Retirement Benefits Planning

POSTED BY Praneeth K ON October 3, 2012 10:48 pm COMMENTS (2)

Dear JI, 

My father has recently retired. Age: 58 Years

He has Rs. 15 Lakhs in hand and wants to invest effectively. 

He is getting a monthly pension 17k per month. There are no liabilities, no debts.. all are cleared now. 

Please advise and let me know if you have any questions

thank you in advance
KP

2 replies on this article “Retirement Benefits Planning”

  1. VIGNESH BASKARAN says:

    Hi

    If it is a voluntary retirement You are eligible to open a senior citizen savings scheme(9.30 interest) in post office. or else those who are getting retired at 60

    Pls go through this link for more details.

    http://www.indiapost.gov.in/scss.aspx and for more details you can enquire in the nearest post office.

    http://finotax.com/itp/poscs.htm

    1. Calculate his monthly Expenditure.and remaining can be put in an RD for 1 yr, 2 yr based on the goal

    2. Note down the goals of your father and do the planning according to that.

    3. Now it is best time to invest in the FIXED deposits. so make use of that. Dont forget to give the 15G/15H and later at the end of the year calculate and pay the tax.

    4.
    Total income – 2.04 L

    Income from FD – 1.5 L (10 percent interest on 15 L)

    Total taxable income – 3.54

    Section 80C – 1L

    you can need to pay only tax on the remaining amt 2.54- 2 = 0.54 lakhs, only 5000 ruppes

    Invest in NSC for 1 Lakh and complete the section 80 C for your father to save the tax on 1 L rupees.

    5. Annuity (which will give u a regular income till our life time returns around 7 percent) but it will give till our life time. taht is the main point. If you are able to renew the FD for every five years no issues.

    6. MIS which offers 8.5 interest rate, bit less than the Fixed deposit.

    7. Part of the FD can be put in the quarterly interest payment mode. and the interest can put in the balanced Fund like Hdfc prudence. (SIP)

  2. Biswa Singh says:

    At this age its better not to invest in risky stuff like equity or MF. Its better to stick with Bank FD and Debt funds.

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