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Love Guru

Love Guru   |187 Answers  |Ask -

Relationships Expert - Answered on Sep 05, 2023

Love Guru has been answering relationship and romance related questions on Rediff.com for over 13 years. She won't mince words when telling you what the problem is and what you can do about it. If you want a fresh perspective from an unbiased, objective-thinking individual about your relationship woes, Love Guru could just be the person you need to need to hear from.... more
Asked by Anonymous - Aug 23, 2023Hindi
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Relationship

Hi, mine is an arrange marriage, my wife had previous affair before marriage and she did not open up when asked about her past relationship, which I understand as it does not matter after our marriage. We have two children. After almost 7 years I found her cheating with my best friend and caught her red handed. She confessed and felt sorry for betraying me and promised she will not repeat again ever. I forgive her because of my kids. However we our relation was never the same again with lots of fights and arguments. She is very sort tempered and fights with whole family now and then on small matters. We eventually separated, even her parents fought with her and are in no more talking terms with her. Now I found she is having an affaire with my business partners son. What should I do now?

Ans: Get a divorce. You’re already separated and that reality is something your children are unfortunately already living with. So spare them the rollercoaster of trying to make things work with her again, because it will continue to affect their lives. She obviously isn’t trustworthy.

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Kanchan

Kanchan Rai  |202 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Mar 03, 2023

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Relationship
Hi, I have been married since 2011 and have a son aged 9 yrs. My wife managed her professional career as well as home. I trusted her to the fullest and allowed her to go out of town alone for work purpose. However in 2017, my wife had an affair with her senior working in bank and it was physical relationship too. It lasted for almost 1.5 yr untill I caught her in August 2018. When confronted she did not had proper justification for doing such gross thing and tried too blame me. Since than she has no contact with that person and even she filed a complain in the office against that person for stalking. She is remorseful and shameful for her act, but i dont feel any attachment towards her. I am still continuing in marriage with mental trauma of affair. What should i do with marriage now?
Ans: Dear Saurav

Discovering that your wife has been unfaithful can be a traumatic experience, and it's understandable that you may be feeling hurt, angry, and betrayed. It's important to prioritize your own well-being and emotional health during this time.

Here are some steps that you can take to help you navigate this situation:

Seek support: Consider talking to a therapist, a trusted friend or family member, or a support group for individuals who have experienced infidelity. It's important to have someone to talk to who can provide a listening ear and a safe space for you to express your emotions.

Communicate: If you want to work on your relationship with your wife, it's important to communicate openly and honestly about your feelings. Let your wife know how her actions have affected you and what you need in order to move forward.

Set boundaries: It's important to set clear boundaries with your wife regarding what is and isn't acceptable behavior. If you choose to work on your relationship, make sure that your wife is willing to take responsibility for her actions and work towards rebuilding trust.

Consider counseling: If you and your wife want to work on your relationship, consider couples counseling. A trained therapist can help you and your wife communicate effectively and work through any underlying issues that may have contributed to the infidelity.

Take time to reflect: Consider what you want for your future and whether or not you are willing to work on your relationship. It's important to make a decision that feels right for you and your well-being.

Don't blame yourself: It's important to remember that your wife's infidelity is not your fault. While it's natural to feel responsible or to question what you could have done differently, ultimately the decision to cheat was your wife's alone.

It's important to acknowledge your own feelings and to take care of yourself during this time. With time and support, it's possible to heal and move forward from the trauma of infidelity. Ultimately, the decision about what to do with your marriage is up to you and your wife, and it's important to make a decision that feels right for both of you.

