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Kanchan

Kanchan Rai  |287 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on May 16, 2024

Kanchan Rai has 10 years of experience in therapy, nurturing soft skills and leadership coaching. She is the founder of the Let Us Talk Foundation, which offers mindfulness workshops to help people stay emotionally and mentally healthy.
Rai has a degree in leadership development and customer centricity from Harvard Business School, Boston. She is an internationally certified coach from the International Coaching Federation, a global organisation in professional coaching.... more
Asked by Anonymous - May 05, 2024Hindi
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Relationship

I had married a person who has an affair with the girl but before marriage he never told me about it .When I was 7 th month pregnancy I got to know about it but I support him and forgot all the things .After birth of my baby boy My mother in law's nature change suddenly.She used to torcher me , fighting with me .Even she called my parents 2 to 3 times come and take your girl.My husband supports her mother.6 months back she throw me out of the house with my baby .I am at my parents place.No one call me to ask for baby and provide financial support even .What should I do.Should I apply for maintenance for me and my baby.

Ans: I'm really sorry to hear about the challenges you're facing. It's a difficult situation, but you have rights and options available to you.

Given the circumstances, seeking maintenance for both you and your baby seems like a reasonable step to ensure your financial stability and that of your child. You can consult with a lawyer who specializes in family law to understand the legal options available to you and to guide you through the process of applying for maintenance.

Additionally, it's important to consider your emotional well-being during this time. Surround yourself with supportive friends and family members who can provide comfort and assistance. Seeking counseling or therapy can also be beneficial in processing the emotions and stress associated with your situation.

Remember, you deserve to be treated with respect and dignity, and you have the right to take steps to protect yourself and your child. Don't hesitate to reach out for help and support as you navigate through this difficult time.

You may like to see similar questions and answers below

Anu

Anu Krishna  |1042 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jun 08, 2022

Relationship
Hi Anu, 10+yrs of marriage with 9yr child. I am working and all financial burden is on me. I shifted separately from in-laws' house due to financial constraints and expectations. Though elder-in-law, my in-laws didn't try to stop our decision to move separately despite knowing that my hubby doesn't earn a single penny. They expected and I had to share financial expenses with my marginal income 10 years ago. After 5 years, we moved nearby and purchased our own house very little help from in-laws. I took loan and managed the rest with help from my family and friends. In between a lot happened. My father-in-law expired and my mother-in-law is a cancer patient. My mother-in-law started expecting from my hubby and me, probably because her younger son shifted with her family. She didn't want to live with them due to differences with her wife. She complained to my husband that we are not good enough to take care of her. I already had a lot of burden from office so I told my husband to take care of our child as well for sometime. He was quite depressed and frustrated with his inability to earn. Already lot of my hard-earned money has been put in his work n wasted.Now, the real problem during these difficult times began when we started fighting. I had lot of office stress and after mother in law complained, she shifted with her other son. At times, I got frustrated with my child also due to the whole mess, financial burden. I felt like all my hard earned money was wasted due to office stress and my hubby's irresponsible behaviour. He did not even take care of my child’s studies. He started watching porn... I saw him twice and even warned him. My husband started cheating on me with our maid. He did it when he was stressed because I was not able to give him time. I confronted him and since then it has been an emotional trauma. I am yet to accept it. 9 months have been passed. We decided on certain things but I couldn’t accept it.. Due to our emotional bond, I gave him another chance... During that time he accepted and was ready to leave everything and wanted me to be happy. He said he committed a big mistake but recently I found he called that b**ch later. When I confronted him he said he’d advised not to come home in front of his family members. I decided it would be best for him to move out and work from another place. My MIL was living with me but then I felt it too much at times.. now somewhat even my child has emotionally detached from him. It’s the same with him as we've been staying separately from 7 months. He visited 3 times during puja and other needs. I feel emotionally detached and I can’t digest the family situation.Sometimes I feel it's difficult to find the courage to avoid all and live alone. What's the point in living in a marriage for sake of it without having any emotional, physical, financial dependency or security?I am 39 and earn a decent salary at this moment. But I am not sure of my future as I work in a private firm. I am worried about my child’s education, old age, financial insecurity and burden. I haven’t been able to save much because of our financial liabilities and husband’s investments in businesses that never materialised.Before this incident, my husband supported me in my career and also to bring up our child. But what happened is too much and unexpected. Any suggestions?

