Dear Love Guru,
From where should I begin? It's a rather complex one. Well, I was in a 6-year-old long distance relationship (we met on Facebook) it was a good one and he was the best friend I thought I wanted.
Over the years though, I started seeing a controlling streak in him in whatever I did. Though we were only connected online but applications like Discord, having access to my accounts and passwords became a tool to keep tabs on me.
I had no privacy of my own and the sad part, I didn't even realise it was toxic. He had taken hold of a lot of aspects of my life and I didn't even realise how unhealthy it is.
It was last year when I lost my mother (having lost my father years back) when life hit me.
I was completing first year of my MBA programme when this tragedy occurred. Her passing amidst the COVID 2nd wave was terrorising, to say the least.
Thankfully, I had gem of friends who were there throughout.
It was amidst this that I realised that there was an element of control in the support he provided. He didn't understand the magnitude of what I was going through and always undermined my efforts.
There was no respect in him for me and for me there was no love left (when I introspect now I think I was more in love with idea of love rather than loving him) but I didn't realise this because I was so habituated with him.
My MBA summer internship started and I was paired with this batchmate who was also a classmate. I didn't know him because COVID ensured that first year of PG is completely online.
When I first met him. I found him to be stiff, rude and cribbing. I didn't realise he was an introvert.
Eventually, I started warming up to him with us travelling almost two months together there developed a thickness. We bonded over our shared state, food and sadness of losing our mothers.
I didn't even realise when I started getting attracted to him and neither did he.
But when I did the first thing that I did was to break up with the guy I was with because for the first time in six years I was tilting towards someone else and I knew that this was it for us.
The break-up was long, tiresome and hurtful for both of us. I hated hurting him but I couldn't be with him and suffocate myself any longer.
We tried to wish each other well but then when has all this been anything but ending up in a train wreck and now we don't have any contact with each other.
I keep him in prayers and wishes because I know he is not a bad human being it's just that I allowed him to walk over me and he kept on doing it without realising what he is doing is mental abuse.
But it's not the story of me and my ex. It's the story of the guy I have come to love.
The rude, stiff and cribby guy… who knew he would turn out be this sensitive, loving and appreciative soul. I got what I always wanted from someone I loved: respect, trust and appreciation.
It's not like I don't have fights with him or arguments but there is a dialogue at the end. He understands where he went wrong and so do I. I am finally in a happy, healthy relationship.
The only issue here is we both are from two different religions, I am H and he is M. This often makes me feel that there is a timer to us.
We are two highly educated people from urban India, completing our post-graduation from one of India's top B-schools with great placements in hand and still the noose of society and religion is tied around our neck.
I try not to think of us in the long term but I am on that side of 20s now that settling down is always on my mind. Especially after losing my parents, I often crave a family that is my own.
There is also a hint of loss hovering over me. I still haven't moved on from losing my mother and I don't think I ever will.
But last one year has been a roller coaster ride with major decisions and incidences. How do I wrap my head around all of this?
Now, here I am between love, life and ambitions. Asking you what to do? Where to go? Which road should be taken?
Regards,
R
PS: Please ensure anonymity.

Ans: You have managed your life responsibly at a young age. Owning a home, maintaining mutual fund investments, and providing for your family show discipline and focus. At 35, your income level is strong, and your financial situation can be stabilized with a few practical adjustments. Your concern about managing two loans while raising a child is valid, and it can be addressed systematically.

» Understanding Your Current Financial Situation

Your monthly family income is around Rs 2.4 lakh. Your total EMIs come to Rs 1 lakh, which means almost 42% of your income goes to debt repayment. That is a little high for comfort, especially with a one-year-old child and rising household expenses.

Your home loan balance is Rs 78 lakh with an EMI of Rs 82,000. The personal loan of Rs 8 lakh has an EMI of Rs 18,000. Personal loans generally carry high interest rates, while home loans are lower and offer tax benefits.

You also have mutual funds worth Rs 25 lakh, which gives you good liquidity. You are in a better position than many young families because you have savings available. The challenge is to use them wisely.

» Evaluating Loan Burden and Cash Flow Pressure

The total monthly outflow of Rs 1 lakh on EMIs is heavy for your stage of life. You have a growing child, family expenses, and the need to build future savings. Your wife’s income of Rs 60,000 helps, but you still face pressure on monthly cash flow.

It is important to reduce high-interest debt first. Personal loans typically carry 13%–16% interest. Home loans are around 8%–9%. If you continue both, a large portion of your income will go towards interest for several years.

