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Married man reconnects with first love after 20 years - is the emotional connection wrong?

Ravi

Ravi Mittal  |504 Answers  |Ask -

Dating, Relationships Expert - Answered on Aug 21, 2024

Ravi Mittal is an expert on dating and relationships.
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Asked by Anonymous - Aug 21, 2024Hindi
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Relationship

hi, I m well settled professional aged 45 having two childrens and married life. after 20 years, since and due to covid 19 I meet my first but undisclosed love of before marriage. She is also married and have one kid and cool life. we never went physical but are very attached emotionally. the relationship empower and delight both of us. we never tried to meet or any other kind of advantage. Just a few message daily and occasional phone call. She some time hit this relationship as wrong, is this wrong? should we try to discountine this? please guide

Ans: Dear Anonymous,

Is there any reason why connecting or interacting with her feels wrong at times? Do you have romantic feelings for her? Does your wife know that you have reconnected with an ex-undisclosed love? I think you can figure out why it feels wrong if you are honest with yourself.

Whether you should discontinue this relationship or not, depends on how you feel about her and where you see yourself with her. But all of that is secondary. First things first, take some time to reflect. Maybe put yourself in your wife's shoes and imagine if she had reconnected with an old love without your knowledge. How would you feel, regardless of how innocent and pure the relationship is? I think that should also give you some clarity.

I hope you will do the right thing once you figure it out.

Best Wishes.

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Janak Patel  |11 Answers  |Ask -

MF, PF Expert - Answered on Jan 16, 2025

Asked by Anonymous - Jan 10, 2025Hindi
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I am 45 years old and I am planning a Mutual Fund Portfolio for my son who is 10 years old. Following are the funds I have shortlisted, please let me if you recommended any changes to it 1. ICICI Prudential Value Discovery Fund-20% 2. Kotak Emerging Equity Fund-20% 3. Nippon India Small Cap fund-25% 4. Parag Parikh Flexi Cap Fund-25% 5. ICICI Prudential Equity and Debt Fund-5%
Ans: Hi,

Congratulations on starting the Investment journey for your young son. You have taken the best step forward for his future.
You have selected some of the most recommended funds in each category and constructed a good portfolio of mutual funds for your objective. Each fund has a different investment style and they are all well diversified across market caps and your addition to the small portion of Debt is also a good option in the portfolio (assume ICICI Prudential Equity and Debt fund is 10% allocation).
My recommendation is that you review your portfolio every year and do not be impulsive in any changes - unless funds are seen to be underperformers when compared to the market, their benchmarks and their peers for at least 2 years. As each fund and investment style will undergo volatile performance, the funds will reflect this and over the long term this will get levelled. Also I assume this will be for requirements in the future which is at least 8-10 years away.
So do connect with a good advisor / Certified Financial Planner who can guide you through this review process and transparently provide feedback and help you plan the redemption in the future.

Thanks & Regards
Janak Patel
Certified Financial Planner.

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Ramalingam

Ramalingam Kalirajan  |7545 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 16, 2025

Asked by Anonymous - Jan 07, 2025Hindi
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Money
I am 30 year old person and earning Rs. 650,000 per year. Presently single and will be getting married soon. I have a medical insurance policy cover for 10 lac. I will also need a life insurance. What affordable amount of cover should I go for ? How much should I invest SIP considering the retirement at the age of 60 and inflation at the current rate. My current monthly expenses are Rs.35,000. I am expecting 10% salary rise per year.
Ans: As you approach marriage, it's essential to evaluate your life insurance coverage. At this stage, a life insurance policy acts as a protective shield for your loved ones.

Ideal Cover Amount:
A good rule of thumb is to cover 10 to 15 times your annual income.
Given your annual income of Rs. 6.5 lakhs, an ideal life cover would be between Rs. 65 lakhs to Rs. 98 lakhs.
However, the final amount should consider your liabilities, future goals, and family needs.
You might need more if you plan for children, a mortgage, or other financial responsibilities.
It’s always better to overestimate than to be under-insured.
Medical Insurance: Existing vs. Future
You already have a medical insurance policy covering Rs. 10 lakh.
However, after marriage, consider increasing the cover for you and your spouse.
A policy covering Rs. 15-20 lakhs for both of you would be more suitable.
Don’t forget to evaluate the policy for critical illnesses and maternity coverage, if relevant.
SIP Investment for Retirement Planning
With your goal of retiring at 60 and considering the current rate of inflation, it’s vital to start SIPs early. The more time your investments have to grow, the better.

