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Seeking Clarity: 35-Year-Old with 50 Lakhs - Invest or Repay Loan?

Ramalingam

Ramalingam Kalirajan  |9758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 18, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Asked by Anonymous - Jul 14, 2024Hindi
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I am 35 years old and currently earning 2 lakh per month. Lately, I have been feeling disinterested in my work and contemplated taking a break for a couple of years. My husband also earns two lakhs monthly, and we have a loan of 1.25 crore. I have savings of 20 lakh, with 10 lakh in fixed deposits and 20 lakh in the provident fund. If I leave my job, I will receive around 20 lakh. I would like to know where to invest my 50 lakh and how effectively we can repay the loan using my husband’s salary.

Ans: Current Financial Situation
Your Monthly Income: Rs. 2 lakh
Husband’s Monthly Income: Rs. 2 lakh
Total Loan Amount: Rs. 1.25 crore
Savings: Rs. 20 lakh
Fixed Deposits: Rs. 10 lakh
Provident Fund: Rs. 20 lakh
Expected Amount on Leaving Job: Rs. 20 lakh
Investment of Rs. 50 Lakh
Emergency Fund
Allocation: Rs. 5 lakh
Purpose: Cover unforeseen expenses
Investment: Keep in a high-interest savings account or liquid fund
Fixed Deposits
Current Allocation: Rs. 10 lakh
Recommendation: Continue with Rs. 5 lakh for short-term stability
Purpose: Low risk, moderate returns
Provident Fund
Current Allocation: Rs. 20 lakh
Recommendation: Continue
Purpose: Secure retirement savings, tax benefits
Mutual Funds
Allocation: Rs. 20 lakh
Type: Balanced mix of large-cap, mid-cap, and debt funds
Purpose: Long-term growth, risk diversification
SIP Investment
Monthly Allocation: Rs. 20,000 (from the remaining amount)
Type: Diversified equity mutual funds
Purpose: Regular investment, power of compounding
Loan Repayment Strategy
Current Loan
Total Loan: Rs. 1.25 crore
Using Husband’s Salary
Monthly Income: Rs. 2 lakh
Monthly EMI: Allocate 50% (Rs. 1 lakh)
Remaining for Expenses and Savings: Rs. 1 lakh
Lump Sum Payment
From Savings: Use Rs. 10 lakh
From Job Exit Amount: Use Rs. 20 lakh
Total Lump Sum Payment: Rs. 30 lakh
Purpose: Reduce principal amount, lower EMI burden
Monthly Budget Allocation
Husband’s Salary
Monthly Income: Rs. 2 lakh
Monthly EMI: Rs. 1 lakh
Expenses: Rs. 70,000
Savings and Investments: Rs. 30,000
Your Savings
Emergency Fund: Rs. 5 lakh
Mutual Funds: Rs. 20 lakh (lump sum)
Fixed Deposits: Rs. 5 lakh
Provident Fund: Continue with Rs. 20 lakh
Investment Strategy
Diversification
Balanced Approach: Mix of equity and debt
Risk Management: Diversify to reduce risk
Long-Term Growth
Equity Mutual Funds: Focus on large-cap and mid-cap for growth
Debt Funds: Stability and regular income
Regular Monitoring
Review Portfolio: Every six months
Adjust Investments: Based on performance and market conditions
Final Insights
Emergency Fund: Ensure it is readily accessible
Lump Sum Repayment: Focus on reducing debt
Regular Investments: SIP for long-term benefits
Review Strategy: Adjust based on financial goals
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |9758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 13, 2024

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I am 32 year old newly married man, having 1.7lakh as take home with expenses as home loan:65000 for 28yrs remaining topup: 8400 8 yrs and mortgage loan 27500 15 yrs per month. I have an equity investment of 7lakh and mutual fund sip of 5000 pm. I expect a bonus of 2lakh every year. I'm not sure if I should focus on repaying the loans quickly or increase my investment. My initial target is to invest 35000 pm. I don't know how to plan for retirement, becoming loan free and invest for kids in future. Home expenses are shared in the family and are paid through rents recieved by my mom
Ans: Congratulations on your recent marriage and your commitment to financial planning. Let's create a roadmap to address your goals of managing loans, increasing investments, planning for retirement, and securing your children's future.

