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Ramalingam

Ramalingam Kalirajan3735 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 10, 2024

Asked on - Apr 25, 2024Hindi

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Hi Advait, I hope you're doing well. I have a question that I think you might be able to assist me with. I'm 52 years old and currently need to plan for my children's education expenses. My elder child's education is ongoing and requires 10 lakhs, while my younger child will require 30 lakhs in two years. Here's a breakdown of my investments: Stocks, Mutual Funds, and Portfolio Management Services amount to 2.6 crores, and I have 40 lakhs in my Provident Fund. I also receive a monthly rent of 2 lakhs. If I estimate my monthly expenses at 1 lakh, do you think I can retire comfortably with this corpus? In the worst-case scenario, I can liquidate one of my properties, which could yield 3 crores. Ideally, I would like to retire without touching my real estate investments. My life expectancy is 85 years. Additionally, I have medical insurance coverage of 12 lakhs plus a top-up of 90 lakhs. I plan to travel twice a year during retirement, with an estimated expenditure of 1.5-2 lakhs per year. I would appreciate your insights on this matter. Thank you, Geo
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
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Ramalingam

Ramalingam Kalirajan3735 Answers  |Ask -

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

Asked on - Apr 16, 2024Hindi

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Hi Dev, I hope you're doing well. I have a question that I think you might be able to assist me with. I'm 52 years old and currently need to plan for my children's education expenses. My elder child's education is ongoing and requires 10 lakhs, while my younger child will require 30 lakhs in two years. Here's a breakdown of my investments: Stocks, Mutual Funds, and Portfolio Management Services amount to 2.6 crores, and I have 40 lakhs in my Provident Fund. I also receive a monthly rent of 2 lakhs. If I estimate my monthly expenses at 1 lakh, do you think I can retire comfortably with this corpus? In the worst-case scenario, I can liquidate one of my properties, which could yield 3 crores. Ideally, I would like to retire without touching my real estate investments. My life expectancy is 85 years. Additionally, I have medical insurance coverage of 12 lakhs plus a top-up of 90 lakhs. I plan to travel twice a year during retirement, with an estimated expenditure of 1.5-2 lakhs per year. I would appreciate your insights on this matter. Thank you, Geo
Ans: Let's delve into your situation and see how we can address your concerns regarding your children's education expenses and retirement planning.

Firstly, it's commendable that you're proactively planning for your children's education. With the elder child's education requiring 10 lakhs and the younger child's needing 30 lakhs in two years, it's crucial to ensure you have sufficient funds set aside for these expenses.

You mentioned having investments in stocks, mutual funds, and Portfolio Management Services amounting to 2.6 crores, along with 40 lakhs in your Provident Fund. Additionally, you receive a monthly rent of 2 lakhs, which significantly contributes to your income.

Considering your monthly expenses are estimated at 1 lakh, and you have a potential fallback option of liquidating one of your properties, which could yield 3 crores, it seems you have a robust financial foundation.

With your life expectancy being 85 years and adequate medical insurance coverage, coupled with your retirement plans of traveling twice a year with estimated expenditures, you seem well-prepared for retirement.

However, it's essential to ensure that your investment portfolio is diversified and aligned with your risk tolerance and long-term goals. Regularly review your investments and make adjustments as necessary to stay on track.

Overall, it appears that you're in a good position to retire comfortably and fulfill your financial goals. If you have any further questions or need assistance in fine-tuning your financial plan, feel free to reach out. Wishing you all the best!
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Ramalingam

Ramalingam Kalirajan3735 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 26, 2024

Asked on - Apr 25, 2024Hindi

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Money
Hi Sir, I hope you're doing well. I have a question that I think you might be able to assist me with. I'm 52 years old and currently need to plan for my children's education expenses. My elder child's education is ongoing and requires 10 lakhs, while my younger child will require 30 lakhs in two years. Here's a breakdown of my investments: Stocks, Mutual Funds, and Portfolio Management Services amount to 2.6 crores, and I have 40 lakhs in my Provident Fund. I also receive a monthly rent of 2 lakhs. If I estimate my monthly expenses at 1 lakh, do you think I can retire comfortably with this corpus? In the worst-case scenario, I can liquidate one of my properties, which could yield 3 crores. Ideally, I would like to retire without touching my real estate investments. My life expectancy is 85 years. Additionally, I have medical insurance coverage of 12 lakhs plus a top-up of 90 lakhs. I plan to travel twice a year during retirement, with an estimated expenditure of 1.5-2 lakhs per year. I would appreciate your insights on this matter. Thank you, Geo
Ans: Firstly, it's heartening to see your foresight in planning for your children's education and thinking ahead towards retirement. Your financial situation seems quite robust, and you've made commendable progress with your investments.

Let's delve into your retirement planning. With a corpus of 2.6 crores in stocks, mutual funds, and Portfolio Management Services, along with 40 lakhs in Provident Fund, you have a substantial base. Adding your monthly rent of 2 lakhs and estimating monthly expenses at 1 lakh, your current financial position appears promising.

Considering your monthly rental income and your expenses, you seem to have a surplus that could be redirected towards your children's education and retirement corpus. However, it's essential to factor in inflation and potential market fluctuations.

Your medical insurance coverage looks solid, providing a safety net for unforeseen medical expenses. Moreover, your travel plans are well within reach, considering your retirement aspirations.

Given your life expectancy of 85 years, you'll need to ensure that your corpus lasts throughout your retired life. With prudent planning and regular reviews, it's possible to achieve a comfortable retirement without liquidating your real estate investments.

Here are some suggestions:

Education Corpus: Allocate funds specifically for your children's education to ensure timely payments.
Retirement Corpus: Continue to invest and diversify your portfolio to beat inflation and safeguard against market volatility.
Real Estate: If possible, retain your properties as a safety net or as a source of passive income.
It would be beneficial to have a detailed one-on-one discussion with a certified financial planner to create a tailored financial roadmap for you. You can explore various scenarios, optimize your investment strategy, and ensure you retire comfortably without compromising on your aspirations. Please feel free to reach out to me for any follow-up questions.
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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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