From dividend paying stocks to FDs: Best fixed income investments for senior citizens

To achieve your retirement goals, you must have the necessary funds, so for seniors, financial professionals recommend starting investments as soon as possible during the working years. Seniors can choose from other types of investments, but they don’t know much about what can provide them with a steady income during their golden years. According to an interview with CA Manish P Hingar, founder of Fintoo “Start investing as soon as possible. Since investing early in life allows you to get more profit and returns, this is a piece of advice that almost given to you by all financial experts. Life is also like an investment method, in which you have invested your hard work, dedication, dreams, and most importantly, your time. Now that you’ve invested everything you’ve got into giving yourself and your family a safe, secure and stress-free life, it’s time to reap the rewards and live your retirement life the way you want and on your terms. Although retirement may seem like a dull stage in life, the reality is that retirement gives you all the time to do things and achieve your dreams that are impossible. you for your work and other responsibilities. “

Manish P Hingar says, “Though retirement gives you much-needed time, having the necessary savings is necessary to realize your retirement dreams. So, here are some of the safest investment options for you.” of seniors in India that will help you transform your retirement life into the life of your dreams.”

Fixed Income Investment for Senior Citizens as per CA Manish P Hingar

A) dividend paying stocks: Some stocks pay regular dividends, and these dividends can provide regular income. Dividend-paying stocks can be a good choice for those looking for regular income, but it’s important to research companies carefully and consider the risks involved in investing in the stock market. .

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B) Bonds: Bonds are bonds issued by corporations, municipalities, and other organizations. When you buy a bond, you lend money to the issuer in exchange for interest payments and a return of capital at the end of the bond’s term. Bonds are generally considered less risky than stocks, and can be a good choice for those looking for a safer source of income.

C) age: Annuities are insurance products that provide guaranteed income for a specified period of time. There are many different types, and they can be a good option for those looking for a secure source of income for retirement. However, it is important to thoroughly understand the terms and conditions of an annuity before purchasing one.

D) Fixed Deposit (FD): FDs are a popular option for senior citizens as they offer fixed interest rates and provide regular income through interest payments. FDs are available for different tenures, and the interest rate may vary depending on the bank and the length of the deposit.

E) Renting a house: If you own a rental property, you may be able to generate regular income by renting it out. This can be a good option for those who have unused assets and want to generate additional income. However, it is important to carefully consider the risks and responsibilities of the homeowner before taking this step.

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F) Senior Citizens Savings Scheme (SCSS): This is a government-supported savings scheme designed specifically for the elderly. It offers a fixed interest rate, which is currently 7.4% per annum and has a maximum investment limit 15 lakhs. Investments can be made in a single name or jointly with a spouse.

G) Monthly Income Scheme (POMIS): This is a savings scheme offered by the Indian Postal Service that offers fixed interest, currently at 6.6% per annum, and pays regular income to investors through the monthly payment. The maximum investment limit for a single person is 4.5 lakh, while the maximum limit for a joint account is 9 lakhs.

H) PMVVY (Pradhan Mantri Vaya Vandana Yojana): It is a pension scheme launched by the Government of India in 2017. It is designed to provide financial security to senior citizens by providing a guaranteed monthly pension. The scheme is open to people aged 60 and above, and the pension is paid monthly for 10 years. To participate in the plan, everyone must make a one-time investment in the form of a purchase price, which is paid at the time of registration. The pension amount is based on the purchase price and is paid to the individual every month for the duration of the policy. The project is managed by Life Insurance Corporation of India (LIC).

It is important to carefully evaluate the suitability of each option based on your financial goals and risk tolerance before making a decision. It is also a good idea to seek professional financial advice to ensure that you are making the most appropriate investment choices for your individual needs.

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Fixed Income Investments for Seniors According to Vivek Banka, Founding Team at GoalTeller

Seniors and individuals > 60 years of age should be careful when planning their investments. We have heard many sad stories about this section of people who fall for the wrong insurance policies where the money goes in and people suffer a lot of financial crisis.

A few basic investment options/strategies that are simple for such people (assuming here that most of these people will fall under low tax due to low income sources)

Fixed Income – A very simple but effective method of safe investment. Investors here should create several deposits so that they can withdraw some if needed. You can also choose the payment option for constant liquidity.

High-quality corporate bonds – High-quality corporate bonds that pay regular interest are a good bet for liquidity and safety. However, one needs to be discerning when deciding which company to buy a bond based on not just the rating.

Savings + Fixed Deposits + Liquidity Deposits – In such a scheme, one can look at investing some funds in equities, some in fixed deposits and some in liquidity funds that take care of liquidity requirements. This strategy can generate higher returns than others but is more volatile than others.

Disclaimer: The opinions and recommendations expressed above are those of the individual analyst or brokerage firm, and not of Mint. We advise investors to consult with a certified professional before making any investment decisions.

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