Do you have financial planning queries?
You can ask rediffGURU Colonel Sanjeev Govila (retd) your questions HERE.
Colonel Sanjeev Govila (retd) is the founder of Hum Fauji Initiatives (external link), a financial planning company dedicated to the armed forces and their families.
He has over 12 years of experience in financial planning and is a SEBI certified registered investment advisor; he is also accredited with AMFI and IRDA.
Anonymous: I have taken early retirement due to my health issues. I have 2 kids one in 12th and second 9th Class. I keep aside 50 Lakh (L) for my kids' education, 25 L PPF, 14 L mutual fund, 10 L bond, 5 L FD. My PPF will mature 2026 and Bonds will mature 2024.
I have 70 L EPF and I will have approx 50 L selling of property. I have my own house of 1.5 Cr.
With these moneys can i get 1 L per month, but i do not want to touch kids education money. Your suggestion will help me to see my finances.
My wife has decent job she earns 50 K per month and we have health insurance and term insurance.
Based on an analysis of your finances, it appears that you have sufficient assets to cover your monthly requirement of Rs 1 lakh.
However, your allocation in equity-oriented investments is minimal. We recommend allocating funds equivalent to three years of expenses into debt-oriented schemes, while the remainder should be invested in equity and/or hybrid combination for potential capital appreciation.
We advise consulting a financial advisor for personalised guidance tailored to your goals, risk tolerance, and time horizon. He/She can assist in setting up tax-efficient systematic withdrawal plans (SWPs) to meet monthly needs while allowing your investments to grow.
Anonymous: Hi, I am employed in the Maldives from last one year and while applying for a home loan, bankers are asking me if I have filed IT returns or not. Shall I file the same in Maldives or in India? My salary is around 6 to 7 LPA.
As an Indian citizen working in the Maldives, you may need to file income tax returns in both countries. If you've been in the Maldives for over 182 days, you're likely a tax resident there. However, you must file in India if your income exceeds Rs 2.5 lakh per year in India.
Utilise the Double Taxation Avoidance Agreement to avoid being taxed twice. When applying for a home loan in India, banks may request for proof of income and tax returns, so filing in India could support your application.
Seek advice from a tax advisor well-versed in both countries' tax laws to ensure compliance and maximise benefits.
Anonymous: My husband is 50 and I am 47. We have a combined income of 10 lakhs per month. Our kids are 17 and 14 yet to go to college. What should be our monthly savings? How should we diversify our funds? What is the retirement corpus we should have assuming that our present monthly expense is one lakh/ month on groceries, transport, school fees, travel, salaries etc?
Dear Ma'am, without detailed financial information such as current investments and loans, I cannot provide an exact monthly investment figure for your retirement needs.
Assuming retirement in 10 years from now after children's education and other goals have finished or been catered for, you should aim to accumulate a corpus of at least Rs 4-5 crore. To achieve this, invest 2-3 lakhs monthly in SIPs. However, in the absence of all other data, this is a very rough figure.
Regularly review and adjust investments to stay on track towards your retirement goals. Consulting a financial advisor for personalised guidance based on your specific financial situation is recommended.
Surander: Sir I have opened PPF account in 1998 and thereafter continuous depositing the money. As on 01.04.2023 (after 25 years) my corpus was 10 Lakh (8.5 earlier and 1.5 lakh current one). Now I need money becoz of emergency.
Please guide the penalty of 1% reduction will be from 01.04.2023 (Date of extension) or since the date of opening the account. Its premature closure but after 25 years.
You will be allowed to withdraw 60% of the balance at the beginning of extended period (block of five years). It means, let us say the account matured on 1st April 2023 and the available balance is Rs 8.5 Lakhs. Then, you are allowed to withdraw 60% of this Rs 8.5 Lakhs during the block period of 5 years.
This can be withdrawn either in a single withdrawal or in instalment each year. However, only one withdrawal is allowed in a financial year.
Rupannita: Sir/Madam, this is a query on provident fund. One of our employee with basic salary of 20,000 per month contributes to PF @12% = 2400. Now he says that he wants to contribute @12% on Rs 15,000 = 1800 per month as he is an excluded employee under PF Act. Is this permissible as per EPFO Act read with Scheme? Regards
Under the EPFO Act and Scheme, it's not permissible for an employee to contribute 12% on Rs 15,000 while earning a basic salary of Rs 20,000, even if he/she is excluded from the PF Act.
Kindly find the reasons for the same:
- Mandatory Contribution: The EPFO Act mandates that employees covered under the Act contribute 12% of their basic salary (up to Rs 15,000) towards the PF. This applies even to those excluded from certain provisions.
- No Selective Contribution: The Act doesn't allow employees to selectively contribute a lower salary amount. They must contribute based on their actual basic salary.
- Wage Ceiling: The Rs 15,000 wage ceiling applies only to the employer's contribution, not the employee's. Employees must contribute 12% of their entire basic salary, even if it exceeds Rs 15,000.
For further clarity on specific exclusions and contribution rules, consult with the EPFO directly via e-mail.
- You can ask rediffGURU Colonel Sanjeev Govila (retd) your questions HERE.
Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.
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.
