Where To Invest For Retirement

Whatever may be your age you always think about retirement. Some initially take steps for their retirement some takes later as time passed when they feel now we should think about retirement & need to invest or save for our retired life.

So First Question Comes In Mind Where To Invest?

There are so many options for investment & many think that their child is the best investment if they get success their retirement will pass very comfortably but my suggestion is that all need to think about their retirement life. At least recommend that to all you should have at least for your personal expenses.

So Where to Invest for Retirement Planning?

1. Post Office Monthly Saving Income (POMIS)

Post office monthly saving Income is the guaranteed return investment. You can invest one shot of money in scheme then you will start getting the monthly income according to the interest rate.  Interest in invested amount is 8% so whatever amount you invest in the POMIS you will get a return in Monthly.

Post Office Monthly interest is taxable income.If you don’t want to withdraw your interest you can keep in your account but you will not be going to get the interest on interest.

you can avail the ECS facility for that you need to submit the ECS request form so every month amount gets deducted from your respective account. The maturity period of the scheme is 6 year.  The upper limit of investment is 9 lac you can open more than one account but the upper limit for an individual is 9 lakh.

Penalty – if you break the investment in between 1-3 year charges will be 2% of the invested amount while after 3 years of investment withdrawal fetch 1% penalty only.

So you can invest your retirement fund that you received as you leave the job & you will get the benefit of Monthly Income.

2.Tax-Free Bonds

Tax-free bond also one the best place to invest for your retirement planning. Many Corporates & government issue the bond for collect the money from the market. It’s like a loan that we giving to them. They offer the interest rate (coupon rate) for the same.  Many Company & Investor also keep their fund as the safe investment because it provides the fixed return without risk. Though it going to give you good return it saves your money from inflation. Mostly this investment is done by the investor who is in higher income tax bracket.

Companies & government offer the bond for the 10 years or 15 years even 20 years. Rates on bonds are pre-decided.  Some of the companies offering bonds are  NTPC, NHAI, HUDCO, REC, PFC, RIFC, apart from these many private financial institutions also raise money from the bond but in private financial institution, you will get higher coupon rate as compared to the government institution.

This is another one good retirement investment option

3. Pension Plan

Pension plan also is known as the retirement plan that offers you accumulate the fund in a period of time & provide you the steady benefit at the time of retirement. It gives you the insurance plus steady income from the different insurance company plan.  Retirement plan gives you different kind of maturity period, deferred annuity, immediate annuity. it is advisable to check & compare the all plan benefit of different retirement plan.   

We suggest you some good Pension Plan 

  • Max Life forever young pension plan
  • Bajaj Allianz guarantee plan
  • Bajaj Allianz retire rich pension plan
  • HDFC Super pension plus plan

So pension plan is widely used as a retirement plan. you can also choose retirement life with an insurance plan. 

4. Bank Fixed Deposit

Fixed Deposit also one of the already know plan among the investor who looking for retirement money. Bank provides the fixed rate for the fixed period. FD rate will lower in the higher Fixed Deposit duration. So you need to renew it time to time to get higher interest rate. Fixed Deposit income is taxable & also eligible for TDS.   

The benefit of fixed deposit is that you can withdraw the whole amount whenever you need in an emergency while like other is not as in bonds, pension plan. So you can take your decision according to your need.    

5. Mutual Fund

Mutual Fund is mostly used by the salaried person because it gives you the option of monthly investment as low as 500 Rs. per month. Monthly Income Plan (MIP) gives you the best return best liquidity best investment way as compared to any other investment but still individual less use the mutual fund as a retirement plan option.  

Mutual Fund still used as a short-term investment plan. If you used Mutual Fund as a long-term investment plan none of the above investment plans are better than this.

You can also refer some top companies offering online mutual fund. TOP 5  ONLINE MUTUAL FUND COMPANIES


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