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My Love Life Changed After Our Second Child: Is This Normal?

Anu

Anu Krishna  |1410 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Aug 22, 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 - Aug 15, 2024Hindi
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Relationship

My husband stopped being intimate with me after the birth of our second son. We have been married for 11 years but all we ever talk about is related to our children, their academics, and future. I have tried to speak to my husband about this but he feels everything is normal. We live in a 2BHK apartment in Pune. My mother-in-law visits us sometimes and she doesn't like me. But I am cordial with her. My husband never discusses his work or personal stuff with me. There is no love or intimacy between us. He takes care of all other needs of the house and my children. Is this normal? Am I worrying too much? Please help

Ans: Dear Anonymous,
You are right when you worry about the way things are between you and your husband. Obviously sexual intimacy is one of the pillars for a strong marriage (and not the only pillar). And you have noticed that this intimacy has stopped after the birth of your second child.
Now, one way of looking at it is that many couples get drained in responsibilities of raising babies and building the family and this means sex can be off the table for a long long time. Is this the same with the two of you as well?
OR
It can also be that many people use sex simply as means to have children (reproduce) and not as an activity to be indulged in other than for bringing children into the world. Is your husband one of those people?
OR
When you say there is no love and intimacy between the two of you, surely this could be another reason as both of you have not bothered to take out time for yourselves where you brought in the element of trust, care, affection, love...this is the basis for other forms of intimacy as well.
Work on this better...try and become each other's friend first...he need not just assume the role of a provider and take it on so seriously that he forgets that there is a wife that needs his care. At the same time, do not insist on sex till you also make an effort to bring him into a space where he sees you as his friend and starts to trust you...

What happens in the bedroom, starts first outside the bedroom with small gestures like laughing, watching movies together, cooking, holding hands...don't jump into sex instantly...wait...be patient...

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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Kanchan

Kanchan Rai  |447 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on May 21, 2024

Asked by Anonymous - May 20, 2024Hindi
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Relationship
Hello, iam 30 yrs old and have been married for 7 years. My husband is 34 years old, I have a 4 year old daughter. My husband is an army man. My daughter was born during covid so for almost 1 year me and my husband were in long distance. After that my husband took both of us along with him. We used to be happy together but at times whenever I used to show little irritation or talk about something he used to get impatient and frustrated. Even our intimate moments got reduced. I tried to talk even about it but his male ego never accepted my confrontation. Now again we had to stay away due to his work-life. I too started working. I felt maybe because of work stress he was like that. And when I'll also start working I'll understand his problem. But though my work is stressful and I try to take out time to talk to him romantically. But he feels so distant. Whenever I try to ask him, he gives me reason of work, weather, what not. I know he cannot cheat on me as he calls just me whenever he gets time. I'm not concerned that he doesn't love me but what's wrong with out intimate moments. Why is not interested. Atleast he can talk to me about his issue instead of just shouting or blaming me for being too desperate. I feel so hurt and distant. In angry moments i get this thought of going away from him.. finding solace in someone. But i just try to wane that thought away. Please help me..
Ans: I'm sorry to hear about the struggles in your marriage. The stress of your husband's military career, long periods of separation, and raising a child during the pandemic have taken a toll on your relationship. Your husband's impatience and frustration might be his way of dealing with stress, which affects your intimacy and communication.

Try to approach conversations with empathy and express your feelings calmly, focusing on how you feel rather than what he's doing wrong. Small gestures of affection and quality time can help rebuild your connection. Couples therapy could also be beneficial, providing a safe space to work through issues together.

Take care of your own well-being by engaging in activities that bring you joy and maintaining support from friends and family. This self-care will give you the strength to address the challenges in your relationship.

Your feelings are valid, and seeking help shows your commitment to your marriage. With patience and professional support, there's hope for rekindling the intimacy and closeness you desire.

..Read more

Kanchan

Kanchan Rai  |447 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on May 27, 2024

Asked by Anonymous - May 26, 2024Hindi
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Relationship
Hi, I am 31 year old with 1.5 year old son. I am leaving in joint family. I am a working woman. The problem with me is I feel the only person giving 100% in our relationship is me. Its been 2.5 years we got married, i am handling my expenses as I am working, i am not dependent on him but he never asks for my wishes. He never bough me anything not a single gifts, cakes anything even on special days like birthdays and our anniversaries. I am helping him in his EMIs of loan payments as well but i am not getting phisical or emotional support from him. He even gets angry when i ask for hugs. Sometimes if he gives hug he behaves like he is doing favour. Sometimes i cried at night but he didn't care and goes to sleep peacefully. When my mother in law and i got in argument he supports me less and everytime supports his mom. I helped him in paying in his sister's marriag also. He never takes mr to dates. Whenever we go outside everytime he take his family with us. He never talks to me or asks mr if I need anything. Even after coming from office he spends most of time on mobilr and watching tv. He didn't even take me to small trips, in last 2.5 year we haven't done any trips. He never tries to make me feel special. The worst part was i was alone every night during my pregnancy as hi was having night shifts at that time. When i cried infront of him that i need you tonight i am not feeling well, i am pregnant please be here with me, his answer was work is more important. Who is going to make money for our future and he left me crying at that day. I am feeling like i am the only one who is trying to keep this relationship alive. I am not getting what i expects from him. What to do in this situation.
Ans: I'm truly sorry to hear about the difficulties you're experiencing in your marriage. It sounds incredibly challenging and painful to feel unsupported and neglected, especially when you're putting so much effort into your relationship.

