Investment Plans for Senior Citizens


All human beings after a certain age begin to start earning money not only for themselves but also their dependents. Apart from the basic needs, we are having so many commitments for that money. But most of the people are earning lot of money but they are failed to handle that money as they are having lack of knowledge in financial and investment planning.

Investment plans for senior citizens


Introduction


Investing money differs from person to person depending on their age and purpose. This article deals with the investment for Senior citizen people and also for the people who are nearing that stage. This will help them to live their rest of life in a peaceful manner.

The crucial stage for every human being is after the age of 55. Since upto that age, they may earn lakhs of money and also they may get money as retirement benefit. But how much money they saved or invested does matters. If they want to live peacefully interms of money, they should have some awareness about investment. Let see some tips for investing money in a proper way for those kinds of people.

Usually people are saving money as saving account in banks or post offices. But the savings account will not give more interest. So our money will be ideal. We should make our money to grow more. There the difference between savings and investment. We should invest money rather than savings. Investment makes money to work for ourselves.

Fixed deposit:


Fixed deposit is best way for investment for retired people as there will be no risk when they put their money in any nationalized bank as fixed deposit. When compared to interest with other source, the interest will be less but the security will be more. When they get retirement benefit of some lakhs, better to invest money in fixed deposit and they can opt for interest on monthly basis, quarterly or half yearly or yearly. It depends on their regular needs.

Investing money in fixed deposit is safe as there will not be any risk in it. Since the Bank follows strictly the rules laid by Reserve Bank of India (RBI). So the interest rate will be decided according to RBI. Normally the interest rate for senior citizen people will be 0.5 to 1% higher than the normal people.

Benefit fund:


This is next option for investment. The interest rate in the benefit fund differs slightly from one to one. The interest rate will be slightly higher than the Bank interest. There are some risk in this scheme. People should enquire thoroughly about the benefit fund which they want to invest. Since lot of news are flashed last year and even now that there are lot of cheating happened. So one who want to invest money, should enquire about the establishment, how long it was running, how about the service and whether it follows the rules and regulations laid by Reserve Bank of India.

Chit funds:


Monthly if we have some money to invest, we can go for chit funds. For example, if we want a lumpsum of Rs. 50,000/- as a chit amount, we can pay for 25 months depends on the bidding amount. So we need not pay Rs. 2000/- every month. It will be lesser than Rs. 2000 as someone will ask for bidding. So that we will get profit without paying full amount. The risk involved is, lot of cheating happening in chit funds. So we should enquire properly about the chit funds interms of number of years the chit fund is running, the owner of the chit fund, etc.

Mutual funds:


Mutual fund is method of purchasing the share in unit price for a lumpsum amount. Say for three years or five years later, we can sell the unit to a price of that period. Hence we can get profit by selling large units. One should get some knowledge before entering into the mutual fund. There are various types of products available interms of shares. We should get the company details in which we want to purchase the units. The profit will be more if we purchase some units and sell it after a long period. There are some risk involved in it, since it may go reverse and we may also borne some loss depends on time. So the amount invested in mutual fund should be less is advisible.

Share market:


Share market is such a big business running all over the world. Whatever the major incidents happening in any part of world, there will be a affect in share market. This type of investment having more risk if we do not have adequate knowledge in it. Eventhough if we have knowledge, the experience also plays a vital role in it. Hence it needs lot of experience and proper guidance to play this game. For senior citizen people, it will be of more risk , since their money is hard earned money and investing more amount of money is very much risk involved in it.

We should daily monitor the share market about the happenings. There may be a sensex up or down from time to time. Hence the senior citizen people should avoid or they should invest a minimum amount in share market.

Conclusion:


There are lot of schemes and investment plans available. The more interest rate, the more risk involved. As a senior citizen people who are more than 60 years of age, they should live their rest of life in a peaceful manner. If they want to go for higher interest rate, they should also take more risk. Hence the suggestion would be go for well reputed organizations and banks for investment and lead a happy life. Since they may earn more than 35 years, it is a hard earned money. Invest properly, at proper place, at proper time will result a happy life.


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