1. Starting Monthly SIP Amount
Assuming an annual return of 12%, you should aim to invest around Rs. 25,000 to Rs. 30,000 per month.
This will help you accumulate a good corpus for retirement.
If your income increases by 10% annually, your SIP can increase accordingly.
In the first year, a smaller amount might work, but you should ramp it up as your salary grows.
2. Considerations for Inflation
Assuming a 6% inflation rate, your expenses at 60 will be higher than they are now.
The future value of Rs. 35,000 a month in today’s terms will be Rs. 2.5 lakhs per month at age 60.
With this in mind, investing in inflation-beating assets like equity mutual funds is important.
SIPs invested in actively managed equity mutual funds would be ideal for long-term growth.
Inflation needs to be factored into your retirement goal, so focus on compounding returns over time.
Key Financial Considerations for Your Future
1. Emergency Fund
It’s crucial to have an emergency fund equivalent to 6-12 months of expenses.
In your case, this would be around Rs. 2.1 lakh to Rs. 4.2 lakh.
Keep this fund in a liquid, low-risk instrument, such as a savings account or a liquid fund.
2. Debt Management
If you have any existing debts, focus on clearing them quickly.
The lower your liabilities, the easier it will be to save for retirement.
Regular Fund Investment via MFD with Certified Financial Planner (CFP) Credentials
Avoid investing in direct mutual funds as they require significant market knowledge and research.
Instead, consider investing through a Mutual Fund Distributor (MFD) who has Certified Financial Planner (CFP) credentials.
Regular funds invested through an MFD are a better choice since they offer professional expertise and guidance.
An MFD can help you build a diversified portfolio and offer tailored solutions based on your goals and risk profile.
Final Insights
Life Insurance: For now, ensure a cover of Rs. 65-98 lakhs.
Medical Insurance: Upgrade it to Rs. 15-20 lakhs for both you and your spouse.
SIP Investment: Begin with Rs. 25,000-30,000 per month and increase as your income grows.
Inflation Planning: Adjust your SIP amounts to account for inflation.
Professional Help: Invest via an MFD with CFP credentials for a structured, goal-based investment plan.
Planning for the future now will help you secure a comfortable retirement and financial independence. It is essential to stick to your goals, adjust regularly, and focus on long-term growth.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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Ramalingam

Ramalingam Kalirajan  |7545 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 16, 2025

Money
I am currently investing in 9 mutual funds : 1. Quant small cap 1000 2. Nippon small cap 3500 3. Motilal mid cap 2000 4. Parag parikh flexi cap 2500 5. Icici nasdaq 100 1000 6. Quant large and mid cap 2000 7. Hdfc pharma and healthcare fund 2000 8. Icici technology fund 1000. Investing since may 2024 . Please advice if i shud hold or change. returns till now 0%
Ans: It’s great that you have started investing in mutual funds. You have chosen a variety of funds, but your returns are currently at 0%. This could be due to several factors, including market conditions, asset class performance, and time horizon. Let’s evaluate your portfolio and determine whether you should hold or change your investments.

Portfolio Breakdown
You have spread your investments across multiple asset classes: small-cap, mid-cap, flexi-cap, sectoral funds, and international exposure. Here’s a quick look at the funds you have invested in:

Small-Cap Funds: Quant Small Cap and Nippon Small Cap
Mid-Cap Funds: Motilal Mid Cap
Flexi-Cap Fund: Parag Parikh Flexi Cap
Sectoral Funds: HDFC Pharma and Healthcare Fund, ICICI Technology Fund
International Exposure: ICICI Nasdaq 100
Large & Mid-Cap Fund: Quant Large and Mid Cap
This diversified approach is beneficial in balancing risks across various sectors. However, the question arises: is this the most efficient allocation for your goals?

Fund Performance and Timing
Your funds have delivered 0% returns so far. The performance could reflect the current market conditions. Markets, especially equity markets, can be volatile in the short term, and returns take time to materialize. The 0% return does not necessarily indicate a poor investment choice.