First, it's essential to acknowledge your feelings and needs. Reflect on what you truly desire from your marriage. What specific actions or behaviors do you need from your husband to feel loved and supported? Understanding your needs will help you communicate them more clearly.

When you're ready, find a calm and private moment to talk with your husband. Approach the conversation with the intention of expressing your feelings and needs without blaming or accusing him. You could say something like, "Over the past few years, I've been feeling very lonely and unsupported in our marriage. I know you work hard, and I appreciate that, but I also need emotional support and affection from you. It hurts when my needs are not acknowledged, and I feel like I'm the only one putting effort into our relationship."

Using "I" statements can help focus on your feelings without sounding accusatory, which can make your partner less defensive. For example, "I feel neglected when my emotional needs are not met," or "I feel hurt when you don't acknowledge my birthday or special occasions." This way, you're communicating your feelings without placing blame directly on him.

Be specific about what you need from him. Instead of making general statements, provide clear examples of what would make you feel better. For instance, you might say, "It would mean a lot to me if we could have some alone time, maybe go on a date once a month," or "I would love it if you could ask how my day was and really listen."

If talking to your husband directly doesn’t lead to any changes, consider seeking couples counseling. A therapist can provide a neutral space where both of you can express your feelings and work on improving your relationship. Counseling can help you both understand each other better and develop strategies to meet each other's needs more effectively.

Remember, it's crucial to take care of yourself during this process. Lean on friends or family for support, and consider speaking with a therapist on your own to help navigate these feelings and challenges. You deserve to feel loved, respected, and supported in your marriage, and it's important to advocate for your own well-being.

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Anu

Anu Krishna  |1410 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Oct 23, 2024

Asked by Anonymous - Sep 14, 2024Hindi
Relationship
I'm 40 years old and my husband is 50 years old. We have been married for 12 years now. We have a son who is 8 years old. My husband has always been a workaholic, which I have known from the beginning and have accepted it. He is a doting father to my son. But for the past year, he seems to have changed a lot. He still continues to be a doting father, his behaviour with me has changed a lot. We hardly talk, except regarding matters related to our son. I have confronted him on this and he says he is very busy with work. He says nothing is bothering him. But it feels like that is not true. It feels like he is angry with me but denies it. I feel ignored and like he is avoiding me. How do I resolve this?
Ans: Dear Anonymous,
Well, firstly, you were okay with something that you were not okay to start with (him focusing on work mostly) and that has set a stage for your relationship that you are and will be okay with it and he will continue to be that way without addressing his role as a husband.
Now, what is the reason for the change in his behavior, you can just keep guessing by playing games in your mind. The only way to resolve this is: to actually learn how to communicate with each other as adults, as husband and wife. The two of you have never bothered with it, yeah? Then now bother yourself by learning this new skill. Talk, communicate, listen and then take on the role of a wife in the marriage. Do the things that you would have wanted to, small expectations, those little arguments...even these can be communication letting the man know that as a wife you care and you do want your man to fulfill little things for you.
He then will start to feel useful in the marriage which is a big thing for men and once he feels that is being valued, he will tear down his wall and show up as a man and as a husband and not just a father.
So, a lot of work from your end as well for him to reciprocate and then it's a constant momentum from thereon...

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

Latest Questions
Ramalingam

Ramalingam Kalirajan  |7350 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 27, 2024

Asked by Anonymous - Dec 25, 2024Hindi
Money
Hi I am 27 newly married with a salary of 2lakhs per month in bengalore and my wife earns 1.5 lakh. We are planning to buy a house but currently we do not have any saving as we spent it on the wedding. We can afford the emis but without any savings currently we are not able to proceed. Also we are planning to buy a house of around 1.5cr so want to save up around 40-50 lakhs before we can proceed. Can you please guide me accordingly?
Ans: You are in a strong position, earning a combined income of Rs. 3.5 lakh per month. This is a good starting point to plan your future financial goals, such as buying a home worth Rs. 1.5 crore. Since you don’t have savings right now, your priority should be to build a solid financial foundation first.

Saving for the Home
You mentioned the goal of saving Rs. 40-50 lakh before buying the house. This is a practical approach because it helps you reduce the loan burden and increase your chances of securing a better mortgage rate. Here’s how you can go about it:

Emergency Fund: First, start by setting aside an emergency fund of around Rs. 6-8 lakh. This fund should cover 6 months of your expenses in case of unexpected events. You and your wife should have access to this fund in liquid forms like a savings account or liquid mutual funds.

Building Savings: You have the capacity to save a substantial amount. With your current income, you can aim to save Rs. 1 lakh to Rs. 1.5 lakh each month. You should consider directing this amount into systematic investment plans (SIPs) in equity mutual funds, given your 5-7 year horizon before buying the house.

Investment Strategy
Given your goal of saving Rs. 40-50 lakh over the next few years, here’s how you can structure your investments:

Equity Mutual Funds for Long-Term Growth: Invest in actively managed equity funds with a long-term view. Equity funds have the potential to generate higher returns over the long term. Choose funds focusing on large-cap and flexi-cap categories, as they offer a good mix of stability and growth potential.

