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Kanchan

Kanchan Rai  |581 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Dec 08, 2023

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 - Nov 13, 2023Hindi
Relationship

Hello, Kanchan. I earlier wrote to you earlier (link: surl.li/ncpnu) regarding my vulnerabilities - my being jobless since more than a year, financial hardships & toxic atmosphere at home, specifically my wife from being nagging to being nasty, never caring about what I go through at times. I do acknowledge and appreciate that she does most of the stuff- cooking, going to work & teaching our kid. But so do I- I play my part as much as I can while dealing with energy issues & depression- but that doesn't mean I don't do anything- I do all kinds of non-economic auxilliary work at homefront which does not go appreciated or acknowledged. I help her carry on with her job like dropping/picking her at work, and at home I do help her with chores, taking care of outdoor work, groceries, listening & empathising how her day at work went, etc. There are many balls we are juggling & I know for sure that we should not be handling one too many as we can't do justice to any of them or at worst we may miss the priorities! But we are helpless since there is no help at hand. I contemplated speaking to her but firstly, I never get enough time to discuss in the issues in pragmatic manner (she loses patience and cool very soon & not a very good critic of herself- something she accuses me of as well), and secondly even if time permits, never get a calm, relaxed atmosphere that would ensure non-judgemental attitude to tackle things head on. Such times it is difficult even to help her- I even mentioned this repeatedly to her that she's becoming like a cactus- that anyone even trying to help her is bound to get hurt & that's the reason people would rather prefer to keep a distance from her. I have been concerned about her BP rising due to her overwhelming insecurity, but all she says such times is the only solution would be when I find a good job, something which I have a very limited control over, given 1) my age factor which hampers learning; 2) gaps in my employable skills & 3) inability to deal with emotions while trying to deal with too many things at a time. I know that retorting back would not serve the purpose hence try to cool/balance things off & try to act calmly with her. If I mention inability due to my mental state, she just gets furious thinking that I am making excuses and doesn't empathise with me at all, even though she herself went through similar phases in recent months, but only difference is that she got an opportunity due to her goodwill easily while I continue to languish, engaged in self-defeating emotions and thoughts. As a result, my efforts are half-hearted, bearing no positive results and day by day, I lose motivation. Hesitate to seek any professional help due to some reasons: 1) it is costly & time consuming. 2) Me alone putting efforts in getting cured won't serve any purpose (it may relapse due to unsupportive environ at home) unless there's attitudinal shift with family members too. I don't know what to do, please help.

Ans: Hello..I'm sorry to hear that you're going through such a challenging time. It sounds like you're dealing with a complex set of issues, including joblessness, financial hardships, a toxic home environment, and personal struggles with mental health. Coping with these difficulties can be overwhelming,Try to find a calm and appropriate time to have an open and honest conversation with your wife. Express your feelings, concerns, and frustrations, emphasizing that you both need to work together to find solutions. Use "I" statements to avoid sounding accusatory. Acknowledge the contributions your wife makes and express gratitude for the work she does. This might help create a more positive atmosphere for communication. While you've expressed hesitation about seeking professional help, therapy or counseling can be incredibly beneficial. Some therapists offer sliding scale fees or may provide services on a reduced cost basis. Discussing your concerns with a mental health professional can offer you tools to cope and may help facilitate better communication within your family. Continue working on your job search and consider acquiring new skills that might make you more employable. Online courses and workshops are available, and you can often find free or low-cost resources to build upon your skills. Take time for self-care, both physical and mental. Even small activities like a short walk, reading a book, or practicing mindfulness can make a significant difference in managing stress and depression. Acknowledge your limitations and set realistic expectations for yourself. Understand that you can only do so much, and it's okay to ask for help or delegate tasks when needed.
Remember that it's okay to ask for help and take steps at your own pace. It's essential to prioritize your mental health and well-being. If you find it challenging to address these issues alone, reaching out to a professional for support can be a crucial step in the right direction.