Given that you’ve been invested only since May 2024, this is still a relatively short period. Mutual fund returns often need 3-5 years to show significant growth, especially in small-cap and sectoral funds.

Key Observations
Small-Cap Funds:

Small-cap funds tend to be more volatile but have the potential for high returns over time. They can experience significant fluctuations, especially in the short term.
If you have a long-term horizon, holding on to them could be wise. However, ensure your exposure to small-cap funds does not exceed your risk tolerance.
Mid-Cap Funds:

Mid-cap funds have the potential to offer balanced returns by being less volatile than small-cap funds.
These funds usually work well for medium-term investments (5-7 years).
Flexi-Cap Funds:

Flexi-cap funds are diversified and invest across market caps. Parag Parikh Flexi Cap is generally known for strong long-term performance.
Holding this fund makes sense for stability and diversification in your portfolio.
Sectoral Funds:

Sector-specific funds like pharma and technology are more volatile and can offer high returns during industry booms.
However, they are risky and should ideally make up a small portion of your portfolio (not more than 10-15%).
You may want to reassess if these are essential to your portfolio or if diversification into broader funds is better.
International Exposure:

ICICI Nasdaq 100 offers exposure to international markets, particularly the US tech sector.
While international funds have growth potential, they are subject to currency risks and economic cycles outside India. Diversifying internationally can be a good move, but it should be balanced.
Large & Mid-Cap Funds:

These funds strike a balance between growth and stability. They offer exposure to both large-cap and mid-cap stocks, providing both safety and growth potential.
Quant Large and Mid Cap can serve as a stabilizer in your portfolio.
Evaluating Your Current Portfolio
Diversification: Your portfolio is diversified across small-cap, mid-cap, flexi-cap, sector-specific, and international funds. This is generally a good approach to managing risk.
Sectoral Overload: The allocation to sectoral funds (HDFC Pharma and ICICI Technology) could be reduced. These funds can underperform if their respective sectors face a downturn.
Risk Profile: Given your relatively young age (24 years) and the long-term nature of your retirement goal, it’s acceptable to have a higher risk exposure. However, the current allocation might have too much focus on small-cap and sectoral funds, which could be volatile in the short term.
Performance Tracking: Your portfolio’s performance should be reviewed annually. If funds show consistent underperformance, you might need to switch to better-performing funds.
Investment Strategy Moving Forward
Reduce Sectoral Exposure:

Consider reducing investments in sectoral funds like pharma and technology, as they are highly dependent on sector-specific factors and market cycles.
Reallocate this amount to diversified flexi-cap or large-cap funds.
Increase Allocation to Mid and Large-Cap Funds:

Mid-cap and large-cap funds are generally less volatile compared to small-cap funds. These will provide stability to your portfolio.
Flexi-cap funds can also provide exposure to a broader market, including large, mid, and small-cap stocks.
Increase Exposure to Actively Managed Funds:

Actively managed funds, especially in large and mid-cap categories, tend to perform better over the long run due to the active decision-making involved. These funds are more focused on stock selection and can mitigate risks better than passive options.
Review the International Fund Exposure:

ICICI Nasdaq 100 could be beneficial for diversification, but the US market has risks. A better approach might be exposure to emerging markets or other international funds to balance risk.
Regular Investment Review:

Review your portfolio every 6 months or annually to ensure it is aligned with your goals.
Track the performance of each fund. If a fund consistently underperforms, it may be time to exit and switch to a better alternative.
Asset Allocation Recommendation
Equity Funds: 60-70%
Diversify across large-cap, mid-cap, and flexi-cap funds.
Debt Funds: 20-30%
For stability and regular income, consider allocating some portion to debt funds or hybrid funds.
International Funds: 5-10%
Consider reducing exposure to sector-specific international funds and increase exposure to broad-based international funds.
Final Insights
Your portfolio has the potential to perform well over the long term, but there are some areas that could benefit from fine-tuning. The key is to balance between high-risk, high-reward investments (small-cap, sectoral funds) and more stable, diversified funds (mid-cap, large-cap, flexi-cap). Regular reviews and adjustments, along with maintaining discipline in SIPs, will help you achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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Ramalingam

Ramalingam Kalirajan  |7545 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 16, 2025

Asked by Anonymous - Jan 07, 2025Hindi
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Money
Hello sir , My name is aman and I'm 24 years old , I have been investing in mutual fund for 1.5 years (SIP amount - 3000), I'm working in bank and preparing for CFP as a profession. I'm earning 35k every month, moreover my 70% salary goes into expenses,rent , as I live with my family. Just need to know how much amount should I invest and which asset class if I wanna retire after 40 years
Ans: Given your current age, income, and the goal of retiring after 40 years, it’s great that you are already investing through SIPs in mutual funds. Let's break down the steps to help you meet your retirement goal.

