Planning for your retirement is something that you mustn’t ignore, if you want to enjoy the fruits of financial independence during old age. You must carefully allocate a portion of your income in an investment fund or account so that it can be saved for your retirement with added taxation benefits. Most people look up to investment options such as mutual funds, stocks or bonds when planning to invest for their retirement. There are various investment schemes that can help you save for your old age and enjoy your retirement. Listed below are some of the best options that you can invest in to keep swinging even after your 60’s.
1. Senior Citizen Saving Scheme
Once you’ve reached the age of 60, you can open a SCSS or Senior Citizen Saving Scheme. Unlike the regular savings account, the SCSS provides interest benefits upto 9.20%, with pay out every quarter of the year. A senior citizen account also provides several tax benefits as well. Additionally, if you also have a recurring deposit account (RD), you could also transfer interest from the SCSS account for benefits upto 10.5%.
2. Gold IRA (Individual Retirement Account)
While amassing cash for your retirement is not a bad thing by any chance, we all know the horrors of economic depression and its impact on the currency. If economy takes a tumble, the currency prices will drop, rendering you with a lot less despite of all the trouble you took for all those years. The best way to stay truly safe is by investing in Gold or precious metals IRA. It is very much like any ordinary Individual Retirement Account but instead of depositing cash or paper currency, you deposit precious metals such as gold, silver and platinum etc. You can also visit websites such as www.Goldirahandbook.com, for more details about Gold IRA. As gold prices will always remain steady owing to their natural brilliance and rarity, you can ensure a happy retirement even if the economy crashes.
3. Fixed Deposit
One of the oldest schemes for saving is the fixed deposit or a term deposit account that can be opened with any bank. You can deposit your money for a fixed amount of time (15 days to 5 years) on a much higher rate of interest than regular savings bank account. Upon maturity, you can withdraw the principal amount plus the interest and reopen a new fixed deposit account. Automatic renewal of term deposit accounts is also offered by various banks upto any amount of money.
4. Post Office Monthly Income Scheme (POMIS)
Postal Saving Schemes not only help you save your valuable assets for the future but is also one of the safest. It works like a regular savings bank account that you open with the post office and get interest and tax benefits with yearly payouts. Several countries treat post office savings in a similar manner as the fixed deposit or term deposit accounts, with added tax exemptions provided with opening an account with the post office.
5. Mutual Funds
Investing in mutual funds is yet another popular retirement scheme that gives a hefty payout upon maturity. They can include various types of securities such as stocks, bonds and assets from several investors that are managed by professionals. One can invest in mutual funds offered by various small and large banking or financial corporations to receive a regular promised income and additional funds through the collective capital gains. If you have little experience in stock trading, then you know how hard it is for an individual to manage his stocks and bonds without any professional help. Mutual funds provide you with that edge that eliminates the fear of financial losses as your money is pooled with several other investors.
6. Reverse Mortgage
Most people at least have a self-owned house by the time they retire from their jobs. While saving money that is enough for you to last your lifetime isn’t possible for many, one can also apply for a reverse mortgage that would allow you to liquidate the value of your house and still enjoy its ownership during your old age. Nevertheless, one must also make sure that there is no outstanding loan or mortgage on the house before applying for reverse mortgage.
7. Liquid Funds Account
One of the quickest paying schemes for your retirement, Liquid Funds offer the surety of payouts as with mutual fund investments but with a much shorter maturity period. They are slowly gaining popularity has a higher paying alternative to savings account with interest benefits upto 9.8%. As the tax is paid by the fund house, it is also exempted from taxation.
The above investment schemes are indeed some of the best you can choose for your retirement. Regardless of the benefits these schemes offer, always remember that some of these are also subject to various market risks and one must do proper research before investing.