You may like to see similar questions and answers below

Anu

Anu Krishna  |1592 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jan 04, 2022

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Relationship
I have been married for a little more than five years and I am living under tremendous stress and depression. We live in a joint family with my parents and an unmarried brother. I had told her all this before marriage. She loves me very much but her attitude towards my relatives has been a matter of concern right from the start. She does not want to keep a relationship with anybody apart from my immediate family. Slowly, she started having problems with my mother also; both have started having minor clashes at home. Many times, it is my mother’s mistake. The main problem is that she is very nagging and complains and gets irritated very frequently at the smallest instance. Frustrated, I planned on separating with her but the news came of her pregnancy and we were blessed with a baby girl. After the baby was born, my wife’s frustration and irritation has increased manifold because of her fear that my mother will give much more love to the baby then she can. So their clashes have increased. Now my wife has been putting a lot of pressure on me to look for a new house away from my parents, since she wants her own space. I already have a home loan on the existing home and a car loan. There is very less scope for me to purchase a new home and I don't want to leave my parents. She just doesn't understand my position and clashes happen between us. Looking at all this, I desperately want to separate from her but can't do so because of our daughter. I love her the most and can't live without her. So I just endure what is happening every day. This has resulted in me slipping into depression. It has affected my work in office as well. I am not performing well, I don't like to speak with any of my friends or relatives, I don't feel like doing anything. I’m living for the sake of my daughter, that's it. Even my parents are not in a position to understand me and my situation so I can't talk to them either. Can you help? Just don’t publish my name.
Ans:

Hi

It is unfortunate that you are in this situation.

Your wife is possibly not very inclined to be in a joint family set-up; the reasons maybe many. But isn’t it necessary for you as a husband and a father to look out for your family?

The misunderstandings caused between the two of you over the years because of being in a joint family set-up have never been addressed and much water has flowed under the bridge.

There is a slim chance that matters might get resolved if you get your mother and wife in the same room and iron it out, with you being a neutral person who does not take sides; this is the best option.

If this isn’t possible, kindly visit a family counsellor who can step in and show your family a way to live amicably or give you a perspective on how healthy it might be to live separately.

At the end of the day, you have responsibilities towards your wife and child too!

All the best and a Happy 2022.

..Read more

Anu

Anu Krishna  |1592 Answers  |Ask -

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

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Relationship
Dear Anu, I am married for 18 years. Have two kids, son (17) and daughter (9). My problem is that though I am in a regular job at a PSU, my wife thinks that I don't earn much. She thinks so much and get stressed which in turn gets in explosive and when it burst I cannot control myself and I get physical (manhandle) her. Due to this all fault becomes my fault and I have to apologise to her for behaviour. Apart from this she is having some kind of problem which she keeps fuming at me or anyone for that matter for anything. When I get irritated by such things she refuses that she didn't even said so. If said so, I understood it in wrong sense. I think I am having too many problems which I cannot explain here. Sometimes I think of going to psychiatrist but don't wish to go because then I will be certified as mad and thereafter all fault and problems will be due to me. If I ask her to go to psychiatrist she won't agree either. Please help how to deal such situation in this stage of life. I love her so much so there is no question of separating from her. Please feel free to ask me anything you require for giving me a response.
Ans: Dear AKB, why does money ever come into a marriage; I wonder!

Well, we do need money to keep the family running, right?

Somehow, external happenings of someone earning more can get into the marriage cropping up as comparisons.

What started as a mere seed of comparison, slowly starts to become a huge tree with fruits of poison robbing even the small successes that you might have had.

Even that seems never enough leaving you with a feeling of inadequacy.

This affects marriage compatibility and comes out as anger, sadness, violent outburst, finger pointing which is evident in your marriage.

At the same time, I am sure your wife does not really intend to hurt you with these behavioural displays.

And that’s why externalising the situation to be your fault arises and she does not want to think that her perceptions are what are causing the situation.

Either you sit her down and bring her down to facts of the matter that this is how life is going to be and this is the money is what you can bring.

If it’s still an issue and she has a hard time accepting this reality, involve an elder member from her family to communicate with her.

Show her the mirror as to how her wants are unequal to what money is coming in and how this regular chatter might be affecting the children as well.

If anyone needs professional intervention, it’s both of you going to a therapist and not a psychiatrist.

