POSTED BY October 2, 2010 12:44 pm COMMENTS (3)ON
My father has reached retirement age and he worked for private small firm all of his life. He will not get any pension from the firm.
I wish to plan some method (by investing amt) by that giving them a steady income of Rs. 10,000 per month.
Suggestions for optimized way of doing this?
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3 replies on this article “Monthy Income for parents: MIP or any other instrument? Please suggest”
The option to you will be:
1,Post Office MIS
2.MF MIP if your father i ready to take some risk as monthly income is not assured but you have fund swhich have good track record.
3.You can also take immediate Annuity from LIC which will assure a steady pension till his lifetime.
4.IF Still there is a shortfall and situation demands you can look at Reverse Mortgage Scheme.Check in detail.
You mentioned 3rd point, Annuity from LIC? It is new for me. could you please direct me to some information regarding this on LIC website or elaborate little more about this. Is there a LIC product?
Thank you for suggestion.
As at this age, it’s not advisable to take any kind of risk, I would suggest to park some funds in Post office Monthly Income scheme (MIS), where he can get regular & fixed monthly income.
Then, put some amount in bank FD. That will give me liquidity in case of any emergency.
If he can take little risk, he can invest some amount in Monthly income plans of mutual funds also, where, although return is not guaranteed every month, but in long-term, it will be better than Post office MIS.
Hope it will help you.