After years of hard work and scrambling, everyone deserves a relaxed and successful retirement For many people, retirement is a time to sit back, relax, and spend some time in time with their family For others, it’s an opportunity to start doing things they’ve always wanted to do, like learning a new skill, traveling to new places, or picking up a new hobby In both If so, financial problems are the last thing someone wants during their retirement period The mere thought of not having sufficient funds at retirement age is enough to instill fear and anxiety in the minds of people. people The premise of this fear is the thought of not having active income, resulting in negative income, jee, depletion of their savings
In order for people to enjoy the same lifestyle as before they retire, it is essential to plan their finances well Retirees and seniors need to be aware of positive investment options and ways to generate a stable income for maintain their lifestyle without exposing their assets to much risk At times like these it can prove invaluable to have passive income streams as this would allow people to generate income from their pool or existing body of wealth People should consider building a portfolio that provides them with a steady, positive stream of income Here are some types of low-risk investment options that provide long-term stability, for people approaching retirement:
Although this is a great investment option, many people tend to overlook this system The Senior Citizen Savings Scheme or SCSS is a government initiative to provide quarterly income to people who have crossed the age of 60 or who voluntarily retired at age 55 Currently at 7 4% interest rate (paid quarterly), the plan has a five-year period which can be extended for three years at maturity
Given the current economic climate, investing in debt has become riskier than ever. However, government guaranteed bonds such as RBI bonds, quasi bonds (REC, IRFC, PFC, etc.) are great low-risk investment options for any cautious investor, not just those near retirement On average, gross (pre-tax) interest rates on the same are currently around 65% – 7% Another way to profit from the same is to invest through the Bharat Bond of ETF series which consists only of government backed companies and sovereign bonds
One of the easiest ways to create an annuity for people near retirement is to add money to the National Pension Scheme or the NPS Investing in NPS gives investors the choice to further diversify their investments into stocks, government debt or corporate debt.An interesting tax aspect of NPS is that it allows an additional tax advantage to invest an additional ₹ 50,000 on top of the current 80C limit of ₹ 150,000
The public provident fund or PPF is the preferred choice of many near retirement because it comes with guaranteed returns – supported by the government However, one can also consider the Employee Provident Fund or EPF, which allows a higher interest rate of 815% compared to the 7 PPF’s 1% interest rate Another significant advantage of choosing EPF is that it also requires employers to pay a monthly contribution equal to that of the ’employee, thus doubling the capital invested for the individual
Naturally, seniors and those nearing retirement are most likely to be conservative investors They would seek stability and would rather not take a lot of risks However, it is essential to understand that there is no such thing as risk-free investment Even the safest investment options would have associated risks. Therefore, one should always make informed decisions when it comes to investing and not allocate all of one’s funds to conservative debt only. Always consider minor diversification into equity ETFs as well as alternative investments like & InvITs REITs to give their hard-earned money broadly stable growth.
(Arpit Arora is Passive Income Coach and Founder of AskTheWiseGuy Views Expressed by Author)
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Savings, interest rates, public provident funds, savings account, rates, national savings certificates, finances
World news – AU – Four investment options at low risk for people near retirement
SOURCE: https://www.w24news.com