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Kanchan

Kanchan Rai  |202 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 20, 2023

Asked by Anonymous - Nov 20, 2023Hindi
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Relationship
Hi. I am married and its our 17th year into marriage. Myself 40 yrs and my wife 37 yrs, we have 2 kids. I am working abroad and my wife is working near our home in india itself. Recently my son found that my wife is seeing her senior co worker who is also married and having 2 kids. They were sending romantic messages. My son got shocked and immediately informed me and was very furious. I too got shocked and inquired my wife. She apologized and said that she got attracted and carried away. Also it was just chatting and nothing happened between them. they were chatting for nearly 7 months. In between that man had visited my home too. I love my wife a lot and couldnt believe she betrayed me. As i am working abroad i couldnt judge how long and serious this affair was. I couldnt travel immediately also. She pleaded and still going to the same job citing her career and for kids life. I couldnt sleep and terribly confused as how to handle this and proceed further. I couldnt share to my family also.
Ans: Oh my dear Anonymous, I'm sorry to hear that you're going through such a difficult situation. Infidelity can be a painful experience, and it's understandable that you're feeling confused and hurt. Dealing with such matters requires careful consideration and communication.It's normal to feel a range of emotions such as anger, sadness, confusion, and betrayal. Allow yourself the space to come to terms with what has happened before making any major decision. Discuss your feelings, concerns, and expectations moving forward with your wife clear;y being open and honest is what i feel is most important. Discuss and establish clear boundaries regarding communication with the other person. Also you have children, consider how this situation may affect them. It's essential to provide a stable and supportive environment for them. Depending on the circumstances, you may want to involve them in the conversation or shield them from the details, depending on their age. Remember, the decision on how to proceed ultimately rests with you. Seeking the assistance of a professional counselor or therapist can be valuable in navigating the complexities of infidelity and rebuilding trust. It's crucial to prioritize your emotional well-being and make decisions that align with your values and goals for the future.

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Anu

Anu Krishna  |894 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Dec 21, 2023

Asked by Anonymous - Dec 15, 2023Hindi
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Relationship
Hello, I have been married from 15 yrs. I have a 9 yrs old son with me. In oct 21 my wife (age 38) started making REELS on insta of the facial acting. She got involved and told me that she is just doing for followers and like. People used to comment good and bad which i didnt like. She was trying to make young guy friends. In april 2022 she had an affair with a 22-year-old boy who was not even financial stable. I could she changes in her every day. In June 2022 I caught her and she confess that she did affair and also done physical relationship. I had unconditionally loved her all these years and didn’t wanted to let her go. Also, didn’t wanted to hurt my son by taking a divorce. That guy refused to keep my son and their relation broke, but my wife still loved him and missed him. Few months she was in depression and I took her upmost care and swallowed what she did. I just told her that please come back to our life as you were before but she was not getting back. There used to be few quarrels, she was just staying alone within herself and I never felt that love which she used to give me. Later in feb23 there was a marriage at her family and I agree to go with her so she may get that feel during our times and she promised me to enjoy the marriage and make love with me. But she was happy with her relative and didn’t even bother to make that love and affection with me. from that time, I used to get angry and fight with her. I went into depression. In May 2023 she was getting worst and one day fight increased and I asked her to leave my house which I wasn’t intentionally wanted to. She left and went missing 24 yrs and then called from her mom mobile who was in her village, since she didn’t come back home and from last two month, she has been asking me money for herself and says it’s her rights. She doesn’t bother for my son and just show that she loves him. She works and stay with woman from 6 months and I’m looking after my son all alone. I told her u can work but just come home and make things better for my son. Her conditions is to give money security (money) then only she will return. All my family says she is just behind money and doesn’t care what I and my son is going through. She is not guilt for what she did. 15 yrs of marriage has been ruin and now she has no shame at all. She talks rudely if i dont send her money and now I refused sending her. Please advice what do I do now.
Ans: Dear Anonymous,
You seem to have done a lot to try and get her back. What can you do if she doesn't want to acknowledge your efforts or appreciate what family life is! One would imagine that a child in the equation may bring about a change in heart but that doesn't seem to be the case here at this moment.
Your family members are right in their mind about the way that see your wife as they have been observing how this has impacted you and your son.
Either you wait for her to come to her senses OR simply learn to live life without her. If the outside world of social media is what seems to satisfy her, no matter what you do, she will be dissatisfied and unhappy. This only means that she has to learn and appreciate what she has with you and your son.
It is also possible that she has been disinterested in the marriage for a while now and has been seeking approval and validation from people on social media. Even if this is the case, being angry with you is understandable BUT what about her own child? What makes her not want to deal with that reality? If you need an answer to this, simply WAIT and WATCH without begging her to come back...That will give you an idea as to where her mind is and then decide on the future course...

