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Worried Dad: Separating with wife, worried about kids' wellbeing

Anu

Anu Krishna  |1318 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 06, 2024

Anu Krishna is a mind coach and relationship expert.
The co-founder of Unfear Changemakers LLP, she has received her neuro linguistic programming training from National Federation of NeuroLinguistic Programming, USA, and her energy work specialisation from the Institute for Inner Studies, Manila.
She is an executive member of the Indian Association of Adolescent Health.... more
Asked by Anonymous - Nov 04, 2024Hindi
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Relationship

I am a father of two young daughters aged 5 and 3. I and my wife got love married and post marriage things began to fall apart. The relationship is not where I have done any physical abuse as we see generally posted in this group . But the issue is more of the individual viewpoints and hence arguments. For every action I take there are reverse opinions and which ends with a feud which takes a lot of mental toll on me and my wife. So considering what we are going through we decided to seperate in good terms. But I am worried about how this will impact my kids. When separating, obviously I will have to stay seperate and I will not be able to meet and play with my kids like I do daily today. Best case would be weekends where I can spend my maximum time with them. Along with this the other concern is if either of us want to get into another relationship or dating, how best can we do along with co parenting? We both are 35 yrs old

Ans: Dear Anonymous,
It is unfortunate that you both have decided to separate; but now having taken that step, it would be a good idea for both of you to actually have an honest discussion on 'How to Co-parent'. Each couple does it in their own way BUT there are a few pointers that is a MUST DO:
- Make your children a priority; co-parenting is about them and not the two of you
- Make sure that the two of you don't bring in your agenda to be conveyed through the children
- Be respectful of one another when in front of the children so that they don't pick off from the vibes
- Keep the other parent always in the loop about things that concerns the children
- Keep your word on time committed that will support the other parent
- If there is a new relationship that either parent is exploring, when it gets serious, do share that with the other parent so that they will know how to handle the children's questions

The list can go on...but always be sure that you pursue co-parenting from a space of mutual trust, respect and understanding.

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

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Anu

Anu Krishna  |1318 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Oct 29, 2021

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Relationship
My wife and I have been married for 15+ years and we have two young kids (5 and 10 yrs old). We are from northern India and sort of settled in the USA. The issue is that our communication has been very poor and since the birth of our first child about 10 years ago, the problem has become significantly worse. During the initial years of a kid's life it is obviously understandable to have an infant sleep with parents in bed, but my wife decided to continue doing that years into the birth. This continued till my first child was 5 or 6 years older. And then came along our second kid and the same thing repeated. I was not in agreement with this way of having kids sleep in bed every night and I started sleeping separately and have been doing that for years. I believe this in itself caused multiple cascading communication issues and our detachment from each other. My wife does not take any time out for the two of us and instead spends almost all her time caring for herself or kids. My wife is also very (extremely) possessive and insecure with kids and me developing any kind of meaningful bond. I have to ask her permission for example to take kids out or else she uses sarcasm, demean etc., or other ways to intimidate me as if I am doing something wrong. I need your help to understand if any of this kind of behavioUr can be considered 'normal'. Can I say to myself - 'bad luck, but this happens in marriage and is not a good enough reason to consider separation and divorce'? Or the behaviour I am seeing is way out of the ordinary and cause for some action to save my mental health. I feel lonely, depressed and deprived of emotional support, and really miss time with my kids as well as being a parent to them in ways I think is best for them. Parenting style significant differences have further increased the rift between us, and since kids spend a vast majority of their time with mom, I see them develop personalities which I think is not best for them as they step out into the world and become independent. I am really squeezed between many conflicting thoughts. Should I work on leaving this marriage after years of trying to establish some minimum communication and mutual trust? Should I stay for the sake of my kids, but if so what is the point, I am not able to parent them anyway in any meaningful way? We have arguments and verbal fights a lot and that is the only communication we have left now and otherwise weeks and months go by without any calm and meaningful conversations. I am very lost and hope for some advice that I can apply and clear my thoughts. I will very much appreciate your help.
Ans: Dear VB, this is like kids becoming the third person in the marriage which is very common in a lot of couples.

