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Ramalingam Kalirajan |6995 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 01, 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

Question by Palani on Mar 28, 2024Hindi

Sir I am working at a PSU coy and going to be retired on April 2024. The corpus amount on retirement in my hand is around 1.5 cr. No pension for me. Can you suggest a best investment option. Everywhere mentioning SWP. But it is linked with Share Market and it will get fluctuate. I want a standard income on every month. I am having unmarried son and daughter. Give me a suggestion please

Ans: Given your retirement corpus of around 1.5 crores and the desire for a stable monthly income, here's a suggested investment strategy:

Immediate Annuity Plan: Consider investing a portion of your corpus in an immediate annuity plan from a reputable insurance company. An immediate annuity provides a guaranteed monthly income for the rest of your life, offering stability and peace of mind. You can choose between various payout options, such as a lifetime income with or without a return of purchase price, or a joint-life annuity to ensure continued payments for your spouse after your demise.

Fixed Deposits (FDs): Allocate a portion of your corpus to fixed deposits with banks or post offices. While the interest rates on FDs may be lower compared to other investment options, they offer capital protection and a fixed income stream. You can ladder your FDs to ensure liquidity and maximize returns.

Senior Citizen Saving Scheme (SCSS): Invest a portion of your corpus in the Senior Citizen Saving Scheme, which offers attractive interest rates and quarterly payouts. This scheme has a tenure of five years, extendable by three years, providing a stable income source for retirees.

Pradhan Mantri Vaya Vandana Yojana (PMVVY): Consider investing in PMVVY, a government-backed pension scheme exclusively for senior citizens. PMVVY offers guaranteed returns and provides a regular pension income payable monthly, quarterly, half-yearly, or annually as chosen by the investor.

Systematic Withdrawal Plan (SWP) with Debt Mutual Funds: While you expressed concerns about market fluctuations, you can opt for a conservative approach by investing a portion of your corpus in debt mutual funds and setting up a Systematic Withdrawal Plan (SWP). SWP allows you to withdraw a fixed amount at regular intervals, providing a steady income stream while minimizing exposure to equity market volatility.

Consult a Financial Advisor: Given your unique financial situation and retirement goals, it's advisable to consult a certified financial advisor who can assess your risk tolerance, liquidity needs, and financial objectives to tailor an investment strategy that meets your requirements.

By diversifying your investments across multiple asset classes and opting for guaranteed income options like annuities and government schemes, you can create a well-rounded retirement portfolio that ensures financial security and stability for you and your dependents.

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.