You’ve done everything else right. But lack of health insurance is a critical gap.

You are 70. It is still possible to get senior citizen health insurance, albeit with high premium and waiting periods.

Take these actions now:

Get a senior citizen floater plan with Rs 10–15 lakh coverage — one for both.

Don’t expect hospitalisation coverage immediately — but long-term it helps.

Even if premiums are Rs 60,000–80,000 yearly — it’s still worth considering.

Keep Rs 5–7 lakh liquid to pay premiums for next 10 years without touching interest income.

It’s not too late to start.

? Annual Travel – Create a Dedicated Reserve

Since travel is a yearly need (Rs 2–3 lakh), plan this smartly:

Keep Rs 10–12 lakh aside in ultra-short-term debt fund or sweep FD.

Withdraw every year as needed.

Refill once in 3 years from equity gains or mutual fund growth corpus.

This makes travel enjoyable without guilt or disruption to long-term safety.

? Estate and Legacy Planning

Leaving wealth for your next generation is a worthy intent. Your assets should be structured well for smooth transfer.

Do these:

Create a Registered Will – one each for you and your wife.

List your mutual funds, PPFs, SCSS, bank FDs — all with correct nominations.

Ensure your children are aware of key documents and locations.

Consider creating a family trust only if your assets cross Rs 10 crore or complex family structure arises. Otherwise, a simple will suffices.

Avoid joint holding with children unless required. That leads to ownership confusion.

Leave a digital and paper list of assets — periodically updated.

? Income Tax Planning

You currently receive Rs 8.5 lakh income from SCSS/PMVVY. Assuming no other income:

You can claim Rs 3 lakh basic exemption (age 60+).

Deduction under 80TTB for senior citizens interest income — up to Rs 50,000.

If you take health insurance, you get deduction under 80D — Rs 50,000.

Club income of spouse if she is not earning separately.

So, actual taxable income may be quite low.

Continue tax filing every year. Use the latest online ITR forms and mention all interest/MF gains.

Withdraw MF in tranches, keeping LTCG within Rs 1.25 lakh/year to save tax.

? Reallocation Summary

Continue SCSS/PMVVY – Don’t disturb it. Let interest flow to savings account.

Maintain Rs 15 lakh emergency in sweep FD.

Mutual Fund reallocation:

Rs 30 lakh in short debt funds – withdrawal-ready

Rs 40 lakh in balanced advantage – SWP route

Rs 40 lakh in hybrid equity – long-term growth

Let PPF stay untouched till needed in 75+ age.

Buy Rs 10–15 lakh health insurance now.

Keep Rs 10–12 lakh for 4 years’ travel buffer.

Create and register your Will.

This gives liquidity, peace, and wealth protection.

? Finally

You’ve done the hard part already. You’ve accumulated well, managed wisely, and now seek clarity.

That clarity comes from balancing safety with steady growth.

Avoid unnecessary risks or hasty portfolio changes. Let your wealth give you comfort today and security tomorrow.

Make your wealth not just about numbers — but about ease, dignity, and meaningful legacy.

If guided wisely and reviewed annually, your plan can easily support you both well past 100.

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

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Ramalingam Kalirajan  |9983 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2025

Asked by Anonymous - Jul 11, 2025Hindi
Money
My age is 30, I started 50000 per month investment in mfs now it worth 3.5 lakhs, ppf 12500 per month, pf monthly 27000, inhabe gold 300 gm and 1 site worth 20 lakh and monthly income 2 lakhs and expense 20k and car emi 40000, Guide me to retire at 50 age with monthly 3 lakh income.
Ans: Appreciate your proactive savings at just 30 years of age.
Your habits are rare and inspiring.
You’ve built Rs. 3.5 lakh already in mutual funds.
Your PPF, PF, gold, and land show good financial intent.
Rs. 2 lakh income with just Rs. 20k expense gives you great surplus power.

Retiring at 50 with Rs. 3 lakh monthly income is possible.
But this needs sharp planning, focused action, and ongoing review.

Let’s guide your way forward, fully aligned with your goal.

? Understanding your goal clearly

– You want to retire in 20 years
– After that, you want Rs. 3 lakh monthly income
– This should last for 30–35 years post-retirement

– That means you need a large retirement corpus
– You will need to build wealth that beats inflation too

– Mutual funds are the right tool here
– But the right mix and strategy is very important

? Evaluate your current financial strength

– Monthly income: Rs. 2 lakh
– Monthly expenses: Rs. 20,000
– Car EMI: Rs. 40,000
– Mutual fund SIP: Rs. 50,000
– PPF: Rs. 12,500
– PF: Rs. 27,000
– Gold: 300 gm
– Plot worth: Rs. 20 lakh

– You are saving more than 50% of income already
– That’s a powerful saving habit for wealth creation