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Dr Ashish

Dr Ashish Sehgal  |106 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Feb 24, 2023

Asked by Anonymous - Feb 18, 2023Hindi
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Relationship
I had late marraige . My husband was very keen to marry. In fact my family was not very keen. i was the only child and my mom passed away early. After my marraige my husband family behave differently. My mom-in law never allowed our normal relationship. My husband was not financially stable. However his mother used to fulfill all his wishes as she was in job. Now she is retired. I had a steady job and academic background. So I remained financially stable. But I never got any opportunity to lead a normal conjugal life. She constantly created psychological pressure so that I stay away from my husband. My husband also was unable to protest. He was more frank in absence of mother. This strange situation forced me to stay away from my inlaws place. I started living separately. My mom-in law was cooperative as long as Im away from them. Now if my husband is sick, he is informing me, taking financial help, but not allowing me to accompany him to doctor . Its a strange situation. Now My husband is in mental problem with no financial stability and normal peace of mind. How should I tackle this situation?
Ans: I'm sorry to hear that you are going through a difficult time in your marriage. It sounds like there are multiple issues at play here, including strained relationships with your in-laws, financial instability, and your husband's mental health. Here are some steps you can take to tackle this situation:

Seek counseling: It's important for you and your husband to get professional counseling to address the issues you're facing. A counselor can provide guidance on how to manage difficult family relationships, financial stress, and mental health issues.

Set boundaries: It's important to establish clear boundaries with your in-laws. Communicate your needs and expectations with your husband and his family. This may include spending less time with them or limiting interactions with them.

Seek financial stability: If your husband is unable to contribute financially, it may be important for you to take charge of managing the household finances. This can help alleviate some of the stress and uncertainty around money.

Support your husband's mental health: Encourage your husband to seek professional help for his mental health issues. You can also offer emotional support and be there for him during this difficult time.

Focus on your own well-being: It's important for you to take care of yourself during this time. Make time for self-care activities, such as exercise, meditation, or spending time with friends and family.

Remember, these issues may take time to resolve, but with patience, understanding, and professional help, you and your husband can work through them and find a path forward.

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Kanchan

Kanchan Rai  |287 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Dec 26, 2023

Asked by Anonymous - Dec 13, 2023Hindi
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Relationship
I am married for 23 years .Both me & my wife are doing job.I have one son staying with me. After 17 years of marriage I inquired that my wife has sexual relationship with another man . This has hurt me a lot as she betrayed me . As a result she gave no attention to me , my son and my parents . When I got this information , my wife left my house taking hand loan from neighbors . I never lodged any complain with police or file divorce case , rather I took it challenging. I took proper care of my son .Due to hard work & logistic support from me , my son qualified in NEET & continuing MBBS in Govt. college.As my son has grown up & knows the actual fact ,he dislikes his mother & has no contact with her since long.Gradually we have started forgetting her. After 6 years of staying outside , now my wife is trying to come back again forcefully which we do not want. Therefore I request that please advice me what to do.
Ans: I'm sorry to hear about the challenging situation you've been through. It's understandable that trust has been broken, and emotions must be complex. It's important to prioritize your own well-being and that of your son during this time. If you feel comfortable, have an open and honest conversation with your wife about the reasons for her return. It's crucial to express your feelings and concerns. It might be helpful to involve a neutral third party, such as a counselor or mediator, to facilitate the conversation. If she continues to pursue a return against your wishes, you may want to consult with a legal professional to understand your options and rights. Given the complexity of your situation, it might be beneficial to seek legal advice to understand your rights and responsibilities. A lawyer can help you explore options and provide guidance on how to proceed. Take into account the well-being and feelings of your son in any decision-making process. His opinion and comfort level should be considered, especially if he has chosen not to maintain contact with his mother. Decisions made under emotional stress might not be the best ones. Give yourself time to reflect, assess the situation, and decide what is in the best interest of you and your son Ultimately, the decision of whether to allow your wife back into your lives is a personal one. Consider what is in the best interests of you and your son, taking into account your own well-being and the well-being of your family.