All the best!

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Ravi

Ravi Mittal  |204 Answers  |Ask -

Dating, Relationships Expert - Answered on Dec 19, 2023

Asked by Anonymous - Dec 19, 2023Hindi
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Ramalingam

Ramalingam Kalirajan  |2989 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 24, 2024

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I'm investing monthly 30k for 2 months now in SIP. How much will be my return in 2030.
Ans: Forecasting SIP Returns for 2030: A Detailed Analysis

Investing in Systematic Investment Plans (SIPs) is a prudent strategy for wealth accumulation, especially when considering long-term financial goals. Let's delve deeper into projecting returns for your SIP investments by the year 2030.

Evaluating the Investment Strategy

Initial Investment: A Strong Start

Beginning SIP investments is commendable, showcasing your commitment to financial planning and wealth creation.

Time Horizon: Long-Term Perspective

With a 9-year investment horizon until 2030, your approach aligns well with the principle of long-term investing, which is essential for maximizing returns and mitigating market volatility.

Assessing Potential Returns

Historical Performance: Insights from the Past

Looking back at historical data, equity investments, typically the underlying assets in SIPs, have shown favorable returns over extended periods.

Market Volatility: Consideration for Fluctuations

While long-term returns are promising, it's crucial to acknowledge the inherent volatility in the market, which can influence short-term investment performance.

Estimating Future Returns

Growth Potential: Optimism for the Future

Despite short-term fluctuations, equities hold significant growth potential over the long term, driven by economic growth, corporate earnings, and market dynamics.

Average Returns: Realistic Expectations

While precise returns cannot be guaranteed, historical trends indicate average annual returns ranging from 12-15% for equity investments.

Planning for 2030

Expected Returns: Setting Realistic Goals

Based on historical averages, it's reasonable to anticipate annual returns of approximately 12-15% for your SIP investments until 2030.

Compounded Growth: Amplifying Your Wealth

Over the 9-year period, the power of compounding can substantially enhance your initial investment, leading to exponential growth in wealth accumulation.

Conclusion: Optimistic Outlook

In conclusion, your decision to invest in SIPs reflects a prudent financial strategy. By staying invested for the long term, maintaining consistency in contributions, and embracing the potential of compounding, you can anticipate significant returns by the year 2030, thereby inching closer to your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |2989 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 24, 2024

Asked by Anonymous - May 23, 2024Hindi
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Money
Sir I am 35 years old my earning is 50000 per month, I have a home loan of 15 lac rupees, I stay in same home, I want to clear home loan early and retire early... please suggest
Ans: Strategizing for Early Home Loan Repayment and Retirement

It's admirable that you're proactively planning to clear your home loan early and retire ahead of schedule. Let's explore strategies to help you achieve these goals.

Assessing Your Financial Situation

Income and Liabilities

Your monthly earnings of Rs 50,000 provide a solid foundation for financial planning.
You have a home loan of Rs 15 lakh, which you aim to clear early to achieve financial freedom.

Retirement Aspiration
Expressing a desire to retire early indicates a proactive approach towards financial independence and lifestyle freedom.
Creating a Repayment Strategy

Accelerated Repayment Plan

Explore options to increase your home loan EMI payments to expedite loan clearance.
Allocate a portion of your monthly income towards additional loan repayments to reduce the principal amount and interest burden.

Prioritize Debt Clearance

Consider prioritizing debt clearance over other discretionary expenses to achieve your goal of early loan repayment.
Review your budget and identify areas where you can cut back on expenses to allocate more funds towards loan repayment.

Building a Retirement Fund

Savings and Investments

Evaluate your current savings and investment portfolio to determine if it aligns with your retirement goals.
Explore opportunities to increase your savings rate and allocate funds towards retirement-focused investments.

Retirement Planning

Work with a Certified Financial Planner (CFP) to develop a comprehensive retirement plan tailored to your specific needs and objectives.