– But saving alone is not enough
– You must optimise where the money goes

? Address your car EMI and debt angle

– Your EMI is Rs. 40,000 monthly
– This is 20% of your income
– It’s manageable, but avoid taking more loans now

– Once this loan ends, redirect this amount to SIP
– This shift will boost your long-term wealth

– No new loans till retirement will be a wise choice

? Reassess your gold and land holdings

– Gold of 300 gm is good backup value
– But gold gives no monthly income later
– It is more of a passive asset, not active income generator

– Don't rely on gold to meet retirement income
– Gold prices also remain flat for long years sometimes

– Land worth Rs. 20 lakh adds to your net worth
– But land gives no returns unless sold

– Real estate is not liquid
– Selling it later may take time or offer lower value

– So, don’t depend on gold or land for retirement income
– Focus on financial instruments like mutual funds

? Mutual fund investment strategy for retirement

– You are investing Rs. 50,000 monthly in mutual funds
– It has grown to Rs. 3.5 lakh so far
– This shows good discipline and progress

– Keep this SIP going for next 20 years
– Gradually increase it every year with income growth

– A 10–15% increase yearly is a good rule
– This boosts your long-term corpus without strain

– You must invest in a mix of active mutual funds only
– Avoid index funds, they just copy the market

– Index funds can’t protect during crashes
– Active funds give better downside control

– Choose 4–5 good active funds across these categories:
– Large & midcap
– Flexicap
– Midcap
– Focused equity
– Hybrid equity

– Do not invest all in smallcap funds
– They are high risk and need careful handling

– Prefer regular plans via a Certified Financial Planner
– Avoid direct plans, they lack human guidance

– Direct plans look cheaper but can cost more long-term
– No rebalancing, no goal alignment, no handholding

– Regular plans via MFD and CFP give full tracking and care

– Do not pause SIPs when market falls
– Stay invested, that’s when most units are gained

? Role of PPF and PF in your plan

– PPF of Rs. 12,500 monthly adds safety
– This is good for long-term tax-free savings
– But PPF alone can’t fund your full retirement

– PF of Rs. 27,000 monthly is also good
– But withdrawal rules and fixed return limit its power

– Treat PF and PPF as base layer only
– The main engine of retirement should be mutual funds

? Create goal buckets for more clarity

– Break your investments into goal buckets
– Retirement is your main goal, but others may arise

– Other goals may be:
– Travel
– Children (if any later)
– Health
– Dream purchases

– Keep separate SIPs for each goal
– Don’t mix all investments in one pool

– Use goal-wise SIPs for discipline and focus

? Plan to shift funds as retirement nears

– From age 45, slowly shift some funds to safer options
– Move from pure equity to hybrid or balanced funds

– This protects the retirement amount from market dips
– You must not risk full equity close to age 50

– By age 48, 30–40% of funds should be in lower risk funds

– This gives stability and withdrawal ease from age 50

? Use SWP for retirement income later

– From age 50, start Systematic Withdrawal Plan (SWP)
– This gives monthly income from mutual fund corpus

– SWP is better than FDs or annuities
– You get better returns and more flexibility

– Avoid annuity plans
– They offer poor returns and lock your money

– Use SWP smartly with guidance from a Certified Financial Planner

– Choose tax-friendly withdrawal route and pace

? Stay away from insurance-linked products

– No LIC, ULIP, or endowment policies needed
– They combine insurance and investment poorly

– Returns are too low, less than 6–7% usually
– They are hard to exit and not goal-friendly

– If you already hold such policies, assess surrender value
– If the loss is less, surrender and invest in mutual funds

– Term insurance is better for protection
– Take only term cover, and keep investments separate

? Get health and life cover in place

– Take health insurance with minimum Rs. 10–15 lakh cover
– Medical inflation is very high now

– Do not depend only on employer health cover
– Buy one personal policy for long-term safety

– Also take term insurance if not yet taken
– Cover should be at least Rs. 1.5 crore

– You may not need it lifelong
– But till you retire, it is a must

? Monitor portfolio with proper reviews

– Review SIPs and funds once a year
– Rebalance as needed with expert advice

– Don’t switch funds just for return chasing
– Long-term compounding needs patience and holding

– Track goals, not market movements

– As income grows, raise SIPs every year

– This alone builds massive wealth without much effort

? Stay tax-aware on mutual fund returns

– Equity mutual funds taxed newly
– LTCG above Rs. 1.25 lakh taxed at 12.5%
– STCG taxed at 20%

– For debt funds, both gains taxed as per your slab
– Plan redemptions smartly to reduce tax hit

– A Certified Financial Planner can guide best on this

– Don’t delay planning for tax till the last moment

? Finally

– You are on the right track at the right age
– You are saving aggressively with very low expenses
– With continued SIPs and rising contributions, retirement at 50 is possible

– Rs. 3 lakh monthly income can be achieved
– But only with consistent investment and smart planning

– Mutual funds should be your main tool
– Stay with active funds, avoid index and direct plans

– Avoid gold and real estate for retirement income
– Focus on financial assets with liquidity and return power

– Keep insurance separate from investments
– Maintain health and term cover

– Review yearly with Certified Financial Planner
– And stay focused for 20 years without deviation

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

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Ramalingam

Ramalingam Kalirajan  |9983 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2025

Asked by Anonymous - Jul 11, 2025Hindi
Money
How should i manage my inhand salary of 70k ia m currently 27 and getting marries at the end of this year
Ans: Absolutely appreciate your initiative. At age 27, managing Rs 70,000 monthly salary with a marriage ahead is crucial. This is the ideal time to set your financial foundation right.