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Anu

Anu Krishna  |1042 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jun 03, 2024

Asked by Anonymous - May 27, 2024Hindi
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Relationship
Hello, I got married to the person who was behind me for years. I always considered him as my friend and supporter even after knowing his intention. My mom kept advising me we should go behind that person who cares and loves us. I obeyed her. Soon after things went into proposal mode his family started demanding for dowry and other stuffs. My friend was not from a well fed family which I was not aware. They lied to is they are very rich, hence they need what the demanded since the marriage news was widw spread wit no options we arranged and gave. My friend and his mother brain washed and convinced us to agree for this marriage. Even since I got married my husband and his mother is ruling on me and family. It was late when we got to know that they have been lying to is on their assets. Now when we ask them they deny and keep harassing me. My family got fed up of these fights started maitaining distance and since I Don want to trouble my divorced mother I stop complaining about the issues I am facing. My in-laws demand increases day by day. My mother-in-law is a mother of two kids a son and a daughter but everytime she tortures me and her son is quiet most of the time. When responsibility comes she supports her daughter and makes us to take responsibility which is not fair. Responsibiloty is parallel and must be shared. I am not well, my husband doesn't even give me money or take me to doctor. I am been told marriage means providing food and shelter. Please advise me what shud I do I am fed up
Ans: Dear Anonymous,
Basically you have been cheated; period!
What do you with even a basic thing like being cheated at a shop? Do you actually keep the product OR return it?
Yes, relationships are not like that BUT do understand that your marriage has been nothing but a transaction with mean minded people out to destroy you and your peace of mind.
There are no children in the equation so far...so do know you are free to take a decision. Today, it's harassment and giving you no money, tomorrow who knows what else!
Do you not see that they have begun to make you depend on them for the basic things? This is how it all begins before it gets into other shades of harassment which I do not want to speculate.
Put yourself first; be selfish and think about what to do next to actually live a peaceful and carefree life like the way it was before marriage.

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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Ramalingam

Ramalingam Kalirajan  |5019 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

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Hi, I am 48 year old male working in a IT firm. I earn 1.3 L per month and my monthly expense is 70k per month. I have EPF of 45L, Nps of 22L, shares of 50L, fd of 80L. I also have additional residential property of about 40L. I have no loans. I would like to retire early in a year or two and would like to spend rest of life without any financial issue. Kindly advice.
Ans: Evaluating Your Financial Position

You earn Rs 1.3 lakh per month and have monthly expenses of Rs 70,000. Your current investments include:

EPF: Rs 45 lakh
NPS: Rs 22 lakh
Shares: Rs 50 lakh
FD: Rs 80 lakh
Residential Property: Rs 40 lakh
You plan to retire early in a year or two and want a secure financial future.

Monthly Expenses and Inflation

Your current monthly expenses are Rs 70,000. Considering inflation, this amount will increase over time. Plan for increasing expenses to ensure a comfortable lifestyle.

Evaluating Retirement Corpus

Your retirement corpus should be able to cover your expenses for the rest of your life. Let's analyze how your current investments can support you.

EPF and NPS

EPF and NPS are excellent for retirement as they provide regular income and tax benefits. However, their liquidity is limited until retirement age.

EPF: Consider keeping this until you reach the official retirement age for a stable income.
NPS: Provides regular annuity post-retirement. Continue investing till you retire.
Shares and FD

Your shares and FD can provide a mix of growth and stability.

Shares: These can offer good returns but are subject to market risks. Plan a strategy to withdraw gradually to mitigate risks.
FD: Provides stable returns. Consider laddering your FDs to have a continuous income stream.
Residential Property

You can either rent out or sell your additional property. Renting can provide a steady income, while selling can add to your corpus.

