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Investing for retirement in India

Discussion in 'Money Matters' started by purnima, Nov 20, 2005.

  1. purnima

    purnima New IL'ite

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    Myself and my husband were talking the other day about our financial security in the future. Both of us would like to retire in India. What we would like to do is to have some sound investments in India that will produce a good stream of income when we are 55+ in age.

    We were thinking about the types of investments that we should make in India. Obviously, one of them is to buy couple of apartments for renting it out. The rent from these apartments might be some cash in future.

    I am sure others are thinking something similar to this and was hoping that we can probably make this thread to a running list of potential investments options in India. Would love other members ideas.
     
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  2. shivaani

    shivaani New IL'ite

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    Investing for longer terms...

    Purnima,

    I assume you will be looking at options of investing for longer terms since it is to be used after your retirement.

    You can look at investing in infrastructure bonds (locked for a period of 3 years with a return of 6 - 6.5% and keep reinvesting them).

    You can look at investing in mutual funds (locked for various periods starting from 5 years and more with returns in the range of 10-20%).

    You can invest in these options in India and always study the history of the company for trust and confidence and then invest.

    Otherwise, better to go for postal deposits and PPF kind of investments.

    Good luck, Purnima.

    PS: My husband talks a lot about investing and finances being his interests and I picked these from his ideas.

    Regards,
    Shivaani
     
  3. vinu

    vinu Junior IL'ite

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    Stock markets

    Purnima,

    I keep hearing from my husband that stock market in India is doing pretty well with manufacturing and IT industries booming these days.

    If anyone can watch stock market closely for buying and selling that will also be a good repeated investment for retirement.

    Best of luck,

    Vinu
     
  4. puni88

    puni88 Moderator Staff Member IL Hall of Fame

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    Hello,
    Investing in stocks, mutual funds, bonds and public provident funds would be good.
    Else make some property which would get you some source like rent from house, shops etc.

    Thanks,
    Punitha
     
  5. anjalithukral

    anjalithukral New IL'ite

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    you should contact a finanacial planner

    opt for lot of finanacial produccts
     
  6. padmaiyangar

    padmaiyangar Bronze IL'ite

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    How to age gracefully…

    Remember that once we vacated the chair and if we are popular in the office, superior officers may indulge for a while and some of the junior colleagues may be help in certain matters but we can not expect too much from them. We have to retire gracefully and to be content.

    After retirement our greatest need is financial security. If we are wise in planning retired life in advance, we will have less of financial headache. The person lucky enough to get pension will have less problems. But person not getting pension has to invest wisely the amount like. P.F, Gratuity and sundry other retirement benefits to get regular income to meet monthly expenses and to get big chunks of money as and when need. Therefore we should not invest the entire amount in a single venture. and advisable to invest the money in National Saving Certificates, Debentures, Mutual Funds, PPF, Shares and such other financial instruments to get the returns according to our needs.. Diversification should be the name of the game. It is also useful to have some Gold & Jewellary for the rainy day

    We should have proper account of income. Every single investment and the return on it should be accurately recorded. That will help in Tax Planning. By proper tax planning we can make the maximum use of our money. Review of investments periodically, will help to make the most of our available resources.

    In the modern age you are not too old at 58 or 60 when you retire. If the sources are not adequate, we can think of a second career after retirement. With a part-time or full time employment or start some business to bring adequate returns. work be such that it does not put too much stress on health. We may have to adopt a simple life style

    If we have varied interests-hobbies, we can spend the life happily by going to Picnics, Excursions, attend lectures and Discourses. We should not talk about our self and aliments. We should not talk about son’s income and high position all the time. People have no time for listening to such trash and we should not. become ridicules.

    We must make a WILL to minimize conflicts among near and dear ones.

     
  7. GPriya

    GPriya Bronze IL'ite

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    Hi Purnima,

    I have read other's response for your query.

    Its good to invest in Mutual fund (for longterm stable returns in balanced and debt funds..not in quity funds) also, shares etc. You could consider some immovable property (real estate) and rent it out. In Chennai, real estate is booming and it is expected to grow further.

    Also, one important investment for old age is invest in annuity products...you can check with Prudential ICICI life insurance company for annuity products in which if you invest one lac or so every year for a period of few years (depends on your age and expectation) , they invest in various funds (these funds are not available for regular MF investors) and the yield is far higher than equity MF. At the age of 60 or so, you can set it up in such a way that you can draw a monthly income form your annuity investment.

    Get all the info and decide. I found its really good for old age monthly income like pension.

    Geeth Priya.
     
  8. ridgemma

    ridgemma Gold IL'ite

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    Hi Priya

    Me and my husband are investing in tax saving ELSS Mutual fund schemes. We started with 7000p.m and are increasing the investment by 10% every year. WE mostly invest in HDFC tax saver and SBI magnum tax gain.Since, these funds have a good track record, we are looking at accumulating 1C within 12-13 yrs.Now I am 26. I am planning to retire before 45.Hope this info is useful.
     

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