Let’s structure your income into spending, saving, and securing buckets. This plan will guide you before and after marriage.

? Income Allocation Strategy

– Split your Rs 70,000 into 4 parts:

Rs 35,000 – Living expenses and lifestyle

Rs 20,000 – Investments and savings

Rs 10,000 – Insurance and risk protection

Rs 5,000 – Personal goals and buffer

– This is a thumb rule. You may adjust slightly but stick to discipline.

– Try to manage wedding expenses without loans. Avoid personal loans.

? Lifestyle and Expense Management

– Keep your lifestyle simple and within 50% of income.

– Track expenses monthly. Use apps or notebooks.

– Avoid overspending on gadgets, travel, or subscriptions.

– Include your future spouse in financial discussions post marriage.

– Discuss household expenses, shared goals, and who pays what.

? Emergency Fund is Priority

– Set up Rs 1.5 to 2 lakh emergency fund before marriage.

– Save this in sweep-in FD or liquid mutual fund.

– This fund should cover 4 to 6 months of expenses.

– Don’t touch it for regular use or wedding.

? Insurance and Risk Cover

– Buy term life insurance of Rs 1 crore. Keep only pure protection.

– Avoid ULIPs or investment-linked policies.

– If you already have LIC or ULIP, consider surrendering and investing in mutual funds instead.

– Take health insurance of Rs 10 lakh. Add spouse later with floater option.

– Don’t rely only on employer insurance. It ends when you quit.

? Investment Plan with SIP Discipline

– Invest minimum Rs 12,000 per month in mutual funds.

– Choose 3 types of active funds via a Certified Financial Planner:

One large cap +

One flexi cap +

One small cap

– Don't use index funds. They give average returns and lack downside protection.

– Avoid direct funds. You miss expert review and portfolio rebalancing.

– Invest via regular plans with a CFP-backed MFD. Get personalised guidance.

– Make investments goal-based:

Rs 3,000 for retirement

Rs 3,000 for future house

Rs 3,000 for wealth creation

Rs 3,000 for child (future) corpus

– Increase SIP by 10% yearly.

? Avoid Common Mistakes

– Don’t mix insurance and investment. ULIPs, endowment are low-return traps.

– Don’t invest randomly. Avoid tips, hot stocks, or crypto without research.

– Don’t postpone retirement investing. You’ll lose compounding power.

– Don’t wait for marriage to start investing. Start before.

– Don’t delay writing down your financial goals.

? Wedding Expense Planning

– Create a wedding budget now.

– Decide how much you and your family will contribute.

– Save at least Rs 5,000 to Rs 10,000 monthly for wedding.

– Avoid wedding loans. Borrowing for marriage affects future stability.

– Keep wedding simple. Prioritise financial freedom over show.

– Post marriage, plan a joint budget with spouse.

? Future Joint Goals Post Marriage

– Discuss short-term goals: house rent, honeymoon, gadgets, home setup.

– Talk about medium-term goals: buying car, home, child planning.

– Talk about long-term goals: retirement, child education, wealth creation.

– Maintain individual and joint investments.

– Both must have term and health insurance.

– Open a joint bank account for household needs if needed.

? Tax Planning and New Regime

– You can opt for the new tax regime if you have fewer deductions.

– Don’t invest only for saving tax. Invest for goals.

– Claim Rs 50,000 additional tax benefit via NPS if you can invest.

– Invest Rs 1,500/month in NPS if long-term goal is retirement.

? Setting Financial Goals

– Write down financial goals with target year and amount.

– Break goals into short (0–3 years), medium (4–7 years), and long term (8+ years).

– For short term, use liquid or ultra short debt funds.

– For medium to long term, use equity mutual funds.

– Always invest via goal mapping, not product selection.

? Retirement and Early Freedom Planning

– Even at 27, start retirement planning now.

– Rs 3,000/month growing yearly will give a solid corpus.

– Avoid waiting till 35 or 40. Power of compounding is best at your age.

– Build Rs 4–5 crore minimum as retirement corpus over time.

? Goal-Based Buckets After Marriage

– Short term (0–3 yrs): Wedding, rent, home setup – save in RD or liquid fund.