Monthly Investment Strategy
Current SIP: Rs. 3,000 per month is a good start, but to accumulate enough wealth for retirement, you may need to increase your monthly investment.
Ideal SIP Amount: Considering your income and expenses, I would recommend trying to allocate at least 20-30% of your monthly income for SIPs. This would be about Rs. 7,000-10,500 per month.
Flexibility: As your income grows, try to increase this amount. Over time, increasing your SIPs even marginally will have a significant impact.
Asset Allocation
Equity Mutual Funds: As you are young, a major portion of your investment should be in equity funds. Equity funds offer higher returns over the long term, but they come with short-term volatility. Around 60-70% of your total investments should be in equity mutual funds.
Hybrid/Balanced Funds: 10-15% can be invested in balanced or hybrid funds that invest in both equities and debt. These can reduce some risk and offer stable returns.
Debt Funds: As your goal is to retire early, keeping 10-20% of your investments in debt or fixed-income funds will provide stability to your portfolio. These funds offer more predictable returns, though lower than equities.
Other Investments: If possible, you can consider PPF (Public Provident Fund) for long-term savings. The tax benefits of PPF can be useful, especially for retirement planning. However, do not rely solely on PPF for your retirement.
Asset Classes Overview
Equity Mutual Funds: Investing primarily in actively managed equity funds will allow you to harness the potential of the Indian economy’s growth. These funds are better suited for long-term wealth creation, which aligns with your 40-year time frame.
Hybrid Funds: These funds provide a balanced approach, investing in both equity and debt. It helps to balance risk while still participating in the growth of equities.
Debt Funds: Though offering lower returns, debt funds are useful to generate regular income in retirement. They are also tax-efficient when held for the long term.
SIP Growth Expectation
Assuming an annual return of 12-15% from equity funds, your Rs. 7,000-10,500 SIP can grow significantly over time. The key will be consistency, and increasing SIP amounts as your income increases.
It’s important to review your portfolio annually to ensure that your investments are aligned with your goals.
Emergency Fund
Before aggressively investing, make sure to set aside 6-12 months' worth of expenses in a liquid, safe asset like a savings account or a liquid mutual fund. This will help you avoid withdrawing from your investments in case of emergencies.
Taxation on Mutual Funds
Equity Mutual Funds: Long-term capital gains (LTCG) above Rs. 1 lakh are taxed at 12.5%. Short-term capital gains (STCG) are taxed at 20%.
Debt Funds: Taxed as per your income tax slab. Holding debt funds for more than three years will result in lower tax due to indexation benefits.
Lifestyle Considerations
Expenses and Savings: Since 70% of your income goes towards expenses, find ways to reduce unnecessary expenses. This could include reviewing your subscriptions, cutting down on luxury purchases, and making sure that your family’s spending is within control.
Income Growth: As your career progresses, try to increase your SIP contributions and consider ways to supplement your income, such as by exploring other financial planning avenues or side businesses.
Tracking Progress
Review Annually: Your investments should be reviewed regularly to ensure they are performing well. Also, consider rebalancing your portfolio to ensure that your risk profile is aligned with your age and goals.
Increase SIPs with Growth: Once your salary increases, aim to gradually increase your SIPs. This is crucial for achieving the growth required to meet your retirement goal.
Final Insights
You are off to a good start by investing in mutual funds, and with regular SIPs, disciplined saving, and the right asset allocation, you can achieve your goal of retiring early. It’s important to be consistent and review your investments every year. As your income grows, increasing your SIPs will significantly boost your retirement corpus.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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Ramalingam

Ramalingam Kalirajan  |7545 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 16, 2025

Asked by Anonymous - Jan 07, 2025Hindi
Money
hello ,I am 36 year old now ,i have my own house ,living with 3 Kid and with my Parent , I am the only earning Person in my home ,i do travel business and did some jibs earlier i have saved 50 Lakh since i start my carrier ,but now my business is not doing good so now i am looking to invest 50 Lakh to generate an imcome of alteast 1 Lakh rs per month as fix income so suggest me some ways
Ans: You’ve made a commendable achievement in saving Rs. 50 lakh over the years. Given that your business is currently not performing well and you're seeking a stable monthly income, it's important to adopt a diversified investment strategy that generates reliable returns. Your goal of Rs. 1 lakh monthly income is achievable with the right mix of investments.

