Retirement is a fragile phase of life; it is an age where we mostly think that our children will take care of us and our needs. Whereas this is not the kind of reality most of the senior citizens are facing. They rather face hardships or live alone by themselves supporting their needs with whatever savings they have. Sometimes they are not able to manage their finances. As a result, they find old age homes as their only option.
All of the above can happen to anyone of us tomorrow, and such a life can be heart-breaking and remorseful. To avoid such situations, you need to be ready financially by taking the right financial decisions today. You need to allocate your surplus funds to a source that might benefit you in the future. It is important to know that the idle money in your savings account might not be sufficient in the future, you need to make the best use of this money which is through investment. There are many sources of investment options in the market, but we always try to find a source that gives us benefits as well as an investment security. There are investment sources that can keep you well-funded post-retirement as well.
Post Office Monthly Income Scheme (POMIS)
The POMIS is a government curated investment scheme. This investment option offers deposit tenure up to 5 years, the maximum deposit amount under single ownership is INR 4.5 lakhs and INR 9 lakhs under joint ownership. All this can seem well, but the main problem with the POMIS is that they have a lock-in period that can range up to 6 months. If the investor wishes to withdraw his invested amount during the lock-in period, the investor will have to go through a lot of documentation and the invested amount will be charged with a penalty.
The most common and popular investment source in India. Mutual fund is an investing source wherein you invest your money by buying a company’s stocks and shares. There is no limit for investment amount in Mutual Funds. You need to have sufficient knowledge about the market for the investment options to prove fruitful. Since it is a high-risk investment source, without proper knowledge about the market you might even end up losing your invested capital.
FD is the most popular investment source for investors, it is also considered the most secure form of investment source in India. Various type of financial institutions offer FDs. You can deposit a maximum amount of INR 1.5 lakhs, and the deposit tenure lasts for 5 years. The returns that you get from your invested amount is determined by the interest rates offered by your service provider. There are service providers that offer higher interest rate than the banks on fixed deposits. Companies offer better perks such as online tracking of FD’s, increased interest rates on renewal and notifications if there are any changes in the terms and conditions of the FDs.
From all of the above points, one can understand that Fixed Deposits are by far the safest and the best form of investment source in the market that can help you during your retirement. To make your investment options better you can invest in FDs, It is more customization and have much flexible terms.