– Medium term (3–7 yrs): Car, down payment for flat – invest in balanced funds.

– Long term (8+ yrs): Child education, retirement – use equity mutual funds.

– Allocate each investment to one goal. Don’t mix funds and goals.

? Credit Card, Loans and CIBIL Score

– Avoid credit card dues. Always pay in full.

– Don’t take personal loans unless it’s an emergency.

– If you already have loan or EMI, plan to repay early.

– Keep CIBIL score above 750.

– Don’t let post-marriage lifestyle drag you into EMIs.

? Career and Income Growth

– Focus on skill upgrade. Push for higher income yearly.

– Switch jobs if required for salary growth.

– Align new income to increased SIPs, not increased lifestyle.

– Maintain a 50:30:20 budget rule – 50% needs, 30% wants, 20% savings.

? Digital Records and Automation

– Keep investment records online and safe.

– Use one mobile app to track all SIPs.

– Automate all SIPs, premiums, and EMIs.

– Avoid missing payment dates. It affects credit score.

– Review portfolio quarterly with CFP guidance.

? Finally

– You are starting early. That’s your biggest strength.

– Marriage brings responsibility. So plan together.

– Keep money discussions open and honest.

– Don’t compromise your financial goals for social pressures.

– Stick to a plan and review yearly.

– Let your money support your values and goals.

– Stay disciplined, stay invested, stay insured.

– Don’t run after quick gains. Wealth grows steadily.

– Focus on protection first, then growth.

– Start today. You’ll thank yourself tomorrow.

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

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Ramalingam

Ramalingam Kalirajan  |9983 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2025

Asked by Anonymous - Jul 11, 2025Hindi
Money
Hi, I'm 44 years old. I would like to construct a house with a home loan of 1 crore. Me and wife combined take home salary will be 1.45 lakhs. I had an FD of 50 lacs which I'm putting on SWP to generate some money for loan payback. 30 lacs i have it in SCSS but planning to withdraw that and put in SWP. 5 Lacs in FD. 5 Lacs in bank. We have two kids (Boy n Girl) I am investing almost 75000 per month on various insurance for kids as well as for our retirement. One of my LIC policy will be maturing in 2027 i might get around 20 lacs. Monthly expenses including the insurance premium, expenditure and house rent comes to 1.62 lacs. Kindly advise
Ans: Your savings are good. You are already planning well. You have discipline in your investments. That is rare and valuable. Now let us refine your plan for more clarity and long-term safety.

Let us now focus on your house construction, loan repayment, insurance load, children’s future, and retirement. The plan will focus on improving liquidity, aligning goals, and avoiding risk buildup.

? Income, Expenses and EMI Readiness

– Your joint income is Rs. 1.45 lakh per month.

– Monthly expenses are Rs. 1.62 lakh. This includes rent and insurance premiums.

– There is a shortfall of Rs. 17,000 per month right now.

– This gap is managed through SWP from FD or SCSS.

– You are planning a loan of Rs. 1 crore for home construction.

– At current rates, the EMI may be around Rs. 80,000 per month.

– Adding this EMI will increase your outflow to over Rs. 2.4 lakh per month.

– That is clearly not affordable with your current income.

– So your present plan will lead to severe cashflow stress.

– You are trying to support this with SWP. But that is risky.

– FD capital may deplete within 6–8 years if this pressure continues.

– You may not be able to sustain the EMI, insurance, and household cost together.

– So this is not a financially safe way to take a house loan now.

? Revisit House Construction Timeline

– You already live in a rented house.

– There is no mention of urgency to shift to a new one.

– Since loan stress will create imbalance, it is better to delay construction.

– Instead of Rs. 1 crore now, you may reduce loan amount by saving more.

– Avoid building the house now unless income goes up or expenses come down.

– Use the next 3–4 years to prepare financially.

– When your LIC policy matures in 2027, you will get Rs. 20 lakh.

– That money can go toward reducing your loan requirement.

– Also, by then, your kids may grow, and educational cost planning can be clearer.

– This wait-and-plan approach is safer and less stressful.

? Review of SWP Strategy

– You are using FD and SCSS to fund monthly needs via SWP.

– This seems like a short-term patch, not a long-term solution.

– FD and SCSS offer limited returns, usually 6–8% per annum.

– If SWP is more than interest earned, capital will start reducing.

– In 5–6 years, capital will fall sharply.

– Also, capital erosion may affect future retirement stability.

– This is not suitable for loan EMI support, especially for 15–20 years.

– You should not rely on SWP to support EMI for long term.

– Instead, SWP should be used only for small gaps in emergencies.

? Existing Insurance Premiums Need Careful Review

– You are spending Rs. 75,000 per month on insurance-related instruments.

– That is Rs. 9 lakh per year. This is extremely high.

– Likely these are mostly traditional policies like LIC, ULIPs, or endowments.

– These plans combine insurance and investment but give very low returns.

