Hi Experts,
Only one basic doubt.
Goal: Regular income every year like a passive asset(It is not like the monthly expenses will be covered once the interest from the tax free bonds come,they any how route this amount to any of the investments only). they have a corpus of 5 lakhs.
My father(Retired govt emp(53), 1 st tax slab) and mother(home maker also in the 1 st tax slab) .
I am doing a comparision between the annuity and the Tax free bonds(IIFCL)
Tax free bonds give a standard close to 8 percent tax free returns. But leading annuity provider gives a return upto 7.5 and that too taxable one.
I think for buying a annuity i can buy a tax free bonds. But they are in the 1 st tax slab only.
For annuity i have gone thru this below article and see lot of disadvantages.
http://capitalmind.in/2010/01/low-annuity-returns-in-india/
Is it wise to have a chunk of money in the tax free bonds eventhough they are in the first slab and rather than buying an annuity?