Hence, tackling the personal loan first will reduce your burden meaningfully. Once that is cleared, your cash flow will improve by Rs 18,000 per month immediately. This can provide breathing space and allow you to manage household needs comfortably.

» Should You Use Mutual Funds to Prepay Personal Loan?

Yes, it is practical and wise to use part of your mutual fund corpus to close your personal loan. The logic is simple. The post-tax return from mutual funds (especially debt or hybrid) is usually lower than the interest you are paying on the personal loan.

For example, if your mutual funds are earning around 9% average annual return, but your personal loan costs 14%, you are losing value. Paying off that personal loan gives you a risk-free and guaranteed return equal to the loan interest you save.

You can use around Rs 8–9 lakh from your Rs 25 lakh mutual fund corpus to close the personal loan fully. Keep the remaining Rs 16–17 lakh invested for your long-term goals and emergencies.

By doing this, you free Rs 18,000 every month immediately. That is like earning an extra Rs 2.16 lakh per year without taking risk.

» Why Not Use Mutual Funds to Prepay Home Loan Now

Do not use mutual funds to prepay the home loan at this stage. Home loans are long-term, lower-cost loans that offer income tax benefits on both interest and principal repayment.

Also, housing loan interest after tax adjustment becomes effectively cheaper, especially if you fall in higher tax bracket. It is better to keep investing in mutual funds rather than repaying a low-interest, long-duration loan early.

If you use mutual funds to close the home loan, you will lose your emergency cushion and the power of compounding. Continue paying the home loan EMIs regularly. Focus on building future savings and liquidity instead.

» Reviewing Mutual Fund Portfolio

Before redeeming Rs 8–9 lakh to clear your personal loan, check your mutual fund portfolio composition. If you have both equity and debt funds, withdraw primarily from the debt or hybrid portions first.

Equity funds have long-term growth potential. It is better to preserve them for future goals like your child’s education or your retirement.

Also, review your overall mutual fund mix with a Certified Financial Planner. Avoid direct funds, even though they look cheaper. Regular funds through a CFP with MFD credential provide professional review, rebalancing, and ongoing guidance. This helps you stay aligned with your goals.

Avoid index funds too, as they only track an index and cannot adjust in market corrections. Actively managed funds with experienced fund managers provide flexibility and better downside protection.

» Setting Up an Emergency Fund

After closing the personal loan, maintain an emergency fund of at least six months of total expenses. This should include EMIs, household costs, and childcare expenses.

You can park this in liquid mutual funds or short-term bank deposits. For your family, this fund should be around Rs 5–6 lakh. This protects you from sudden financial shocks like medical emergencies or temporary job issues.

Do not invest this emergency fund in equity or long-term funds. It should stay fully accessible.

» Managing Monthly Budget and Lifestyle

Your fixed EMI of Rs 1 lakh will reduce to Rs 82,000 after closing the personal loan. With a household income of Rs 2.4 lakh, your EMI-to-income ratio will drop to about 34%. That is comfortable and safe.

Now review your monthly expenses. Create three categories:

Essentials (food, bills, baby needs, EMIs)

Comfort (subscriptions, dining, non-essential items)

Goals (savings, insurance, child education fund)

Allocate at least 10% of your income for savings even after EMIs. Keep growing your mutual fund investments monthly, even if through small SIPs. The consistency matters more than the amount.

» Importance of Insurance Protection

With high responsibilities and a home loan, you must secure your family with proper insurance. Take a term life insurance cover of at least Rs 1.5 crore for yourself. This ensures your wife and child can manage the home loan if anything happens to you.

Also, take family health insurance that covers your wife and baby adequately. Employer insurance may not be enough. A separate personal health plan adds safety.

Do not buy investment-linked insurance like ULIPs or endowment plans. They are expensive and give low returns. Always keep insurance and investment separate.

» Planning Future Goals

After stabilizing your current cash flow, you can refocus on long-term goals. Your child’s education and your retirement will be the next milestones.

You already have mutual funds worth Rs 16–17 lakh after using some for loan repayment. You can start new SIPs with part of your monthly surplus later. Use diversified equity mutual funds for long-term wealth creation.

Avoid overexposure to small or midcap funds. Keep a mix of large-cap and hybrid funds for balanced growth.

Revisit your goals with your Certified Financial Planner once every year. Adjust your asset mix according to your age and income growth.

