WHERE TO INVEST MY RETIRAL BENEFITS TO GET REGULAR INCOME?

Retirement is a relieving feeling. You have spent all these years working hard to earn money and paying bills. You do not have to do that anymore. Retirement means you get to relax and enjoy your life. However, retirement doesn’t mean that you do not have needs or you do not have expenses. Hence, you need to plan for retirement in a way that ensures regular income.

Foremost individuals that are getting closer to retirement in India, the expected source of income is the pension they may receive from the government or pension products sold by insurance companies. However, the inflation rate of the country has been skyrocketing for a while and seems to be following the same trend for the foreseeable future. In such a situation, any type of pension plan is likely to not be enough for your expenses. Hence, it is better to for retirees to look intoan investment opportunity that can give your regular income. To do that, you need to know what qualifies as a good investment opportunity for retired individuals.

Qualities of a good investment avenue

The first thing to remember is that investment should be goal oriented. Hence, the choice of the right investment opportunities for retirees should follow these goals.

  • Provides you with income that can combat present and future inflation
  • Ensures that you do not have to change your standard of living
  • Ensures that you are not reliable on your children or any other individual for your expenses in any capacity
  • Provides you with periodic payouts to make sure you can manage regular expenses.

Based on these qualities, here is the investment avenue that you can look into:

Mutual funds

Mutual funds are an investor’s best friend. They are one of the most safest investment avenues you can find. Usually, it is young individuals at the start of their career that invest into mutual funds through SIPs. This gives them time to let their investment grow. This helps them save money and generate wealth at the same time. However, it can work well for retired individuals as well.

You probably have a large amount of savings that you collected throughout your working years. Now, you obviously do not want to deplete those savings by simp covering your expenses. Hence, you can invest them in mutual funds.

While investing in mutual funds you can opt for a Systematic Withdrawal Plan (SWP). SWPs are essentially the opposite of an SIP. While SIPs allow you to invest smaller amount at regular intervals, SWPs do the reverse. They allow you to withdraw your investment in installment over the term of the fund. Given that you cannot wait for years and invest smaller amounts and grow them into bigger one. Hence, it is obvious that you have invest a lumpsum amount and apply the SWP facility.

This means that while your investment grows on one side, you are withdrawing it at the other to manage your expenses. If your fund makes basic returns, then your total amount invested remains similar even after you have withdrawn a small amount from it.

Now that know where to invest your retiral benefits, what are you waiting for? Get started today and receive a regular income. Happy investing!