Consider factors such as desired retirement age, lifestyle expectations, inflation, and healthcare expenses when formulating your retirement strategy.
Balancing Priorities
Emergency Fund
Ensure you have an adequate emergency fund set aside to cover unforeseen expenses and financial emergencies.
Aim to build a contingency fund equivalent to 3-6 months' worth of living expenses to provide financial security during unexpected situations.
Retirement Savings vs. Loan Repayment
Strike a balance between accelerating home loan repayment and building your retirement corpus.
Consider the opportunity cost of allocating funds towards loan repayment versus long-term wealth accumulation through retirement investments.
Conclusion: A Path to Financial Freedom
By adopting a disciplined approach to debt repayment and retirement planning, you can pave the way for a financially secure and fulfilling future.

Seek Professional Guidance
Consult with a Certified Financial Planner (CFP) to develop a customized financial plan that addresses your goals and concerns. A CFP can provide personalized advice and guidance to help you navigate the complexities of debt repayment and retirement planning.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |2989 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 24, 2024

Asked by Anonymous - May 21, 2024Hindi
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Money
Sir, i am 36 years old. Every month my take home salary is 70000. Already i am investment is 3500/- in sbi small cap on every month from last one year and i am in vesting 25000 in quant flexi cap, i had 1 crore term insurance and i want to retire at 45 years and how much corpus i will made?
Ans: Planning for Early Retirement: Building Your Corpus
Congratulations on your proactive approach towards financial planning and your aspiration for early retirement! Let's strategize to help you achieve your goal of retiring by the age of 45 with a sufficient corpus.

Assessing Your Current Financial Position
Income and Investments
Your monthly take-home salary of ?70,000 provides a solid foundation for savings and investment.
Currently, you are investing ?35,000 per month in SBI Small Cap Fund and ?25,000 per month in Quant Flexi Cap Fund.
Insurance Coverage
You have wisely secured a term insurance policy with a coverage of ?1 crore, ensuring financial protection for your family in case of any unforeseen events.
Estimating Retirement Corpus
Retirement Age and Expected Corpus
With the goal of retiring at 45 years, you have approximately 9 years left to accumulate a sufficient corpus for retirement.
Estimate your desired retirement corpus based on your expected expenses and lifestyle needs post-retirement.
Monthly Savings Requirement
Determine the monthly savings required to achieve your retirement goal within the specified timeframe.
Consider factors such as inflation, investment returns, and risk tolerance when projecting your savings target.
Investment Strategy for Early Retirement
Asset Allocation
Review your current investment portfolio and asset allocation to ensure alignment with your retirement objectives.
Consider diversifying across different asset classes to spread risk and optimize returns.
Risk Management
Evaluate the risk-return profile of your investment portfolio and make adjustments based on your risk tolerance and time horizon.
Ensure a balanced approach to risk management, considering both growth-oriented and stable investment options.
Retirement Planning Considerations
Lifestyle Expectations
Assess your post-retirement lifestyle expectations and determine the level of income required to maintain your desired standard of living.
Account for factors such as healthcare expenses, travel, and leisure activities when estimating your retirement budget.
Long-Term Financial Security
Plan for long-term financial security by incorporating provisions for healthcare expenses, inflation, and unexpected contingencies into your retirement plan.
Consider setting aside a contingency fund to cover emergencies and unforeseen expenses during retirement.
Conclusion: A Path to Financial Freedom
By adopting a disciplined savings and investment approach, you can work towards achieving your goal of early retirement with confidence and financial security.

Seek Professional Guidance
Consult with a Certified Financial Planner (CFP) to develop a customized retirement plan tailored to your specific needs and objectives. A CFP can provide personalized advice and guidance to help you navigate the complexities of retirement planning and ensure a smooth transition into your golden years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |2989 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 24, 2024

Asked by Anonymous - May 23, 2024Hindi
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Money
hello sir, i am 57, working in the gulf, planning to come back for good in another 6 moths or so. I have 1.5 cr worth of Fd, Shares for 1 Cr, MF for about 3 Cr and am expecting about 2 Cr worth of end of service benefits. i have my own house, no loans and funds readied for daughter marriage and sons education. people scare me - dont go now etc etc. kindly give me your valuable comments
Ans: It's great to hear about your upcoming return to India and your thoughtful financial preparation. Let's explore some valuable insights to address your concerns and ensure a smooth transition.