Loan Repayment Strategy:

Given your substantial monthly loan obligations, it's essential to strike a balance between loan repayment and investment.
Focus on paying off high-interest loans, such as the top-up and mortgage loans, while continuing to meet the minimum payments on your home loan.
Utilize your annual bonus to make lump-sum payments towards your loans, reducing the principal and interest burden.
Investment Planning:

With a monthly take-home of Rs 1.7 lakhs and an initial investment of Rs 7 lakhs in equity, you're off to a good start.
Aim to gradually increase your monthly investments to Rs 35,000, as you've planned. This can help you build wealth over time and achieve your financial goals.
Consider diversifying your investment portfolio by exploring other asset classes like debt, real estate (if feasible), and tax-saving instruments like PPF or ELSS.
Retirement Planning:

Start planning for retirement early to benefit from the power of compounding and secure a comfortable post-retirement life.
Estimate your retirement expenses, factoring in inflation and lifestyle preferences. A Certified Financial Planner (CFP) can assist you in determining an appropriate retirement corpus.
Maximize contributions to retirement savings vehicles like EPF, PPF, or NPS to avail tax benefits and accumulate a substantial corpus over time.
Securing Your Children's Future:

Plan for your children's education and future financial needs by setting up dedicated investment accounts like a Child Education Plan or a Mutual Fund SIP.
Regularly review and adjust your investment strategy to align with your children's milestones and educational aspirations.
Seek Professional Guidance:

Consult with a CFP who can provide personalized advice tailored to your financial situation and goals.
A CFP can help you create a comprehensive financial plan, prioritize your objectives, and make informed decisions about loan repayment, investment allocation, and retirement planning.
In conclusion, by adopting a balanced approach to loan repayment and investment, and seeking professional guidance, you can work towards achieving financial freedom, securing your retirement, and building a solid foundation for your family's future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 15, 2024

Asked by Anonymous - Jul 07, 2024Hindi
Money
I am 39 now (working private sector) my wife 34 (housewife) & no kids yet. Monthly income: 1,80,000/-. Parents & wife dependent. Wife had/have spine (disc bulge and FIS generated) issue. Had lot of expenditures earlier in medical but now doing better. Parents ailing so helping in need sometimes. (Company only provides general health insurance for all) Market Debts (Remaining total 56,49,179/-) 1) House loan remaining ~43L for 25years. 2) Car loan, remaining ~8.5L for 6 years. 3) Personal loan, remaining ~4L for 2 years. Monthly EMI’s: (per month expenditure approx 1L) EMI 1 - 10k EMI 2 - 38k EMI 3 - 20k MISC - ~30k Started investing 5k pm in SIP, less idea on markets. I don’t know what to do, very much messed up and confused on HOW TO INVEST, SAVE FOR FUTURE (including any for kid planning) & RETIRE. Would highly appreciate for any serious great guidance / assistance please !! Thanks & Regards.
Ans: Firstly, it's great that you're seeking help to manage your finances. Acknowledging the need for guidance is a vital step towards financial stability. Let's analyze your situation in detail.

You have a monthly income of Rs 1,80,000. Your current expenses, including EMIs, amount to approximately Rs 1,00,000. This leaves you with Rs 80,000 each month to allocate towards savings, investments, and other financial goals. Understanding how to effectively utilize this remaining income is crucial.

Addressing Existing Loans
You have significant debts:

House loan: Rs 43,00,000 for 25 years.
Car loan: Rs 8,50,000 for 6 years.
Personal loan: Rs 4,00,000 for 2 years.
The total outstanding debt is Rs 56,49,179. The monthly EMIs for these loans are Rs 68,000.