Debt Mutual Funds for Stability: For the portion of savings you want to keep relatively safe, consider debt mutual funds. They provide better returns than savings accounts and fixed deposits, while keeping the risk lower than equity funds. This will balance out your portfolio and reduce the volatility in your savings.

SIPs: Set up SIPs for both types of funds. This will allow you to invest systematically, building wealth gradually, without trying to time the market. You could split Rs. 1 lakh into Rs. 70,000 in equity and Rs. 30,000 in debt funds, but feel free to adjust as per your risk tolerance.

Keep Track of Progress: Given your high savings rate, you should be able to accumulate Rs. 40-50 lakh in 3-4 years, assuming an average return of around 10-12% from equity investments.

Mortgage and Home Loan
Once you accumulate the required savings for the down payment, you can start looking for a home loan. Ideally, a down payment of 20-30% (around Rs. 30-45 lakh) is recommended. With your combined monthly income of Rs. 3.5 lakh, you should be eligible for a home loan. Ensure that your monthly EMI does not exceed 35-40% of your combined income, so that it remains manageable.

Key Points to Keep in Mind
Avoid Over-leveraging: Do not stretch your budget to the limit. Stick to your planned savings and down payment target. This will ensure that you do not end up with too high an EMI that affects your cash flow and lifestyle.

Review Your Expenses: Track your monthly expenses and cut down on non-essential spending. The money saved can be redirected towards your house savings or investments.

Spouse’s Income Utilization: Your wife’s income can also be used for the savings plan, particularly in the early years of your marriage. This can help you build the corpus faster.

Loan Eligibility: Once you have saved for the down payment, get in touch with banks to understand your loan eligibility. Keep a good credit score and avoid large purchases or credit card debts.

Final Insights
The combination of aggressive savings and systematic investments in equity and debt funds will allow you to reach your goal of Rs. 40-50 lakh within a few years. By setting aside a portion of your income for SIPs and maintaining a disciplined approach, you can gradually accumulate wealth and achieve your dream of buying a home. Moreover, always ensure that you keep a check on your lifestyle expenses to ensure that your savings rate remains high.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7350 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 27, 2024

Asked by Anonymous - Dec 20, 2024Hindi
Money
Dear Sir I am 38 years old with monthly salary around 125k, doing Sip since last year, my current Sip is 57k per month as below, 10k - SBI Nifty 50 index 3k - Motilal oswal Nsdaq 100 FOF 5K - DSP Nifty next 50 index 4k - Nippon india small cap 5k - Motilal oswal mid cap 3.5k - Quant mid cap 7k - ICICI bluechip 3.5k Mirae Asset large cap 3.5k - Parag parikh flexicap 4.5k - Canara robeco emerging equity 3k - HDFC multicap 3k - ICICI manufacturing fund 2k - ICICI Bharat 22 FOF Current mutual fund portfolio is 7 Lakh and 6 Lakhs are invested in direct stocks, also I have incresed my EPF to 100%.. All are direct fund. Could you please check and suggest if I have done over diversification and which funds might be overlapping, also which fund I need to leave and stay....I have long term horizon of 20+ years
Ans: Your monthly SIP of Rs. 57,000 is commendable, and you have a good mix of equity and sector-specific funds in your portfolio. However, there seems to be some overlap, which could result in over-diversification. This might not yield the best results, as too many similar funds could dilute the overall performance. With your long-term horizon of 20+ years, it's essential to streamline your investments for maximum growth potential. Let’s go through the key points to evaluate your current portfolio.

Over-Diversification Assessment
You have invested in a mix of large-cap, mid-cap, small-cap, thematic, and index funds, which covers a wide spectrum of the market. However, you need to assess if all these funds are truly adding unique value or if some funds are too similar. Here’s the breakdown:

Index Funds: You are investing in two index funds (SBI Nifty 50 and DSP Nifty Next 50). While index funds provide broad market exposure, they often overlap in terms of the stocks they hold. Both Nifty 50 and Nifty Next 50 index funds will hold many of the same stocks, with the latter focusing on mid-cap stocks. You might want to consider keeping just one index fund, preferably the Nifty 50 if you're looking for stability and consistency, or explore actively managed large-cap funds for better long-term potential.

Mid-Cap Funds: You have multiple mid-cap funds, including Motilal Oswal Mid Cap, Quant Mid Cap, and HDFC Multicap. There is potential overlap here as mid-cap funds usually have a similar set of stocks, and investing in more than one may not provide much additional diversification. It might be beneficial to reduce this overlap by choosing one well-performing mid-cap fund rather than spreading your investments across several.

Small-Cap Funds: Your small-cap exposure is through Nippon India Small Cap. Small-cap funds are inherently more volatile but offer high growth potential. As this is a high-risk category, it’s advisable to have a limited exposure (typically 5-10%) to small-cap funds in your overall portfolio.

Large-Cap Funds: You are invested in ICICI Bluechip, Mirae Asset Large Cap, and Parag Parikh Flexi Cap. All of these funds focus on large-cap stocks, but Parag Parikh Flexi Cap also invests in mid-cap and international stocks, giving it a broader diversification. You might want to consider consolidating this exposure, as having multiple large-cap funds can lead to a lot of redundancy.

