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Ramalingam Kalirajan4647 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 30, 2024

Asked on - May 30, 2024Hindi

hello sir, Prem here. I am 60yrs. need the financial planning. Going to retire. I have NPS of 55 lakh, FD of 1.2 Cr, PPF 15lakh, MF 35lakh. Now need the pension 1.5lakh/month. Own house. no loan. all children settled. What to do and how to plan ahead. Please guide step by step. regards
Ans: Dear Prem,

Congratulations on reaching this significant milestone in your life. Retirement is a time to enjoy the fruits of your labor and ensure financial stability. You have a substantial portfolio, and with careful planning, you can achieve your goal of a Rs. 1.5 lakh monthly pension. Here’s a step-by-step guide to help you plan ahead.

Assessing Your Current Financial Position
You have a well-diversified portfolio:

NPS: Rs. 55 lakh
Fixed Deposit: Rs. 1.2 crore
PPF: Rs. 15 lakh
Mutual Funds: Rs. 35 lakh
This gives you a total corpus of Rs. 2.25 crore.

Step 1: Evaluate Your Monthly Expenses and Goals
Before we plan the investment, it’s crucial to understand your monthly expenses and financial goals.

Monthly Pension Requirement: Rs. 1.5 lakh
Other Goals: Healthcare, travel, and emergencies
Step 2: Creating an Income Stream
Systematic Withdrawal Plan (SWP)
SWP from mutual funds can provide a regular income while keeping your investment growing. Here’s how it works:

Select the Mutual Funds: Choose funds that have a good track record and match your risk profile.
Set the Withdrawal Amount: Decide on a fixed amount to withdraw monthly.
Benefit: This method allows you to get regular income while the remaining funds continue to grow.
Annuity from NPS
NPS offers an annuity option, which can provide a steady income. You can allocate a portion of your NPS corpus to an annuity plan. Here’s how:

Use 40% of NPS Corpus: Use at least 40% of your NPS corpus to buy an annuity.
Choose the Right Annuity Plan: Select an annuity plan that offers a lifetime payout.
Benefits: An annuity ensures a guaranteed monthly income for life.
Fixed Deposit and PPF Interest
Fixed Deposit Interest: The interest from your FD can provide a regular income. Reinvest the principal amount at maturity to continue receiving interest.
PPF Withdrawals: After retirement, you can start withdrawing from your PPF account as needed.
Step 3: Allocating Your Corpus
Diversify Your Investments
Debt Instruments: Allocate a portion of your corpus to debt instruments for stable and secure returns. This includes fixed deposits, PPF, and debt mutual funds.
Equity Instruments: To keep up with inflation, maintain a portion in equity mutual funds. This helps in growing your corpus over time.
Example Allocation
Equity Mutual Funds: Rs. 35 lakh (for growth and SWP)
Debt Mutual Funds: Rs. 20 lakh (for stability and SWP)
Fixed Deposits: Rs. 1 crore (for regular interest income)
PPF: Rs. 15 lakh (for secure returns)
NPS Annuity: Rs. 22 lakh (for guaranteed monthly income)
Step 4: Planning for Healthcare and Emergencies
Health Insurance
Ensure you have adequate health insurance to cover medical expenses. This will protect your savings from being depleted due to healthcare costs.

Emergency Fund
Maintain an emergency fund of at least 6-12 months of your expenses. This should be easily accessible and invested in liquid funds or a savings account.

Step 5: Regularly Review and Adjust Your Plan
Your financial needs and market conditions will change over time. Regularly review your investment plan and adjust it as needed. Here’s how:

Annual Reviews: Conduct annual reviews to assess the performance of your investments.
Rebalance Portfolio: Rebalance your portfolio to maintain the desired asset allocation.
Consult a Certified Financial Planner: A CFP can provide personalized advice and help you create a customized roadmap with specific analysis and calculations.
Benefits of Consulting a Certified Financial Planner
A CFP can help you:

Analyze Your Financial Situation: Assess your current financial status and future needs.
Create a Customized Plan: Develop a tailored plan that aligns with your goals.
Monitor and Adjust: Regularly monitor your investments and make adjustments as needed.
Provide Peace of Mind: Ensure that your financial future is secure and well-planned.
By following these steps, you can create a solid financial plan for your retirement. Diversify your investments, utilize SWP and annuities, and regularly review your plan. Consulting a Certified Financial Planner can provide additional guidance and peace of mind.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


Sushil Sukhwani438 Answers  |Ask -

Study Abroad Expert - Answered on May 13, 2024

Asked on - May 10, 2024Hindi

sir, My daughter has done MA Applied psychology from BHU. And have the work experience of 3 years. Now see need to do the PhD from abroad in good university. PhD in psychology in abroad is treated as job or not. are they give stipend, can you guide me what is required for the same.
Ans: Hello PREM,

To begin with, thank you for contacting us. I am happy to hear that your daughter has pursued her Master of Arts in Applied Psychology and now wishes to pursue PhD overseas. To answer your question first, I would like to tell you that earning a PhD overseas can be considered employment, however, with a stipend instead of a pay. You would be happy to hear that a number of universities, particularly in Europe and the USA, provide stipends to PhD students in psychology in order to help pay for tuition fees and living costs. Nevertheless, based on the country, university, and particular program, these stipends may differ.

To apply for a PhD in psychology overseas, I would suggest that your daughter considers the following:
Firstly, your daughter will need to possess a solid educational background. This entails a strong undergraduate and postgraduate academic record, which I believe she already possesses with her MA in Applied Psychology. Next, bear in mind that candidates with prior research experience are preferred by a number of PhD programs. Your daughter’s 3 years of professional experience might entail pertinent research projects, which would be beneficial. To secure admission to their PhD programs, Graduate Record Examination (GRE) test scores may be required by certain universities, particularly in the USA. Nevertheless, not all the universities demand GRE scores for psychology programs, and thus, I would recommend that your daughter examines each institution's particular criteria. Next, your daughter may require to prove her fluency in English through appearing for tests viz., the IELTS or TOEFL, if English is not her primary language. Your daughter will need to submit a well-drafted statement of purpose (SOP) highlighting her research interests, professional objectives, and reasons for wanting to pursue a PhD in psychology overseas. She will also need to submit compelling recommendation letters from professors or managers who can speak to her academic capabilities and research potential. Remember that a research proposal highlighting her proposed PhD research field may be demanded by certain programs. Lastly, evidence of one’s ability to sustain oneself financially while enrolled in school may be require in some nations.

Taking into account variables viz., possibilities for research, the experience of the faculty members, and financial resources, I would recommend that your daughter conducts an all-round study on potential universities and programs. Not just that, in order to understand how her research interests best resonate with the program’s offerings, I would also suggest that she gets in touch with academics or advisors in her field of interest.

For more information, you can visit our website: www.edwiseinternational.com

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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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