Building a Retirement Corpus

Calculate the amount needed for your retirement corpus to sustain your lifestyle.

Current Monthly Expenses: Rs 70,000
Annual Expenses: Rs 8.4 lakh (70,000 x 12)
Assuming you need this for the next 30 years, considering inflation and other factors, your corpus should be substantial.

Investing Post-Retirement

Once you retire, the goal is to ensure that your corpus generates a steady income.

Systematic Withdrawal Plan (SWP): Invest in mutual funds and set up an SWP to get regular monthly income.
Balanced Funds: Invest in balanced funds for a mix of equity and debt.
Debt Funds: Provide stability and can be used for short-term goals.
Emergency Fund

Keep an emergency fund equivalent to 6-12 months of expenses. This should be easily accessible, like in a savings account or liquid funds.

Health Insurance

Ensure you have comprehensive health insurance coverage. Medical expenses can be a significant burden, so having a robust plan is crucial.

Regular Review

Regularly review and adjust your investments to match your needs and market conditions. A Certified Financial Planner can help you with this.

Final Insights

To retire comfortably, ensure a mix of growth and stability in your investments. Maintain liquidity for emergencies and healthcare. Plan for inflation and increasing expenses. Regularly review your investments to stay aligned with your goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |5019 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Asked by Anonymous - Jul 03, 2024Hindi
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Money
Hi, I have 35 years old, my in salary is 19LPA in hand. I have a fixed deposit of 2 lakh, 15k sip, 2L invested in stock, 2lakh and 4 lakh emergency fund I have a 2 years old daughter, I don't have any loan. how to plan my retirement
Ans: You are 35 years old with a monthly salary of Rs 19 lakhs per annum in hand. You have a fixed deposit of Rs 2 lakh, a SIP of Rs 15,000, Rs 2 lakh invested in stocks, and a Rs 4 lakh emergency fund. You also have a 2-year-old daughter and no loans.

Evaluating Your Financial Goals
Your primary goal is to plan for retirement. This involves determining how much you need to retire comfortably and creating a plan to achieve that goal.

Setting Retirement Goals
Retirement Age: Decide when you want to retire. Let's assume at age 60.
Post-Retirement Expenses: Estimate your monthly expenses during retirement. Factor in inflation.
Emergency Fund
You already have an emergency fund of Rs 4 lakh. This is a good start. Ensure it covers at least 6-12 months of expenses.

Maintain Adequate Coverage: Regularly update your emergency fund as your expenses grow.
Fixed Deposit
Your Rs 2 lakh fixed deposit provides a safety net but offers low returns.

Consider Alternatives: Higher returns options like debt mutual funds for better growth.
SIP (Systematic Investment Plan)
Your Rs 15,000 SIP is a disciplined approach to investing.

Increase SIP: As your income grows, increase your SIP amount. Aim for at least 20-30% of your salary in investments.
Stock Investments
You have Rs 2 lakh invested in stocks.

Diversify Portfolio: Ensure your stock investments are diversified to reduce risk.
Regular Review: Monitor and review your portfolio regularly.
Retirement Corpus Calculation
Estimate the corpus needed for retirement based on your current lifestyle and inflation.

Online Calculators: Use retirement calculators for precise estimates.
Investment Options
Mutual Funds
Mutual funds can provide good returns over the long term. Consider a mix of equity and debt funds.

Equity Funds: For long-term growth.
Debt Funds: For stability and income.
Public Provident Fund (PPF)
PPF is a safe investment with tax benefits. It offers good returns over the long term.

Invest Regularly: Maximize your PPF contributions annually.
National Pension System (NPS)
NPS is a retirement-focused investment option with tax benefits.

Regular Contributions: Invest regularly for long-term growth and retirement corpus.
Child's Education Fund
Start planning for your daughter's education early.

Education SIP: Set up a separate SIP for your daughter's education fund.
Child Plans: Consider child education plans for specific goals.
Insurance
Ensure you have adequate life and health insurance coverage.