Sex waning after having kids is something that many marriages go through, also the mother can be tired after caring for the home, work and the kids…sex is the last thing on her mind.

But, yes you do have a point when you mention that kids are still lurking in your bed which is not healthy for their development.

Just a thought, has your wife found this as a convenient option to avoid any intimacy with you?

If yes, what and why is she avoiding? These can be answered only when the two of you set aside your emotions aside and talk as civil adults.

If that isn’t a possibility, kindly take the help of a professional who will:

  • Help your wife transition from mother to wife and ease her into both roles
  • Bring to her notice that children need the love and care of both parents and that it is non-negotiable and a dampener for the kids to deny them the fathers’ support
  • Guide both of you to bring spark back into your marriage
  • Teach the family to discipline itself into conscious parenting that keeps the welfare of the children at the forefront

I would urge you to go down this path before thoughts of separation etc.

The kids can grow up in a loving environment; why not strive for that first?

Wishing you the best!

..Read more

Anu

Anu Krishna  |1318 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Aug 06, 2024

Asked by Anonymous - Jul 26, 2024Hindi
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Relationship
I am married with a seven year old daughter. We have been married for eleven years our was an arranged marriage , and we did not have the best compatibility in early years of marriage. My wife had gone through a breakup just before marriage , she took some time to come out of it and I gave her that space. Things began to turn slowly after 2 years of marriage and finally we were blessed with a daughter on 2016 . Due to my job i had to stay apart from my family for nearly four years, during this time she felt very lonely and i tried to console her about our long distances but things did not work out. Gradually i came back to my native after 4 years and things began to slowly fall in place . All was going well but for the last three to four months she felt that all this time she has been mentally adjusting with me since we were not compatible and she wants to break this relationship. I still love her , but she is bent on filing divorce petition. We are separated for the past two months, please advice
Ans: Dear Anonymous,
Obviously she never healed from the break-up and you came into her life only to live away that has not helped your marriage.

Right time to seek professional help. Do appeal to her that Divorce only causes a lot of turmoil especially when there is a child involved in the equation. Your wife needs someone to tell her that she has to act like a grown-up. Running away from a marriage and playing the past events isn't going to help and Divorce is only going to accentuate it. Now, if you say this to her, she will most likely call you a villain. So, ASAP go to a marriage therapist...give it a chance...A lot of marriages are saved through this process and your child does deserve a loving home and loving parents.

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

..Read more

Anu

Anu Krishna  |1318 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Aug 06, 2024

Asked by Anonymous - Jul 29, 2024Hindi
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Relationship
Hello AnuJi I am 42 and my wife is 40 and we have an 8 year old son. We have recently been staying separately since 3 months after a lot of tensions and my wife's emotional breakdown. Our relationship has been strained since beginning. Though am very loving, caring and devoted to my wife I have possessiveness issues. My wife has been sacrificing a lot on her own accord for our marriage but during her emotional breakdown we learnt the hard way that she was feeling suffocated in all this. She even hurt herself and that is the reason I am very careful in approaching her for reconciliation. My son is with me which gives me solace but I am worried he will miss out on mother's love and holistic development this way. I am unable to create a pathway between me and my wife because she is currently very caustic, bitter, insulting towards me and my family and not willing to hear my side of the story / talk peacefully / agree for counseling etc. I considered having the child stay with her but she has a terrible temper and history of beating the child, sometimes severely and hiding this from me till I found out. I later came to know my child is developing a sulking personality because of this but being a child he is naturally affectionate towards her mother (infact he developed an attitude that he deserves to be beaten and slapped - something he is coming out of gradually now he is with me). Infact parenting style mismatch and arguments was one of the reason of our split. At this moment I want to do whatever possible to bring the family together - short of feeling humiliated / not being heard / agreeing to child being beaten. My wife and me are well educated and even nature-wise she has good qualities as well. I just don't understand how we seemed to have ended up in this mess so abruptly. I do not know whether I should adopt a conventional attitude of saving the family, compromising etc or prioritise individual happiness and adopt a more liberal approach of staying separately even if child misses out on one of our day to day love and care.
Ans: Dear Anonymous,
Let's put things into perspective.
1. You and your wife are living separately due to a few challenges
2. Your son lives with you but you feel that the family living together is the best
3. Your wife resorts to punishing your son which is impacting him
4. Counseling is not an option