» Tax Efficiency Planning

Your home loan gives you tax benefits under Section 80C for principal repayment and Section 24(b) for interest up to Rs 2 lakh per year. Continue to claim them fully.

Your mutual funds will give long-term capital gains advantage if held for more than one year. Under new rules, LTCG above Rs 1.25 lakh is taxed at 12.5%. Short-term gains are taxed at 20%.

When redeeming to close your personal loan, check which mutual funds have completed one year to reduce tax impact. Redeem those first to minimize short-term gain taxation.

» Psychological Relief and Family Stability

Debt creates stress, especially when you have a young family. Clearing your personal loan gives immediate emotional relief. That peace of mind is also a financial benefit because it helps you plan calmly for future goals.

Once the personal loan is cleared, focus on family comfort and savings growth. Keep your financial communication open with your spouse. Together, you can handle any temporary financial strain with clarity and confidence.

» Gradual Improvement Plan

After closing the personal loan and setting up your emergency fund, you can slowly increase your monthly SIPs as your salary grows. This ensures your wealth builds steadily even with EMIs.

You can also plan to make partial prepayments on your home loan every two to three years if you receive bonuses or incentives. That will shorten your loan tenure and save interest.

But do not rush to prepay at the cost of losing liquidity. Maintain balance between safety, growth, and debt reduction.

» Managing Lifestyle Inflation

As your income rises, your expenses will also rise naturally. Control lifestyle inflation consciously. Avoid taking new loans for cars, gadgets, or vacations. Prefer saving first, spending later.

If you maintain this discipline for the next five years, your financial independence will grow very fast. Your family will have security, and your child’s future will remain protected.

» Finally

Your decision should be simple: use part of your mutual fund corpus to close the personal loan immediately. Continue paying your home loan normally. Maintain an emergency fund, review insurance coverage, and restart systematic investments once cash flow stabilizes.

This approach will improve your monthly comfort, reduce debt pressure, and strengthen your family’s long-term security. You are already doing many things right; you just need to prioritize debt reduction and liquidity now.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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

Ans: For FY 2024–25, STCG and LTCG from non-equity mutual funds are to be shown in ITR-2 (since they’re capital gains and not business income).

Short-Term Capital Gains (STCG): Schedule CG → Section A2 – From assets other than equity mutual funds.

Long-Term Capital Gains (LTCG): Schedule CG → Section B2 – From assets other than equity mutual funds.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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

Ans: You have handled your financial life with great discipline and maturity, even during such a difficult personal phase. The clarity in your thoughts, documentation, and priorities shows a very strong and sensible financial mind. Your readiness to plan even now with balance and purpose is truly inspiring.

You have already achieved financial stability with almost Rs 4.33 crore of liquid and semi-liquid assets, plus additional property assets. Now the main objective is to secure sustainable monthly cash flow, ensure comfort for you and your wife, and preserve wealth for her future with minimal stress.

» Assessing Current Financial Position

You have Rs 3.2 crore in mutual funds, Rs 48 lakh in bank accounts, Rs 41 lakh in EPFO, Rs 22 lakh in PPF, a land worth around Rs 1.4 crore, and a home valued at Rs 40 lakh. Your total liquid and semi-liquid wealth is roughly Rs 4.33 crore, while total wealth including real estate is around Rs 6 crore.

You will retire in one month and will not have any regular income. Your total monthly expense will be around Rs 1.5 lakh, which includes Rs 1.05 lakh towards medical, Rs 30,000 towards household, and Rs 15,000 towards other needs. This means your annual expense will be Rs 18 lakh approximately.

Your parents are financially independent and have other siblings to support them. So your main responsibility is your own and your wife’s expenses, and occasional emergency support for parents.

This clarity helps in framing your future allocation and strategy with precision.

» Understanding Longevity of Your Funds

You have Rs 4.33 crore available to generate monthly income through mutual fund SWP or partial dividend route. With a balanced and active management, this corpus can last for 20 to 25 years or even beyond.

If we assume average post-tax growth from your mutual funds and rebalanced portfolio of around 8% to 9% per year, and your annual expense rising at 5% inflation, your corpus should comfortably sustain around 22 to 24 years.

This is a realistic assumption keeping your present asset mix and moderate withdrawals in mind. Your medical cost is the major component, and since you have planned for that conservatively, your fund durability is strong.

Even in a slightly lower growth period, say around 6.5% to 7%, your corpus should still support you and your wife comfortably for around 18 to 20 years, especially if you keep a buffer in your savings account as you planned.