– Long-term IRR is usually just 4–5% only.

– These policies also lock your money for long periods.

– It is time to pause all new premium payments, if possible.

– Stop all traditional insurance plans. Don’t add any new ones.

– Surrender or make them paid-up, case by case.

– Do a detailed review of each policy with a Certified Financial Planner.

– Reinvest surrendered values into mutual funds via SIP.

– Focus on regular plans through MFD with CFP guidance.

– That will give better diversification, liquidity, and long-term growth.

– This change alone can help save Rs. 6–7 lakh yearly.

– It will help reduce your expense burden and release money for real goals.

? Use Mutual Funds Systematically

– Mutual funds are best for long-term goals like retirement and children’s education.

– SWP from mutual funds is also better than FD or SCSS.

– Mutual funds give better growth and are more tax-efficient.

– But avoid index funds. They don’t manage risk actively.

– Index funds follow market blindly, even when it is falling.

– Actively managed funds do better over time with good fund managers.

– They reduce risk during market correction and increase during growth.

– Use equity mutual funds for growth and hybrid funds for medium goals.

– SIPs in active funds through MFD with CFP support are ideal.

– This way, you balance risk, return, and liquidity.

? Children’s Education Planning

– You have two kids. Their higher education will need Rs. 25–50 lakh each.

– You must plan separate SIPs for this goal.

– Choose child-focused mutual funds or balanced advantage funds.

– Do monthly SIPs for at least 10–12 years.

– Let the investment grow with compounding.

– Avoid using insurance plans for children’s education.

– Insurance-linked child plans give poor returns and less flexibility.

– Also, don’t mix your home loan burden with children’s goals.

– Their future education should not depend on house construction or loan.

? Retirement Goal Needs Focus

– You are 44 years old. You have 16 years for retirement.

– You need to create enough funds for retirement lifestyle.

– Don’t depend on SWP from FD or LIC maturity alone.

– Those are short-term sources and not inflation-proof.

– Create a separate SIP-based portfolio for retirement.

– This must include large-cap and hybrid mutual funds.

– Increase SIP amount as income rises.

– Track SIP progress every year with a Certified Financial Planner.

– After age 60, start SWP from retirement mutual fund portfolio.

– That will give stable income and flexibility.

? Review and Protect Insurance Coverage

– You need pure term insurance. You already have one.

– Confirm if the term cover is Rs. 1 crore or more.

– If less, increase it to Rs. 1.5–2 crore now.

– Avoid mixing insurance and investment again.

– Mediclaim should cover the full family. At least Rs. 15–20 lakh total.

– Choose floater health policy with lifetime renewal.

– Consider super top-up plans for additional health coverage.

– Do not depend only on employer-provided policies.

– Those stop if you leave or retire from the job.

? Emergency Reserve Planning

– Emergency fund is very important now.

– You already have Rs. 5 lakh in bank. That is good.

– Maintain minimum of 6 months’ expense in savings or liquid funds.

– Keep Rs. 10–12 lakh as emergency reserve before thinking of any house loan.

– This amount should not be used for EMI or other goals.

– Emergency fund gives safety during job loss or health issues.

– It helps you avoid selling long-term investments in panic.

? House Purchase Planning – A Safer Approach

– Don’t take Rs. 1 crore loan with current income and expenses.

– Try to reduce house cost or increase own contribution.

– Delay house building until your LIC maturity in 2027.

– Use that Rs. 20 lakh to reduce loan size to Rs. 80 lakh or lower.

– That will reduce EMI pressure.

– Target a loan EMI that is below 30–35% of your take-home salary.

– Plan construction when insurance premiums are under control.

– Once the loan is manageable, you can build without disturbing other goals.

? Investment Structure Going Forward

– Stop all insurance-based investments. Surrender where suitable.

– Use mutual fund SIPs through MFD with CFP credential.

– Keep separate SIPs for retirement, child education, and emergency reserve.

– Avoid SWP from capital-heavy FD or SCSS.

– Use those for short-term goals only if needed.

– Focus on liquidity, flexibility, and growth.

– Keep reviewing your financial plan every year.

– Align your goals with income and risk comfort.

? Tax Efficiency Tips

– Mutual funds are tax-efficient compared to FD or SCSS.

– For equity mutual funds, LTCG above Rs. 1.25 lakh is taxed at 12.5%.

– STCG is taxed at 20%.

– For debt mutual funds, gains are taxed as per your income slab.

– Traditional insurance maturity is taxed if premium exceeds limit.

– FD interest is taxed every year. It reduces actual return.

– SWP from mutual funds is better than FD interest.

– Use this tax edge while planning your portfolio.

? Finally

– You are a sincere and forward-looking person.

– You already saved well and built multiple assets.

– But don’t overcommit to a big home loan right now.

– First reduce your insurance premiums and expenses.

– Then build your mutual fund-based investment plan.