Evaluating Your Financial Position
Assets Overview
You have a diverse portfolio comprising Fixed Deposits, Shares, Mutual Funds, and anticipated End of Service Benefits, totaling around ?7.5 crores.
Your prudent financial management has enabled you to secure funds for your daughter's marriage, son's education, and own a mortgage-free house.
Consideration for Return
Assess your readiness for retirement and repatriation, considering both financial and non-financial factors.
Evaluate the potential impact of currency conversion, tax implications, and cost of living adjustments upon your return to India.
Addressing Concerns and Managing Expectations
Financial Security
Your substantial investment portfolio provides a strong foundation for financial security and stability upon your return.
Review your asset allocation and risk tolerance to ensure your investment strategy aligns with your post-retirement needs and objectives.
Emotional Support
Seek emotional support from family, friends, and trusted advisors to navigate the transition period and alleviate concerns raised by others.
Focus on the positive aspects of returning to India, including reuniting with loved ones and embracing familiar cultural surroundings.
Key Considerations for Repatriation
Currency Risk
Recognize the potential impact of currency fluctuations on the value of your overseas assets upon repatriation to India.
Explore hedging strategies or diversification techniques to mitigate currency risk and preserve the value of your investments.
Tax Planning
Consult with a Certified Financial Planner (CFP) to optimize your tax planning strategies and minimize tax liabilities associated with repatriating assets to India.
Leverage tax-efficient investment options and utilize available tax deductions and exemptions to enhance your overall tax efficiency.
Ensuring a Smooth Transition
Financial Planning
Develop a comprehensive financial plan tailored to your specific goals, timelines, and risk profile to facilitate a seamless transition.
Prioritize liquidity management and ensure sufficient cash reserves to meet immediate relocation expenses and unforeseen contingencies.
Lifestyle Adjustment
Prepare for lifestyle adjustments and cultural reintegration upon your return to India, including accommodation, healthcare, and social interactions.
Embrace the opportunities for personal and professional growth that come with relocating back to your home country.
Conclusion: Embracing a New Chapter
Your diligent financial preparation and thoughtful consideration of key factors demonstrate your readiness for a successful return to India. By addressing concerns, managing expectations, and leveraging professional advice, you can navigate this transition with confidence and optimism.

Seek Professional Guidance
Consult with a Certified Financial Planner (CFP) to develop a tailored repatriation plan and address any lingering concerns or uncertainties. A CFP can provide personalized advice and support to ensure a smooth transition and secure your financial well-being in India.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |2989 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 24, 2024

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Sir, Age: 30yrs Income: 1.5lakhs per month Living in a rented house Getting married this year end. How much should I save monthly and how to live a happy life. Planning to retire as early as possible by 45-50yrs
Ans: Financial Planning for a Happy and Secure Life
Congratulations on your upcoming wedding and your aspiration to achieve early retirement! Let's devise a financial plan to help you save effectively while enjoying a fulfilling life.

Assessing Your Financial Situation
Income and Expenses
Your monthly income of ?1.5 lakhs provides a solid foundation for financial stability.
Evaluate your current expenses, including rent, utilities, groceries, and discretionary spending.
Goals and Aspirations
Early retirement by 45-50 years is an ambitious but achievable goal that requires careful planning and disciplined saving.
Prioritize your financial goals, including saving for retirement, marriage expenses, and future financial milestones.
Determining Monthly Savings
Retirement Savings
Calculate the amount needed to achieve your retirement goal by 45-50 years, considering your desired lifestyle and inflation.
Determine the monthly savings required to reach this target within the specified timeframe.
Marriage Expenses
Estimate the total cost of your wedding and allocate a portion of your monthly income towards saving for this event.
Plan your savings strategy to ensure you have sufficient funds available by the end of the year.
Strategies for Living a Happy Life
Financial Wellness
Cultivate financial discipline by adhering to a budget and monitoring your expenses regularly.
Invest in experiences rather than material possessions, focusing on activities that bring joy and fulfillment.
Work-Life Balance
Prioritize work-life balance to avoid burnout and maintain overall well-being.
Allocate time for hobbies, relaxation, and spending quality moments with loved ones.
Personal Growth
Invest in personal development and lifelong learning to enhance your skills and broaden your horizons.
Pursue hobbies, interests, and passions that contribute to your personal growth and happiness.
Conclusion: Balancing Financial Security and Happiness
By adopting a balanced approach to financial planning and life enjoyment, you can achieve both financial security and happiness.