Which means that you have to step in as your own Counselor. Bringing the family together has to be your journey as your wife is not a part of it as yet. A lot of empathy, patience and the challenge of understanding your wife's emotional breakdown. Obviously, there's something going on deep within her that is making her resort to hurting herself which is cause for concern indeed. Tread carefully but firmly when you speak with your wife. Let her know your genuine intent of bringing the family back together and how much you would appreciate her support in all of this. Encourage her to start working as this will offer her some respite from caring for the family and also set her up professionally.
Give a patient ear to her complaints or outbursts (a very difficult thing for you to do).

What I have stated above is what works much better with a professional as you will have his/her guidance through the process. But give this a shot by yourself and see where it leads you to. Who knows, after a while, she might agree to see a professional...Give this a shot...

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

..Read more

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Pradeep

Pradeep Pramanik  |186 Answers  |Ask -

Career And Placement Consultant - Answered on Nov 21, 2024

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Career
I am looking for a job, I had uploaded my resume in job site. A consultant called me & introduced himself telling he know some of the openings. He had a detailed discussion about my job & my skills. He told need to register to his consultancy for scheduling interview. I registered with him & he got me a interview. Interview was done by the company through skype. I could not see the company persons. They told only they can see me. Interview went on well & regarding salary I told my expectation but they told it is not possible & they told their proposal. Finally I agreed to them. They gave me code & told to visit the company for next round. Consultant called me after first round & told recruiter is very happy with the interview. Regarding salary he told why I agreed for the proposal,he will discuss again & asked to pay charges for some of his services which he will refund the day I visit to the company & take the orders. I paid him. He told there is a increase in salary he has discussed with recruiter & again asked for the money I did only partial payment & further will not pay anything. Second round also happened through skype instead of in person. Interview went on well & salary offered was good comparing to before & there was a big jump. Recruiter told they have planned to give additional responsibilities so they have increased. Finally they gave me a date to visit company. I asked when will I get the order, he replied he will send to consultant as I was taken by them. Till now i did not get the orders, consultant is keep on postponing. Now he told visit to company date is also postponed, he will update in next week & not to worry as job is confirmed. Now not understanding what to do, am I been cheated or wait.
Ans: Dear Mr. Keshava ,

There are many unscruplous job agents who are fake and claim themselves to be a Placement consultant. In short You have been cheated . Before paying any fee for registration , you must ensure that the agency is genuine . If not don't even upload your resume . You may write to company , lodge a complaint against the agency. If the amount is very high , pl. take the help of police . .

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Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

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Money
I hv started sip in 2008 and still continued , now the monthly sip is 55k and total value is 1.85cr. Need to accumulate 7cr with in next 4 yrs pls guide how can i achieve. - Deepak J. Hajari
Ans: Deepak, your long-term SIP discipline is impressive. Accumulating Rs. 7 crore in 4 years is ambitious. Achieving this goal requires a strategic approach, as time is limited. Let's create an actionable plan for your success.

Current Financial Snapshot
Ongoing SIPs: Rs. 55,000 monthly.
Current Portfolio Value: Rs. 1.85 crore.
Target Corpus: Rs. 7 crore within 4 years.
Your consistent investing habits have built a solid foundation. However, to achieve your target, adjustments are needed.

