Planning To Retire? Here Are Some Tips To Manage Your Finances

First things first!

If you are on the verge of retirement, your expenses after the retirement are sure to be obligatory and compulsory – be it travelling the world, handling health emergencies or funding children’s education. If you plan tactfully, you can easily tackle all discussed emergencies without hassles.

All that you need to know is – be aware of multiple investment options such as an FD for retired person and more.

In the context of the same, let’s provide you time-tested and proven investment schemes for people who are all set to hang their professional boots.

  1. Senior citizen saving schemes

It is a tailor-made scheme for senior citizens that allow a maximum investment of Rs.15 lakh. You should be above 60 to be eligible for the scheme. It offers a higher rate of interest as high as around 9% which is set per quarter. There is a lock-in period of five years, extendable up to 3 more years. The plan also has provision to help you save tax under Section 80C. With interest every quarter and premature withdrawals; it is a lucrative retirement option for senior citizens.

  1. FD for retired person scheme

An FD for senior citizen provides a higher interest payout of 8.40% for a tenor ranging from 12 and 60 months with guaranteed ROI on it. Majority of senior citizens opt for this feature-rich scheme to prepare a reliable source of income post retirement. You can withdraw it prematurely, and it also offers you tax benefits as per the Section 80C of the Income Tax Act if you fill form 15G or 15H.

  1. Tax-free bonds

Tax-free bonds are released by the Government to make way for finances for multiple projects. These investment schemes are long-term with a 15 year period or untill the time a project is completed. The interest earned on these plans is totally tax-free with ROI ranging from 6.4%-8.3%. These are apt for senior citizens as it offers a good ROI and a longer investment tenor.

  1. Mutual funds

Over the years, the popularity and relevance of mutual funds have increases among senior citizens and general mass. Why? It is because the plan provides you with the highest adjusted return on investments (ROI) as your money gets invested in the securities market.

If you have invested your money in the right mutual fund, – hold your breath – the ROI could go as high as 20%. However, the only major drawback of this plan is that your ROI is never guaranteed and depends on the fluctuations of the market. Hence, a mutual fund is susceptible to risks; they may offer a higher ROI over a longer tenor, may allow liquidity as per the choice of your scheme. Thus, if you are willing to invest in a risk-prone mutual fund, you need to take financial advice of experts to know of the high performing assets and invest accordingly.

  1. Real estate

Did you know that if you have a home which you want to or already kept on rent? Congratulations! Renting your home means providing you with a substantial and sure-shot monthly income just like your salary. What’s more, you can alter rent as per inflation rate in your city and reap more, or you can do home improvements and demand a higher rent. Another thing is selling the home and purchasing a new one and leasing it out for a high amount of rent.

The Bottom Line

You just went through knowing some of the most viable and profit-yielding investments schemes for senior citizens to help you enjoy your golden period without money woes. If you want to invest in an FD for retired person, you can apply for it online and make the most of its features. Happy retirement life!

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