So overall, the funds can last approximately 20–25 years without the need to sell your land or home in the short term.

» Evaluating Current Mutual Fund Portfolio Mix

Your present mutual fund allocation is diversified and slightly aggressive, which is good for long-term wealth retention. But it can be improved slightly to balance risk and liquidity.

At present you have about 60% in pure equity including large, mid, and small cap, 30% in sectoral funds, and the rest in hybrid and multi-asset categories. The overall equity exposure is on the higher side for someone who will depend fully on the portfolio for income.

Sectoral funds are volatile. While you may have gained in them earlier, they can fall sharply during market corrections. Keeping 30% in such thematic and sectoral funds is risky when you depend on regular withdrawals.

To make your portfolio more sustainable, shift around 10% to 15% from sectoral funds into diversified hybrid or balanced advantage funds. These funds adjust between equity and debt based on market cycles. They provide more stable monthly withdrawal potential.

Also, keep at least 15% in pure debt or short-duration mutual funds for regular SWP support. This portion can be drawn during poor market phases without disturbing your equity holdings.

Thus, an ideal mix for your current phase could be:

45–50% diversified equity (large, flexi, multi, and large-mid mix)

25–30% hybrid, balanced advantage, and multi-asset funds

15% pure debt or short-term bond funds

10% or less in selective sectoral or thematic funds, mainly healthcare since it is directly related to your expense area

This structure can balance growth, income, and capital safety effectively.

» On Aggressiveness and Stability

You have mentioned you still wish to stay aggressive. That mindset is understandable because growth helps maintain wealth longer. However, being fully aggressive when you rely on monthly withdrawals can cause stress in volatile markets.

A smart way to stay growth-oriented yet secure is to keep the core of your portfolio in stable diversified funds and maintain a smaller tactical allocation in sectoral or thematic ideas. This ensures your growth ambition remains, but downside risk is controlled.

You can continue annual review with a Certified Financial Planner for rebalancing and withdrawal adjustments. This disciplined approach helps extend the life of your corpus.

» EPFO and PPF Utilisation

Your EPFO and PPF amount together is around Rs 63 lakh. As you plan to withdraw them within a year, do so gradually based on your tax position. These funds are already in safe debt form. When reinvesting, allocate around half into debt mutual funds or balanced advantage funds. This ensures continuity of low volatility and better post-tax returns than keeping everything in fixed deposits.

The rest can be added to your equity allocation selectively for long-term stability. This gradual reinvestment plan is very practical and safe.

» Strategy for Monthly Expenses – SWP vs Dividend Plan

Between SWP and dividend options, SWP is clearly better. In SWP, you can control how much to withdraw and when. You also enjoy better tax efficiency since only the gains portion is taxed.

Dividend plans are irregular. Dividends depend on fund manager decisions and are fully taxable as income. You cannot rely on them for steady cash flow.

So maintain your regular monthly income through Systematic Withdrawal Plan (SWP). Keep a buffer of around 6–8 months of expenses in your bank account or liquid fund. Use that only if the market falls or SWP value drops temporarily.

This approach creates a self-managed income pipeline without touching your main principal for many years.

You can design your SWP in such a way that you draw monthly around Rs 1.5 lakh, and review every 6–9 months based on expenses and fund performance.

» Inflation Management and Growth Balance

Inflation is your main silent challenge. Medical costs can rise faster than normal inflation. So, you need your portfolio to grow at least 2–3% more than inflation.

That is why continuing partial exposure to equity and hybrid funds is essential. They provide real growth after inflation.

By withdrawing systematically and allowing the rest to compound, your portfolio will continue to grow and offset inflationary effects.

» Managing Emergency Medical and Unplanned Expenses

You can keep Rs 40–50 lakh in liquid form as a buffer. Around Rs 20–25 lakh can stay in high-quality liquid mutual funds, and another Rs 20–25 lakh in your bank or short-term deposits.

This ensures you can handle any sudden medical cost without disturbing your main investments or triggering large redemptions during a market correction.

You can also take a top-up health insurance policy if medically possible and if existing cover permits. This can reduce direct cash flow impact for major hospital bills.

» Tax Efficiency and Withdrawal Planning

Under current rules, equity mutual fund long-term capital gains above Rs 1.25 lakh are taxed at 12.5%. Short-term gains are taxed at 20%. For debt funds, both short and long-term gains are taxed as per your income tax slab.