The expert can help out things into perspective where both of you can rebuild your relationship with renewed mind spaces.

Happy rebuilding!

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |8268 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 21, 2025

Asked by Anonymous - Apr 21, 2025Hindi
Hello sir I have 5 cr asset 1 cr fd 1 cr PPF note I want to invest in mutual funds which is zero as in date I am interested for lum sum in large cap icici small cap nippon mid cap Motilal Osatwal and flexi cap parag parekh please suggest and guide me
Ans: You have done very well in building Rs 5 crore asset base.

It is also wise that you are thinking to enter mutual funds now.

Let us assess and build a plan. From a 360-degree angle. Simple language. Deep analysis.

Please follow each section below carefully.

Your Current Financial Position
You have Rs 5 crore worth of total assets.

Rs 1 crore is in Fixed Deposits. This gives safety and liquidity.

Rs 1 crore is in PPF. This gives tax-free and risk-free returns.

You have zero mutual fund investments currently.

You want to now begin investing in mutual funds via lump sum.

You are considering four categories: Large Cap, Mid Cap, Small Cap, Flexi Cap.

You have mentioned specific schemes. But I will guide category-wise. Without any scheme names.

Let’s Appreciate Your Thought Process
You are not putting everything in mutual funds. This is a good move.

You are balancing traditional instruments like PPF and FDs.

You are taking a gradual, thoughtful entry into equity investments.

You are aware about diversification. That is why you are considering multiple categories.

Suggested Asset Allocation – A Balanced Strategy
To become a wise long-term investor, we need to balance safety and growth.

Let’s do a proper allocation.

Rs 2 crore: Can stay in FD + PPF. Already in place. Retain for safety.

Rs 3 crore: Can be planned for equity mutual funds. Do not invest all at once.

Start with Rs 1 crore lump sum first. Keep balance Rs 2 crore ready in FD.

This way you don’t take too much risk at once.

Over next 12 to 18 months, move rest Rs 2 crore slowly to mutual funds.

Recommended Category-Wise Allocation for Rs 1 Crore Lump Sum
Now we split Rs 1 crore across different categories.

This gives diversification and reduces concentration risk.

Large Cap Fund: Rs 25 lakh
Stable, less volatile. Invests in top 100 companies.

Flexi Cap Fund: Rs 25 lakh
Fund manager can pick across large, mid, and small caps. Balanced flexibility.

Mid Cap Fund: Rs 25 lakh
Gives potential growth. Slightly higher volatility.

Small Cap Fund: Rs 25 lakh
Very high risk. Very high return potential. Invest only if you can stay for 10+ years.

All these should be actively managed mutual funds. Not index funds or ETFs.

Why Not Index Funds?
Many investors believe index funds are low cost. But that alone is not enough.

Index funds cannot beat the market. They only copy it.

During market falls, index funds fall as much or more.

No fund manager is present to manage risk.

In volatile times, actively managed funds perform better.

Good actively managed funds give better returns than index funds. With better downside protection.

Why Not Direct Funds?
Direct funds look cheaper. But not always better.

Without a Certified Financial Planner or MFD, there is no personalised guidance.

Direct plans leave investors confused in bad markets.

You may enter or exit at the wrong time. This reduces overall returns.

Regular funds through a trusted MFD + CFP ensure strategy is followed.

They help you stay invested and adjust based on your goals.

Taxation Awareness – Keep These in Mind
Equity mutual fund gains above Rs 1.25 lakh (LTCG) taxed at 12.5%.

Short-term gains taxed at 20%.

Debt mutual funds are taxed as per your income slab.

PPF is tax-free. FD is taxed as per slab.

So hold equity mutual funds for minimum 5 years to benefit from taxation.

How to Proceed – Step by Step Approach
Step 1: Identify your financial goals. Retirement, children, travel, etc.

Step 2: Choose category-wise funds with help of Certified Financial Planner.

Step 3: Invest Rs 1 crore in 4 parts: Large, Flexi, Mid, Small.

Step 4: Keep balance Rs 2 crore in liquid FDs.