Life Insurance: Term insurance to cover financial liabilities.
Health Insurance: Adequate health coverage for the family.
Tax Planning
Optimize your tax savings through various investment options.

Tax-saving Instruments: Utilize PPF, ELSS, and NPS for tax benefits.
Creating a Diversified Portfolio
A well-diversified portfolio reduces risk and enhances returns.

Asset Allocation: Allocate assets across equity, debt, and alternative investments based on risk tolerance.
Suggested Allocation
Equity Funds: 60% for long-term growth.
Debt Funds: 20% for stability.
PPF/NPS: 20% for retirement and tax benefits.
Regular Monitoring and Review
Regularly review and adjust your investment portfolio to ensure it aligns with your goals.

Annual Reviews: Review your portfolio and make adjustments annually.
Consult CFP: Work with a Certified Financial Planner for personalized advice.
Final Insights
Planning for retirement requires a disciplined and diversified approach. Increase your SIP, diversify investments, and utilize tax-saving instruments. Regularly review and adjust your portfolio to stay on track. Leverage the expertise of a Certified Financial Planner for optimal results.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |5019 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Asked by Anonymous - Jul 02, 2024Hindi
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Money
My current monthly income is 1.2l i have a ppf of 15k and RD of 15k per month. I have 2 SIPs worth 3k each a month. Kindly suggest how much should I invest and where to invest so that I get around 4 5 Cr by the age of 45. FYI my current age is 29 and i hold no liabities as of now and unmarried.
Ans: You aim to accumulate Rs. 4-5 crores by the age of 45. With a current monthly income of Rs. 1.2 lakhs, you have a strong base to achieve this goal.

Current Investments
Your current investments include:

PPF: Rs. 15,000 per month

RD: Rs. 15,000 per month

SIPs: Rs. 6,000 per month (2 SIPs of Rs. 3,000 each)

Assessing Your Current Investments
PPF:

Advantages:

Safe and secure investment.

Tax benefits under Section 80C.

Decent long-term returns.

Disadvantages:

Lock-in period of 15 years.

Limited growth compared to equities.

Recurring Deposit (RD):

Advantages:

Guaranteed returns.

Suitable for short-term goals.

Disadvantages:

Taxable interest income.

Lower returns compared to mutual funds and stocks.

Systematic Investment Plans (SIPs):

Advantages:

Disciplined investment approach.

Potential for high returns over long term.

Rupee cost averaging benefits.

Disadvantages:

Market-linked risks.
Recommended Investment Strategy
Increase Equity Exposure
To achieve Rs. 4-5 crores by 45, you need higher equity exposure. Equity investments have historically provided higher returns compared to debt instruments.

Increase SIPs:

Increase SIP investments to Rs. 40,000 per month.

Diversify across large-cap, mid-cap, and multi-cap funds.

Balanced Approach
Maintain a balanced approach by continuing some investments in safe instruments.

Continue PPF:

Keep contributing Rs. 15,000 per month.

Provides stability and tax benefits.

Review RD:

Evaluate RD returns.

Consider diverting some RD funds to equity or hybrid funds for better growth.

Consider Hybrid Funds
Hybrid funds provide a mix of equity and debt, offering balanced risk and returns.

Monthly Investment:

Invest Rs. 10,000 per month in hybrid funds.

Suitable for moderate risk tolerance.

Emergency Fund
Ensure you have an emergency fund covering 6-12 months of expenses.

Safety Net:

Maintain liquidity for unforeseen expenses.

Keep it in a liquid fund or high-interest savings account.

Regular Reviews and Rebalancing
Monitor and rebalance your portfolio periodically to stay aligned with your goals.

Portfolio Review:

Quarterly or semi-annual reviews.

Adjust based on market conditions and personal goals.

