From dividend paying stocks to FDs: Best fixed income investments for senior citizens

You need the funds you need to reach your retirement goals. Therefore, senior financial experts recommend that you start investing as early as possible during your employment period. Seniors have a wide variety of investment options to choose from, but many are less aware of the best options to ensure a steady income throughout old age. “Start investing as early as possible. is advice given by almost every financial expert Life is also like an investment path, where you have already invested hard work, dedication, dreams and most importantly your time Now that you have successfully invested in all you can to provide yourself and your family with a stable, secure and stress-free life, it is time to reap the benefits and retire as you wish and on your terms. It’s time to live the afterlife. Retirement may sound like a boring stage in life, but it actually allows you to do things you couldn’t do because of your job or other responsibilities. It gives you all the time to work and pursue your dreams.”

“Retirement gives you the time you need, but the savings you need are essential to pursuing your retirement dreams,” says Manish P. Hinger. Here are some of the most reliable investment options for seniors in India that can help.”

Senior Bond Investments by CA Manish P. Hinger

A) Dividend stocks: Some stocks pay dividends on a regular basis and these dividends provide a steady stream of income. Dividend-paying stocks may be a good option for those looking for a regular income, but it’s important to carefully research the company and consider the potential risks of investing in the stock market.

B) Bonds: Bonds are bonds issued by corporations, municipalities, and other organizations. When you buy a bond, you lend money to the issuer in exchange for interest payments and the return of principal at the end of the bond’s term. Bonds are generally considered less risky than stocks and may be a good option for those looking for a more stable source of income.

C) Pension: An annuity is an insurance product that guarantees income for a certain period of time. There are several different types of annuities that can be attractive options for those looking for a secure source of income after retirement. However, before purchasing an annuity, it is important to familiarize yourself with the annuity terms.

D) Bank Fixed Deposit (FD): FDs are a popular choice for seniors because they offer fixed interest rates and provide a regular stream of income through regular interest payments. FDs are available for various terms and the interest rates offered may vary depending on the bank and the length of the deposit.

E) Property rental: If you own a rental property, renting it out can generate a regular stream of income. This is a good option for those who have unused property and want to generate additional income. However, it’s important to carefully consider the potential risks and responsibilities of being a landlord before taking this step.

F) Senior Citizen Savings Scheme (SCSS): This is a government-backed savings scheme designed specifically for seniors.It offers a fixed interest rate, currently at 7.4% per annum, with a maximum investment limit of ¥150,000 rupees. Investments can be made in a single name or jointly with a spouse.

G) Post Office Monthly Income Scheme (POMIS): This is a savings scheme offered by the Post Office of India, currently offering a fixed interest rate of 6.6% per annum and paying regular income to investors in monthly installments. The maximum investment amount per person is ¥4.5 lakh, joint account limit is ¥90,000 rupees.

H) PMVVY (Pradhan Mantri Vaya Vandana Yojana): This is a pension scheme launched by the Government of India in 2017. It is designed to provide financial security to seniors by providing a guaranteed monthly annuity. For those over 60 years old, the pension will be paid monthly for him for 10 years. To participate in the scheme, an individual must make a one-time investment by him in the form of a purchase price paid upon registration. The annuity amount is based on the purchase price and is paid to the individual monthly for the duration of the policy. The scheme is administered by the Life Insurance Corporation of India (LIC).

Before making a decision, it is important to carefully evaluate the suitability of each option based on your financial objectives and risk tolerance. We also recommend that you seek professional financial advice to ensure that you make the investment choices that best suit your particular needs.

Vivek Banka, the founding team of GoalTeller, invests in bonds for seniors

Seniors and individuals over the age of 60 should be careful when planning their investments. We have heard many nightmarish stories of people in this section falling prey to mis-sold insurance policies, money trapped and individuals suffering massive liquidity crises. .

Some basic investment options/strategies that are easy for such individuals (here we assume that most of these individuals are classified as low tax rates due to their low income sources)

Time deposit – A very simple but effective way to invest safely. Investors here have to make multiple deposits so that they can withdraw some if needed. You can also choose regular liquidity interest payment options.

High quality corporate bonds – High-quality corporate bonds with regular interest payments are a good bet for both liquidity and security. However, you should be very careful when deciding which company to buy bonds from, rather than simply relying on ratings.

Stocks + Time deposits + Liquid funds – Such a strategy could consider deploying part of the amount in equities, part in term deposits and part in liquid funds to address liquidity requirements. This strategy can generate higher returns than other strategies, but it is more volatile than others.

Disclaimer: The views and recommendations above are those of the individual analyst or brokerage firm and not those of Mint. Investors are advised to check with a certified professional before making any investment decision.

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