'How To Repay Rs 30 Lakh Gold Loan?'

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Anonymous: I am a 45 year old IT professional with following saving/investment as of now: 30 lakh: EPF 30 lakh: PPF 30 lakh: FD 10 lakh: NPS NOTE: 1. I have monthly expenditure of 50k 2. Additionally, NPS requires 12k monthly investment 3. No liabilities and no loan 4. Staying in own house.
Queries: 1. I am planning to retire in next 1-2 years. Pls suggest best way to invest above money. 2. Also, I have gold of worth 25 lakh, so should I keep that with me or instead sell it now and invest money elsewhere.

At 45, retiring at 2 years is 47, with an expense of 50K per month plus 12K per month NPS needs 62K per month. Considering a life expectancy of 77, you need funds for the next 30 years. Not considering medical or any other emergency expenses, you also need Rs 2.25 cr in expenses in the next 30 years. Hence, you can consider rearranging the finances as below.

PPF (Rs 30 Lakh Total): Continue these as they offer tax-free, secure returns. During retirement, you can withdraw in tranches to maintain liquidity. Keep it as you find financial security; do not touch it, and let it grow.

As you declare retirement at 47, you have EPF (Rs 30 Lakh Total) and Fixed Deposit (Rs 30 Lakh). You can withdraw this amount and invest it in Balanced or index MF funds, which offer yearly 12 per cent to 14 per cent average returns. You can also start SWP from this.

NPS is a good retirement investment, but there are many restrictions on premature withdrawals.

If you retire at 47, you will not get a withdrawal until age 60 for 60 per cent of the amount, and the balance 40 per cent will be converted to pension after age 60.

You can withdraw 60 per cent of the amount from the balance 6 years older for premature withdrawal. If your finances permit, continue investing after retirement.

Gold can be a good hedge against inflation. Gold returns an average of 8 to 10 per cent return on an average. However, if you don't have an emotional attachment or strategic reason to hold it, consider selling and reinvesting in diversified assets like balanced mutual funds or a senior citizen savings scheme for higher returns.

Overall, at 47, you need about 1 cr in your MF for expenses after retirement with 50k per month.

With the amount you have mentioned, you can live a decent life without any frills. My suggestion is that you increase your corpus to fulfill all your life's needs other than your monthly expenses.

Chitra: I have 30lk credit due to my family circumstances. All jewell loans, i want close, i have a capability to repay upto 20000/- per month. My salary 25000/- lecturer, i earn extra income 10000/- my sister asked me to help to repay loan.
But since i am a guest faculty 15 in college, i have no option to give my salary slip. How can i get 30lk loan. Any help.

Here are a few approaches to consider for managing and potentially restructuring your loan obligations: You can Explore Gold Loan Refinance:

• If your existing Rs 30 lakh debt is mostly gold loans, you may consider refinancing the loan through a different lender, like a bank or NBFC, which could offer a better interest rate or longer repayment term.
• For refinancing options, it's worth checking lenders like SBI, HDFC, or even gold loan providers like Muthoot or Manappuram, as they might not require strict documentation.
• You can also try to negotiate with the lender for extended tenure: If possible, talk to your lender about extending the tenure of your existing gold loan. This would reduce the monthly EMI and allow you to use the freed-up amount to pay off the debt gradually without taking on more loans.
• Another approach can be to consolidate loans with a gold loan top-up. Since your assets are in gold, a top-up loan on your gold may be easier than getting a new personal loan.

Given your income and commitment to paying off your debts, a combination of gold loan refinance, top-up, or consolidation might provide a practical path forward. Ensure you review interest rates carefully to avoid additional financial strain.

Dwarakanath: Sir l am having an amount of Rs 5L.
please suggest me where to invest these money in well diversified Mutual fund for a long term goal.

For Long Term Investments Balanced funds is the best option where you can expect returns of 10 to 14 per cent . Flexi cap funds are also good in that case. You can think of HDFC Balance fund or HDFC flexi cap funds. Long term is basically considered beyond 8 years of horizon. The longer the period the better the returns are.

Anonymous: I am 59, recently retired (No pension), and still working on a contract basis -- CTC-18 Lakh. My present savings are Rs 30 Lakh in NPS, 1.8 Cr as FD, about 25 Lakh in SB and about 80 Lakh in different MF. I have no liabilities and own a house and property -- rural. Please suggest division of my savings

For a balanced and secure retirement plan, you need to consider dividing your savings into multiple goals; one is an Emergency fund, about 15 to 20 lakh, and second, debt instruments like FD/Bonds/Senior citizen scheme in post offices, about 75 lakh. Fourth Mutual funds: About 60 lakh & fifth NPS around 30 lakh. This approach ensures steady income, growth, and liquidity for a comfortable retirement.

Anonymous: Sir, I have constructed a residential property in the year of 1987. Now I am going to sale the property. I have got valuation of my property as on 01.04.2001 which comes to Rs. 950000/-. Sale price of the property will be around Rs. 80/- lakh. During this period I have incurred improvement cost thrice as under: 1. During August -Sept. 2001 Rs. 480000/- 2. During the year 2012 Rs. 430000/ and 3. During the year 2020 Rs. 180000/. Whether I will get benefit of indexation on above all amounts?

Using indexation on each cost helps significantly reduce taxable gains. Consulting a tax professional can provide precise calculations based on current CII values.

• Your property's value as of this date -- Index this amount using the Cost Inflation Index (CII) applicable to 2001 and the year of sale.
• Improvement Costs -- will also be indexed from year of modification to the year of sale.
• Capital Gains Calculation -- The difference is the taxable capital gain, which will be taxed at 20 per cent with indexation.

• You can ask rediffGURU Nitin Narkhede your questions HERE.

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Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.