Final Insights
To achieve Rs. 4-5 crores by 45, increase your equity exposure. Consider enhancing your SIP contributions significantly. Maintain a balanced approach with continued PPF contributions and emergency funds. Regularly review and rebalance your portfolio. This strategy aligns with your financial goals and risk profile, ensuring a secure and prosperous future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |5019 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

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My Father has purchase a property for rs 115000 in year 1994.at Bhayandar west district Thane at Maharashtra state.and my Father did this registration in amnesty scheme in year 2008.and after that my Father died in year 2014.and after I made a release deed transfer this property in my name (son). I sold this residential property in June 2024for rs 30lakh.in this case I want to know the status of capital gain is there or not I also want to know if I sell this residential property .I can purchase ashop or not. If I want to save capital gain what is the solution to save my tax. Thanking u.
Ans: You sold a property in June 2024 for Rs 30 lakh. It was bought for Rs 1,15,000 in 1994. Let's evaluate if there's a capital gain.

Indexed Cost of Acquisition

The property purchase cost will be adjusted for inflation. This is called the Indexed Cost of Acquisition (ICA). The ICA is calculated using the Cost Inflation Index (CII) provided by the Income Tax Department.

Calculating Indexed Cost

Calculate the ICA to understand your capital gain. Since we won't use specific formulas here, you can consult a Certified Financial Planner to get the precise ICA value. This helps in determining the exact capital gain.

Long-Term Capital Gains (LTCG)

Since you held the property for more than 24 months, it is classified as a long-term asset. The profit from the sale, after adjusting for the ICA, is your Long-Term Capital Gain (LTCG).

Tax on LTCG

LTCG is taxed at 20% with indexation benefits. However, there are ways to save on this tax.

Investing in Another Property

You can save on capital gains tax by investing in another residential property. This is covered under Section 54 of the Income Tax Act. If you buy a residential house within two years or construct one within three years, you can claim exemption.

Investing in Capital Gains Bonds

Another option is to invest in Capital Gains Bonds under Section 54EC. These bonds have a lock-in period of five years and provide tax exemption on the gains. The maximum investment limit in these bonds is Rs 50 lakh.

Purchasing a Shop

Buying a shop will not provide capital gains tax exemption under Section 54. The exemption is only for residential properties. If you sell a residential property, you must reinvest in a residential property to save on capital gains tax.

Other Options to Save Tax

Residential Property: Invest in another residential property within two years.

Construction: Construct a new house within three years.

Capital Gains Bonds: Invest in these bonds within six months of the sale.

Final Insights

To save on capital gains tax, reinvest in a residential property or Capital Gains Bonds. Purchasing a shop will not help in saving tax on capital gains. Consulting a Certified Financial Planner can help you navigate these options efficiently.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |5019 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Asked by Anonymous - Jul 02, 2024Hindi
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Money
I am 58 years old and draw a monthly pension of 45K. I made a lot of money post taking a VRS 15 years back but spent most of it on my only child travelling and a home worth 5 cr plus. I am covered for medical/heath by CGHS and also a 30 lac private health insurance. I have about 30 lac worth jewellery and a similar amount in my SB account. Please advise what should be my investment plan to ensure a regular monthly income of atleast 30K per month in addition to the pension I get.
Ans: You are 58 years old and receive a monthly pension of Rs 45,000. You have spent a significant amount on your child's education and travel, and own a home worth over Rs 5 crore. You have medical coverage from CGHS and a private health insurance worth Rs 30 lakh. Additionally, you possess jewellery worth Rs 30 lakh and have Rs 30 lakh in your savings bank account. Your goal is to ensure an additional monthly income of at least Rs 30,000.

Evaluating Your Investment Needs
Your primary need is to generate a regular income of Rs 30,000 per month. This should be achieved with minimal risk and high liquidity.

Liquid Funds
Liquid funds are suitable for very short-term investments. They invest in high-quality, short-term securities. These funds offer safety and liquidity, making them ideal for maintaining emergency funds.

Safety: Invests in high-quality securities.
Liquidity: Easy access to funds.
Ultra-Short Duration Funds
Ultra-short duration funds are suitable for a horizon of 6 months to 1 year. They offer slightly higher returns compared to liquid funds while maintaining a low level of risk.

