Do you have insurance, stocks, mutual fund and personal finance-related queries?
Please ask your questions HERE and rediffGURU Milind Vadjikar, Association of Mutual Funds in India-registered MF distributor and Pension Fund Regulatory and Development Authority-registered retirement financial planning advisor, will answer them.
Preetam: Dear Sir, I have home loan of Rs 38 lakh @ interest 8.35 pa.
Now, I am selling my some old property will get Rs 30 lakh.
I want to ask whether I should pay out for Rs 30 lakh for loan or invest in mutual funds or fixed deposit or any other good investment opportunity with less risk and good income.
I am still working and getting Rs 1 lakh salary pm and have saving about Rs 20 lakh in total.
I have also invested in MF around Rs 10 lakh. Kindly guide. Thanks and regards.
From a financial prudence point of view as well as a tax point of view, it makes sense to repay the home loan.
Capital gain from the sale of old property can be set off against the new property loan repayment, thereby avoiding capital gain tax payment completely.
However, considering new Income Tax Bill recently passed by Parliament, it would be better to consult a CA specialising in personal income tax on this topic.
You may keep the tenure the same and reduce EMI, thereby getting more investible surplus income that could be moved to NPS/monthly SIPs towards your long term goals.
Debabrata: Hi sir. I'm now 59+ years of age and still in employment and PF contribution continues. Can I claim maximum withdrawal of funds (>90 per cent). Is it possible? If so, how? I don't see any option in EPFO site.
You may try online withdrawal again under para 68NN but my view is that it is cumbersome, not user-friendly and hence can be frustrating.
You may also approach the EPFO office where your PF account is held physically and submit your withdrawal request under para 68NN by enclosing all supporting documents.
If all documents are in order, you may expect to receive funds in 2-3 weeks.
Anonymous: I had to survive during the lockdown so I withdrew everything from my EPF, about Rs 6 lakh. I told myself I'd replace it later. But now I'm 38, with two kids and zero retirement savings. I feel like I made the biggest mistake of my life. Can I realistically rebuild in time?
No need to panic. That was your need at that point of time so it's okay.
First and foremost open an NPS account for retirement planning. It allows very limited withdrawals. Invest in it as much as possible.
You can also set up monthly regular investment into NPS through D-remit feature.
Even if you invest Rs 25K per month in NPS, you may expect a corpus of Rs 1.8 cr at the age of 60 assuming modest return of 8 per cent.
Shalu: Sir, SBI Future Build lock in period life insurance yearly Rs 40000 start karna hai. Please iske bare me bataiye.
I would honestly recommend you to avoid ULIPs under all circumstances because they are inefficient both for insurance as well as investment returns.
It is better to buy adequate term life cover and invest in NPS and mutual funds for retirement and other financial goals.
Shaming: Hi....i saw many of videos of financial experts on SWP ..stating better returns, for example if i invest Rs 1.25 cr in mf expecting a return of 12 per cent and withdraw Rs 1 lakh every month for 15 to 20 years then to my corpus will be same or much more ..if YES pls suggest some best SWP funds.
Managing your personal finance by watching YouTube videos of fin-fluencers can be injurious to your financial health.
Do not fall for it ever because there are vested interests. Keep in mind that if something is available for free then you are the product.
It would be better to consult an investment advisor or a certified financial planner.
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.