Key Challenges
Short Time Frame: Four years is a limited period for aggressive wealth accumulation.
Significant Gap: A gap of Rs. 5.15 crore remains to meet the Rs. 7 crore goal.
Market Volatility: Equity investments might face short-term volatility.
Recommendations to Bridge the Gap
1. Increase Your SIP Contributions
Raise your SIP amount to Rs. 1.25 lakh per month.
This increase ensures faster wealth creation through compounding.
Prioritise high-growth funds in equity-oriented categories.
2. Invest Lump Sum Amounts
Consider deploying a lump sum if you have idle savings or low-yield investments.
Invest in aggressive equity mutual funds for higher potential returns.
Break down the lump sum into tranches for better market timing.
3. Diversify into High-Growth Mutual Funds
Focus on small-cap and mid-cap mutual funds for higher growth potential.
Maintain a balance with some large-cap exposure for stability.
Ensure the portfolio aligns with your high-return requirements.
4. Avoid Overexposure to Debt or Low-Yield Instruments
Limit debt investments during this aggressive growth phase.
Avoid instruments like FDs or debt mutual funds with lower returns.
Rely on equity for the next four years to maximise growth.
5. Rebalance Your Portfolio Regularly
Conduct a portfolio review every 6 months.
Reallocate funds based on underperforming or outperforming sectors.
Keep your portfolio aligned with market trends and your goals.
6. Capitalize on Bonus or Windfall Gains
Direct any bonuses, salary hikes, or windfall gains towards your target.
Avoid unnecessary expenses during this focused phase.
Tax Efficiency Matters
Equity Mutual Funds Taxation: Gains above Rs. 1.25 lakh are taxed at 12.5%.
Debt Mutual Funds Taxation: Taxed as per your income slab.
Plan redemptions strategically to minimise tax liabilities.
Leverage Market Opportunities
Benefit from Market Corrections: Use corrections as opportunities to invest lump sums.
Stay Invested for Compounding: Avoid early redemptions to let compounding work fully.
Role of Regular Monitoring
Track Performance: Ensure funds are performing as per expectations.
Switch Funds if Needed: Shift from underperforming funds to high-growth options.
Final Insights
Deepak, achieving Rs. 7 crore in 4 years requires aggressive yet calculated strategies. Increase your SIPs, deploy lump sums, and focus on high-growth funds. Regular monitoring and disciplined investing are key to your success. Stay patient and consistent.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

Asked by Anonymous - Nov 20, 2024Hindi
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Money
I am 50 yrs old. If I invest 60k per month for 10 yrs in SIPs of MF then will I be able to achieve the corpus of Rs. 2.50 Crs and if not how much shall I invest per month and in which SIP schemes
Ans: You have a clear goal to invest Rs. 60,000 per month for 10 years. The goal is to accumulate Rs. 2.5 crore through mutual fund SIPs. Let us analyse your query in detail and provide actionable insights.

Evaluating the Feasibility of Your Investment Plan
10-Year Time Frame:
Ten years is a medium-term horizon. Equity-based mutual funds offer good growth potential for this period.

Monthly SIP Contribution:
A SIP of Rs. 60,000 is significant. It shows your commitment to wealth creation.

Target Corpus Analysis:
The target of Rs. 2.5 crore depends on consistent returns. Market performance influences results.

Expected Returns:
Equity funds can give 10%-12% annualised returns in the long run. However, returns are not guaranteed.

Is Rs. 60,000 Sufficient?
Your current contribution may not be sufficient to reach Rs. 2.5 crore in 10 years.

For 10%-12% Returns:
You might accumulate Rs. 1.9–2.1 crore. There could be a shortfall of Rs. 40–60 lakh.

Solution:
Increase your SIP amount to Rs. 75,000–80,000 monthly for a better chance of achieving the goal.

Optimising Your SIP Contributions
Step-Up SIPs:
Increase your SIP amount by 5%-10% every year. This adjusts for inflation and higher earnings.

Lump Sum Boost:
If you have surplus funds, invest a lump sum. This accelerates your goal.

Diversify Investments:
Allocate across equity and hybrid funds for balanced growth and risk management.

Selecting the Right SIP Investments
Actively managed funds are suitable for your goals. Avoid index funds due to their limitations.

Equity Funds for Growth:
These funds have high growth potential over 10 years.

Diversified Portfolio:
Choose funds across large-cap, mid-cap, and multi-cap categories. This spreads risk effectively.

Hybrid Funds:
Hybrid funds provide stability by balancing equity and debt investments.

