Where to keep your retirement money?
Where to keep your retirement money?
1. Fixed deposits
If you have a
very low-risk appetite and you are fine with relatively fewer returns then
fixed deposits is the option for you. Fixed deposits and the time deposits
which you can keep with the bank for particular lock-in period and can withdraw
these deposits after maturity. Fixed deposits are an old school investment option and it doesn't beat inflation rates also so you have to pay taxes on it. But if you want the safest investment then this is the right choice.
2. Public provident funds
If you can keep your money interest for 15 to 20 years even after retirement then you can put a small amount of money every month in a public provident fund. These are government-backed schemes so there is less risk involved. Also, it gives many tax benefits and one can earn returns anywhere between 8 to 10 per cent.
2. Mutual funds
You must have heard mutual fund Sahi hai about thousands of times but is it the right option even after retirement? Well, let's see. If you are someone who doesn't mind taking a little bit of a risk and can keep your money invested for 5 to 7 years then you can earn inflation-beating returns even after your retirement. There are multiple mutual
funds available in the market but for after retirement hybrid mutual funds, Blue chip mutual funds are the good options.
3. Post Office savings schemes
This is a government-backed investment option where you can invest. This scheme provides fixed interest rates on investment.
The risk involved is low so it protects your funds.
4. Blue-chip stocks
If you can afford to take a little bit of a risk and keep your money invested for 5 to 7 years then you can think of blue-chip stocks. It offers dividend returns as well as give good inflation-beating returns.
5. Real estate investments
If you have enough funds then you think of buying a real estate property residential or commercial which will offer regular rental income. If the property is at a good location then it can also give value appreciation benefits after selling it
6. Senior citizens savings schemes
This is a scheme specially made for senior citizens and retired people backed by the government of India. You can invest up to Rs 15 lakh or an amount not exceeding your retirement corpus in this scheme. You can start investing in this scheme through banks or post offices. It provides interest rates of 7 to 8%. This investment also has tax benefits up to Rs.1.5 lakh.
7. Pradhan Mantri vay Vandana Yojana
This is again a scheme only for senior citizens by the life insurance corporation of India. This investment offers returns of around 8% per annum. Senior Citizens looking for monthly income or pension can go for this scheme.
8. Real estate investment trust
To buy a real estate property one needs to have huge capital. But now you can own a piece of real estate at a premium location through real estate investment funds. Real estate investment funds are newly launched real estate investment options. This provides returns as well as capital appreciation. The real estate investment fund has made property investments accessible for everyone.
9. Bond or debt investment
When it comes to reducing the risk and still getting good returns bonds and debt instruments are always good options. These investments are less riskier and also beat inflation. You can also invest in debts and bonds through mutual funds.SBI constant debt fund, SBI gilt fund, axis dynamic bond debt fund are some of them.
Things to keep in mind while investing your retirement funds
Your retirement money is the bonus for your hard work, discipline and loyalty to an organization. It is important to invest it or park it in a good place to ensure your safe and happy retired life. Your retirement money is mostly the biggest amount you have gotten at a time so most people are likely to invest it in the wrong place. There are a few things that you need to keep in mind while investing in a retirement fund.
Don't invest all the amount as it is very important to have emergency funds for uncertainties and emergencies. Enough cash in the savings or fixed deposit accounts if necessary to avoid panic situations. When you are thinking about retirement, money time is the most important factor. You do not have a lot of time in hand so avoid longer-term investments. "Risk hai to Ishq hai "but this doesn't work for retirement money.
When you are investing your retirement money it is important to protect your capital. After retirement when your regular income comparatively reduces you cannot afford to pay high taxes on investments. Try as much as you can to invest in tax saving schemes.
The most important thing and the reason behind the investment are to beat the inflation rate. So don't just park all your money in fixed deposits or recurring deposits. Invest it in safer, less risky investment schemes to get good compounding returns. To put it to an end, don't forget to fulfil all your wishes and live a good retired life.
Tick all your bucket lists, travel the world, spend time with your loved ones. Remember you have worked almost half of your life so do not forget to invest in the things you love to do.
That was all you needed to know about retirement corpus and where to keep your retirement money. Retirement is not an end of the road, it is an opening to a highway so go on and explore yourself. Happy Retirement!!
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