Step 5: Start STP (Systematic Transfer Plan) from FD to mutual funds monthly.

Step 6: Review portfolio every 6 months with your planner.

Step 7: Rebalance portfolio yearly. Take help from Certified Financial Planner.

Emergency Fund and Liquidity Plan
Keep at least Rs 20 lakh separate for emergency.

Use liquid mutual funds or short-term FDs.

Do not touch equity funds in emergencies.

Medical or sudden family needs must be funded from safe instruments.

Insurance and Risk Planning
Check if you have proper health insurance. For you and dependents.

Life insurance may not be needed at this stage. Still, assess with a planner.

Do not mix insurance and investment.

Behavioural Discipline Matters Most
Market will go up and down. Do not panic.

Stay for at least 10 years in equity mutual funds.

Avoid switching funds frequently.

Monitor but do not react too much.

Trust the process. Be patient. Wealth will grow.

Common Mistakes to Avoid
Do not invest lump sum in only one fund or one category.

Do not chase past performance.

Do not keep too much in FD beyond emergency or short-term needs.

Do not fall for NFOs or trendy new funds.

Do not withdraw early unless for goals.

Final Insights
You are already financially sound. That is a strong foundation.

Mutual funds will now add a growth engine to your wealth.

Choose actively managed funds. Avoid index and direct plans.

Take help of a trusted Certified Financial Planner to manage this journey.

Stay diversified. Stay patient. Stay goal-focused.

Mutual funds will help you become wealthier. In a stable and systematic way.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |8268 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 21, 2025

How to become crorepati with sip
Ans: Becoming a crorepati through SIP is a smart financial dream.

It is very much possible for anyone.

Even if your income is modest, you can still reach Rs. 1 crore.

It only needs discipline, planning, and patience.

Let us explore how this can be achieved through a 360-degree approach.

We will break this into simple steps and areas to focus on.

We will also assess every important angle that can affect the outcome.

We will keep it practical and achievable for every Indian household.

Let us now begin step-by-step.

? Understanding SIP – The First Step

SIP means Systematic Investment Plan. You invest a fixed amount every month.

It is done into a mutual fund of your choice. You choose an amount you are comfortable with.

It builds discipline in investing and works well with monthly income.

It uses the principle of rupee cost averaging. It helps you buy more units when the price is low.

SIP works best in equity mutual funds for long-term wealth creation.

? Start Early, Invest Regularly

Time plays a very big role in wealth creation. Start early if possible.

Even small SIPs can become big amounts over time.

The longer you stay invested, the more your money can grow.

Power of compounding needs time to work effectively.

If you delay, then you need to invest more to reach the same goal.

? Choose Actively Managed Mutual Funds

Index funds look cheap but are not always better. They copy the market.

Index funds do not perform better than active funds in all conditions.

Actively managed funds have expert fund managers. They select the right stocks.

Actively managed funds can outperform the market with good strategies.

In India, market is still not fully efficient. So active management works better.

? Avoid Direct Mutual Funds – Go with Regular Funds via CFP

Direct funds may look cheaper but have hidden disadvantages.

In direct plans, you do not get personalised advice. You are on your own.

No guidance on when to enter or exit, or which fund to choose.

Regular plans have Certified Financial Planners (CFP) who track your goals.

They help you avoid wrong investments and improve returns.

Regular funds ensure proper handholding and better fund suitability.

? Decide Your Investment Amount and Time Horizon

Fix a goal – you want to become a crorepati. Write it down.

Decide when you want to reach Rs. 1 crore. 10 years? 15 years?

Choose your SIP amount based on your time frame.

Longer time means lower SIP needed. Shorter time means higher SIP.

Start with what you can afford. Increase it yearly if possible.

? Increase SIP with Income – Step-Up Strategy

When your income increases, your SIP should also increase.

This is called step-up SIP. You can increase it by 5% or 10% every year.

This makes your goal easier and quicker to reach.

It balances your lifestyle and investment growth.

Step-up SIP helps you reach bigger goals without stress.

? Diversify – But Keep It Simple

Do not put all money in one mutual fund. Use 3 to 4 funds.

