To ensure that your retirement years are comfortable, it is worth your while to plan for it in advance. Apart from paying attention to logistics, also consider financial planning. This will help you fund your post-retirement lifestyle without any stress.
An important aspect of planning for retirement is choosing the right investments that will offer high returns in the future. Here’s a look at some investments that you can choose from.
- Company FDs:
When you are retiring it is important to invest in a safe option that offers you stable returns. While doing so, choosing to invest in a company FD over a bank can be rather beneficial with higher rates of interest. Furthermore, senior Citizen FDs can provide you an even higher rate of returns of up to 8.20% and provide high stability and credibility.
You can also choose between cumulative and non-cumulative FD interest options. While cumulative options offer you interest earnings along with your invested sum at maturity, the non-cumulative option provides you with periodical gains. Make the most of your savings by investing in the high yielding Bajaj Finance Fixed Deposit. This scheme provides you an attractive rate of return, flexible tenor and a higher interest upon renewal.
- Mutual funds:
Mutual funds offer good growth for your savings in the medium and long term. They are also a choice option as they allow you to choose funds based on your risk appetite. For example, you can choose equity funds, bonds funds or balanced funds that combine equity and bonds. Since mutual funds are managed by a professional pooling your investment with those of other investors, they offer you in-built diversification. Apart from that, they are easy to sell when you need money. Some tax-saving mutual funds like ELSS also allow you to save on taxes.
- Real estate:
With new real estate projects coming up at a rapid pace, this choice of investment is a prime investment option for retired persons. As a retiree, you can invest a sum of money in a property and then gain returns by renting out the property. This helps you receive a monthly sum of income to pay for various household expenses. You benefit from selling the property if the market booms. This can help you multiply your earnings tremendously.
- Government schemes like SCSS and POMIS
The government of India has introduced various schemes to enable retirees build wealth. Once of these schemes is the Senior Citizens Savings Scheme. This enables you to invest a sum of up to Rs.15 lakh for a fixed tenor of 5 years. Apart from this there is also the Post Office Monthly Income Scheme. With this option, you can invest a sum of up to Rs.4.5 lakh to mature over a fixed tenor of 3 years. This scheme pays interest in fixed monthly payouts. Another good option is investing in the National Pension Scheme. This is a scheme allows you to withdraw 25% of your contributions before you turn 60 years old. This allows you to access funds even before you are a senior citizen.
- Tax-free bonds:
Tax-free bonds are securities issued by the government for raising funds for various projects. Your earnings from these funds are not subject to any tax deductions, which makes them a great investment option.
However, these bonds have a lock-in of at least 10 years, so invest only a portion of your retirement savings into them, or time your investment so you can access your money at the time of retirement. These bonds offer a good rate of return up to 7%. Make sure you check the credit ratings on these bonds before investing to choose the safest ones.
Make you retirement years comfortable by choosing from these investment options. Remember to diversify your portfolio with different schemes maturing at regular intervals to fund your life after retirement more easily.
Also Read : The Complete Guide of Investing