Thematic and Sector-Specific Funds: You have investments in ICICI Manufacturing Fund and ICICI Bharat 22 FOF. These are thematic and sector-specific funds. While these funds provide unique sectoral exposure, the manufacturing sector fund might overlap with some of the stocks in your other funds. Sector funds tend to be more volatile, so their role in your portfolio should be limited and well-thought-out.

Suggested Actions
Reduce Overlapping Funds:

Consider eliminating one of the mid-cap funds (Motilal Oswal Mid Cap or Quant Mid Cap) to reduce redundancy.
Keep only one index fund (either SBI Nifty 50 or DSP Nifty Next 50), as both are highly correlated.
Keep your small-cap exposure limited to one fund, as small-cap stocks are highly volatile and should be approached with caution.
Increase Exposure to Actively Managed Funds:
Actively managed funds typically offer better risk-adjusted returns over the long term, as fund managers can select stocks based on research and market conditions. While index funds have their place, especially for broad market exposure, actively managed funds tend to outperform in the long run if selected carefully.

Streamline Large-Cap Funds:
Consider consolidating your large-cap exposure by selecting one or two of the better-performing funds, rather than having multiple overlapping funds in this category. Given that Parag Parikh Flexi Cap already includes large-cap stocks, you could reduce exposure in the other large-cap funds.

Sectoral Exposure:
Thematic and sector funds like ICICI Manufacturing Fund can add value, but they should not dominate your portfolio. The manufacturing sector may face challenges depending on economic cycles, so it's essential to limit such exposure to a small percentage of your overall portfolio.

Understanding Direct Funds vs Regular Funds
Since you are investing in direct funds, it's essential to note that while they may seem appealing due to lower expense ratios, direct funds come with higher risk for individual investors. They require a deep understanding of the market and may lead to poor choices due to lack of expertise or overtrading. Direct funds also lack the regular monitoring and professional management that comes with investing through a mutual fund distributor.

Opting for regular funds, where a Certified Financial Planner (CFP) assists you, could be a better strategy, especially for building a diversified portfolio. A CFP can evaluate your risk tolerance, time horizon, and financial goals to ensure that your investments are properly aligned with your long-term needs. Moreover, regular funds can often provide better insights into market conditions, making it easier to navigate your investment strategy.

Final Insights
Given your long-term investment horizon, it's crucial to focus on creating a streamlined portfolio that maximizes growth potential without spreading yourself too thin. You have a solid mix of fund types, but reducing overlap will improve focus and efficiency. It’s also worth considering consolidating into actively managed funds, which can provide higher returns over time, especially with a 20+ year horizon. Additionally, make sure to evaluate the performance of each fund periodically and make adjustments as needed.

By following a more focused approach, you’ll have a portfolio that offers strong growth potential with controlled risk exposure. With proper diversification and strategic fund selection, your investments will be more aligned with your long-term goals of wealth creation.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7350 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 27, 2024

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Money
Hi, I'm 30 years old, I want to invest 1cr lumpsum in mutual funds and 1cr in swp.Both investment for long term arouung 20 to 30 years. What are the bst funds to invest? Thank you
Ans: Investing Rs 1 crore for 20-30 years requires a thoughtful strategy. Your plan to invest in mutual funds and set up an SWP is commendable. A diversified approach will help maximise growth and ensure financial security.

Benefits of Long-Term Investing
Compounding Effect: Staying invested for decades can multiply wealth significantly.

Market Cycles: Long-term investments can overcome market volatility and generate better returns.

Goal Achievement: It helps secure retirement, children’s education, or wealth creation goals.

Building a Lumpsum Portfolio
Actively Managed Equity Funds
Growth Potential: These funds focus on large-cap, mid-cap, and small-cap companies.

Diversification: Investing in multiple sectors reduces risk and enhances returns.

Expert Management: Professional fund managers analyse markets for optimal portfolio performance.

Hybrid Funds
Balanced Approach: These funds invest in a mix of equity and debt.

Stability: They provide stability during market fluctuations.

Customisation: Align the equity-debt ratio based on your risk profile.

Debt Funds
Safety: Debt funds are ideal for preserving capital with steady returns.

Risk Management: They offset the volatility of equity investments.

Setting Up a Systematic Withdrawal Plan (SWP)
Benefits of SWP
Regular Income: SWP ensures monthly cash flow for expenses.

Tax Efficiency: Capital gains taxation applies only to the withdrawn amount.

Capital Retention: Principal investment remains intact for longer.

Structuring SWP Investments
Debt Funds for Safety: Use debt funds for consistent returns and lower market risk.

Hybrid Funds for Balance: These funds offer moderate growth while reducing withdrawal risk.

Avoid Entirely Equity-Based SWP: Equity fund withdrawals during market lows can erode capital.

Disadvantages of Index Funds
No Flexibility: Index funds follow benchmarks strictly, missing market opportunities.

Limited Returns: They cannot outperform the market due to their passive nature.

Benefits of Actively Managed Funds
Higher Return Potential: They aim to outperform the index with expert strategies.

Goal-Oriented Approach: Actively managed funds align with specific financial goals.

Regular Funds vs Direct Funds
Drawbacks of Direct Funds
Lack of Guidance: Managing investments yourself can be time-consuming and confusing.

Risk of Errors: Poor fund selection may reduce returns.

Benefits of Regular Funds
Expert Advice: Investing through a Certified Financial Planner ensures strategic fund selection.

