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Thread: investment options for retirees

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    Senior Member ramanrao60 is on a distinguished road
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    Default investment options for retirees

    Can the helpful seniors guide what are the best investment options for retirees with regular monthly pension?
    Supposing your retirement corpus is about fifty lakhs, should one invest in property or bank fd etc and if so in what proportion?

    what are the tax implications?

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    Senior Member soodeep is on a distinguished road
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    Quote Originally Posted by ramanrao60 View Post
    Can the helpful seniors guide what are the best investment options for retirees with regular monthly pension?
    Supposing your retirement corpus is about fifty lakhs, should one invest in property or bank fd etc and if so in what proportion?

    what are the tax implications?
    Though I am not senior, I just express my views which you can think at least..

    Out of 50 lakhs, You may divide it into two/three parts. The first part may be savings in post office in the name of Senior Citizen Savings Scheme for 15 lakhs (optimum limit) with your spouse. It will fetch 139500 in a year (9.3%), i.e. 11625 in a month (though it has to be withdrawn quarterly). Though no tax will be deducted at source, but the same was attract tax.

    Out of 35 lakhs, you have options like bank fixed deposit/monthly income scheme in bank for another 20 lakhs (8.5% to 9%). The period of fixed deposit/bank fixed deposit may be 2/3 years in parts (say, 1 lakh each) so that you can withdraw it even pre-maturely. Obviously, the interest attract income tax.

    Thirdly, out of 15 lakh you can either buy Monthly Income Scheme from Post Office (8.4%) or buy a piece of land in the heart of a city so that its resale value would obviously fetch a handsome money. Further, the deed of that land may also be mortgaged for taking any loan at the time of necessity. All the rates are as on date.

    But, in the last option you have no fixed monthly income.

    soodeep
    Last edited by soodeep; 26-05-2015 at 06:54 PM.

  3. #3
    Senior Member soodeep is on a distinguished road
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    I presumed that after retirement, the person did not have choice to invest in SIP or Mutual Fund or ELSS etc. That's why I am not mentioning the same including transaction in shares (preferential, bonus etc.).

    soodeep

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    Senior Member ramanrao60 is on a distinguished road
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    so nice
    only doesn't 15 lakhs for lands look too less
    what about varishta beema yojana of lic?

  5. #5
    Senior Member soodeep is on a distinguished road
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    Quote Originally Posted by ramanrao60 View Post
    so nice
    only doesn't 15 lakhs for lands look too less
    what about varishta beema yojana of lic?
    Obviously, 15 lakhs for lands look less, but then you have to retrench the investment of MIS in post office or bank. Choice is yours.

    Secondly, Varishta Bima Yojana was good but there are certain drawbacks, like locking period of 15 years, (premature withdrawal with 2% penalty for critical illness), maximum/minimum investment (66665/666665) and maximum earning 5000/- per month for a family.

    soodeep

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