Higher Returns: Better than liquid funds.
Low Risk: Invests in low-risk instruments.
Short Duration Funds
Short duration funds are suitable for an investment horizon of 1 to 3 years. These funds invest in debt instruments with short maturities and offer a balance between risk and return.

Moderate Risk: Suitable for short-term goals.
Reasonable Returns: Better than ultra-short funds.
Monthly Income Plans (MIPs)
Monthly Income Plans can provide a regular income. These funds invest in a mix of debt and equity, offering a steady income with potential capital appreciation.

Regular Income: Suitable for monthly income needs.
Balanced Risk: Mix of debt and equity.
Benefits of Actively Managed Funds
Actively managed funds can provide better returns compared to index funds. These funds are managed by professional fund managers who make strategic decisions to outperform the market.

Professional Management: Expert fund managers handle your investments.
Flexibility: Adapt to market changes.
Disadvantages of Index Funds
Index funds track a specific market index, but they may not perform well in all market conditions. They lack active management and can result in average returns.

Average Returns: May not outperform the market.
Lack of Flexibility: Cannot adapt to changes quickly.
Investing Through a Certified Financial Planner
Investing through a Mutual Fund Distributor (MFD) with a Certified Financial Planner (CFP) credential offers several benefits. These professionals provide tailored investment strategies and regular portfolio reviews.

Personalized Advice: Tailored to your needs.
Regular Reviews: Ensures your investments stay on track.
Creating a Diversified Portfolio
A diversified portfolio can help reduce risk and enhance returns. Spread your investments across different funds to achieve better stability and growth.

Suggested Allocation
Liquid Funds: Rs 5 lakh for emergency needs.
Ultra-Short Duration Funds: Rs 5 lakh for short-term goals.
Short Duration Funds: Rs 10 lakh for moderate-term goals.
Monthly Income Plans: Rs 10 lakh for regular monthly income.
Tax Efficiency
Ensure that your investments are tax-efficient. Short-term mutual funds are taxed based on your income slab, while long-term capital gains (if held over 3 years) are taxed at 20% with indexation benefits.

Monitoring Your Investments
Regularly review your portfolio to ensure it aligns with your goals. Make adjustments as needed with the help of your CFP.

Final Insights
Your goal of generating an additional monthly income of Rs 30,000 is achievable through a diversified and balanced investment approach. Focus on liquidity, safety, and moderate returns. Leverage the expertise of a Certified Financial Planner for optimal results.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5019 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

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Hi, I have 13 funds in my portfolio worth of 28 Lakhs. I have been investigating from last 6 years. Wonder if I need to change my funds for better returns. Thank you.
Ans: Portfolio Overview
Managing 13 funds over 6 years is commendable. A Rs. 28 lakh portfolio shows your commitment. Let’s analyze and evaluate for better returns.

Diversification and Overlap
Diversification reduces risk. However, too many funds can lead to overlap.

Diversification:

Ensures your investments are spread across sectors and asset classes.

Reduces risk associated with a single fund or sector.

Overlap:

Too many funds can lead to similar investments.

This dilutes the benefit of diversification.

Evaluate if your funds are truly diversified or if there is overlap.

Performance Evaluation
Assess the performance of your funds.

Historical Performance:

Check the performance over different market cycles.

Compare with benchmark indices.

Consistency:

Look for funds with consistent performance.

Avoid funds with high volatility.

Fund Manager and Expense Ratio
The fund manager's expertise and the expense ratio impact returns.

Fund Manager:

Evaluate the fund manager’s track record.

Consistency and experience matter.

Expense Ratio:

Lower expense ratios can improve net returns.

High expense ratios can eat into your gains.

Portfolio Rebalancing
Regular rebalancing aligns your portfolio with your goals.

Rebalancing:

Adjust your portfolio periodically.

Maintain the desired asset allocation.

Goals and Time Horizon:

Align your investments with your financial goals.

Consider your time horizon and risk tolerance.

Actively Managed vs. Passive Funds
Actively managed funds aim to outperform benchmarks.

Actively Managed Funds:

Fund managers actively select stocks.

Potential for higher returns.

