When we talk about the post-retirement planning of an individual, there could be the following three scenarios and their retirement planning would be entirely different.
- Sr. Citizen - who already retired, +60 (post-retirement)
- Middle-age people in their 40/50 (pre-retirement)
- Young married or unmarried in their 20/30 (pre-retirement)
Let's talk about #1. Sr. Citizen Planning. We have now the following two categories to invest in:
- Assured Return / Fixed Return Schemes
- Senior Citizens Saving Scheme (SCSS)
- Bank Fixed Deposits
- Pradhan Mantri Vaya Vandhana Yojana (PM VVY)
- Pension/Annuity Plan from Life Insurance - Immediate/deferred annuity
- PO Monthly Income Scheme (PO MIS)
- PO National Saving Certificate (PO NSC)
- Direct Bonds/NCD
- Tax-Free GOI Bonds
- NBFC FD
- Market Link Schemes
- HyBrid MF Scheme (earth while Monthly Income Plan (MIP)) / Balanced Advantage / Asset Allocator Mutual Fund
- Debt MF - income fund/short term fund/duration fund/gilt fund
- Unit Linked Insurance Plan (ULIP)
- National Pension Scheme (NPS)
- Gold MF
- REIT (real estate) MF
Please keep in mind the following factors before making any investment call:
- Investor risk profiling
- Investment objective
- Time horizon
- Cash flow requirement
- Liquidity
- Taxation
- Past investment experience & behaviour mindset
- Lifestyle
- Health condition & medical expenses
- Contingency requirement
- Income from single/multiple sources
- Outstanding liabilities
Please note, all plans are not suitable for every Senior Citizen. One can choose a scheme based on features & individual suitability, and then pick the better option in a combination of 3-4 different categories.
Disclaimer: Investment in securities & mutual funds are subject to Market Risk
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