Investment Options to Have a Regular Income in Tension Free Retired Life
When a person gets retired from the service, the regular source of income will not be there. And due to aging, the health conditions will be falling. Therefore by making proper financial planning one can get the regular flow of income during the post-retirement periods. It is necessary to focus on the retirement from the adulthood itself. Mutual funds, public provident fund, and the national pension schemes are available for the investment to have a successful retirement life.
Investment options to have a tension free retirement life
1) Fixed deposit (FDs)
It is the best investment option for those people who are looking for the regular income after retirement. The interest rates for the fixed deposit will vary from the bank to bank. The fixed deposits are offered by the post office and in some companies.
2) Senior citizen saving scheme (SCSS)
After 60 years of age only, one can invest in the SCSS. For those who are taking the voluntary retirement are eligible to invest in this scheme at the age of 55 years. Up to 15 lakhs in multiples of 1000 Rs can be deposited in this scheme. In December 2018, the interest rate for this scheme is about 8.7% per annum.
3) Post office monthly income scheme (MIS)
The interest rate for this scheme is 7.7% and the maturity period is 5years and the maximum investment amount is 4.5 lakhs for the single account and in case of the joint account is 9 lakhs. Taxation is applicable for the income.
4) Monthly income plans (MIPs)
Debt fund is the portfolio of this MIPs and it is a safe one. Liquidity is more with the regular dividend and has low risk. This investment option is safe for the people with the return of the additional income.
5) Investment in equity
The person who plans for the retirement can investment in the equity directly or through the mutual fund. Investment in the mutual fund is the advisable one for the new and small investors. Depending upon the risk of the individual profile the percentage will be allocated. But it is advisable to invest about 20-25% of the retirement corpus in this equity fund. Equity plays an important role in the formation of reserves in the future or one can just choose to trade in the latest automated trading systems such as Qprofit and reap benefits till lifelong. You can read more about QProfit System and safeguard your future.