Monitoring and Rebalancing: Regular investments are actively managed for optimal performance.

Taxation Considerations
Equity Mutual Funds: LTCG above Rs 1.25 lakh is taxed at 12.5%. STCG is taxed at 20%.

Debt Mutual Funds: Gains are taxed as per your income slab.

Taxation must be factored into your long-term planning.

Allocating Rs 1 Crore in Mutual Funds
Equity Allocation

Focus on diversified large-cap, mid-cap, and flexi-cap funds.
Allocate 60-70% for growth over the long term.
Hybrid Allocation

Add 20-30% to hybrid funds for balance.
Adjust based on market conditions and risk appetite.
Debt Allocation

Allocate 10-20% for stability and liquidity.
Use short-term or dynamic bond funds.
Allocating Rs 1 Crore for SWP
Start with Debt Funds

Invest in funds offering steady returns with low volatility.
Gradually Shift to Hybrid Funds

Include hybrid funds for moderate growth and income stability.
Limit Equity Exposure

Avoid high equity exposure for SWP to preserve capital.
Plan Withdrawals Wisely

Choose withdrawal amounts that sustain long-term investment.
Final Insights
A well-diversified portfolio of equity, hybrid, and debt funds will secure your financial goals. Use actively managed funds to optimise returns and ensure professional guidance through regular funds.

For the SWP, focus on safety, stability, and sustainable withdrawals to preserve wealth for decades.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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Ramalingam

Ramalingam Kalirajan  |7350 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 27, 2024

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Hello Sir, Am 75 years old retired person. Am planning to invest in SWP,say ?.100.lakhs, but bit confused on tax treatment. Am planning to withdraw ?.50000/-per month and do not want to alter it. If this discipline is followed,how the tax treatment will be? Will appreciate if you can send me a table illustrating the appreciation for say next five years, assuming prevailing market scenario. Thanks. Vinod B.
Ans: Systematic Withdrawal Plan (SWP) is an excellent choice for disciplined monthly income. Your planned withdrawal of Rs. 50,000 monthly from a corpus of Rs. 100 lakhs offers a stable cash flow. However, understanding the tax implications and projecting growth is crucial.

How SWP Works
Principal and Returns Split: Each withdrawal comprises a portion of your principal and accumulated returns.

Impact on Corpus: The corpus reduces over time unless returns exceed withdrawals.

Flexibility: SWP offers flexibility to adjust withdrawals, but you have chosen discipline, which is commendable.

Tax Treatment for SWP
Equity Mutual Funds
Withdrawals from equity mutual funds are taxed as capital gains.

Gains from investments held for over 1 year are long-term capital gains (LTCG).

LTCG above Rs. 1.25 lakhs is taxed at 12.5%.

Gains from investments held for less than 1 year are short-term capital gains (STCG).

STCG is taxed at 20%.

Debt Mutual Funds
Gains from debt mutual funds are taxed differently.

Short-term gains (investments held for less than 3 years) are taxed as per your income tax slab.

Long-term gains (held for over 3 years) are taxed at 20% with indexation benefits.

Tax Implications on SWP
The tax is levied only on the capital gain portion of the withdrawal.

Withdrawals from principal are not taxed.

Market Assumptions for Illustration
Annual return for equity funds: 10%.

Annual return for debt funds: 6%.

Monthly withdrawal: Rs. 50,000 (Rs. 6,00,000 annually).

SWP Illustration for Next 5 Years

Assuming a 10% annual return on equity mutual funds and 6% return on debt mutual funds, let’s look at the expected corpus growth over the next five years.

In the case of equity-oriented investments, your Rs. 100 lakh corpus would grow significantly. After the first year, assuming an average return of 10%, the corpus would be around Rs. 1.03 crore, despite the Rs. 6 lakh annual withdrawal. In the second year, the corpus would further grow to approximately Rs. 1.07 crore, and by the end of five years, your corpus could reach Rs. 1.20 crore.

For debt-oriented investments, the returns are typically lower. At a 6% return, the corpus would reduce slightly due to the withdrawals. By the end of the first year, your corpus would be approximately Rs. 99.64 lakh. In the second year, the corpus would be around Rs. 98 lakh, and by the end of five years, it could reduce to about Rs. 97 lakh.

Final Insights
With SWP, the key benefit is predictable and regular income, which is ideal for a retired person. However, you need to consider the tax implications on the capital gain portion of your withdrawals. Given the low growth from debt funds, I would recommend an equity-focused strategy to generate better returns over the long term, especially since you are still young enough to take on some market volatility. While equity funds may carry short-term risk, they generally offer better growth over time, which would ensure that your corpus continues to grow while meeting your monthly requirements.

Finally, I would suggest discussing your specific tax liability and withdrawal strategy with a Certified Financial Planner, as they can help optimize your strategy for your retirement goals.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7350 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 27, 2024

Money
I have 6 Lak Home loan balance with 40 K EMI for 2 years balance tenure. I will get 10 L from LIC after 4 months, should I set off my home loan and park balance in ICICI blue chip fund and 40 K SIP. Or should I continue with EMI and put all 10 L in large cap fund? Please advise. My age is 50 years.
Ans: You have a home loan balance of Rs 6 lakh with an EMI of Rs 40,000 and a tenure of two years. In four months, you expect Rs 10 lakh from an LIC maturity. You are considering setting off the loan and investing the balance or continuing the EMI and investing the full amount in large-cap mutual funds.