– Delay house building until 2027 when LIC maturity gives you extra support.

– Keep emergency reserve strong.

– Protect your family with pure term and health covers.

– This balanced and focused approach will help you live peacefully.

– You will secure both your kids’ education and your own retirement.

– Stay consistent, and your goals are fully achievable.

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

...Read more

Ramalingam

Ramalingam Kalirajan  |9983 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2025

Asked by Anonymous - Jul 11, 2025Hindi
Money
Dear Sir, I have a one question which is always troubling me. I am getting a salary of 2.2 lakhs a month. I don't have any depts or loans etc. I have an investment of 55 lakhs in FD (emergency money), PPF, NPS tier 2 and NSC. The reason I choose NPS tier 2 is I am not sure until when I will have a earning potential or I would get salary etc. if I start a SIP I am not confident until when I will be paying. I have a old parents and have a wife and a daughter (9th STD). Get a rent around 20,000. Also I have an LIC maturing next year, for every year I get 2 lakhs (yearly) for next 7 years. My house hold expense is around 60000. I have two plots worth 80000 lakhs (for my daughter). I have a term insurance for 2 Cr until 60 year. I have a medical insurance covering 3 lakhs for my parents and 10 lakhs for me, my wife and a Kid. Paying almost 10,000 rupees every month for medical insurance. I do have SBI life insurance running, which will be matured by 2030 and the sum assured is 20 lakhs. Now I am actively investing in NPS tier 2 and the physical Gold every month to keep out of commitment of SIP etc. Can you please help to suggest me it I am doing right
Ans: You are in a better financial position than most.
No debt. Strong salary. Sensible savings.
That’s a great base to build on.

You’ve made mature choices by avoiding unnecessary EMI burdens.
Also, giving priority to secure instruments shows responsibility towards your family.

Now let’s assess every part of your strategy —
To ensure you are future-ready and financially confident.

? Salary and Cash Flow Clarity

– You earn Rs. 2.2 lakhs salary each month.
– Rent of Rs. 20,000 adds to that.
– Total income is Rs. 2.4 lakhs per month.
– Household expenses are around Rs. 60,000.
– Insurance premiums cost Rs. 10,000 monthly.
– This leaves you with Rs. 1.7 lakhs monthly surplus.

That’s a very strong monthly saving rate.
You are saving over 65% of your income.

? Strong Protection Cover

– You’ve taken term insurance of Rs. 2 Cr till age 60.
– Very important move for your family’s security.
– Health cover of Rs. 10 lakhs for your family is sufficient.
– Rs. 3 lakhs cover for parents may fall short with age.

Keep increasing this cover with super top-up.
Health inflation is very high in India.
Do not compromise on this.

? Real Assets and Purposeful Holdings

– You own two plots worth Rs. 80 lakhs.
– You are holding them for your daughter.
– It is okay as it is goal-linked.
– Do not invest further in plots or real estate.

Real estate lacks liquidity and income.
Avoid more purchases in this space.

? Consistent Investments in Safe Assets

– You’ve built Rs. 55 lakhs in FDs, PPF, NSC, and NPS Tier 2.
– Great effort and risk-averse by nature.
– This builds safety and peace of mind.
– Emergency fund seems well covered through FDs.

PPF maturity is useful for retirement.
NSC and PPF are low-yield but safe.
NPS Tier 2 gives equity exposure.

? Gold Investments – Discipline Without Commitment

– You are buying physical gold every month.
– It gives the feeling of safety and value.
– However, physical gold is not productive.
– It does not generate income or compounding.

Consider reducing physical gold buying.
Move that money to other smart instruments.
SGBs (Sovereign Gold Bonds) are better for long-term.

? LIC and SBI Insurance Policies

– LIC policy is maturing next year.
– You’ll receive Rs. 2 lakhs per year for 7 years.
– This is Rs. 14 lakhs guaranteed cash flow.
– Useful as semi-passive income till 2032.

You also hold a SBI Life plan maturing in 2030.
If this is a traditional or ULIP plan, exit it.
Surrender and redirect to mutual funds.
Traditional insurance is poor for wealth building.

You already have sufficient life cover.
There is no need to continue endowment policies.

? NPS Tier 2 – Are You Using It Right?

– You are investing in NPS Tier 2 instead of SIPs.
– Because you are unsure of job continuity.
– You don’t want SIP commitments.
– This is understandable in a volatile job market.

However, NPS Tier 2 is not a long-term vehicle.
It lacks tax benefit. It also lacks withdrawal restrictions.
You are voluntarily investing into a structure not designed for compounding.

Also, NPS Tier 2 returns depend on equity-debt allocation.
These are limited and not actively managed.
Flexibility is low. Transparency is average.

This strategy needs improvement.

? Why SIP Is Still Better Than NPS Tier 2

– SIP is not a legal or rigid commitment.
– You can stop, pause, increase, or reduce any time.
– You don’t have to commit lifelong.
– Mutual fund SIPs are highly flexible.

