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Can I rely on ICICI Pru Guaranteed Income for Tomorrow Plan for a secure retirement at 70?

Ramalingam

Ramalingam Kalirajan  |8093 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 07, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Neeraj Question by Neeraj on Nov 07, 2024Hindi
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Resp. Sir, Thank you so much for the reply. actually I invested in ICICI Pru Guaranteed Income For Tomorrow Plan for fix income without any worry. I will get 1st Payout in sep.2038 at the age of 70 and last at the age of 94. I am 56 now and in pvt job. I am single and have no liability. I have invested in Mutual funds also ( diversified across the market cap). But I have no Insurance of anytype. coz sometime market do not give return for 2-3 years ( sometime negative return also). Hence, I thought a source of fix income should also be there irrespective of market condition. additonally who knows the rate of annuity by 2038 whether it will be 6 % or 5% or 4%. Investing in ICICI ( GIFT) is giving me @ 6+% upto the age of 95. If I calculate SIP at moderate return of 10-12% ( pessimistic) that will give me a corpus between 1.2.to 1.3 Cr. I will get @ 6+% annually fix income out of this ( from ICICI) without any worry. and 66 Lakh return . Market returns are not gurenteed. Hence, that was the thought process behind purchasing ICICI ( GIFT). Now I am feeling greedy. that's why I posted this query on public platform.

Ans: Your thinking behind the ICICI GIFT plan shows a good focus on guaranteed income, especially since it offers stability irrespective of market fluctuations. However, with a rate around 6%, the return is modest, especially considering inflation over the years. While it does provide a secure, fixed income, this rate may limit long-term purchasing power.

Since you already have a diversified mutual fund portfolio, a balanced strategy might involve shifting some of your commitment from fixed-return plans to higher-yield instruments over time. This way, you gain more flexibility and potential for growth while still preserving part of your income security.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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