Let's evaluate your options from a 360-degree perspective.

Benefits of Prepaying the Home Loan
Interest Savings: Paying off your loan early saves significant interest costs. Home loans, even with tax benefits, carry an effective interest burden.

Emotional Relief: Being debt-free provides mental peace and financial security, especially as you approach retirement.

Risk Reduction: Prepaying eliminates the uncertainty of managing liabilities in unpredictable scenarios like job loss or health issues.

Drawbacks of Prepaying the Home Loan
Loss of Tax Benefits: Prepaying the home loan means losing the deductions under Section 80C and Section 24(b) of the Income Tax Act.

Opportunity Cost: The amount used to prepay could potentially yield higher returns if invested elsewhere.

Evaluating Investments in Mutual Funds
You mentioned large-cap and blue-chip mutual funds as options. Here are the key points:

Actively Managed Large-Cap Funds
Professional Expertise: Fund managers analyze market trends and adjust portfolios to optimize returns.

Potential for Outperformance: They aim to beat benchmark indices, offering a chance for higher returns than index funds.

Drawbacks of Index Funds
Limited Flexibility: Index funds are passive and cannot adapt to market changes.

Lower Customization: They replicate the index and do not consider specific investor goals.

Regular Funds vs Direct Funds
Benefits of Regular Funds: Investing through a Certified Financial Planner ensures expert guidance. They help with fund selection, portfolio rebalancing, and goal tracking.

Drawbacks of Direct Funds: Managing them requires time, expertise, and constant monitoring, which can be challenging.

Key Considerations Based on Your Age
At 50, financial stability and debt freedom become critical.

Prioritize risk management over aggressive wealth accumulation.

Ensure a clear plan for retirement with adequate savings and investments.

360-Degree Solution
Option 1: Prepay Home Loan and Invest Balance
Use Rs 6 lakh to settle the home loan.
Invest the remaining Rs 4 lakh in a mix of large-cap mutual funds and safer debt funds.
Redirect the Rs 40,000 EMI amount towards SIPs in actively managed funds.
This approach offers debt freedom and builds wealth through disciplined SIPs.

Option 2: Continue EMI and Invest Full Amount
Invest the Rs 10 lakh in a diversified portfolio, including large-cap equity and debt funds.
Allocate Rs 40,000 EMI for the remaining two years from regular income.
Gradually move funds to safer options as you approach retirement.
This approach leverages compounding returns but retains the loan liability for two years.

Tax Implications
Equity mutual funds: Long-term capital gains above Rs 1.25 lakh are taxed at 12.5%. Short-term capital gains are taxed at 20%.

Debt mutual funds: Gains are taxed as per your income slab.

Factor these into your decision when investing or redeeming funds.

Recommendations
If mental peace and debt freedom are priorities, Option 1 is better.

If you are comfortable with the EMI and can handle market risks, consider Option 2.

Avoid overexposure to a single asset class like large-cap funds. Diversify across equity, debt, and hybrid funds.

Finally
Every decision must align with your goals, risk tolerance, and retirement needs. Consulting a Certified Financial Planner can help you make a well-informed choice.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7350 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 27, 2024

Money
I have 20 lakhs in my account and a house in my name. At present I am not earning. I have taken SBI Life smart wealth builder with installment of 1Lakh, for 12 years and premium payment term of 7 years. Applicable tax rate is 18%. I have paid the premium for 2 years so far. I also invested in MF and taken a health insurance. I am thinking if it would be wise to continue with the SBI life. If I close SBI life and invest that in MF will it be beneficial for me? I have taken a break from my career due to health issues, and planning to continue with my job soon with an expected income of 40-50k. I am 50 years old. I need to take care of my son's (18 years) higher studies and plan for my retirement.
Ans: You have Rs. 20 lakhs in your bank account and own a house. At present, you are not earning, but you plan to restart your career soon with an expected income of Rs. 40,000–50,000 monthly.

Your key financial priorities include:

Funding your son’s higher education (he is 18 years old).

Planning for your retirement at age 50.

You hold an SBI Life Smart Wealth Builder policy with a yearly premium of Rs. 1 lakh. You have paid for 2 years, with a premium payment term of 7 years and a policy term of 12 years.

You also have mutual funds and health insurance in place. This is commendable as it shows thoughtful financial planning.

Let us evaluate whether to continue with the SBI Life policy or switch to mutual funds.

Understanding SBI Life Smart Wealth Builder
SBI Life Smart Wealth Builder is a unit-linked insurance plan (ULIP).

It combines insurance and investment but tends to underperform compared to standalone investments.

ULIPs have higher charges like mortality fees, premium allocation, and administration charges.

These charges eat into your returns, especially in the initial years.

Tax deductions under Section 80C are available, but only premiums within 10% of the sum assured qualify.

Disadvantages of Continuing SBI Life
The fund returns in ULIPs are generally lower than mutual funds.

High charges reduce your corpus growth potential.

You already have health insurance, which is essential.

Buying a standalone term insurance plan separately is more cost-effective than ULIPs.

Benefits of Switching to Mutual Funds
Mutual funds offer flexibility with no lock-in beyond ELSS funds (3 years).

They provide higher returns than ULIPs over long-term horizons like 10–15 years.