Avoiding Direct Funds
Investing through direct funds might seem cost-effective but has drawbacks.

Limited Guidance:
Direct funds lack professional advice. This could lead to suboptimal fund choices.

Benefits of Regular Plans:
A Certified Financial Planner ensures proper fund selection and portfolio review.

Managing Tax Implications
Understanding taxation helps optimise your returns.

Long-Term Gains:
LTCG above Rs. 1.25 lakh is taxed at 12.5%. Plan redemptions strategically.

Short-Term Gains:
STCG on equity is taxed at 20%. Avoid frequent withdrawals to minimise this tax.

Hybrid Funds Taxation:
Gains from hybrid funds are taxed as per your income slab.

Steps to Achieve Rs. 2.5 Crore
Increase SIP Amount:
Raise your SIP to Rs. 75,000–80,000 monthly.

Review Annually:
Monitor portfolio performance and adjust investments.

Use a Balanced Strategy:
Combine equity funds with hybrid funds to optimise risk and return.

Seek Professional Help:
Work with a Certified Financial Planner to refine your plan.

Final Insights
Your goal of Rs. 2.5 crore in 10 years is achievable with adjustments. Increase your SIP amount and maintain discipline. Diversify investments and periodically review the portfolio. A Certified Financial Planner can guide you for maximum efficiency and clarity.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

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Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

Asked by Anonymous - Nov 19, 2024Hindi
Money
Im a 34 year old, my father is planning on selling a property from which he would provide me with a gift of 1 Crore. At the moment , since my business has not launched, I would like to be earning interest from the Corpus amount and would also like to have a withdrawal of around 40-50K per month. Im very new to investing, and all i know is , getting half baked answers just isnt worth it. So im asking the experts, what is a realistic return that I could hope for? Provided its invested into mutual funds and debt funds. I would like to protect the corpus and make it grow while also trying to a withdrawal of 50-k per month.
Ans: Firstly, it's fantastic that you're approaching your investment decisions with a clear goal in mind. Receiving a gift of Rs 1 Crore from your father is a significant opportunity. Your desire to earn regular income while protecting and growing the principal corpus is a smart approach, especially given the current stage of your business. Let’s explore a realistic strategy for achieving your goal of monthly withdrawals while ensuring long-term growth.

Key Objectives
Preserve the Corpus: Ensuring the Rs 1 Crore grows steadily and does not erode.
Generate Monthly Income: Aiming for Rs 40,000–50,000 monthly withdrawals to meet your cash flow needs.
Balanced Risk: A mix of investments in mutual funds and debt funds to balance growth with security.
Types of Funds to Consider
To achieve your objectives, the portfolio needs to include a mix of debt and equity mutual funds. Here’s an overview of each option:

1. Debt Funds (Low-Risk)
Debt funds are ideal for stability. They typically offer steady returns with lower volatility. These funds invest in bonds, government securities, and corporate debt.

Stability: They offer relatively stable returns with low risk to the principal.
Monthly Income: Debt funds with monthly income plans (MIPs) can provide regular payouts.
Expected Returns: Historically, debt funds return 7-9% annually, depending on the type and tenure of the bonds they invest in.
2. Equity Mutual Funds (Moderate to High-Risk)
Equity funds invest in stocks and can offer higher returns, but with more volatility. Over the long term, they have the potential to outperform debt funds, though there can be short-term fluctuations.

Growth Potential: Equity funds are essential for capital appreciation.
Risk Profile: Equity mutual funds carry more risk but can provide higher long-term returns.
Expected Returns: Historically, equity funds can offer 10-15% returns per annum, depending on market conditions and fund management.
Expected Return and Withdrawal Strategy
Given your goal of withdrawing Rs 40,000–50,000 monthly (Rs 4.8–6 lakh annually), let’s assess a realistic return scenario:

1. Required Returns for Monthly Withdrawal
To generate Rs 4.8–6 lakh annually, you need to have a combination of income and growth.
Assumption: You need a mix of debt and equity funds. If you target an average return of 8-9% per annum from debt and equity, your portfolio should generate enough income.
2. Risk-Return Balance
Debt Funds: These funds will give stability and a guaranteed income, but at a lower return rate.
Equity Funds: These can help grow your corpus and offer a better chance of increasing the monthly withdrawal amount over time.
3. Potential Returns Based on Allocation
50% Debt Funds: Target return of 7-8% annually.
50% Equity Funds: Target return of 12-14% annually.
This balanced approach provides income and growth, helping you meet your withdrawal goal while maintaining long-term growth.

