Good morning Anu ji
Hope you are doing well.
I am a working mother with two kids.
My son is 18 years old and my daughter is 11.
My office offered me to relocate to Malaysia and I opted for it.
I moved with my daughter to Malaysia. My husband and son are in India. This is mutually accepted by family.
The reason I chose this option was because the working environment in India office was very stressful with lots of corporate policies.
My daughter has a creative mindset. She had to struggle in studies due to Indian education system.
My son was in class 12 so I thought he will go to hostel for further studies.
But after moving to Malaysia things got changed. My daughter goes to an international school but the standard of education is very low though fees is very high as compared to India. My son got admission in Delhi, which is good.
Now, I'm confused if I should come back to India or stay in Malaysia with my daughter.
My husband is very co-operative and his office is very supportive that he can work from Malaysia.
Being a mother and a wife I am not able to manage this separation. But my husband wants me to grow in my career.
I know in future I will have to pay a lot for my daughter's study. For the same amount she can go to a good boarding school.
My son also needs my help but I want him to understand that life is not very easy, it is not for enjoyment.
I didn’t want to spoil him so I decided that he will live in PG and become independent.
I don't know if I am doing the right thing for my children.
If I move back to India my husband will not be happy because according to him, I'm getting too emotional.
I don't know what to do -- meet husband’s expectations or take the right step which is good for my family?
Pls help.

Ans: Hello

work related burnout is common...it can be emotionally taxing. Suggest you take 2-3 months break from your current job. Speak with your employer and tell them you will re-join and for this 2-3 months they need not pay you. Use these 2-3 months to recharge yourself...spend some time with family, go out to places of your choice, may be pick up some hobby that you have been wanting to.

After 2-3 months I am sure you will feel refreshed and recharged.

All the best.

Ans: Hello Mr.Neeraj

work related burnout is common...it can be emotionally taxing. Suggest you take 2-3 months break from your current job. Spek with your employer and tell them you will re-join and for this 2-3 months they need not pay you. Use these 2-3 months to recharge yourself...spend some time with family, go out to places of your choice, may be pick up some hobby that you have been wanting to.

After 2-3 months I am sure you will feel refreshed and recharged.

All the best.

Ans: Hello Madam

Given you have a domain experience in banking and also having worked in IT sector suggest you apply to software services companies that provide solutions to banks as they would value your experience.

Wishing you very best.

Ans: Hello Madam

Given your experience in teaching profession, may I suggest you apply for jobs to various schools as your experience would be of value to them.

All the best.

Ans: Congratulations on your retirement and taking steps towards financial planning for the future. It's wonderful that you have a clear goal in mind and are actively investing to achieve it.

With your terminal benefit invested mainly in bank FDs with monthly payout, along with a steady monthly pension and rental income, you have a reliable income stream to cover your expenses and support your daughter's education.

Starting SIPs in mutual funds is a smart move to grow your wealth over the long term. Your choice of funds reflects a diversified approach, covering different market segments and investment styles. It's essential to monitor the performance of these funds regularly and make adjustments as needed to stay on track towards your financial goals.

Your goal of reaching a corpus of 2-3 crores in the next 10 years is ambitious but achievable with disciplined saving and investing. Given your current investments and income sources, along with your SIP contributions, it's important to ensure that your investment strategy aligns with your risk tolerance and time horizon.

Consider consulting with a Certified Financial Planner to review your overall financial plan, assess your risk profile, and make any necessary adjustments to optimize your investment strategy. They can provide personalized guidance to help you achieve your financial goals while maintaining financial security and peace of mind.

Continue to stay focused on your goals, and with prudent financial management, you can build a substantial corpus for a comfortable and secure future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Given your financial situation and aspirations, it's essential to devise a comprehensive retirement plan that addresses your income, expenses, investments, and retirement goals.

Starting with your income, considering your monthly salary of 29,484 after TDS, along with the additional support from your father and interest income from FDs and loans provided, you have a steady income stream.

Your investments, including RD, PPF, SBI pension investment, LIC endowment, and commercial property, provide a diversified portfolio. However, it's crucial to evaluate each investment's performance, risk, and suitability for your retirement goals.

Regarding your expenses, with an estimated monthly expense of 10,000, it's important to factor in inflation and potential lifestyle changes in retirement. Planning for contingencies and unexpected expenses is prudent.

To assess if your current investments are sufficient for retirement, consider your retirement goals, including travel expenses. With a target of 30 lakhs for travel over the next 5-6 years, it's essential to calculate the required investment amount to achieve this goal within the specified timeframe.

Since your salary varies due to the nature of your job, it's advisable to create a buffer or emergency fund to cover any income fluctuations or unforeseen expenses.

Consulting with a Certified Financial Planner can provide personalized insights and recommendations tailored to your financial situation, retirement goals, and risk tolerance. They can help you optimize your investment strategy, identify potential gaps, and create a roadmap for achieving your retirement aspirations.