House Loan
This is a long-term commitment. Given the lower interest rates on home loans, it might be the least financially pressing. However, any extra payments here could reduce your loan tenure and interest outgo.

Car Loan
Car loans generally have higher interest rates than home loans. It would be prudent to consider paying this off earlier, if possible. However, it depends on your overall financial strategy and the interest rates involved.

Personal Loan
This should be your priority to pay off due to typically high-interest rates. Reducing this burden will free up more of your income for other investments and savings.

Medical and Health Considerations
Your wife has had significant medical expenses due to her spine issues. It's commendable that she is doing better now. The company-provided health insurance is beneficial, but it may not cover all future medical needs, especially given the health conditions within your family.

Recommendation
Consider a separate comprehensive health insurance policy. This would cover any gaps in your company’s insurance and protect your finances from unexpected medical expenses.

Current Investments
You’ve started a SIP of Rs 5,000 per month, which is a good start. SIPs are a disciplined way of investing in mutual funds. However, given your lack of market knowledge, it's crucial to choose the right funds.

SIP and Market Investments
Mutual funds, especially actively managed ones, can provide better returns than traditional savings methods. They are managed by professionals who make investment decisions on your behalf.

Disadvantages of Index Funds

Index funds, while having lower fees, simply track the market and don’t attempt to outperform it. In volatile markets, they might not provide the best returns. Actively managed funds, on the other hand, aim to outperform the market and are managed by expert fund managers.

Financial Goals
Saving for Future and Retirement
It's essential to have a clear plan for both short-term and long-term goals. You mentioned planning for children and retirement. These goals require substantial financial planning.

Emergency Fund

First, establish an emergency fund. This should cover at least six months of your expenses, including EMIs and medical needs. Given your expenses, an emergency fund of Rs 6,00,000 to Rs 7,00,000 would be prudent. This fund should be kept in a highly liquid form such as a savings account or liquid mutual funds.

Retirement Planning

Given your current age and financial responsibilities, starting early with retirement planning is crucial. Investing in a mix of equity and debt funds can provide growth and stability. Equity funds can offer higher returns, while debt funds add a layer of safety.

Investment Strategies
Diversification

Diversify your investments across different asset classes to minimize risks. Relying solely on one type of investment can be risky. A balanced portfolio includes equities, debt instruments, and other savings schemes.

Avoid Direct Funds

Direct funds require constant monitoring and expertise. Regular funds, managed by certified financial planners, offer professional management and tailored advice, ensuring your investments are aligned with your financial goals.

Systematic Transfer Plan (STP)

STPs can help in transferring money from debt funds to equity funds systematically, balancing your portfolio and minimizing risks.

Managing Expenses and Savings
Your current expenditure is Rs 1,00,000 per month, including EMIs. It is crucial to track your discretionary spending and identify areas where you can save more.

Budgeting
Create a detailed monthly budget. This will help you track expenses and ensure you are saving enough. Tools and apps can make budgeting easier and more effective.

Automate Savings
Automate your savings to ensure you consistently set aside a portion of your income before spending. This discipline will help you grow your savings systematically.

Planning for Children
Planning for children involves preparing for education, healthcare, and other future expenses.

Education Fund

Start an education fund early. Investing in equity mutual funds can help build a substantial corpus by the time your child reaches college age.

Regular Financial Review
Regularly review your financial plan. Life circumstances and financial markets change, and your financial plan should be flexible enough to adapt. Working with a certified financial planner can help you stay on track and make necessary adjustments.

Final Insights
Financial planning is a continuous process. It requires careful analysis and regular reviews. By prioritizing debt repayment, creating an emergency fund, and investing wisely, you can achieve financial stability and secure your future.