Hence, SWP is tax-efficient because only the profit part in each withdrawal is taxed, not the full withdrawal amount. By staggering your withdrawals across years, you can stay under the lower LTCG tax bracket and avoid large one-time tax payments.

Also, choose regular mutual funds through a Certified Financial Planner and not direct funds. Direct funds appear cheaper but lack professional support and review. A qualified CFP ensures regular rebalancing, correct fund selection, and timely switches based on your unique situation.

» Estate and Legacy Planning

Since your wish is to leave wealth for your wife and possibly other family members, prepare a clear and valid will. Mention all your investments, bank accounts, mutual fund folios, and property details. Add proper nominations in each asset.

Also, consider creating a simple instruction note for your wife about how to operate the SWP, contact your Certified Financial Planner, and manage future withdrawals.

This will give her peace of mind and help her continue your financial discipline seamlessly.

» View on Selling Assets

You do not need to sell your land or house immediately. Your financial corpus is strong enough to last 20–25 years as discussed. Keep the land as a reserve. If, after 8–10 years, your medical cost rises or your corpus reduces significantly, you can then sell the land to add to the fund base.

Land is an illiquid asset, so it should be the last option to use, not the first. Till then, let it remain as a backup wealth or future inheritance for your wife.

» Emotional and Practical Comfort

You are already mentally strong and practical in your planning. Continue this same calm approach. Your financial independence is assured for many years. Focus now on your health, comfort, and time with your family.

Even if your expenses rise slightly due to medical reasons, your portfolio can handle it through rebalancing. The key is regular review, maintaining liquidity, and adjusting SWP amounts carefully every year.

Your wife will also remain financially independent through your thoughtful preparation. This itself is a great gift to her and your extended family.

» Finally

You have already built a wise, balanced, and meaningful financial setup. Your funds of around Rs 4.33 crore can comfortably sustain for 20–25 years with systematic withdrawal and prudent review. You can stay moderately aggressive with diversified equity and hybrid mutual funds, while avoiding excessive sectoral concentration.

SWP remains the best method for monthly income, supported by a healthy emergency buffer in liquid form. Avoid dividend plans, and invest through a Certified Financial Planner to ensure periodic rebalancing and tax efficiency.

There is no urgent need to sell your land or home now. Keep them as your long-term backup and potential legacy assets.

Your current planning is already very well-thought-out. You only need to fine-tune it slightly for risk control and ensure smooth income flow.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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

Ans: No, you can’t. You’ve already used your two allowed JEE Advanced attempts (2024 and 2025), so you can write JEE Main in 2026 but not JEE Advanced.

Suggestion: Focus on JEE (Mains) or state-level entrance tests for better prospects and a higher chance of securing a seat in a good engineering college. Getting admission in one of the top NITs is also equivalent to IIT.

Good luck.
Follow me if you receive this reply.
Radheshyam

Ans: Unable to suggest as you did not mention the branch @ IIIT Bangalore. Pl ask again. Thanks

Good luck.
Follow me if you receive this reply.
Radheshyam

Ans: Hi Joy,

Being an NRI, you cannot keep your EPF account active. Hence it is advisable for you to withdraw the entire balance immediately without waiting.
If the account is a PPF account, it can remain activated till its tenure of 15 years is completed. You can contribute in the same till that time. Also inform bank about the change in your residency status. And PPF account must be closed upon maturity.

And yes, you can open a new PPF when you return to India.

Let me know if there is anything else I can help you with.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

Ans: Hi,

No, you generally cannot claim back the capital gains tax you have already paid for a property sale in 2023, even if you now plan to buy a new house. The time-bound conditions for claiming capital gains exemption under Section 54 must be met before you file your income tax return for the year of the sale.

Let me know if you need more help.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

Ans: Yes, you are eligible as you meet the basic criteria of 10 years of service and 60 years age.
Kindly submit form 10D on the EPFO Portal using your UAN number. Or you can visit the EPFO nearest to you to submit the form.

Hope this helps.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

Ans: Hi Joy,

Being an NRI, you cannot keep your EPF account active. Hence it is advisable for you to withdraw the entire balance immediately without waiting.
If the account is a PPF account, it can remain activated till its tenure of 15 years is completed. You can contribute in the same till that time. Also inform bank about the change in your residency status. And PPF account must be closed upon maturity.

And yes, you can open a new PPF when you return to India.

Let me know if there is anything else I can help you with.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/