Portfolio Structure Suggestions
1. Debt Fund Allocation (50%)
Why Debt?: Debt funds offer lower risk and more predictable returns, making them suitable for generating a steady income.
Types of Debt Funds to Consider:
Corporate Bond Funds: These offer better returns than government bond funds, but at slightly higher risk.
Short-Term Debt Funds: These funds invest in short-term instruments and are less sensitive to interest rate changes.
Monthly Income Plans (MIPs): These funds are specifically designed to provide monthly payouts, offering an income stream.
2. Equity Fund Allocation (50%)
Why Equity?: Equity funds will provide higher returns and help your corpus grow over time. They are necessary for long-term wealth creation.
Types of Equity Funds to Consider:
Large-Cap Funds: These invest in well-established companies with a stable growth record.
Flexi-Cap Funds: These funds invest across all market caps, allowing flexibility to choose the best opportunities.
Hybrid Funds: A mix of debt and equity, hybrid funds are suitable for balancing risk and return.
Tax Considerations for Your Portfolio
Mutual fund investments are subject to taxes on the capital gains.

Equity Funds:
Long-Term Capital Gains (LTCG): If held for more than 1 year, LTCG above Rs 1.25 lakh is taxed at 12.5%.
Short-Term Capital Gains (STCG): If sold within 1 year, STCG is taxed at 15%.
Debt Funds:
LTCG: If held for more than 3 years, debt fund gains are taxed at 20% with indexation benefits.
STCG: If sold within 3 years, gains are taxed according to your income tax slab.
You should plan your withdrawals in a way that balances both income generation and tax efficiency.

Risk Management and Capital Preservation
Your focus on preserving the corpus is essential. While debt funds provide safety, equity funds add the potential for capital appreciation. To protect your capital:

Diversify Across Different Asset Classes: Ensure a mix of debt, equity, and hybrid funds.
Review Portfolio Regularly: Market conditions change, and it’s important to keep your portfolio aligned with your risk tolerance and financial goals.
Avoid Overconcentration: Don’t put all your funds into one type of asset. Spread your investments across sectors and instruments.
Steps to Implement Your Strategy
1. Choose Mutual Funds Through an MFD with CFP Credentials
Why?: Investing through a Certified Financial Planner (CFP) ensures your investments are aligned with your long-term goals and risk profile.
Avoid Direct Funds: While direct funds have lower expense ratios, you miss out on valuable advisory support. An MFD offers curated fund selection, tax advice, and regular portfolio reviews.
2. Start with a 50-50 Debt-Equity Split
Debt: Focus on short-term and MIPs for income generation.
Equity: Invest in large-cap or flexi-cap funds for long-term growth.
3. Monitor and Rebalance
Rebalance your portfolio annually based on market performance and changing needs.
Adjust debt and equity allocations depending on your withdrawal requirements and market conditions.
Final Insights
With Rs 1 Crore, you can generate enough income for your monthly withdrawals while allowing your money to grow. A balanced approach of 50% debt funds and 50% equity funds is a realistic strategy to achieve this. Your investment portfolio will ensure that you have both stability and growth, helping you meet your cash flow needs while protecting and growing your corpus.

It's crucial to engage with a Certified Financial Planner to tailor the investment strategy to your exact needs. Their expertise will help you make better decisions for both tax efficiency and long-term wealth creation.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

Asked by Anonymous - Nov 19, 2024Hindi
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Money
Hello, I have FD of 50 lakh, PPF of 10.5 lakh 3.3 lakh in savings account, 4.2 lakh in NPS. 10 lakh in Mutual Fund. My take home salary is 1.6 lakh per month. I want to retire by 50 with a take home pension of 2.5 lakh per month. My present age is 30. Can you suggest me a plan? Is it possible?
Ans: You aim to retire by 50 with a monthly pension of Rs. 2.5 lakh. This is a highly ambitious target but achievable with proper planning and disciplined execution.