SIP is like brushing your teeth.
Simple habit. No paperwork to stop.

You can also start with small SIPs.
Maybe Rs. 10,000 per month.
Then increase only if job continues.

Use step-up SIPs.
That adjusts with inflation or salary hike.
Keep everything in your control.

? Avoid Direct Plans, Choose Regular Plans with CFP

– You didn’t mention whether you are using direct or regular funds.
– Avoid direct plans even if they save commission.
– You won’t get tracking, advice, review, or goal-based planning.

Investing through regular plans via a Certified Financial Planner is better.
They’ll help rebalance, restructure, and realign your funds annually.
This improves returns and manages risk.

? Avoid Index Funds – Choose Actively Managed Funds

– You didn’t mention index funds, which is good.
– Index funds are passive.
– They don’t protect downside risk.
– No fund manager oversight.

Actively managed mutual funds outperform indexes.
They also adjust to market cycles.
Especially in Indian markets, active funds deliver better risk-adjusted returns.

? What to Do With Surplus of Rs. 1.7 Lakhs

Use this in a flexible, goal-based investment format.
Here’s how you can start:

– Invest Rs. 50,000 monthly via SIPs in regular mutual funds.
– Flexi cap, large & midcap, and hybrid equity-debt funds are ideal.
– If you want safety, add short-term debt fund SIP of Rs. 10,000.
– Continue Rs. 10,000 in NPS Tier 2 if needed.
– Buy Rs. 5,000 SGB every month instead of physical gold.
– Invest Rs. 50,000 lumpsum per year in a child education fund.
– Park Rs. 20,000 monthly in liquid funds for short-term needs.

This way, you are using the full Rs. 1.7 lakhs monthly.
Every rupee will serve a purpose.

You still have Rs. 55 lakhs in safe instruments.
So you are not taking extra risk.

? Child Education and Retirement

Your daughter is in Class 9 now.
So her college expenses start in 3–4 years.

You should start a separate education corpus now.
Don’t rely on your LIC returns for education.
Inflation in education is high.

Plan at least Rs. 25–30 lakhs for her higher education.
Use SIP in a mix of hybrid and flexi-cap funds.

For retirement, your PPF, LIC inflows, plots, and new SIPs will help.
Also build Rs. 1 Cr in mutual funds over next 10 years.
This will generate monthly income in retirement.

? Continue Medical Insurance, Review Annually

You are paying Rs. 10,000 monthly for premiums.
Continue them. But review policies annually.
Check if you can merge or shift to better plans.

Also add super top-up for parents.
Healthcare costs can be sudden and high.

? Tax Efficiency and Exit Planning

You must start planning your exit strategy from now.
When to redeem mutual funds.
How to generate income.

Remember new tax rules:
– Equity mutual fund LTCG over Rs. 1.25 lakh taxed at 12.5%.
– STCG is taxed at 20%.
– Debt fund returns taxed as per your tax slab.

Work with a Certified Financial Planner to minimise tax burden.
Use SWP, staggered exits, and goal-aligned redemptions.

? Finally

You are on a strong financial foundation.
No debt. High savings. Balanced life priorities.

You are cautious and practical.
But you are under-utilising your wealth potential.

Shift more money to flexible and growth-oriented mutual funds.
Give every rupee a goal and purpose.
Avoid real estate and physical gold accumulation.

Let your wealth grow silently while you focus on your family.

You don’t need to invest more.
You only need to invest better.

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

...Read more

Ramalingam

Ramalingam Kalirajan  |9983 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2025

Money
I Want to invest 10K per month in MF for over 5 years. Which is better option
Ans: It’s great that you want to invest Rs.10,000 per month.
Doing it for 5 years shows clarity and discipline.
A good investment habit is more important than just returns.
Let’s create a 360-degree plan for this journey.

? Start With a Clear Goal for the 5-Year Investment
– Know why you are investing.
– Is it for a car, house, travel, or child's education?
– The goal decides the risk level.
– It also helps in selecting the right fund type.

? Understand That 5 Years Is a Medium-Term Horizon
– Less than 3 years is short-term.
– More than 7 years is long-term.
– 5 years sits in between.
– So, investment should balance growth and safety.
– Full equity may be too risky.
– Full debt may not give good growth.

? Mix of Equity and Debt is Needed
– Hybrid funds suit this 5-year goal.
– They offer a mix of equity and debt.
– This gives better returns than full debt.
– It also gives lower risk than full equity.
– They suit medium-term investors like you.

? Prefer Actively Managed Mutual Funds
– Actively managed funds have better research teams.
– They try to beat the market returns.
– Fund manager takes care of stock selection.
– They adjust portfolio based on market changes.
– In 5 years, active management matters a lot.
– Index funds cannot do this.