Actively managed funds allow diversification across equity, debt, and hybrid categories.

You can adjust your portfolio based on changing goals, such as education or retirement.

Tax Implications of Surrendering SBI Life
ULIP surrender after 5 years is tax-free.

If surrendered within 5 years, the tax benefits claimed earlier may need to be reversed.

The amount withdrawn could be added to your taxable income.

Consult a Certified Financial Planner to manage these tax implications effectively.

Steps to Execute the Switch
Step 1: Surrender the SBI Life Policy
Stop paying further premiums for the SBI Life Smart Wealth Builder policy.

Surrender the policy after understanding any exit penalties and charges.

Step 2: Allocate the Surrendered Amount to Mutual Funds
Diversify the amount into equity mutual funds, debt mutual funds, and hybrid funds.

Choose funds based on your risk appetite and financial goals.

Step 3: Use SIPs for Regular Contributions
Start systematic investment plans (SIPs) for your monthly contributions.

Begin SIPs of Rs. 1 lakh yearly or Rs. 8,000 monthly after surrendering the ULIP.

Investment Plan for Rs. 20 Lakhs
Higher Education Goal
Allocate Rs. 10–12 lakhs to a mix of equity and hybrid mutual funds.

Ensure a significant portion is invested in funds with low to moderate risk.

Use the Systematic Transfer Plan (STP) to move funds to safer options closer to need.

Retirement Planning
Allocate Rs. 8–10 lakhs for long-term growth in diversified equity funds.

Choose funds that align with your risk tolerance and provide inflation-beating returns.

Review your retirement corpus periodically to ensure it meets future needs.

Importance of Diversification
Balance equity and debt to mitigate risks.

Use equity funds for long-term wealth creation.

Use debt funds or fixed-income instruments for stability.

Consider a hybrid fund for a balanced approach between equity and debt.

Tax Considerations for Mutual Funds
Equity mutual funds: Long-term capital gains (LTCG) above Rs. 1.25 lakhs taxed at 12.5%.

Short-term capital gains (STCG) taxed at 20%.

Debt mutual funds: Gains taxed as per your income tax slab.

Plan withdrawals efficiently to reduce tax outgo.

Key Points for Financial Stability
Build an emergency fund with 6 months of expenses before investing further.

Continue your health insurance policy for financial protection against medical emergencies.

Restart SIPs once your job stabilises to ensure disciplined investing.

Final Insights
Switching from SBI Life Smart Wealth Builder to mutual funds can optimise your financial goals. This strategy offers higher returns, better flexibility, and lower costs. It aligns well with your priorities for your son’s education and your retirement. Evaluate your decisions annually and consult a Certified Financial Planner for personalised advice.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7350 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 27, 2024

Listen
Money
I'm doing Rs 5000 SIP in SBI blue chip fund for last few 5 years . But it has been underperformer for last many quarters. Kindly advise , shall i switch to ICICI large cap or Nippon Large cap which looks stronger from many parameter . Please comment on my Switching Strategy : a) will stop SIP with SBI , but continue the holding. b) will start SIP of that Rs.5000 with Nippon/ICICI whichever you suggest Investment horizon -13 years till retirement
Ans: You have consistently invested in the SBI Blue Chip Fund through a systematic investment plan (SIP) for the past five years. This disciplined approach is commendable and ensures you benefit from rupee-cost averaging. However, you are concerned about its underperformance in recent quarters. Let us evaluate whether switching is the right strategy and how to optimise your investments.

Evaluating SBI Blue Chip Fund
Large-cap funds like SBI Blue Chip Fund invest in established companies with stable returns.

Short-term underperformance is not unusual, as large-cap funds may face temporary sector or stock-specific challenges.

Review the fund’s performance over a five-to-seven-year horizon.

Compare its rolling returns and risk-adjusted returns with peers.

Consider the management strategy and whether there are recent changes in the fund house or team.

Switching Strategy: Key Considerations
Switching to another large-cap fund needs careful evaluation. Here are factors to keep in mind:

Consistency: Assess whether the new fund consistently outperforms over longer timeframes.

Expense Ratio: Opt for funds with a reasonable expense ratio to maximise net returns.

Portfolio Overlap: Ensure minimal portfolio overlap between funds to diversify your holdings.

Exit Load and Taxation: Check for exit load charges and tax implications when redeeming investments.

Investment Horizon: With a 13-year horizon, focus on funds with steady growth potential.

Action Plan for Your SIP
Stopping SIP with SBI Blue Chip Fund
You can stop the Rs. 5,000 SIP in SBI Blue Chip Fund.

Retain your existing investments in the fund for now.

Monitor its performance over the next 1–2 years.

If it improves, you can reconsider restarting your SIP.

Starting SIP with a New Large-Cap Fund
Begin a new Rs. 5,000 SIP in an actively managed large-cap fund.

Choose a fund with consistent long-term returns, strong management, and a diversified portfolio.

Nippon India Large Cap and ICICI Prudential Large Cap Fund are potential options.

Review the fund's portfolio allocation and compare it to SBI Blue Chip.

Why Retain Existing Holdings?
Selling the entire holding could trigger capital gains tax.

Long-term capital gains above Rs. 1.25 lakh are taxed at 12.5%.

Retaining allows your existing corpus to grow and recover if the fund’s performance improves.

Evaluate its performance yearly to make informed decisions.