You can have a large-cap fund, mid-cap fund and a flexi-cap fund.

You may also include sectoral or thematic fund for growth.

Do not over-diversify. Too many funds will dilute returns.

Choose quality funds with consistent long-term performance.

? Monitor Performance Every Year

Review your SIPs once a year. See if the fund is doing well.

Compare with other similar funds in same category.

Replace poor performers with better ones with help of a CFP.

Do not change funds too often. Give them time to perform.

Stay patient. Equity needs time to give results.

? Keep SIPs Running Even During Market Falls

Do not stop SIP when market is low. That is when SIP works best.

You get more units at lower prices. That boosts long-term returns.

Market corrections are normal. They help in wealth building.

Never time the market. Just continue SIP without emotions.

Discipline and consistency are the real wealth builders.

? Taxation Awareness – Know Before You Sell

Equity mutual funds have new tax rules now.

If you sell after 1 year, gains above Rs. 1.25 lakh taxed at 12.5%.

If you sell within 1 year, gains are taxed at 20%.

Debt mutual funds gains are taxed as per income slab.

Always plan withdrawals to reduce tax impact.

? Use SWP in Retirement Phase – SIP for Wealth Building

SIP is used to build wealth before retirement.

After retirement, use SWP (Systematic Withdrawal Plan) for income.

It gives monthly cash flow without disturbing investment.

Combine SWP with debt mutual funds for stability.

Helps in managing expenses while wealth continues to grow.

? Keep Emergency Fund Separate

Do not use SIP for emergency needs. Keep separate savings for that.

Emergency fund must be 6 to 12 months of expenses.

Use liquid mutual funds or short-term FDs for this.

This protects your SIP and long-term goal from disruptions.

Emergency fund gives peace of mind. Very important for every family.

? Stay Protected – Don’t Ignore Insurance

Buy good health insurance for all family members.

Have term insurance if you have dependents.

Do not mix insurance and investment. Avoid ULIP and endowment plans.

Surrender old LIC policies or investment-cum-insurance if returns are low.

Invest surrendered amount in mutual funds to boost growth.

? Goal-Based Planning Is Key

Your goal is not just Rs. 1 crore. It is why you want it.

Maybe for child education, retirement, or financial freedom.

Write down your goals. Link each SIP to a goal.

It keeps you focused and avoids unnecessary expenses.

Goal clarity improves savings and investment decisions.

? Avoid Emotional Investing – Trust the Process

Do not get influenced by news, friends, or market ups and downs.

Stick to your SIP. Trust the process and your planner.

Fear and greed are biggest enemies of wealth creation.

Keep SIPs boring and automatic. That is how wealth grows.

Discipline beats timing. Patience beats panic.

? Plan with a Certified Financial Planner

Certified Financial Planner helps you select the right funds.

They help create customised plan based on your goals.

They review your progress and make changes when needed.

Their guidance helps avoid costly mistakes. Very valuable support.

Choose CFPs with experience in mutual funds and retirement planning.

? Do Not Chase High Returns – Chase Consistency

Do not run behind best performing fund every year.

Past returns do not guarantee future performance.

Choose funds with consistent 5 to 10 year records.

Focus on funds with risk-adjusted returns, not just returns.

Consistency helps your SIP reach target smoothly.

? Don’t Delay – The Best Day to Start is Today

Many people wait for perfect time to invest. That never comes.

Start SIP with whatever amount you can now.

Even Rs. 1000 per month is a good start.

Increase amount later. But don’t delay the start.

Start early, stay long, and stay invested. That’s the simple formula.

? Automate Everything – Make SIP Hassle-Free

Set auto debit from your bank for SIP.

Choose date after salary credit. Never delay SIP.

Treat SIP like any other important monthly bill.

Automation ensures discipline. No temptation to spend first.

You focus on earning, SIP focuses on growing.

? Watch Out for SIP Disruptors

Avoid taking too many loans or EMIs. They reduce your SIP capacity.

Do not stop SIP to buy non-essentials. Plan purchases carefully.

Emergency, job loss or illness should not affect SIP. Plan for it.

Keep a buffer always. Avoid stress and continue investing.