Recommendations
Monthly Savings Plan
Allocate a significant portion of your income towards retirement savings to meet your early retirement goal.
Set aside a dedicated amount each month for marriage expenses, ensuring you have sufficient funds by the wedding date.
Lifestyle Choices
Embrace a minimalist lifestyle focused on experiences and personal fulfillment rather than material possessions.
Practice mindfulness and gratitude to appreciate the present moment and find happiness in simple pleasures.
Seek Professional Advice
Consult with a Certified Financial Planner (CFP) to develop a customized financial plan tailored to your specific goals and aspirations. A CFP can provide personalized guidance and support to help you achieve financial independence and live a fulfilling life.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |2989 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 24, 2024

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What are the best funds to invest lumpsum in. As in when I accumulate some cash which I don't want to place in equity type funds.
Ans: Let's explore some alternative investment options for lump sum investments other than equity funds.

Understanding Different Investment Options
Fixed Income Instruments
Bank Fixed Deposits: Provide capital preservation and fixed interest income, but returns may be lower than inflation rates.
Corporate Bonds: Offer higher yields than government bonds but come with credit risk associated with the issuing company.
Debt Mutual Funds: Invest in a portfolio of fixed-income securities, providing diversification and professional management.
Gold Investments
Physical Gold: Offers a hedge against inflation and geopolitical risks but entails storage and security concerns.
Gold ETFs: Trade like stocks on stock exchanges, offering liquidity and ease of trading but involve brokerage fees and expense ratios.
Hybrid Funds
Balanced Funds: Invest in a mix of equity and debt instruments, providing a balance between growth and stability but are subject to market risks.
Assessing Your Investment Goals and Risk Tolerance
Short-Term vs. Long-Term Goals
Determine the timeframe for your investment goals, whether they are short-term liquidity needs or long-term wealth accumulation objectives.
Risk Tolerance
Assess your risk tolerance level to determine the appropriate investment strategy. If you prefer lower risk and volatility, fixed income instruments may be suitable.
Making Informed Investment Decisions
Considerations for Choosing the Best Funds
Risk-Return Profile: Evaluate the risk-return characteristics of each investment option and choose the one that aligns with your financial objectives.
Liquidity Needs: Consider your liquidity needs and investment horizon when selecting investment instruments.
Diversification: Maintain a diversified investment portfolio across asset classes to spread risk and enhance overall returns.
Recommendation
Given your preference for alternatives to equity funds for lump sum investments, consider a combination of fixed income instruments, gold investments, and hybrid funds to achieve diversification and manage risk effectively.

Seek Professional Advice
Consult with a Certified Financial Planner (CFP) to assess your individual financial situation, investment goals, and risk tolerance. A CFP can provide personalized recommendations and guide you in building a well-balanced investment portfolio tailored to your needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |2989 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 24, 2024

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Sir - Is having MFs in Demat form advantageous rather than in physical possession? I shall be grateful for your advice.
Ans: Demat vs. Physical Mutual Funds: Which is Better?
Let's delve into the advantages and disadvantages of holding Mutual Funds (MFs) in Demat form versus physical possession to help you make an informed decision.

Understanding Demat Accounts
Demat Account Advantages
Convenience: Demat accounts offer a single platform to hold various financial securities, including stocks, bonds, and mutual funds.
Electronic Transactions: Allows for easy buying, selling, and transferring of mutual fund units, eliminating paperwork and manual processes.
Demat Account Disadvantages
Annual Charges: Demat accounts typically incur annual maintenance charges, adding to the overall cost of holding investments.
Transaction Charges: Each transaction (buying, selling, or transferring units) attracts transaction charges, increasing the cost further.
Opting for Physical Mutual Funds
Advantages of Physical Mutual Funds
No Annual Charges: Unlike Demat accounts, physical mutual funds do not entail annual maintenance charges, reducing overall expenses.
No Transaction Charges: Physical mutual funds eliminate transaction charges associated with buying, selling, or transferring units.
Conclusion: Which Option to Choose?
Given the disadvantages associated with Demat accounts for holding mutual funds, opting for physical possession seems more advantageous in the long run.

