I am retired and have 10 lakhs saving and my age is72 please advise
Ans: Evaluating Your Current Financial Position
Assets Overview
Savings: Rs. 10 lakhs
Age: 72 years
Income Generation Strategies
Fixed Deposits (FDs)
Consider putting a portion of your savings in a Fixed Deposit.
It offers a stable and predictable interest income.
Choose a bank or financial institution offering competitive rates.
Senior Citizen Savings Scheme (SCSS)
This scheme is specifically designed for senior citizens.
It offers attractive interest rates and regular income.
The scheme has a tenure of 5 years, extendable by 3 years.
Monthly Income Scheme (MIS)
Post Office Monthly Income Scheme can be a good option.
Provides a fixed monthly interest payout.
Offers safety and reliability as it is backed by the government.
Mutual Fund Systematic Withdrawal Plan (SWP)
Invest a portion in conservative mutual funds.
Set up a Systematic Withdrawal Plan for regular income.
This provides market-linked returns with some risk exposure.
Creating a Balanced Portfolio
Allocation Suggestions
Fixed Deposits and SCSS: Rs. 4 lakhs
Split between Fixed Deposits and Senior Citizen Savings Scheme.
Provides regular and predictable income.
Monthly Income Scheme (MIS): Rs. 3 lakhs
Invest in Post Office Monthly Income Scheme.
Offers monthly interest payouts.
Mutual Funds (SWP): Rs. 3 lakhs
Choose conservative mutual funds.
Set up a Systematic Withdrawal Plan.
Emergency Fund
Keep a small portion liquid for emergencies.
Could be in a savings account or a short-term fixed deposit.
Monitoring and Adjusting
Regular Review
Review your investments annually.
Adjust based on changes in interest rates or personal needs.
Consulting with a Certified Financial Planner
Regularly consult with a certified financial planner.
Get personalized advice based on changing financial needs.
Final Insights
Diversify investments to ensure a steady income stream.
Balance safety with some exposure to market-linked returns.
Regularly review and adjust your financial plan.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
