When you leave, there is every possibility that you will have withdrawal savings that get attributed to your account. The amount is frequently a ample one, and you may be tempted to indulge, but at the same time, you comprehend the need for vigilant investing to maintain your twilight years. Here are a few tips on where to invest for creating a normal income brook through this age.
SENIOR CITIZEN SAVING SCHEME
It is a post office method under which bulletin expenses are made at an attention rate of 9.20% per annum. The prime of life age is five years which can be complete by three years and it allows you to invest a greatest of Rs 15 lakh. People who are 60 years or above are qualified to open this description. You can also avail tax benefit of up to Rs. 1 lakh under piece 80C, but the interest proceeds is taxable.
ANNUITIES
You can buy annuities from life indemnity companies who offer once a year proceeds of about 6-7%. Choose the type of annuity that suits your needs as allowance is payable for 5, 10, 15, 20 years or for life, amid others. Annuities from life insurers are assessable in your hands.
MONTHLY INCOME PLANS
These plans provide around 80% in arrears and 20% in equities. These plans are perfect for those who want to devote principally in debt instruments but also wish to invest a small section in equities. An MIP offers you monthly income, but if the markets fall you may stand a ability of trailing the bonus compensation. In the last five years, the top funds have accessible proceeds of around 10-14% to investors. The levy laws are the same as debt joint fund. A shortterm capital add will be taxed as per your tax slab, while long-term capital gain is taxed at 20% (with indexation) or 10% (without indexation), whichever is lower.
POST OFFICE MONTHLY SCHEME
This plan allows you to invest any amount between Rs 1,500 and Rs 4.5 lakh per year in container of persons and Rs 9 lakh per year in case of a joint account. It offers a return of 8.40% per annum, which is owed monthly and has a adulthood age of five years.