Disadvantages of Index Funds:

Follow a passive investment strategy.

Limited potential for outperforming the market.

Actively managed funds offer better opportunities.

Professional Guidance
Consult a Certified Financial Planner for tailored advice.

Certified Financial Planner:

Provides personalized investment strategies.

Aligns investments with your goals and risk profile.

Review and Adjust:

Regular reviews are essential.

Adjust the portfolio as per market conditions and personal goals.

Final Insights
Having 13 funds may be excessive. Focus on diversification without overlap. Evaluate the performance, expense ratios, and fund manager’s track record. Regularly rebalance your portfolio. Consider the benefits of actively managed funds over index funds. Seek guidance from a Certified Financial Planner for personalized advice. This comprehensive approach ensures your portfolio aligns with your financial goals and market conditions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5019 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Asked by Anonymous - Jul 01, 2024Hindi
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Money
I want to invest 20000 monthly, for retirement, child education, house, emergency fund and travel abroad every 3yrs. How to allocate my money wisely to get proper return? I have two children, one 5yr old and one 11 years old. I am 37 yr old.
Ans: Investment Allocation for Future Goals

Understanding Your Goals

You want to invest Rs 20,000 monthly for several goals: retirement, children's education, a house, emergency fund, and travel abroad every three years. This approach is commendable. Let's break down how to allocate this investment wisely to achieve these goals.

Children's Education

Your children's education is a high-priority goal. For your 5-year-old, you have 13 years until college. For your 11-year-old, you have 7 years until college. A mix of balanced and growth-oriented funds can work here. These funds can offer steady returns with manageable risk.

Retirement Planning

You are 37 years old, aiming for a substantial corpus by retirement. Investing in equity mutual funds can offer significant growth over the long term. Diversify across large-cap, mid-cap, and flexi-cap funds. These funds can provide higher returns compared to fixed income options.

Buying a House

Buying a house is a major financial goal. If the goal is long-term (10-15 years), equity funds can help. For short-term (5-7 years), balanced funds can be better. They provide a mix of growth and stability. Avoid direct real estate investments due to high costs and low liquidity.

Emergency Fund

An emergency fund is crucial. Aim to have 6-12 months of expenses in liquid assets. Invest in liquid funds or short-term debt funds. These funds offer quick access to your money with moderate returns.

Travel Abroad

Traveling abroad every three years requires regular saving. You can use recurring deposits or short-term debt funds. These options provide stability and predictable returns. You can reinvest the returns for future trips.

Disadvantages of Index Funds

Index funds track market indices and lack flexibility. They don't outperform the market. Actively managed funds, however, aim to outperform. Skilled fund managers can adjust the portfolio to market conditions. This approach can lead to higher returns.

Regular Funds Over Direct Funds

Direct funds have lower expense ratios but need active management. Regular funds offer professional advice from a Certified Financial Planner. A CFP can help you make informed decisions and adjust investments as needed. This guidance can be invaluable for achieving your goals.

Detailed Allocation Plan

Children's Education: Invest Rs 7,000 monthly in balanced and growth-oriented mutual funds. Split the investment between the two funds. This strategy balances risk and growth.

Retirement Planning: Allocate Rs 6,000 monthly to equity mutual funds. Diversify across large-cap, mid-cap, and flexi-cap funds. This allocation leverages long-term growth potential.

House Purchase: Invest Rs 4,000 monthly in a combination of balanced and equity funds. Adjust the mix based on your time horizon.

Emergency Fund: Save Rs 2,000 monthly in liquid or short-term debt funds. Ensure easy access to funds when needed.

Travel Abroad: Set aside Rs 1,000 monthly in recurring deposits or short-term debt funds. This ensures stable returns and funds availability for trips.

Regular Review and Adjustments

Regularly review your investments. Adjust allocations based on market conditions and changes in goals. A Certified Financial Planner can provide ongoing advice and adjustments. This ensures your investments remain aligned with your goals.

Final Insights

Your diversified approach is smart. It balances growth and stability. Regular reviews and adjustments will keep your investments on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...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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