Balancing the Portfolio
Diversification ensures optimal risk-reward. Here’s how you can balance your portfolio:

Large-Cap Funds: Allocate 40–50% of your portfolio to large-cap funds for stability.

Mid-Cap and Flexi-Cap Funds: Add mid-cap or flexi-cap funds for higher growth potential.

Hybrid Funds: Consider hybrid funds for a balanced approach between equity and debt.

Debt Allocation: Invest 20–30% in debt funds or fixed-income instruments for stability.

Tax Implications
Avoid frequent switches to minimise tax liability.

Redeeming mutual funds too early could reduce compounding benefits.

Use systematic withdrawal plans (SWPs) during retirement for tax-efficient income.

Reviewing Your Investments
Regularly review your portfolio every six months or annually.

Evaluate funds based on performance consistency and market conditions.

Consult a Certified Financial Planner for tailored advice and portfolio optimisation.

Final Insights
Switching SIP from SBI Blue Chip Fund to another large-cap fund can be a strategic move. However, retaining your existing investment allows time for recovery and avoids tax implications. Focus on long-term goals, diversify across asset classes, and periodically monitor your portfolio. With disciplined investments, you are well-positioned for a secure retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7350 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 27, 2024

Asked by Anonymous - Dec 09, 2024Hindi
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Money
I am going to retire soon with retirement fund of 2 Cr along with pension sufficient for me and my spouse. I have own builder flat in Delhi and health coverage. I have one married daughter who is well settled with 2 kids under 5 years. One flat in my building is on sale for 2 Cr. I need advice for investment for 2Cr retirement fund . Should I buy the flat in my building or should I invest 2 Cr in senior citizen saving scheme, post office MIS , fixed deposit in Bank. My spouse of same age is also earning equally.
Ans: You are in a financially strong position with a pension that meets your needs, additional income from your spouse, and no major liabilities. However, careful planning of your Rs. 2 crore retirement fund is essential to maximise growth, ensure liquidity, and meet future requirements. Below is a detailed analysis of your options.

Real Estate as an Investment
Purchasing another flat for Rs. 2 crore in your building may seem appealing for proximity and potential rental income.

However, real estate is illiquid and may not offer consistent returns or easy encashment when needed.

Maintenance costs and the time required to manage tenants can add stress during retirement.

Additionally, property prices in Delhi's saturated market may not appreciate significantly over the next few years.

Instead of locking the entire Rs. 2 crore in real estate, consider more flexible investment options.

Senior Citizen Savings Scheme (SCSS)
SCSS offers safety, regular income, and tax benefits under Section 80C.

You and your spouse can each invest Rs. 30 lakhs, totalling Rs. 60 lakhs.

The interest earned is paid quarterly, ensuring a steady cash flow.

However, the lock-in period is five years, extendable by three years.

SCSS is an excellent choice for a portion of your retirement fund, providing predictable returns.

Post Office Monthly Income Scheme (POMIS)
POMIS is a safe option offering monthly interest payments.

The maximum individual limit is Rs. 9 lakhs, and Rs. 15 lakhs for joint accounts.

Combined with SCSS, this can create a reliable income stream.

POMIS also has a five-year lock-in, with limited liquidity.

Fixed Deposits (FDs) in Banks
Bank FDs are simple and secure investments.

You can ladder your FDs across different maturities for liquidity.

Choose senior citizen FDs for higher interest rates.

Reinvest the interest or opt for regular payouts based on your needs.

However, FD interest is taxable, reducing post-tax returns.

Balanced Investment in Mutual Funds
Mutual funds can offer inflation-beating returns over the long term.

Invest Rs. 50–75 lakhs in a mix of equity and hybrid mutual funds.

Hybrid funds balance growth and stability, suitable for retirees.

Systematic Withdrawal Plans (SWPs) ensure monthly income while maintaining capital appreciation.

Actively managed funds outperform index funds by leveraging market opportunities.

Avoid direct funds as regular funds offer better guidance through a Certified Financial Planner.

Emergency Fund
Maintain an emergency fund of Rs. 10–15 lakhs in liquid assets.

This can be parked in liquid mutual funds or savings accounts.

It ensures quick access to cash for unforeseen expenses.

Health and Life Insurance
Ensure your current health insurance is adequate for rising medical costs.

A top-up health plan may be worth considering.

Review your life insurance needs, if applicable, to protect your spouse financially.

Tax-Efficient Withdrawal Strategy
Plan withdrawals from your investments to minimise tax.

Withdraw from debt instruments first to let equity investments grow.

Use SCSS and POMIS income for regular expenses to avoid redeeming growth investments prematurely.

Gifting and Family Support
Consider gifting a part of your wealth to your daughter under Section 56 of the Income Tax Act.

Such gifts are tax-free for both you and the recipient if given within family relationships.

Ensure you balance gifting with retaining enough for your future needs.

Final Insights
Investing your Rs. 2 crore retirement fund strategically will ensure financial security and flexibility. Avoid locking funds in another flat due to its illiquid nature and uncertain returns. Instead, allocate across SCSS, POMIS, FDs, and mutual funds for steady growth, liquidity, and a regular income stream.

A diversified portfolio will secure your financial independence and allow you to support your family comfortably. Periodically review your investments with a Certified Financial Planner to adapt to changing circumstances.

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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