POSTED BY June 18, 2013 12:10 am COMMENTS (8)
ONMy Father is a retired Govt. Employee and expecting to get Rs. 12-15 Lacs as Provident Fund & Gratuity.
He is entitled for Rs. 18500/- per month pension.
He has no liabilities, no loans. He is also covered under pensioners’ medical benefits provided by BSNL. He has planned to invest in following instruments to generate additional income per month.
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Dear Rahul, if your father can manage with 5K Rs. mly, it means his yly need ‘ll be around 60K Rs. only. this translates into an investment of around 7L Rs. in bank FDs 2 Sr Citizen reates. Remaining amount should be invested in Eq. Mfs to get the kick in return & to combat inflation over the long period of time.
Thanks
Ashal
Thank you Ashal..
Dear Ashal,
Thanks for the guidance.
If my father manages to generate Rs. 5000/- per month and is still left with some part of the corpus, should he invest it in FDs/SCSS too? Are there any other options?
Rahul
Dear Rahul, 7K mly surplus requirement, translates into an yly requirement of 84K Rs. or at best 1L Rs. to get such amount from a corpus of 15L Rs. is not that much tough. Please ask your father to use Sr. Citizen FDs of banks for maximum benefit in terms of interest income on mly basis.
Thanks
Ashal
Dear Rahul, next question from me, does your father really need mly income from the available corpus?
Thanks
Ashal
Dear Ashal
Yes. My father’s monthly expenses are in between Rs. 20000 to 25000 at most which include medicines, daily needs, pertrol expenses, bills etc.
Rahul..
Dear Rahul, before commenting any thing on the investment part, who tell you that PO MIS interest is tax free?
I want to know.
thanks
Ashal
Dear Ashal,
I searched & found out that its just wrong interpretation by my dad. Actually, there is no TDS in POMIS. Interest is fully taxable. Thank you for clearing the doubt.
Rahul