investment options for senior citizens

236°
Deal Lieutenant
kukdookoo

Friends what are some investment options for senior citizens and people close to 60 years of age? as due to age they need to stay away from equity, so options are like fd, ppf etc. is there any one which gives interest close to, if not more than, the inflation rate? second requirement is there should not be any lock in period or atleast no penalty on prematurity.

@Maverickz @Sudarshan61 @Ramta_Jogi @dharmanath481 @bikidas2060 @guest_999

What are ur views about this https://www.rbiretaildirect.org.in/inde...ml

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Deal Lieutenant Deal Lieutenant
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amitdealwala wrote:

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Any new schemes to invest, after we recieved freedom?

Deal Subedar Deal Subedar
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No lock in period means you have effectively ruled out PPF, SCSS. Even FD will have lock-in (some sort of penalties).

Only option I can think of is banks with higher interest rates. (even debt/liquid funds have some market fluctuations).

Deal Lieutenant Deal Lieutenant
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Sudarshan61 wrote:

No lock in period means you have effectively ruled out PPF, SCSS. Even FD will have lock-in (some sort of penalties).

Only option I can think of is banks with higher interest rates. (even debt/liquid funds have some market fluctuations).

lock in periods are fine as long as they have penalty free prematurity option or very less penalty. it is 1% in fd’s.

Deal Lieutenant Deal Lieutenant
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I think this was discussed some months back in some thread
@LIMBO @getready may help in bumping that thread

Pro Tech Guru Pro Tech Guru
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DealLooter wrote:

I think this was discussed some months back in some thread
@LIMBO @getready may help

Not my area of expertise at all!

The PostMighty The PostMighty
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They can look into investing in Debt Mutual Funds for generating superior returns and avoiding any lock-in period… Generally, mutual funds have an exit load (0.5% to 1%)for withdrawals made within 1 year. However, if the withdrawal is made after 1 year, there is no exit load.

Deal Subedar Deal Subedar
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Equitas also reduced interest rates from 15th November

Hunk Hunk
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Maverickz wrote:

They can look into investing in Debt Mutual Funds for generating superior returns and avoiding any lock-in period… Generally, mutual funds have an exit load (0.5% to 1%)for withdrawals made within 1 year. However, if the withdrawal is made after 1 year, there is no exit load.

Capital gain tax will be applicable. And indexation benefits can be availed after 3 years. 🙂

Deal Lieutenant Deal Lieutenant
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beingsr wrote:

@kukdookoo – Check Pradhan Mantri Vaya Vandana Yojana for Senior Citizen u can lock interest rate for 10 years

https://licindia.in/Products/Pension-Plans/Prad...

thanks bhai. first they should name these schemes something else pardhan mantri, mukh mantri etc. are a big turn off.now few points https://cleartax.in/s/pradhan-mantri-vaya-vanda...

- lic is managing it, they are notorious in this

- the above page does not talk about prematurity except in health cases so it means that the money is locked for 10 years. moreover even in health cases they will deduct 2% of the principal amount (the pension amount will all be gone, telling from my experience from other lic products)

- the above page does not tell whether pension paid will be taxable or not

- the roi from the link the sales brochure from the link that you have shared is 7.40% and that can be revised

- as per that gst also might be included in it, as it is on most lic products

it seems to be a bad option. let others comment on it.

Deal Lieutenant Deal Lieutenant
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Maverickz wrote:

They can look into investing in Debt Mutual Funds for generating superior returns and avoiding any lock-in period… Generally, mutual funds have an exit load (0.5% to 1%)for withdrawals made within 1 year. However, if the withdrawal is made after 1 year, there is no exit load.

thank u. aren’t debt funds riskier for senior citizens? their returns have also gone down. moreover ltcg is only after they are held for 3 years, so seems good considering stcg?

Hunk Hunk
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Renting properties can generate good income. And since the concerned party doesn’t want any lock-in period, risks associated with higher rate of returns etc then they have to think of something radical that’s tailor made solely for their needs. Maybe talk with a professional. I don’t have any idea about products which meet the required specs.

Deal Lieutenant Deal Lieutenant
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bikidas2060 wrote:

Renting properties can generate good income. And since the concerned party doesn’t want any lock-in period, risks associated with higher rate of returns etc then they have to think of something radical that’s tailor made solely for their needs. Maybe talk with a professional. I don’t have any idea about products which meet the required specs.

biki paji for a property to generate a good rental income a good amount of investment is needed plus time. moreover senior citizens usually want risk free over higher returns so this question.

Deal Subedar Deal Subedar
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kukdookoo wrote:

thanks bhai. first they should name these schemes something else pardhan mantri, mukh mantri etc. are a big turn off.now few points https://cleartax.in/s/pradhan-mantri-vaya-vanda...

