5 Best Investment Options For your Retirement Plan

5 Best Investment Options For your Retirement Plan

5 Best Investment Options For your Retirement Plan

Retirement can be a scary experience if you have not planned it well during your working days. At the period of retirement, your ability to earn money will significantly reduce as you will be out of the workforce. For a happy and peaceful retirement, you imagine a regular flow of income without going to work each day. This can be accomplished just when you plan your investments well during your working days for the rest of years later on. Thus, it is important to plan for your retirement early in your life.

Here are some best investment options for your Retirement Plan:

Annuity Schemes:

When you retire, your greatest stress remains to oversee regular expenses, as regularly scheduled paychecks will never again be there to help you. Insurance has unique items that give a general pay post-retirement. Known as annuity schemes, these give standard wage and can likewise be utilized as a part of retirement planning. Along these lines, it is essential to pick the correct annuity plan. There are different annuity plan accessible in the market and you can pick one by settling on the sum you wish to get as benefits and when would you like to get it.

PPF (Public Provident Fund):

Public Provident Fund is known as Tax Saving Instrument under Section 80C of Income Tax Law. PPF also work as a great retirement scheme. You can start investing in PPF as a low amount of Rs 500 to Rs 1 lakh maximum per year. The rate of return on PPF is dependent on the average bond yield in the earlier year, so expect variances in the returns after some time. You can open your PPF account at your closest post office or banks. And you can also apply online to open a PPF account.

NPS (National Pension System):

National Pension System also help you to invest in long-term for your retirement plan. It enables you to invest in stocks, bonds, government securities and exchange assets. NPS also allows you to invest in equity mutual funds. And it can bring you an additional tax benefit of Rs. 50,000 under Section 80CCD(1B).

Mutual Funds:

Saving for your retirement can be hassle-free and profitable if you go with a proper step by step plan. In this situation, Mutual Fund may become your best investment option. Mutual Fund potentially provide greater returns than other investment options such as Fixed and Recurring Deposit. You can invest in different types of mutual funds such as liquid, debt or equity funds depending on your risk-taking ability.

For those individuals who have no knowledge about financial markets, they can go for Systematic Investment Plan. It’s the easiest way to invest in equity-related funds. You can start SIP with a low amount of Rs 500 per month. SIP is a great way to create wealth for your post-retirement life.

ULIPs (Unit Linked Insurance Plans):

Unit Linked Insurance Plans (ULIPs) are a financial tool. ULIPs offer investment as well as insurance benefit to the customers. If you invest in ULIPs, a part of the premium you pay goes for your investment needs. The rest is invested as per your scheme, which could be equity-oriented or debt-oriented. Due to the high risks and rewards, and the introduction of LTCG on stocks and mutual funds, ULIPs can become a good tool for a Retirement plan.

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