Remember, retirement planning is a dynamic process that requires periodic review and adjustments. Stay proactive, monitor your investments, and make informed decisions to ensure a secure and fulfilling retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Certainly, selecting the right mutual fund schemes is crucial for achieving your long-term financial goals. Let's evaluate the schemes you've chosen and suggest some additional options:

Quant Active Fund: This fund follows an active investment strategy, aiming to outperform the market by selecting stocks based on quantitative analysis. While active funds can potentially generate higher returns, they also come with higher expense ratios and manager risk. Keep an eye on its performance relative to its benchmark and peers.
Quant Mid Cap Fund: Mid-cap funds invest in companies with medium market capitalization, offering growth potential but with higher risk compared to large-cap funds. Quant Mid Cap Fund's performance may fluctuate with market conditions, so ensure it aligns with your risk tolerance and investment horizon.
ICICI Retirement Fund: Retirement funds are designed to provide a suitable asset allocation based on your retirement age. ICICI Retirement Fund offers different options based on your risk appetite and retirement horizon. Evaluate its suitability based on your retirement goals and risk tolerance.

Considering your long-term investment horizon, it's crucial to maintain a diversified portfolio aligned with your risk tolerance and financial goals. Regular review and rebalancing are essential to adapt to evolving market dynamics.

Remember, investing is a journey, and staying disciplined during market fluctuations is key to long-term success. Keep your focus on your goals, and with careful planning and guidance, you can achieve financial security and peace of mind.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Your mutual fund portfolio appears to be well-diversified across different categories, offering exposure to large-cap, flexi-cap, and mid-cap segments. Let's delve into some insights and recommendations:
1. UTI Nifty 50 Index Fund: Investing in an index fund tracking the Nifty 50 provides broad exposure to India's top 50 companies. It's a reliable choice for long-term wealth accumulation, especially considering its low expense ratio and consistent performance.
2. Parag Parikh Flexi Cap Fund: This fund follows a flexible investment approach, allowing it to invest across market capitalizations. Its global diversification and focus on quality stocks make it suitable for investors seeking a balanced approach to wealth creation.
3. Quant Flexi Cap Fund: Flexi-cap funds offer the flexibility to invest across market segments based on market conditions. However, Quant Flexi Cap Fund's performance may vary due to its quantitative investment approach. Keep an eye on its performance relative to peers.
4. ICICI Midcap 150 Index Fund: Mid-cap funds have the potential for higher returns but come with increased volatility. Investing in a mid-cap index fund like ICICI Midcap 150 can provide exposure to mid-sized companies while mitigating individual stock risk.
5. Kotak Large & Midcap Fund: This fund combines investments in both large and mid-cap stocks, offering diversification across market segments. It's crucial to monitor the fund's performance and ensure it aligns with your investment objectives.
Active vs. Passive Management:
While you've included both actively managed mutual funds and index funds (ETFs) in your portfolio, it's important to understand the differences between the two. Actively managed funds aim to outperform the market through active stock selection and portfolio management, while index funds passively track a specific index's performance.
Benefits of Actively Managed Funds:
Actively managed funds offer the potential for higher returns compared to index funds, especially during market inefficiencies or when skilled fund managers can identify lucrative investment opportunities. Additionally, active management allows for flexibility in portfolio construction and adjustments based on market conditions.
Potential Disadvantages of Index Funds:
While index funds offer low expense ratios and broad market exposure, they may lack the potential for outperformance compared to actively managed funds. Additionally, they're subject to tracking error, which occurs when the fund's performance deviates from the index it's designed to replicate.
Considering your investment horizon of 2-3 years for SIP and a plan to hold the accumulated amount for the next 5 years, it's essential to review your portfolio periodically. Keep an eye on fund performance, market conditions, and your financial goals to make necessary adjustments.
Given your diversified investment portfolio with equity shares, Sovereign Gold Bonds (SGBs), and Fixed Deposits (FDs), ensure a balanced allocation aligned with your risk tolerance and retirement goals. As you approach retirement in 6-7 years, consider gradually shifting towards more conservative investment options to safeguard capital.
Consulting with a Certified Financial Planner can provide personalized guidance tailored to your financial situation and retirement aspirations.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: Hello Geo, I'm doing well, thank you for asking. It sounds like you have several factors to consider in your retirement planning, especially regarding your children's education expenses and your retirement goals.

With your investments totaling 2.6 crores in stocks, mutual funds, and portfolio management services, along with 40 lakhs in your Provident Fund and a monthly rent of 2 lakhs, you seem to have built a substantial corpus for retirement. Additionally, having the option to liquidate one of your properties for 3 crores provides flexibility in case of unforeseen circumstances.

Considering your monthly expenses of 1 lakh, your retirement income from investments and rental income should comfortably cover your basic needs. Your medical insurance coverage also seems robust, which is crucial for maintaining financial security during retirement.

However, it's essential to account for inflation and potential fluctuations in investment returns. While your current investments may suffice for your retirement needs, periodic reassessment and adjustments may be necessary to ensure your financial security throughout retirement.

Regarding your children's education expenses, it's commendable that you've earmarked funds for their education. By carefully planning the timing and allocation of these expenses, you can minimize the impact on your retirement corpus.

Your estimated travel expenses during retirement are reasonable and can be accommodated within your budget.

Overall, with prudent financial management and careful planning, it seems feasible for you to retire comfortably without touching your real estate investments. However, consulting with a Certified Financial Planner can provide personalized insights and recommendations tailored to your specific financial situation and goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in