POSTED BY October 7, 2013 4:04 pm COMMENTS (6)ON
I am 42 yrs old and I am planning to open new Fixed Deposit of 25K every month for the next 10 years for my retirement planning. Is this a good move?
I have seen the Mutual funds pas t performance for the last 1 to 3 yrs and not sure if this is right option as the returns are fluctuating and the top/best mf’s list keeps on changing every month or so.
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6 replies on this article “Is it a good idea to open new Fixed Deposit every month for retirement for next 10 yrs ?”
Dear suren, if you are comfortable with the Idea, please go ahead.
I agree with inflation being a major factor for any future returns. With the kind of scams going on ( recently NSEL ) and the stock market manipulations, protecting basic principal investment is a must for retirement.
With RD, you have to mandatorily do. My plan of new FD is even if I miss for a month, I can continue next month, though discipline is the key here.
But, sincere thanks for the the folks who have responded.
Dear Suren, what about Inflation of 10+% when you are earning 6.5% from your RDs or FDs? Please think over it.
For the retirement,protecting principal is the key, hence I was more keen on FD though post tax, it will be around 6.5% returns. I have been investing in equity related MF’s since 2 years and the returns are very volatile. For ex., today my investment of 3L in mf since last year is a -ve of 500/- because of the recent fall in stock markets.
I will definitely look into the suggestion of debt MF’s from another reader.
Dear Suren, who ‘ll pay tax on the FD and RD interest?
10 yrs is good amount of time. You can divert some money to monthly SIP. Instead of opening a FD every month, you can go for a RD. You can also look for SIP in debt funds which will give you better liquidity and tax treatment