Understanding Your Needs
You need a fixed income of Rs. 1 lakh per month.
Your savings amount to Rs. 50 lakh.
The income should be stable and relatively risk-free, given the family responsibilities.
Considering these factors, let’s explore options that can generate a monthly income while maintaining a suitable level of safety.

Investment Options for Stable Income
Here are the key options you could consider for generating a fixed monthly income from your Rs. 50 lakh savings:

1. Fixed Deposits (FDs)
Safety and Stability: Fixed deposits are a low-risk investment option, offering guaranteed returns.
Interest Rate: Currently, FD interest rates hover around 7-8% per annum, depending on the bank and tenure.
Monthly Income: An FD of Rs. 50 lakh can generate about Rs. 35,000 to Rs. 40,000 per month, depending on the interest rate and tax treatment.
Taxation: Interest earned on FDs is taxable as per your income tax slab. This reduces the overall yield.
2. Debt Mutual Funds
Stability with Slightly Higher Returns: Debt mutual funds invest in government and corporate bonds, offering relatively safe returns.
Interest Rate: These funds can give you returns ranging from 6-9% per annum.
Monthly Income: Debt funds might offer you a slightly better return compared to FDs, but still, generating Rs. 1 lakh per month may require you to invest a larger amount.
Taxation: Interest income is taxed, but long-term capital gains (LTCG) on debt funds (held for over 3 years) are taxed at 20% after indexation, which is more tax-efficient than FD interest.
3. Monthly Income Plans (MIPs) of Mutual Funds
Balanced Approach: MIPs invest in both debt and equity, providing a mix of stable income and capital appreciation.
Returns: MIPs generally offer 8-10% annual returns.
Taxation: MIPs have tax advantages compared to FDs. The income from MIPs is treated as capital gains, which can be more tax-efficient.
Monthly Payout: By investing in MIPs, you can opt for monthly payout options that provide regular income. However, the returns are not fixed like FDs.
4. Systematic Withdrawal Plans (SWPs)
Capital Efficiency: Instead of opting for fixed income, you can use your mutual fund investments through an SWP. Here, you withdraw a fixed sum monthly from a mutual fund to get your desired monthly income.
Taxation: The gains from SWP are taxed as capital gains. Short-term capital gains are taxed at 15%, while long-term capital gains are taxed at 10% after Rs. 1 lakh per year.
Flexibility: You can choose actively managed funds to ensure better returns over time.
5. Real Estate Investment Trusts (REITs)
Alternative Income Source: REITs are another option for generating monthly income. They invest in commercial real estate properties and distribute income to investors.
Returns: REITs have historically offered returns in the range of 7-9% annually.
Taxation: REITs offer tax advantages by being pass-through entities. Dividend income from REITs is taxed at 10% after a threshold.
Risk: Though safer than direct real estate, REITs still carry market risks as they are linked to the performance of the real estate market.
6. Gold and Gold Bonds
Safe-Haven Asset: Gold has always been a safe investment, especially in uncertain times.
Returns: Direct investment in gold may not generate monthly income, but you can invest in Sovereign Gold Bonds (SGBs), which pay an interest of 2.5% per annum.
Taxation: Capital gains from gold are taxed at 20% after 3 years. SGBs also offer a capital gain tax exemption if held to maturity.
7. Balanced Mutual Funds
Growth with Income: Balanced or hybrid mutual funds invest in a mix of debt and equity. They offer a good growth potential with reasonable stability.
Returns: These funds can offer returns of around 8-12% per annum.
Taxation: These funds are subject to long-term capital gains tax after 1 year for equity portion, and 20% after 3 years for debt portion.
8. Corporate Bonds and NCDs
Higher Income: Corporate bonds and Non-Convertible Debentures (NCDs) offer higher returns than government bonds.
Returns: The returns are in the range of 8-10% per annum.
Risk: They carry slightly higher risk compared to government-backed bonds. It's crucial to select high-rated bonds to ensure safety.
Understanding the Right Allocation
To generate an income of Rs. 1 lakh per month (Rs. 12 lakh annually), you need an investment that can consistently provide returns in this range.