Let’s evaluate your current financial standing and suggest a structured plan.

Current Financial Overview
Fixed Deposits (FDs): Rs. 50 lakh (safe but low returns).
PPF: Rs. 10.5 lakh (good for tax-free growth).
Savings Account: Rs. 3.3 lakh (low returns).
NPS: Rs. 4.2 lakh (moderate returns and tax-efficient).
Mutual Funds: Rs. 10 lakh (diversified and growth-oriented).
Monthly Income: Rs. 1.6 lakh take-home salary.
This diversified portfolio shows financial discipline. However, adjustments are needed to align with your retirement goal.

Key Challenges
High Retirement Corpus Needed: To generate Rs. 2.5 lakh monthly, you’ll need around Rs. 8-10 crore.
Short Time Horizon: You have 20 years to build the required corpus.
Underutilised Assets: FDs and savings account funds could generate better returns elsewhere.
Inflation Impact: Your post-retirement expenses will rise due to inflation.
Recommendations for Your Retirement Plan
1. Increase Investment in Mutual Funds
Shift a portion of your FDs and savings to mutual funds.
Focus on diversified funds across large-cap, mid-cap, and small-cap categories.
Allocate to equity-heavy funds for better long-term returns.
2. Optimise PPF Contributions
Continue contributing to PPF yearly to maximise tax benefits.
Treat PPF as part of your debt allocation for retirement.
3. Maximise NPS Contributions
Increase NPS contributions to Rs. 50,000 yearly for tax benefits under Section 80CCD(1B).
Select aggressive equity options within NPS for higher growth.
4. Set Up Systematic Investment Plans (SIPs)
Start investing Rs. 50,000 monthly in SIPs across mutual funds.
Gradually increase SIP contributions by 5-10% annually.
Use equity funds for wealth accumulation.
5. Reallocate Fixed Deposits
Retain 10-20% of your FDs as an emergency fund.
Move the remaining funds to mutual funds and other growth-focused instruments.
6. Inflation-Proof Your Retirement
Assume a 6-7% annual inflation rate for your retirement planning.
Ensure your investments provide returns above inflation.
7. Tax-Efficiency Awareness
Use ELSS funds for tax savings under Section 80C.
Review capital gains taxation on mutual funds under new rules.
Keep tax-efficient options like PPF and NPS in your portfolio.
8. Track and Adjust Regularly
Review your portfolio every 6-12 months.
Rebalance funds based on performance and market conditions.
Consult a Certified Financial Planner for strategic adjustments.
Action Plan to Build Rs. 8-10 Crore Corpus
Short-Term Actions (Next 1-3 Years)
Start SIPs of Rs. 50,000 per month immediately.
Reallocate 30-40% of FDs to mutual funds.
Increase NPS contributions for better growth and tax benefits.
Mid-Term Actions (4-10 Years)
Gradually increase SIP amounts by 5-10% annually.
Reduce FD exposure further as your mutual fund corpus grows.
Invest any bonuses or surplus income into equity funds.
Long-Term Actions (11-20 Years)
Shift equity-heavy investments to balanced funds 5 years before retirement.
Plan for a Systematic Withdrawal Plan (SWP) to create a regular income.
Use PPF and NPS as fallback options for additional income.
Addressing Your Goal of Rs. 2.5 Lakh Monthly Pension
You will need Rs. 8-10 crore to generate Rs. 2.5 lakh monthly.
This can be achieved with disciplined investments and compounding returns.
Ensure your retirement plan includes both growth and stability.
Finally
Your financial goal is ambitious but achievable. Align your investments with a growth-focused approach. Start SIPs, optimise underutilised assets, and regularly review progress. Plan for inflation and taxes to secure a stress-free retirement.

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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