Retirement is one of the most beautiful phases of your life. It is finally that time when you can take the backseat and revel in comfort. However, it is also the end of your earning period and you must ensure that you have enough funds to support your needs. To secure a good lifestyle, you must invest early and in the right places to bring you the best benefits. A successful retirement investment strategy comprises striking the right balance between risk and investment returns.
Here are some investment options that you can employ for a financially-secure retired life.
Fixed deposits – Fixed deposits have always been a preferred choice for most Indians. This can be credited to the fact that it is an extremely safe option of investment. It makes for a great tool to invest for your retirement as it earns an interest. You may choose the most preferred tenor for the FD depending upon your financial standing. While currently, the rate of interest provided with fixed deposits has reduced, senior citizens are provided with a higher rate.
Senior citizens saving account – Senior citizens saving account should make for one of the important part of your investments plan. This kind of account is offered to only seniors by most leading financial institutions. The savings scheme typically comes with a tenor that ranges anywhere from 3 to 7 years. What also makes this a suitable option is the fact that it brings tax benefits.
Mutual funds – Mutual funds have growingly become a popular pick for investors today. They are also a favorite on the list of investments for retirement. It comprises of an investment in stocks and bonds that are professionally managed. While it brings a certain degree of risk, it brings higher growth and can indeed aid in building a good retirement fund.
Immediate annuities – Immediate annuities are offered by life insurance companies. At present, there are about 7 to 10 options that you can pick from. However, you must note that the capital is not returned to the investor. This essentially means that there is a non-returnable policy laid out on the amount that you invest in purchasing the annuities. Additionally, the returns are not as high in comparison with other investment options.
It is important to build and maintain a fund that will aid in leading a worry-free retirement life. There is no single investment option to bring you the best returns. Each option brings with it its own set of risk or drawbacks and you must put in enough time into managing and monitoring your investments effectively.