Financial freedom comes with consistent behaviour.

? Finally – Your Journey to 1 Crore is a Reality

Becoming crorepati with SIP is not magic. It is method.

It needs time, planning, and belief in the process.

Avoid shortcuts. Stay away from market tips and trends.

Use SIP with right funds, right mindset, and right advisor.

This journey gives you more than money. It gives financial confidence.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |8268 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 21, 2025

Dear Sir I am around 60 yrs of age and retiring after 3 months. My monthly expenses is around 200,000 INR per month. In order to lead same lifestyle how much corpus is required. Please do advice how we need to invest in various FDs, MFs and PPFs, etc. We donot have any EMI as such. Look forward hearing from you. Deepa
Ans: You are doing the right thing by thinking ahead. Retirement is a new phase. With the right planning, it can be a peaceful one.

You are close to retirement. You wish to maintain a monthly lifestyle expense of Rs 2 lakh. That means Rs 24 lakh every year. You also have no EMIs. This is very good. Let’s plan from a 360-degree perspective.

Let’s assess your retirement lifestyle needs, required corpus, and ideal investments in simple steps.

?

Understanding Your Retirement Lifestyle

You plan to retire in 3 months. This is a critical stage to plan calmly.

?

Monthly expenses are Rs 2 lakh. This shows a dignified lifestyle with comfort.

?

No EMIs means you start with a clean slate. Very positive foundation.

?

You wish to retain the same lifestyle. That means the corpus must beat inflation.

?

Post-retirement income should be regular, low-risk, and tax-efficient.

?

Liquidity must be available. Health care needs can come up anytime.

?

You must plan for at least 25-30 years post retirement. Life expectancy is rising.

?

Expenses will rise every 5-6 years. So plan to beat inflation.

?

Your focus should be on safety, steady income, and flexibility.

?

Required Retirement Corpus: Assessment

Based on your Rs 2 lakh/month, yearly need is Rs 24 lakh.

?

If we consider 25 years of retirement, that’s Rs 6 crore in today’s money.

?

But we must consider inflation. In 5 years, Rs 2 lakh will feel like Rs 2.5–3 lakh.

?

Hence, you need a larger retirement corpus. Around Rs 7 to 8 crore would be comfortable.

?

This will help maintain your lifestyle and tackle medical or unexpected needs.

?

If corpus is less than Rs 7 crore, then we need to plan smarter.

?

Use diversification. Use multiple instruments. Create buckets based on time horizon.

?

Don’t put all in one place. You need a good balance of risk and safety.

?

Asset Allocation Strategy After Retirement

First focus is capital protection.

?

Second focus is monthly income.

?

Third focus is inflation beating growth.

?

Split your corpus into 3 parts: Short term, Medium term, and Long term buckets.

?

Bucket 1 – Short-Term (Next 3 years of expenses)

Allocate around Rs 70–75 lakh.

?

Keep in bank FDs, sweep-in FDs, and ultra-short-term mutual funds.

?

This part gives you monthly withdrawal facility. It is liquid and safe.

?

Invest in FDs with quarterly interest payouts for steady flow.

?

Choose banks with good credit ratings, preferably large private or PSU banks.

?

Ultra-short-term mutual funds offer 6-7% and are more tax efficient.

?

This bucket is not meant for growth. Only for stability and access.

?

Bucket 2 – Medium-Term (4 to 10 years)

Allocate around Rs 2.5 to 3 crore.

?

Invest in conservative hybrid mutual funds and balanced advantage funds.

?

These funds adjust equity-debt mix dynamically. Less risky than equity funds.

?

Returns can be in the 8–10% range. This beats inflation comfortably.

?

Use SWP (Systematic Withdrawal Plan) to take monthly amounts.

?

You can take Rs 40,000 to Rs 50,000 monthly from this bucket.

?

SWP is more tax efficient than FD interest.

?

Long term capital gains above Rs 1.25 lakh/year taxed at 12.5%.

?

STCG taxed at 20%. So holding for long is better.

?

Regular plans through MFDs with CFP support give better tracking and guidance.

?