Seek professional guidance to make informed decisions and stay committed to your financial goals. Your dedication to improving your financial situation is commendable.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 08, 2024

Asked by Anonymous - Jul 08, 2024Hindi
Money
I am 39 years old having 2 kids 12 and 4 years old.I have home loan of 50 lac and my monthly salary is 1.5 lacs.I have invested 50 lac in mutual funds.My rental income is 35 k.I want to retire when I am 45 years.I am planning to repay my home loan by then.Please help in my financial planning.I need to create a second source of income on which I can survive when I quit my job
Ans: I see you’re planning to retire at 45 and create a second income source. Let’s break down your financial plan step by step. Your goals are achievable with a structured approach.

Assessing Your Current Financial Situation
First, let’s look at where you stand financially.

You have a monthly salary of Rs. 1.5 lakh and a rental income of Rs. 35,000. This totals Rs. 1.85 lakh per month. You also have a home loan of Rs. 50 lakh and investments of Rs. 50 lakh in mutual funds.

You need to ensure you have a solid plan to pay off your home loan and build a retirement corpus.

Home Loan Repayment Strategy
Paying off your home loan is crucial for your financial freedom. Here’s a plan:

Increase EMI Payments: Use your rental income to make extra EMI payments. This reduces your principal faster.

Lump Sum Payments: Whenever you receive bonuses or extra income, use a portion to make lump sum payments. This also helps reduce the principal amount.

Regular Monitoring: Review your loan statement periodically. Ensure all extra payments are being credited correctly.

By focusing on these strategies, you can aim to clear your home loan by the time you retire at 45.

Building a Retirement Corpus
You need a substantial corpus to sustain your lifestyle post-retirement. Let’s dive into building that corpus.

Mutual Funds: A Powerful Tool
You already have Rs. 50 lakh in mutual funds. That’s a great start. Mutual funds are a fantastic way to grow your wealth due to their power of compounding.

Advantages of Mutual Funds:

Diversification: Spread risk across various assets.

Professional Management: Managed by experienced fund managers.

Flexibility: Easy to enter and exit.

Compounding: Reinvesting earnings generates more income over time.

Categorizing Mutual Funds
Mutual funds come in various categories. Let’s look at a few important ones:

Equity Funds: Invest primarily in stocks. High risk, high return.

Debt Funds: Invest in bonds and securities. Lower risk, stable returns.

Hybrid Funds: Mix of equity and debt. Balanced risk and return.

ELSS Funds: Equity Linked Savings Scheme. Provides tax benefits under Section 80C.

Investment Strategy
To build a retirement corpus, diversify your mutual fund investments. Here’s how:

Equity Funds: Allocate a significant portion here. They offer higher returns over the long term.

Debt Funds: Invest a smaller portion for stability and liquidity.

Hybrid Funds: Balance your portfolio with these funds.

ELSS Funds: Consider these for tax-saving benefits.

Creating a Second Source of Income
Having a second income source is crucial for post-retirement. Let’s explore some options.

Systematic Withdrawal Plan (SWP)
An SWP allows you to withdraw a fixed amount from your mutual fund investments regularly.

Benefits:

Regular Income: Provides a steady cash flow.

Capital Appreciation: The remaining investment continues to grow.

Tax Efficiency: Only the gains are taxed, not the principal amount.

Dividend Income
Investing in dividend-yielding mutual funds can provide regular income.

Benefits:

Steady Cash Flow: Receive regular dividend payouts.

Capital Preservation: The principal amount remains invested.

Fixed Deposits (FDs)
Though not high-return, FDs provide safety and assured returns.

Benefits:

Low Risk: Guaranteed returns.

Liquidity: Can be easily converted to cash.

Building an Emergency Fund
Having an emergency fund is crucial. It should cover at least 6 months of your expenses.

Amount: Calculate your monthly expenses and multiply by 6.

Investment: Keep this in a liquid fund or a high-interest savings account for easy access.

Financial Protection for Your Family
Ensure your family’s financial security with adequate insurance coverage.

