Pensioner can meet daily needs through debt tools
On the one hand, safe instruments give you a rate of return that often falls behind the inflation rate. On the other hand, you are not in a condition to take risk.
By TNN |
I am a pensioner of age 65 years and am also working in a company. My total annual income is about Rs 4 lakh. I generally invest in PPF, NSC and infrastructure bonds. But the interest rate is very low and inflation is very high. Kindly advise me about the instruments for investments. I am interested to save for future when I stop working, not for my children. ��� CR Sharma
For people of your age this is the most difficult question to answer. On the one hand, safe instruments give you a rate of return that often falls behind the inflation rate. On the other hand, you are not in a condition to take risk. Here, the way to go about the process is to first ensure that your day to day needs are met by a steady regular inflow from debt instruments. Since you are 65 years old you can make use of the Senior Citizens Savings Scheme that gives a return of 9% and the interest is payable quarterly.
Once the daily needs are met then you can look further to have investments where there is a marginal risk involved where you can get slightly higher returns. In the current scenario you have two options in case of mutual fund schemes. With interest rates ruling high, the return on fixed maturity plans (FMP) have also soared and one can make use of these.
The other option that you can consider after exhausting other areas would be to put a small amount of money in monthly income plans, where a small amount of equity can provide higher returns. While the former has little in terms of risk the latter will have a slight risk because of the presence of a small amount of equity.
I am 41 years old, my annual earning is Rs 6.50 lakh. I have a 14-year-old daughter and my wife is a homemaker. My investment details are ��� PPF: 25%, NSC: 25%, ELSS: 20 %, LIC: 30 %, term insurance: Rs 5 lakh, LIC: Rs 3.50 lakh. I am risk averse, I don���t want to invest in shares. Please suggest how can I invest for a peaceful retirement. I also want to plan for the marriage of my daughter in the next 8-10 years(Rs 5 lakh) ��� Navneet Mehra
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You have given your investment details in terms of percentages. There is no absolute figure available of the existing investment plus the amount saved in order to calculate whether the amount is enough to meet your various requirements. The composition of the portfolio is heavily tilted towards debt. The insurance amount is not considered as an investment, but as a protection amount. With around 70% of the portfolio in debt there is very little that you can do with the existing portfolio if you want to increase returns except for raising the contribution significantly.
For every goal you need to have the amount required plus the time frame so you can then plan your investments accordingly. With respect to your daughter���s marriage you have the time frame ready along with the amount required. Rs 50,500 saved each year for the next eight years earning a return of 6% will help you reach the Rs 5 lakh mark. If the return is 8% you need Rs 47,000 each year.
You have to do a similar process and working with respect to your retirement plans. Since there is likely to be a long time to go for this, you can make use of some equity investments through the mutual fund route in order to increase the rate of return. If this is not done, then it is likely that post tax your retirement target might be difficult to meet.
I am working in a private company and earn an annual salary of Rs 3.60 lakh. I have one 25-year money back policy of Rs 5 lakh (annual premium Rs 25,908) and another 20-year Jeevan Mitra of Rs 1 lakh (with premium Rs 5,490). I have opened one recurring deposit account in a post office and am depositing Rs 18,000 per year. My company is deducting around Rs 19,932 against PF in this financial year. I am also paying Rs 42,000 for this financial year as house rent at Jaipur. Please inform me how much I have to invest to save on tax. I also want to buy a home as soon as possible ��� Amit Kumar
The break up of your salary is not provided for one to know the exact amount of taxable income that will be generated and consequently the tax that you should be saving. Keeping that aside, assume that you want to make use of the total limit of Rs 1 lakh available for the purpose of getting the entire deduction. In such a case there is further Rs 48,670 for you still to be taken care of. This is assuming that you have no other investments or NSC bought in the past.
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Under these circumstances, there is likely to be a fair amount of pressure on your cash flow if you go in for a house purchase. While you will be taking a loan for this purpose, there are a couple of things that you need to take care of. The first is the money for the down payment that will be required from your side. The housing finance company will not fund the entire cost of the house. Download
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