Your retirement marks the end of the management of your business and the beginning of your golden years. For you to truly enjoy the golden age without compromising on lifestyle or any of your desires, it is essential you plan your retirement wisely. This includes calculating the number of working years you have left while taking family vacations and other holidays into consideration.
You will also need to calculate the amount of pension, provident fund, and bonuses you are eligible for. This way once you have calculated the amount of funds you will have, you can choose how and where to invest the same. One of the most popular investment options for senior citizens or retired persons that keep their money safe are Senior Citizen FDs, which offer higher interest rates.
Why Do You Need to Invest?
Once you retire, your regular monthly salary comes to a halt, and you’re usually dependent on your EPF savings, pensions or investment income. It is hence very important to have an investment strategy in place that helps you grow your wealth and set aside a good amount of money for your post-retirement requirements.
It is also important to have an emergency cash reserve that provides you with enough liquidity, so you need not liquidate your investments. After building an emergency fund, you can look at ways to increase your wealth, by investing strategically.
Here’s a brief lowdown on some such smart investments to help you grow your money.
Invest in a Fixed Deposit
Fixed Deposits offer high and guaranteed returns that can be exceptionally useful while planning your retirement and even after retirement. To make the most of this scheme, you must look for a lender that offers the best FD interest rates and added facilities. For instance, Bajaj Finance offers Fixed Deposits with interest rates up to 8.40%. Additionally, Senior Citizen Fixed Deposits have 0.35% higher interest rates, where you can earn up to 8.75% interest. You can also gain up to 0.35% higher FD interest rates upon renewal of your Fixed Deposit.
Furthermore, you can gain from online account management, investment amounts as low as Rs. 25,000 and flexible tenors. Bajaj Finance Fixed Deposits also have CRISIL’s FAAA/Stable rating and ICRA’s MAAA (stable) rating. You can also use an FD calculator to streamline your finances in advance. All this gives you more safety and earnings that you can count on, making FD’s an ideal retirement investment option.
Invest in equity mutual funds
There are many equity mutual fund schemes in the market today that offer annual returns that go over 15%. Not only does equity function on re-investing profit that increases your capital giving you better returns, but it also offers dividend income. You can also claim tax deductions and gain from equity returns being tax-free. Investment in open-ended mutual funds also offers you liquidity. Depending on the fund house you choose, this investment can give you high earnings, though it does entail risk as equity performance is directly linked to the market.
Invest in real estate
With the price of real estate on the rise, and with more transparency and trust thanks to RERA, an investment in real estate is a wise and profitable move. You can not only let out your property to gain regular income in the form of rent, but can also sell it for a higher resale price. Additionally, you can also purchase a property in a corporate area and rent it out to a company for higher income. For example, depending on the location of your property in Mumbai, you can get anywhere from Rs.7000 to Rs.1,25,000 per square foot. Similarly, the rates range from Rs.4500 to Rs. 14,000 in Hyderabad and from Rs.3,000 to Rs.16,000 in Chennai.
So, you can use these investment options to build wealth for your retirement. Plan your finances in advance for the best results.