Recommendation
Considerations for Holding Physical Mutual Funds
Convenience: Physical mutual funds offer ease of ownership without the hassle of account maintenance charges or transaction fees.
Cost-Efficiency: By avoiding annual charges and transaction fees, you can minimize expenses and maximize returns on your investments.
Simplicity: Holding physical mutual funds simplifies your investment portfolio management and reduces the administrative burden.
Making an Informed Decision
While Demat accounts offer convenience and electronic access to financial securities, the associated costs may outweigh the benefits, especially for mutual fund investors.

Seek Professional Advice
Consult with a Certified Financial Planner (CFP) to assess your individual circumstances, risk tolerance, and investment objectives. A CFP can provide personalized guidance and recommend the most suitable investment approach aligned with your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |2989 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 24, 2024

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Dear sir, have a very warm day to you. I ANS now 32, currently working as assistant professor in a college( recently joined). I have a lic term insurance with term plan of 40 lac sum.imsured at my age of 60 Currently I have around 6.5 lac in my NPS. I have a son (2 month old) now. My net salary around 75k currently which may further increases as the time.My wife is also working and she also earned around 40 k now I have a loan of around 2.5 lac which I have to pay in a year. I want to get a corpus of around 5 cr at the time of my retirement and also have to secure at least 25-40 lac for my son higher education. Now, my request is that please tell me some better plans for the better future of my family and me when I will be retired from my job as well as to secure the education support of my child
Ans: Securing Your Family's Future: Financial Planning for Long-Term Goals
Dear ANS, congratulations on the newest addition to your family and your commitment to securing their future. Let’s explore some effective financial strategies to achieve your goals of retirement planning and providing for your son’s education.

Current Financial Overview
Income and Expenses
You and your wife collectively earn around ?1.15 lakhs per month, with the potential for future salary increases.
You have a manageable loan of ?2.5 lakhs, which will be paid off within a year.
Savings and Investments
You have a LIC term insurance plan providing coverage of ?40 lakhs until the age of 60.
Your NPS balance is approximately ?6.5 lakhs, providing a foundation for retirement savings.
Planning for Retirement: Building a Corpus of ?5 Crores
Retirement Age: Assumed at 60
Determine your desired retirement age and estimate your post-retirement expenses based on your current lifestyle and inflation projections.
Retirement Corpus Calculation
Calculate the corpus required to maintain your desired lifestyle post-retirement, considering inflation and expected longevity.
Strategies for Retirement Planning
1. Increase Retirement Savings
Maximize contributions to your NPS account to benefit from tax benefits and build a substantial retirement corpus.
Consider diversifying retirement savings by investing in other tax-efficient instruments like PPF and ELSS mutual funds.
2. Regular Financial Reviews
Regularly review and reassess your retirement goals and investment strategy to ensure they remain aligned with your evolving financial situation and objectives.
Education Planning: Securing ?25-40 Lakhs for Your Son’s Education
Estimated Education Cost: Consider Inflation
Estimate the future cost of your son’s higher education, factoring in inflation and the duration until he starts college.
Education Fund Accumulation
Start a dedicated education fund for your son’s future expenses, such as a combination of mutual funds, SIPs, and fixed deposits.
Gradually increase contributions to this fund over time to meet the desired corpus by the time he begins his education.
Risk Management and Contingency Planning
Emergency Fund
Maintain an emergency fund equivalent to at least six months' worth of living expenses to cover unforeseen financial setbacks.
Adequate Insurance Coverage
Review your insurance coverage regularly and consider increasing the sum assured on your term insurance policy to ensure adequate protection for your family's financial security.
Long-Term Wealth Creation Strategies
Diversified Investment Portfolio
Build a diversified investment portfolio comprising equities, mutual funds, and fixed income instruments to achieve long-term wealth creation goals.
Professional Financial Advice
Consult with a Certified Financial Planner (CFP) to develop a comprehensive financial plan tailored to your specific needs, goals, and risk tolerance.
A CFP can provide personalized guidance, investment recommendations, and ongoing portfolio management to help you achieve your financial objectives.
Conclusion: Working Towards a Brighter Future
ANS, by implementing these strategies and staying disciplined in your financial planning, you can work towards achieving your long-term goals of a comfortable retirement and securing your son's education. Remember to review and adjust your financial plan periodically to adapt to changing circumstances and ensure you remain on track to meet your objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |2989 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 24, 2024

