30 लाख से होम लोन चुकाएं या फिर mutual fund में SWP करके 30 हजार EMI भरें ?

Summary

In this episode of B Wealthy, certified financial planner Poonam Ramta helps a viewer, Praneet, with a dilemma regarding his father-in-law’s retirement planning. With a lump sum of ₹30 lakh and a housing loan of ₹40 lakh, the discussion revolves around whether to use the money to pay off the loan or invest it through a Systematic Withdrawal Plan (SWP). Poonam recommends an SWP strategy, advising a 6-7% annual withdrawal rate from balanced mutual funds for long-term income flow, while also emphasizing the importance of professional planning for accurate, long-term financial decisions.

Takeaways

• 😀 Be Well is a personal finance educational YouTube channel that provides financial advice for educational purposes only, not as recommendations.
• 😀 The guest, Poonam Ramta, is a certified financial planner who provides insights on managing retirement funds and debt.
• 😀 A viewer, Praneet Ji, asked whether it's better to invest ₹30 lakh in mutual funds using an SWP or pay off a ₹40 lakh housing loan to become debt-free.
• 😀 Poonam suggests that the SWP strategy can work well if set between 6-7% withdrawal from the invested corpus, ensuring both income generation and corpus growth.
• 😀 SWP (Systematic Withdrawal Plan) is not a 'get-rich-quick' method; it requires proper calculation and long-term planning to be effective.
• 😀 If the ₹30 lakh is invested through SWP at a 6-7% rate, Praneet Ji could generate ₹17,000 per month, while the remaining loan obligation can also be addressed.
• 😀 Poonam recommends dynamic asset allocation funds like Parag Parikh Dynamic Asset Allocation Fund, HDFC Balanced Advantage Fund, or a diversified mix of funds for low-risk investment in an SWP strategy.
• 😀 The key is to avoid withdrawing too much too soon; the ideal withdrawal rate in the first few years should be conservative (around 3-4%), with gradual increases over time.
• 😀 Financial planning should always be done with a professional to ensure that the withdrawal rate and investment choices are aligned with long-term goals.
• 😀 Praneet Ji is advised to consult a financial expert to create a more tailored and accurate plan that will help meet both the loan obligation and long-term financial goals.

Q & A

What is the primary focus of the 'Bee Wealthy' YouTube channel?

The 'Bee Wealthy' YouTube channel focuses on personal finance education. The discussions on the channel are strictly for educational purposes and not intended as recommendations.

Who is the certified financial planner featured in the video?

The certified financial planner featured in the video is Poonam Ramta.

What is the main question raised by Praneet Ji regarding his father-in-law's retirement?

Praneet Ji is asking whether his father-in-law should invest ₹30 lakh in mutual funds through an SWP (Systematic Withdrawal Plan) or pay off a ₹40 lakh housing loan to become debt-free.

What is the concern regarding the ₹40 lakh housing loan in the context of retirement?

The concern is that the father-in-law has a ₹40 lakh housing loan with an EMI of ₹35,000 per month, which he still needs to manage after retirement.

How does Poonam Ramta suggest managing the ₹30 lakh through SWP?

Poonam Ramta suggests that if ₹30 lakh is invested through an SWP, the ideal withdrawal rate should be between 6% to 7% of the corpus, allowing the principal to grow while still meeting monthly obligations like the EMI.

What is the ideal amount for SWP withdrawals according to Poonam?

Poonam recommends an ideal SWP withdrawal rate of 6% to 7% of the corpus for long-term sustainability. This would allow the corpus to grow while covering regular financial obligations.

What is the risk of withdrawing too much from an SWP?

Withdrawing too much from an SWP, especially more than the ideal 6% to 7%, could lead to depleting the principal too quickly, reducing the ability to meet future financial needs.

What is the suggested mutual fund strategy for SWP according to Poonam?

Poonam suggests investing in dynamic asset allocation mutual funds like Parag Parikh Dynamic Asset Allocation Fund, or balanced funds such as Yocca Balanced Fund and HDFC Balanced Advantage Fund for SWP. Diversifying across different funds is also an option.

Why does Poonam recommend consulting a professional before starting an SWP?

Poonam advises consulting a professional to get an accurate plan tailored to individual needs. This ensures that the SWP is calculated correctly and is sustainable in the long run.

What additional advice does Poonam give regarding the start of the SWP?

Poonam suggests starting the SWP at least two years after the corpus is invested in mutual funds to allow the investments to grow before withdrawals begin. This delay helps in making better long-term decisions.