POSTED BY February 23, 2012 9:13 am ONE COMMENT
ONCheers to everyone behind Jogoinvestor, you guys rock!
This query is regarding money-management for my 62 yr old mother. I lost my father 7 yrs back, all my siblings are now sttled/married.My youngest brother is still unmarried is working with a software major in bangalore & planning for higher studies this yr.
She has about 18L from PF etc put as SBI FD now. Her monthly income is 6K+8K(Pension +Rental income). She lives at Patna, so her monthly expenses are mostly met except for some major expenditures towards travel, marriage- gifts – in which case she withdraws from her corpus. She has recd about 12L from ancestral property which she intends to keep separately for contributing to buying a house by my brother(in next 5 yrs).
My question is – since she is 62+ and has health issues(on high BP & heart-related medications), isn’t it advisable that her fund remain in liq& semi ilq form (bank FDs) ? Will taking health insurance at this age make sense? Where should she keep her 12L for max returns, low risk, for next 5 yrs?
Thanks
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Dear Sharan, You may ask your mother to put these 12L Rs. in SBI’s 10Y FD in multiple of 1L each. Why in multiple of 1L Rs. each?
Well in case as & when your mother wants to part liquidate her FDs, only few ‘ll serve the need & rest ‘ll remain in tact. In case of a single 12L Fd, full amount ‘ll be redeemed first & then your mother ‘ll reinvest for a lesser interest prevailing at that time.
Thanks
Ashal