Once you hit retirement you need to know how you deploy the retirements funds and keep them in place. The right financial planning after retirement can help you steer ahead thoughout your retired life, without any worries.
Your Perfect Financial Planning after Retirement
Here is some financial planning after retirement which can help you get rid of your financial woes.
- Senior Citizens Savings Scheme (SCSS):The SCSS scheme is launched by the Indian government and is tailor-made for senior citizens. All seniors who are above of 60 years can try this scheme. Those who are 55 years of age and above can also invest in this scheme but they are subjected to certain conditions. The scheme has a lower limit of 1,000 and its upper limit rises to Rs. 15, 00,000. It is a scheme of 5 years and levies an interest rate of 9 per cent.
- Post Office Monthly Income Scheme (POMIS):The POMIS guarantees a monthly income and the monthly income scheme (MIS) is offered by different post offices in the country and you can select the one which is right for you. You can start with a minimum investment of Rs. 1,000 and the maximum amount for you will be Rs. 3,00,000 if you invest singly and the sum could double up to Rs. 6,00,000 if done jointly.
- Post Office Time Deposit (POTD): The POTD is pretty similar to the term deposit offered by banks. Here the minimum amount is Rs. 200 and there is no limit to the maximum amount of deposition. The period for deposition ranges from 1 to 5 years and the interest rate also goes up from 6.25 to 7 per cent and it is compounded quarterly.
- Fixed Deposits (FD): Fixed deposits are offered by a number of banks and companies, and you can opt for a number of fixed/bank deposits. The only con on the bank deposits is that the interest rates are lower when compared to the interest rates on company deposits and bank deposits are also safer. When choosing deposits always choose the one with AAA rating, as they are safer than other deposits.
- Monthly Income Plans (MIP):The monthly income plans give higher returns, so if you are looking for higher returns, then this is just right for you. These are offered by mutual funds and are market linked investment options. Mutual funds are tax-free but they can be subjected to market risks.
The right financial planning can give you a worry-free future. So consider the above options and keep in mind both the tax factor and inflation and you will be able to get a nice return from your savings.