Avoid direct funds unless you can do in-depth review regularly.

?

Regular funds give access to advisor support and portfolio rebalancing.

?

Bucket 3 – Long-Term Growth (10+ years)

Allocate Rs 3 to 3.5 crore here.

?

Use well-diversified actively managed mutual funds.

?

Choose from large cap, large & mid cap, flexi cap, focused, or multi-asset.

?

These funds help grow the corpus and beat long-term inflation.

?

Avoid index funds. They blindly follow the index without active stock selection.

?

Actively managed funds can protect better during market falls.

?

A good fund manager makes selective calls. This gives better results.

?

Rebalance your portfolio every 2 years with a Certified Financial Planner.

?

Use dividend reinvestment or growth option. Withdraw only when needed.

?

Don’t over-withdraw. This is your retirement anchor.

?

PPF, Senior Citizen Saving Scheme, and Post Office Options

PPF is good, but has 15-year lock-in. At 60, liquidity becomes concern.

?

If you already have PPF account, let it mature. Extend in blocks of 5 years only if needed.

?

SCSS is suitable. Offers attractive interest. Limit is Rs 30 lakh per individual.

?

Safe for a portion of retirement corpus. Good for capital preservation.

?

Post Office Monthly Income Scheme can be considered. But rates change.

?

Don’t lock too much in long-tenure options. You need liquidity too.

?

Tax Planning After Retirement

Plan your income smartly to stay in lower tax brackets.

?

FDs are taxed at slab rates. Plan accordingly.

?

Mutual funds offer better tax efficiency.

?

Use SWP from equity mutual funds for steady tax-friendly income.

?

For debt mutual funds, taxation is as per your slab. Use with planning.

?

Spread your withdrawals across financial years to manage tax.

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Submit Form 15H if your taxable income is below limit.

?

Take help from your MFD or CFP for tax-efficient withdrawal plans.

?

Health Insurance and Emergency Fund

Keep Rs 20 to 25 lakh separately for emergencies.

?

Maintain health insurance even after retirement.

?

Take super top-up plans if base policy is small.

?

Don’t depend fully on employer’s insurance. It ends with retirement.

?

Medical costs can wipe out corpus if not planned.

?

Also keep Rs 3–5 lakh in savings account for minor needs.

?

Estate Planning: Important But Often Missed

Prepare a clear and updated Will.

?

Nominate family members in all financial accounts.

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Inform spouse or children about investments and bank details.

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Keep copies of all insurance, MF, FD and other assets safely.

?

You are planning for your family’s future. Keep them informed.

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Investment Discipline and Annual Review

Review your plan every year. Retirement is not a one-time setup.

?

Adjust for inflation and market movements.

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Rebalance portfolio with help of a CFP.

?

Stay invested even during market falls. Don’t panic and withdraw.

?

Withdraw only what is needed monthly.

?

Maintain some cash buffer to avoid early redemption.

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Long-term growth needs patience and discipline.

?

Avoid These Common Retirement Investment Mistakes

Don’t invest everything in FDs. Returns won’t beat inflation.

?

Don’t put full amount in equity either. Risk is high.

?

Avoid direct mutual funds. Regular plans give guidance and support.

?

Don’t go for ULIPs, investment insurance, or traditional plans for returns.

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Don’t fall for high-return promises from unknown agents.

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Never lend big amounts to relatives without documentation.

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Avoid complex structured products. Keep it simple and liquid.

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Don’t ignore medical and long-term care planning.

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Avoid long lock-in plans. Flexibility is more important now.

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Don’t take new loans unless absolutely needed.

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Finally

Deepa, you are entering a new phase in life. A well-planned one can be peaceful.

You’ve lived responsibly. Now it is time to plan your wealth for protection and income.

Start with safety. Then add income-generating instruments. Keep some for growth.

Diversify using the 3-bucket method. Review every year. Stay informed and calm.

With the right approach, you can enjoy 25+ years of peaceful retirement.

Appreciate your clarity and foresight. More power to your next chapter.

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Best Regards,
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K. Ramalingam, MBA, CFP,
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Chief Financial Planner,
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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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