Health Insurance
Ensure you have comprehensive health insurance for all family members. This protects your savings from medical emergencies.

Term Insurance
Adequate life insurance is vital. Ensure your term insurance covers at least 10-15 times your annual income.

Education Fund for Your Kids
Start saving for your children’s education early. Here’s how:

Child Plans: Some mutual funds specifically cater to children’s education.

PPF: Public Provident Fund offers safe and tax-free returns.

SIPs: Systematic Investment Plans in mutual funds can be a good option.

Regular Review and Adjustments
Financial planning is not a one-time activity. Regularly review and adjust your plan based on your goals and market conditions.

Annual Review: Reassess your portfolio annually.

Rebalancing: Adjust your investments based on performance.

Goal Tracking: Ensure you’re on track to meet your financial goals.

Final Insights
You have a strong financial base. By strategically paying off your home loan and focusing on mutual fund investments, you can achieve your retirement goals.

Build a diversified mutual fund portfolio to leverage the power of compounding. Consider SWPs and dividend income for a steady cash flow post-retirement. Ensure you have adequate insurance and an emergency fund for financial security.

Regularly review your plan to stay on track. With disciplined investing and smart financial planning, you can retire comfortably at 45 and enjoy a financially secure future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 20, 2025

Asked by Anonymous - Jun 02, 2025Hindi
Money
Hello Sir, My husband and myself are 30 years old. I have a home loan of 65 Lakhs and a car loan of 8 lakhs. EMIs for the same are 53,817/- and 16,646/- respectively at 8.3% and 9% ROI. My husband and I make 1,25,000 per month combined and I get an additional annual bonus of 1 lakh. Our monthly expenses are around 25,000 that includes grocery, credit card bills, pet expenses and utilities. So far I have 11 Lakhs in PPF, around 15-20 lakhs in gold and jewellery received in marriage, 1.5 lakhs in stocks and 3 lakhs in Mutual funds and around 5 lakhs in FD. All because of my parents who have made these savings for me till now. My husband's family have given us a flat in another city worth almost 30-35 lakhs which we are not sure to sell or not. Currently I am also investing around 5,000 in SIPs and NPS of 50,000 yearly. My question is -- with the current take home salary and debt, please can you advise on how can we save and build an emergency fund, manage and create fund and expenses for future child and also make a provision for our retirement since we are working in private sector. Although we are trying to switch jobs to increase our earnings, it is very hard in this economy.
Ans: You have shared your situation in a very clear and thoughtful way. That’s helpful. At 30 years of age, you already have a good foundation. Your questions are also very relevant. You are thinking about child expenses, retirement, and emergency fund. These are crucial things to focus on early.

Now let’s look at your complete profile from a 360-degree view.

Income and EMI Analysis
Combined income: Rs. 1,25,000 per month

Additional bonus once a year: Rs. 1,00,000

Home loan EMI: Rs. 53,817

Car loan EMI: Rs. 16,646

Total EMI outgo: Rs. 70,463

Assessment:

More than half of income goes into loan EMIs

You are left with around Rs. 54,500 every month

This money must handle expenses, savings, and investments

Debt burden is very high for your income bracket

Increasing income is a good idea, but tough in this job market

Monthly Expense Review
Living expenses: Rs. 25,000 per month

These include grocery, pet care, credit card, and utilities

Observation:

Your monthly spending is modest and controlled

That’s excellent in your current situation

Still, credit card bills must be tracked carefully

Avoid carrying forward credit card dues

Current Asset Position
Let’s assess your current financial assets:

1. PPF Balance
Rs. 11 lakhs in PPF

This is a good long-term corpus

Insight:

Continue contributing here yearly

It is tax-free and gives stable returns

Cannot be withdrawn fully until maturity

Don’t depend on it for short-term needs

2. Gold and Jewellery
Value: Rs. 15 to 20 lakhs

Received during marriage

Insight:

Emotional value is high

But avoid counting this for regular goals

Don’t rely on it for retirement or education fund

Keep it as family reserve

3. Stock Portfolio
Rs. 1.5 lakhs invested in stocks

Insight:

Direct stocks need proper understanding

If not tracking regularly, returns can disappoint

Volatility can affect timing

Avoid adding more unless you study markets closely

Use mutual funds instead

4. Mutual Funds
Rs. 3 lakhs corpus

Monthly SIP of Rs. 5,000

Insight:

Good to start early with mutual funds

Don’t stop this SIP

Avoid investing in index funds

Index funds only mirror markets

They don’t beat inflation

Active funds perform better with expert management

Invest through regular plans via a Certified Financial Planner

Direct plans may reduce cost but offer no guidance or reviews

In your stage, guidance is more important than low cost

5. Fixed Deposit
Corpus: Rs. 5 lakhs

Insight:

Use this partly to build emergency fund

Don’t lock in all of it

Divide into multiple short-term FDs

Some part should be liquid and accessible

Flat Received from Family
Value: Rs. 30 to 35 lakhs

Located in another city

Assessment:

It’s a gift, not a burden

Don’t rush to sell it

Don’t consider it as emergency fund

It can be kept for later, maybe for child or retirement

Selling it now will not bring stable returns

Real estate is not suitable for investment

It locks money and has poor liquidity

Use financial assets for wealth creation instead

Emergency Fund Creation
This is your biggest gap now.

You need minimum 6 months’ expenses in reserve

Rs. 25,000 monthly expense × 6 = Rs. 1.5 lakhs minimum

Better target is 9 to 12 months of EMIs and expenses

That’s about Rs. 6 to 7 lakhs

Action Plan:

Keep Rs. 3 lakhs from FD as liquid reserve

Use a part of bonus each year to build more

Park some money in liquid or ultra-short mutual funds

Keep it separate from other savings

Never use emergency fund for investments or shopping

Loan Management Approach
You have both home and car loans. These are heavy EMIs.

Car Loan
Rs. 8 lakhs balance

EMI: Rs. 16,646

Interest: 9%

Suggestion:

Try to close this early

It’s a depreciating asset

Once you get a better job or bonus, prepay this loan

Reducing this EMI will ease your monthly pressure

Home Loan
Rs. 65 lakhs balance

EMI: Rs. 53,817

Interest: 8.3%

Suggestion:

This is a long-term commitment

Don’t rush to close this

If you get salary hike or windfall, part-prepay only if other goals are on track

Keep your tax benefits from this loan in mind

Future Child Planning
You’re thinking ahead for your child. That’s good.

Step-by-Step Plan:

List expected costs: hospital, baby care, schooling

Start a separate SIP for child planning

Begin with Rs. 2,000 to Rs. 3,000 monthly now

Increase it after income goes up

Don’t mix child’s money with your retirement money

Use active mutual funds

Don’t redeem PPF or FDs for baby cost

Use bonus or any matured FD instead

Plan for long-term education as well

Retirement Provisioning
Since both of you are in private jobs, no pension is there.

NPS: You contribute Rs. 50,000 yearly

PPF: Rs. 11 lakhs corpus already

Action Plan:

Continue both investments

Add more SIPs for retirement slowly

Retirement needs 20–25 times your annual expenses

You need Rs. 2–3 crores minimum

NPS is locked till retirement but gives stable return

PPF is tax-free and safe

Mutual funds give growth

Build all three together

Bonus Utilisation Plan
Your annual bonus of Rs. 1 lakh is useful.