Suggested Allocation for Rs. 50 Lakh
40% in Fixed Deposits (FDs): Rs. 20 lakh invested in FDs will provide steady but lower returns.
30% in Debt Mutual Funds or MIPs: Rs. 15 lakh in these funds will give you moderate returns with a bit more risk.
20% in Systematic Withdrawal Plan (SWP): Rs. 10 lakh in actively managed equity funds for long-term growth and regular withdrawals.
10% in REITs or Corporate Bonds: Rs. 5 lakh can be invested in alternative options like REITs for diversification.
Evaluating Risks and Tax Implications
Risk: The portfolio suggested above balances safety with some growth potential. The FD portion offers low risk, while the debt funds and SWPs carry slightly higher risks.
Taxation: FDs will be subject to tax based on your income slab. Debt funds and MIPs offer tax advantages, with long-term capital gains being more tax-efficient.
Liquidity: Ensure you keep some portion in liquid assets (FDs or debt funds) for emergencies.
If You Choose to Keep Money in Fixed Deposit / RBI Bonds
If you opt for fixed deposits or RBI bonds, while the returns are guaranteed, the income generated will fall short of your monthly requirement (Rs. 1 lakh). The FD returns will be closer to Rs. 35,000-40,000 per month, which means you'll need additional income sources like debt funds or other income-generating investments.

Final Insights
Diversification: Diversifying across multiple asset classes, including FDs, debt funds, MIPs, and SWPs, will provide stability and growth potential.
Risk and Returns: A mix of safer options like FDs and debt funds with higher-yielding SWPs or REITs can help generate the required monthly income.
Regular Monitoring: Review your portfolio regularly to ensure that your investments are meeting your income goals.
By following a balanced approach and not over-concentrating in a single asset, you can generate the required income while preserving your capital.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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Ramalingam

Ramalingam Kalirajan  |7545 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 16, 2025

Money
i am in a transferable job moving every 2-3 years. Where should i keep my valuables like gold and property documents safely as it is riskier to travel with them on postings.
Ans: Having a transferable job can indeed create challenges in safeguarding your important valuables and documents. When you have to move every few years, it’s crucial to ensure that your gold, property documents, and other valuables are protected, yet easily accessible in case of need. Here are some solutions to help you manage this risk:

1. Safe Deposit Boxes in Banks
One of the safest ways to store valuables is in a bank’s safe deposit box.
Banks offer different box sizes, which can store documents and jewellery securely.
These boxes are usually located in the vaults of the bank and can only be accessed by you.
While this method provides excellent security, it comes with an annual fee.
The key advantage is that the security systems in place at banks are robust and highly trusted.
2. Digital Storage for Documents
Storing property documents and other important records digitally is a great option.
You can scan your documents and keep them in an encrypted cloud storage service.
Ensure that only you or trusted individuals have access to these documents.
Many cloud services offer strong encryption methods to protect your data.
You can access these documents from anywhere, ensuring that you are never without crucial information, regardless of your location.
Digital storage ensures that even in the worst-case scenario, your documents remain safe.
3. Insurance for Valuables
If you're storing gold or other valuables, getting them insured can provide additional security.
Insurance can help recover the value of your gold or jewellery in case of theft, damage, or loss.
Many insurance companies offer specific policies that cover household contents, including valuables like gold.
It’s advisable to ensure that the items are valued correctly and are insured for their full worth.
4. Non-Banking Safe Deposit Providers
In some cities, there are companies offering safe deposit boxes outside of banks.
These may offer more flexibility than bank-based options, such as 24/7 access and larger box sizes.
However, it's essential to do proper due diligence when choosing such services.
Look for companies that have a strong reputation for security and trustworthiness.
5. Family or Trusted Friend’s House
Another option could be storing your valuables with a trusted family member or friend.
Ensure that they live in a safe area and have proper security systems.
Make sure that they understand the importance of the items they are safeguarding.
This solution is less formal than a bank safe deposit but can work well if you trust the individual.
6. Avoid Storing Valuables in the House During Relocations
Whenever possible, try to avoid storing gold, documents, or important items in the house while you are away.
If you're renting a place for a short period, consider using storage options like lockers or cabinets in secure locations.
If you have to store them at home temporarily, make sure they are in a well-secured place, like a locked drawer or safe.
Avoid sharing details about your valuables with anyone in your temporary location.
7. Self-Storage Units
Renting a self-storage unit in a secured facility is another option.
These units provide a more flexible storage solution, and many offer high-security features.
Ensure that the storage facility has 24/7 security, video surveillance, and proper fire and water protection.
You can store your documents and valuables here and access them when needed.
8. Home Safe for Immediate Access
A home safe can be an alternative if you're staying in one place for a while and need quick access.
Make sure to choose a fireproof and waterproof safe with a good lock system.
Install it in a secure, hidden location, and ensure that only trusted people have access.
This can be an easy and cost-effective solution but may not be ideal for long-term, mobile needs.
9. Professional Security Services
You can also consider engaging professional services for securely moving or storing valuables.
Some services specialize in handling and transporting valuable goods and documents.
These services provide specialized protection during the moving process and can give you peace of mind.
Final Insights
When managing valuables during frequent transfers, the key is to balance security with accessibility. Here are the most important points to remember:

Use bank safe deposit boxes or reliable, high-security alternatives.
Digitally store documents for easy access and security.
Insure your valuables to mitigate risks.
Store items with trusted friends or family only when absolutely necessary.
Consider professional security services or self-storage units for larger collections.
Each of these options offers a different level of convenience, cost, and security. It’s important to assess your needs and decide what works best for you based on how frequently you relocate and how valuable your items are.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7545 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 16, 2025

Asked by Anonymous - Dec 18, 2024Hindi
Money
We two brothers have inherited a property on 200 sq yard by registered will of our father in 2020. The property was purchased by our father in 1970 and redeveloped in 1990 into three story building. Ground floor is with my brother and first floor. Third floor without roof rights was sold by our father at the time of redevelopment . Me and my brother have terrace rights as per registered will of our father ( each has 50% roof/ terrace rights). My brother is US citizen and want to sell his share for four crores. The expected rental income from the ground floor will be Rupees 60 thousand per month. The circle rate of the property is Rupees 7 lakh per yard. My interest in the ground floor of the property is mainly to live peacefully without any interference by unknown new buyer. I am 65 and my question is from financial point should I purchase from my brother by paying Rs. 4 crore or keep the amount in bank as fixed deposit/ RBI bonds at around 8 percent per year. Second question is if he sell it to other buyer how he will sell terrace as the terrace is undivided and we both have inherited it by registered will. Thirdly there are many builders who want to redevelop the property into four floor with basement and stilt parking. What will be the right option . I have only son .
Ans: Given your situation and your priorities, buying your brother’s share in the property involves both financial and personal considerations. Let’s break it down:

Financial Consideration: Purchase for Rs. 4 Crore
Investment Potential:

If you purchase your brother's share for Rs. 4 crore, this is a significant outlay. This amount would be locked in the property, and you will not have liquidity for other investments.
The potential annual rental income of Rs. 7.2 lakh (Rs. 60,000 per month) from the ground floor would give you around 1.8% return on your investment (before expenses).
While the property provides rental income, it is important to evaluate whether this income is enough to justify tying up such a large sum in real estate. With Rs. 4 crore in fixed deposit or RBI bonds, you could earn around Rs. 32 lakh annually (at an 8% interest rate), providing better liquidity and diversification.
Liquidity:

Investing in property reduces your financial flexibility. If you need funds quickly, liquidating property could take time and may not be as efficient as keeping cash in a fixed deposit or bonds.
Fixed deposits or bonds would offer guaranteed returns and the flexibility to access funds without the complexities associated with property ownership.
Peace of Mind vs. Financial Flexibility:

Your main concern about purchasing the property is to ensure peaceful living. While this can be a valid reason for staying in the property, from a financial perspective, an alternative investment like fixed deposits or bonds might provide a better balance of risk, return, and liquidity.
Comparing Bank Fixed Deposit vs Property Investment
Bank Fixed Deposit:
Interest income of Rs. 32 lakh annually (assuming 8% return on Rs. 4 crore).
High liquidity, no maintenance hassles, no risks associated with property market fluctuations.
You can invest in RBI bonds, which also provide tax benefits and security.
Property Investment:
Rental income of Rs. 60,000 per month (Rs. 7.2 lakh per annum).
Long-term capital appreciation potential, but not guaranteed.
High investment lock-in (Rs. 4 crore) with limited liquidity.
Property maintenance, taxes, and the possibility of tenant-related issues should be factored in.
Legal Question: Selling the Terrace Share
Your brother wishes to sell his share in the property, including the terrace rights. Here’s the challenge:

Undivided Rights:
The terrace is an undivided right shared between you and your brother. This makes it more difficult to sell it separately unless both parties agree to sell the entire property or agree to transfer the right to one party.
Selling Procedure:
Since the terrace is an undivided share, your brother cannot sell it without your consent unless there is a formal agreement. You both need to either:
Execute a separate agreement on the share of terrace rights.
Decide whether the property sale includes the terrace rights, or if he will only sell his ground-floor rights.
Recommendation:
If your brother is serious about selling, you may want to get a lawyer’s opinion on how best to formalize the sale of terrace rights. If you wish to maintain control, you might want to agree to a sale that retains your joint ownership of the terrace.
Redevelopment Proposal
There are multiple builders interested in redeveloping the property, which presents a few options:

1. Redevelopment for Additional Floors
Pros of Redevelopment:

Redeveloping the property into a four-floor building with basement and stilt parking could significantly increase the value of the property.
New, modern construction could offer higher rental income and capital appreciation in the future.
If the builder offers you a share of the redevelopment or compensation for temporarily moving out, it might be an attractive deal.
Cons of Redevelopment:

The process of redevelopment can take years and may cause inconvenience, especially if the work is happening around your existing residence.
Redevelopment may lead to uncertainty about the final outcome, as builders may face delays or changes in plans.
You may be asked to move temporarily, which can be uncomfortable and time-consuming.
2. Selling the Property
Selling the Property:
If you prefer peace of mind and less involvement with the property, selling to a third party may be a better option.
The sale could generate significant liquidity (Rs. 4 crore), which you could invest in financial instruments, giving you higher flexibility and more options for growth.
However, this would mean losing the rental income and potential capital appreciation from the property.
3. Keeping the Property As Is
Keep the Property:
If you are satisfied with the current rental income and your primary goal is a peaceful living environment, keeping the property could be the best choice.
This option avoids the disruption of redevelopment or selling but may limit future financial growth if the property does not appreciate much in the coming years.
Recommendations and Final Insights
Financially, Based on Your Situation:
If You Prioritize Peace and Stability:

Purchasing your brother’s share might be a good option for ensuring peace of mind. You would secure full control over the property and avoid interference from new buyers. However, the financial return on investment is modest when compared to other options.
However, this comes at the cost of reduced liquidity and potential for more efficient investments in fixed deposits or bonds.
If You Prioritize Higher Returns:

Keeping the Rs. 4 crore in fixed deposits or RBI bonds would generate better returns (Rs. 32 lakh annually), with much higher liquidity and safety. You can continue to live in the property as it is and enjoy stable rental income.
Selling the property (or your brother selling his share) could allow you to reinvest in higher-return investments, but it would also mean giving up the peace and stability that comes with staying in the inherited property.
Legal Considerations:
For the sale of the terrace, you must have a clear agreement between both parties on how to handle the undivided rights. This could involve getting a legal professional to create a formal agreement if your brother decides to sell his share to a third party.
Redevelopment Options:
If you and your brother are both open to redevelopment, carefully assess the offers from builders. Consider the long-term benefits of redeveloping the property into a four-floor building with basement parking. However, you need to weigh the inconvenience caused by redevelopment and the potential risks.

Alternatively, if you prefer stability and don’t want the hassle of redevelopment, keeping the property and enjoying the rental income might be a more comfortable choice.

Finally, given your specific situation, it would be helpful to discuss this in greater detail with a certified financial planner to ensure that the right option aligns with your overall financial goals.

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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