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Money
I have 15 lac lumpsum to invest , where should I invest it? Option 1 : I can buy a plot of 45-50 lac where I can made down payment of 15 lac and loan ( for 10 years) for rest amount. Expected ROI is 10-12% max. Option 2: I have a capacity to take risk (middle level) and can invest in equity / mutual fund and start sip of equivalent emi amount.—— I have a small house to live but this investment is to get big home for children. I will need this big home after 7-8 years. Please suggest if I can opt for option 1 or 2. Which option will be beneficial - buy plot now on loan or buying after 8 years ? Considering: this plot can be used for own house or can sell in future to buy house in better locations in future.
Ans: Investing ?15 Lakhs: Plot Purchase vs. Equity/Mutual Funds
Making a decision about investing a significant amount like ?15 lakhs requires careful consideration of your financial goals, risk tolerance, and timeline. Let’s evaluate both options to determine which one aligns best with your objectives.

Option 1: Purchase a Plot with Loan
Advantages
Potential for Appreciation: Real estate historically appreciates over time, offering the potential for capital appreciation.
Ownership Benefits: Owning a plot provides a sense of ownership and control over the asset, allowing you to use it for personal residence or future sale.
Disadvantages
Illiquidity: Real estate investments are relatively illiquid compared to financial assets like stocks and mutual funds. Selling a plot may take time and effort.
Cost of Borrowing: Taking a loan for the plot incurs interest costs, reducing overall returns. Ensure the expected ROI exceeds the cost of borrowing.
Option 2: Invest in Equity/Mutual Funds
Advantages
Liquidity: Equity and mutual fund investments offer high liquidity, allowing you to access funds quickly if needed.
Diversification: Investing in a diversified portfolio of stocks and mutual funds spreads risk and potentially enhances returns.
Tax Efficiency: Long-term capital gains from equity investments are taxed at a lower rate compared to interest income from a plot loan.
Disadvantages
Market Volatility: Equity markets are subject to fluctuations, and your investment may experience short-term losses.
Risk of Underperformance: While equities offer the potential for high returns, there is no guarantee of positive returns, and your investment may underperform expectations.
Considerations for Your Big Home Plan
Timeline: 7-8 Years
Evaluate your timeline for needing a bigger home for your children. If the requirement is within 7-8 years, consider the investment horizon and expected returns of each option.
Growth Potential
Assess the growth potential of both options over the specified timeline. Real estate investments typically appreciate over the long term, while equity markets offer potential for higher returns with proper diversification.
Risk Tolerance
Consider your risk tolerance level. If you can withstand short-term market volatility and are comfortable with the risk associated with equity investments, Option 2 may be suitable.
Financial Flexibility
Evaluate your financial flexibility and ability to manage loan repayments. Assess whether taking a loan for the plot aligns with your financial goals and cash flow situation.
Conclusion: Making an Informed Decision
Given your desire to provide a bigger home for your children in 7-8 years, it’s essential to weigh the pros and cons of both options carefully.

Option 1 (Plot Purchase): Offers potential appreciation and ownership benefits but entails illiquidity and borrowing costs.
Option 2 (Equity/Mutual Funds): Provides liquidity, diversification, and tax efficiency but carries market volatility risk.
Recommendation
Considering your timeline, financial goals, and risk tolerance, investing in equity/mutual funds through SIPs may be more suitable. This option offers liquidity, diversification, and the potential for higher returns over the specified timeframe.

Before making a decision, consult with a Certified Financial Planner to assess your individual circumstances and develop a tailored investment strategy that aligns with your long-term objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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