? Why Index Funds Are Not Suitable Here
– Index funds just copy the index.
– They don’t protect you during market fall.
– No active fund manager involvement.
– They are passive and rigid.
– In 5 years, even one bad year can hurt.
– So, don’t choose index funds for this plan.

? Choose Regular Funds, Not Direct Plans
– Direct plans offer no personal help or support.
– You need to do research and track on your own.
– This increases chances of wrong fund selection.
– Also, rebalancing is missed often.
– Regular funds through Certified Financial Planner-guided MFDs give full service.
– They help in review, tracking, and goal alignment.

? Disadvantages of Direct Plans You Must Know
– No guidance or review at all.
– Risk of overexposure or wrong fund category.
– Can lead to underperformance.
– Many investors panic during market correction.
– In regular plans, expert guidance avoids panic.
– You also get behavioural coaching, which is valuable.

? Start with SIP in Growth Option of Mutual Fund
– SIP keeps discipline.
– Growth option helps build corpus faster.
– Don’t choose dividend or IDCW options.
– They reduce compounding benefit.
– Let the fund grow fully for 5 years.

? If You Want Liquidity, Choose Hybrid with Low Volatility
– You may need partial money anytime.
– Choose a fund with low drawdown.
– This gives peace even if markets go down.
– Low volatility gives confidence to stay invested.

? Don’t Depend on Past Returns
– Past returns don’t repeat always.
– Choose funds based on process, not just numbers.
– Fund consistency matters more than one-time outperformance.
– Look for risk-adjusted returns, not only high returns.

? Use SIP STP Combo for Smooth Investing
– You may park one month’s SIP in liquid fund.
– Use STP to move it weekly to equity fund.
– This gives better cost averaging.
– It reduces market timing risk.
– Useful when markets are volatile.

? Avoid ULIPs or Insurance-Based Investments
– These are poor options for 5 years.
– They have high charges and low flexibility.
– Returns are neither stable nor high.
– If you already hold any, consider surrendering.
– Reinvest that amount in mutual funds.

? Rebalance the Portfolio Annually
– Your 5-year investment may need changes every year.
– Equity-debt mix may shift due to performance.
– Rebalancing keeps risk in control.
– Your Certified Financial Planner will help do this.
– Don’t ignore yearly reviews.

? Consider Taxation When Redeeming After 5 Years
– Equity funds held over 1 year are long-term.
– LTCG above Rs.1.25 lakh is taxed at 12.5%.
– Short-term gains under 1 year are taxed at 20%.
– Debt mutual funds are taxed as per your tax slab.
– Your Certified Financial Planner will guide on tax-efficient withdrawal.

? Avoid SIP Top-Ups Without Review
– Increasing SIP each year is good.
– But review fund performance before top-up.
– Don’t just increase SIP blindly.
– Check if your fund is still suitable.
– Regular review prevents mismatch with your goal.

? Keep Emergency Fund Separate
– Don’t use this Rs.10,000 SIP amount for emergencies.
– Keep separate funds for that purpose.
– At least 3–6 months’ expenses in liquid fund.
– This keeps your SIP running in tough times.
– Never stop SIP for temporary needs.

? Avoid Real Estate for This Goal
– Real estate doesn’t suit 5-year goals.
– Very hard to buy and sell quickly.
– No monthly returns in most cases.
– Maintenance costs are high.
– Mutual funds give better liquidity and growth.

? Protect the Goal With Term Insurance
– In case of unexpected death, family gets money.
– Buy a pure term plan only.
– Don’t mix insurance with investment.
– ULIPs or endowments are low-return options.
– If you have them, surrender and reinvest in mutual funds.

? Don’t Chase Fancy or Trendy Funds
– Sector funds or thematic funds are risky.
– They may shine for short periods.
– But can fall deeply without warning.
– For 5 years, choose well-diversified hybrid or equity funds.

? SIP Delay Can Reduce Final Corpus
– Every month’s delay matters.
– Start immediately. Even one missed SIP affects growth.
– Time in market is more important than timing.
– Don’t wait for market bottom to start.

? Keep Investment Linked to Your Goal
– If the goal is near, reduce equity exposure.
– Don’t take high risk in last year.
– Move funds to safer options in final year.
– This protects your gains from sudden market fall.

? Don’t Withdraw Early Without Purpose
– Many investors withdraw early due to fear.
– This breaks compounding and reduces returns.
– Stay committed to your 5-year goal.
– Trust the process and stay invested.

? Final Insights
– Your Rs.10,000 monthly SIP for 5 years is a solid start.
– Choose hybrid or balanced mutual funds with active management.
– Avoid index, direct, annuity, or insurance-linked investments.
– Don’t follow past returns blindly.
– Choose regular plans with Certified Financial Planner support.
– Review yearly. Rebalance as per need.
– Don’t panic in market correction. Stay invested.
– Link to a goal. Stay disciplined.

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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