Plan its use like this:

Rs. 25,000 to emergency fund

Rs. 25,000 towards debt prepayment (start with car loan)

Rs. 25,000 to mutual fund SIP (child or retirement)

Rs. 25,000 to keep in FD for short-term needs

Expense Management Suggestions
Keep your expenses around 20–25% of income

You’re doing this already

That is great discipline

Avoid new loans or gadgets on EMI

Avoid lifestyle inflation as income grows

Plan for yearly expenses like insurance or travel

Don’t let credit card bills become large

Insurance Protection Review
Though not mentioned, here’s what you must do:

Take a term insurance of at least 15–20 times annual income

Rs. 1 crore cover minimum for each of you

Premiums are low at your age

Avoid LIC or ULIP-type plans

Take pure term cover only

Also take health cover beyond employer insurance

Rs. 5–10 lakhs floater policy is needed

Don’t depend on corporate health plan

What To Avoid
Don’t invest more in gold or jewellery

It doesn’t generate income

Keep it as family reserve only

Don’t go for direct stocks if you can’t track regularly

Don’t invest in index funds

Index funds only follow markets

They don’t beat them

Actively managed funds with CFP support do better

Don’t choose direct mutual fund plans

Direct plans offer no advice or fund review

Regular funds through Certified Financial Planner give long-term value

Investment Structure Suggestion
For current and future goals:

Emergency fund: 3 to 6 lakhs in FD + liquid funds

Car loan prepayment: Use bonus + any surplus

Child planning: SIP in active fund, start now

Retirement: PPF + NPS + additional SIP in long-term equity fund

Insurance: Term + Health for both of you

Avoid: Property investments, direct stocks, ULIPs, endowment, annuities

Finally
You are young and have time.
You already have some solid savings.
You also have moderate lifestyle spending.
That is a strength in financial planning.
You now need to build step-by-step.

Protect your income and health first

Build 6–9 months of emergency fund

Increase SIPs slowly for child and retirement

Avoid low-return and high-cost products

Review mutual funds once a year with a Certified Financial Planner

Focus more on financial assets

Don’t plan your future based on real estate

If you stay disciplined and focused, your future will be secure.
Make use of your current strengths.
Avoid distractions and short-term spending urges.
Keep emotions away from money decisions.
Your goals can be achieved with careful planning and consistent actions.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

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Kanchan

Kanchan Rai  |619 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jul 16, 2025

Asked by Anonymous - Jul 03, 2025Hindi
Relationship
We both joined in our job together. He was so caring. I developed feeling fr him. But now he is going to join new job. I told him i will miss him a lot. But he was so casual and says whenever u want to talk, you can call me. But i feel very bad when i think he will leave soon. Help me to handle this situation.
Ans: When he responded casually, saying you can call him anytime, it may have felt like he was emotionally distant or didn’t feel the same intensity. That can be hurtful, especially when you were hoping for some deeper acknowledgment of your bond. But people express emotions differently. His casualness doesn’t necessarily mean he didn’t value your presence — it might just be his way of avoiding emotional vulnerability or not knowing how to respond to closeness.

Now, the focus shifts to you — your healing, your emotions, and your ability to hold on to what was meaningful while also protecting your own peace. Start by accepting that it's okay to feel sad, even tearful. Allow yourself to miss him, but don’t let that feeling convince you that you’re incomplete without him around. You’re not losing everything — you’re transitioning from closeness to distance, which may or may not evolve into a deeper connection, depending on both of you.

Use this phase as a mirror — reflect on what you truly want: was this just emotional comfort in a shared space, or did you genuinely want a future with him? If it’s the latter, and he didn’t show similar feelings, it’s okay to grieve that quietly while slowly detaching.

Let this moment teach you not about loss, but about how deeply you can feel, and how resilient you are in giving space to someone while still holding space for yourself. Nurture your friendships, invest in small routines that uplift you, and remind yourself that care and affection will come again — sometimes from unexpected people and places.

If you feel you need closure or more clarity from him, it’s okay to have one final honest conversation. Just remember, your peace matters more than anyone’s presence.

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Kanchan

Kanchan Rai  |619 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jul 16, 2025

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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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A 6 digit code has been sent to Mobile

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