- lic is managing it, they are notorious in this

- the above page does not talk about prematurity except in health cases so it means that the money is locked for 10 years. moreover even in health cases they will deduct 2% of the principal amount (the pension amount will all be gone, telling from my experience from other lic products)

- the above page does not tell whether pension paid will be taxable or not

- the roi from the link the sales brochure from the link that you have shared is 7.40% and that can be revised

- as per that gst also might be included in it, as it is on most lic products

it seems to be a bad option. let others comment on it.

Firstly we r discussing about investment option here, name of scheme is irrelevant what we all want is maximum benefit [I’m too against any scheme/fund starting with PM/ other personality names]

- LIC AFAIK are better than many private players offering retirement funds [We all know what happened with DHFL Bonds many senior citizen lost their chunk of retirement fund for higher interest rate]

- Pension received under this scheme is taxable.

- Lock in period is applicable in most of the retirement schemes

- ROI is fixed for TEN years it is revised every year for new policyholders/investors which will be fixed for next 10 years. Also, since they are providing higher interest rate, lock in period of 10 years is justified.

- This Scheme is exempted from GST [via search on google]

P.S. – Also, we can invest from minimum Rs 1.5 lakh to 15 lakh plus prefer official sites rather than cleartax, etc [ROI mentioned on cleartax is incorrect]. This Scheme is applicable/valid till 31-03-2023 only.

Hunk Hunk
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kukdookoo wrote:

biki paji for a property to generate a good rental income a good amount of investment is needed plus time. moreover senior citizens usually want risk free over higher returns so this question.

Kukdoo bhai, unfortunately everything is risky, that includes doing nothing. Old people generally have property. Normally children become able to earn their own. So, renting a part of property is generally a good idea.

Those who wants risk free returns to beat inflation should educate themselves about risks associated with the available investments and doing nothing. 🙂

Deal Lieutenant Deal Lieutenant
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beingsr wrote:

Firstly we r discussing about investment option here, name of scheme is irrelevant what we all want is maximum benefit [I’m too against any scheme/fund starting with PM/ other personality names]

- LIC AFAIK are better than many private players offering retirement funds [We all know what happened with DHFL Bonds many senior citizen lost their chunk of retirement fund for higher interest rate]

- Pension received under this scheme is taxable.

- Lock in period is applicable in most of the retirement schemes

- ROI is fixed for TEN years it is revised every year for new policyholders/investors which will be fixed for next 10 years. Also, since they are providing higher interest rate, lock in period of 10 years is justified.

- This Scheme is exempted from GST [via search on google]

P.S. – Also, we can invest from minimum Rs 1.5 lakh to 15 lakh plus prefer official sites rather than cleartax, etc [ROI mentioned on cleartax is incorrect]. This Scheme is applicable/valid till 31-03-2023 only.

as per brochure on lic website as shared by u, gst will be applicable. check sales brochure
is this covered under 80c or some other section?

Deal Lieutenant Deal Lieutenant
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bikidas2060 wrote:

Kukdoo bhai, unfortunately everything is risky, that includes doing nothing. Old people generally have property. Normally children become able to earn their own. So, renting a part of property is generally a good idea.

Those who wants risk free returns to beat inflation should educate themselves about risks associated with the available investments and doing nothing. 🙂

Old people generally have property
not all

The PostMighty The PostMighty
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kukdookoo wrote:

thank u. aren’t debt funds riskier for senior citizens? their returns have also gone down. moreover ltcg is only after they are held for 3 years, so seems good considering stcg?

Risk is there in every instrument….Debt MFs are subject to credit risk and interest rate risk, which is not there in FDs or govt backed securities / schemes, but they have low rates & other restrictions …. Even in FDs, you have the risk in case the Bank / FI goes defunct and the RBI does not support it… There are low risk debt funds too (Eg. GILT Debt funds, Banking and PSU Debt Funds). You will have to consult your investment manager to decide the best funds…. Their returns have gone down, but are not lower than the FD rates offered by the PSUs and Large private banks. Here in MFs, you get to show them as LTCG after 3 years, where there is negligible tax after indexation… In FDs there is no such benefit, apart from Rs. 50k available to senior citizens under 80TTA

Deal Subedar Deal Subedar
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kukdookoo wrote:

as per brochure on lic website as shared by u, gst will be applicable. check sales brochure
is this covered under 80c or some other section?

Not covered under Section 80c or other section…..

For NIL GST check this – https://www.cbic.gov.in/resources//htdocs-cbec/... [CBIC Notification – Sl No. 36, Heading 9991]

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