Tips for Effective Senior Citizens Investments

By Akshay Sharma May 28, 2018 Finance

We all earn to live a happy and satisfied life and to provide our family the best of the facilities. Even after our earning cycle ends, we wish to continue to live with the same standards and facilities. To do so, we need to ensure that we have the same amount of money.
With this in mind we invest in various schemes to cover up financial needs and also accomplish our retirement goals. To strategize a highly effective investment plan, here are a few tips that you can consider incorporating in your plan.

Know thy Options
When you begin to plan an investment strategy, first thing you should do is, set a goal. To begin with, consider the capital amount you are going to invest. After that, list out all your requirements and plans and the amount of money that will be required for it. Next is the most important step of performing a research on various investment schemes and their benefits.
Understand and contemplate all the available best savings schemes according to your investment amount and end requirement. Out of the various investment plans available for senior citizen investments, consider those that are credible and provide returns at decent rates. List out all the favorable options to consult a professional financial advisor to further understand which plan will suit you the best.

Unify the Diverse Investment Options
Once you have shortlisted all the relevant schemes that best suit you, one of the important thing you should focus on is diversity of the investment. Diverse investment portfolio means including different schemes that when unified, give a perfect balance of safety, high return value and liquidity. This kind of perfect balance can be created by investing your capital amount in relevant schemes.

Here is an example of a balanced diverse senior citizen investment portfolio. Mr. Gupta has a retirement corpus amounting to Rs. 50 lakhs. To unify all the investment benefits here is how he diversified the amount. First of all, he invested 15 lakh in a government saving scheme that generated periodic returns at very high interest rates. Next he invested another 15 lakh in senior citizen fixed deposit account to enjoy higher senior citizen fixed deposit interest rates. Out of the remaining 20 lakhs he kept 10lakh in savings account to easily access at times of requirement. The remaining he invested in equity and debt mutual funds.

Thus, Mr. Gupta will now enjoy a fixed periodic return through government scheme, increase the wealth through fixed deposit and mutual funds and would be able to access liquid cash at time of crisis. Not to mention that he can liquidate his mutual funds investment at any time without any charges for high cash requirement.

Be Safe and Smart
The essential factor that a senior investment plan should include is the safety of investment. As you no longer would be getting the monthly salary, your pension amount and return of investment is all you have. You can’t risk getting low returns due to market fluctuations or inflation. To make sure you get safe and guaranteed returns you should consider investing in senior citizen fixed deposits. Open a FD account easily through online application at Bajaj Finance with minimum documentation and you can avail all the senior citizen benefits along with fixed return.

Calculate before you Invest
Investing your hard earned money is an important task that should be done after putting in lot of thought and planning. You can calculate the returns you will be getting from each investment to get an exact idea of the final output. Companies like Bajaj Finance offer FD calculators on their site to give an individual idea about how much he should invest, at what rate and for how long. Finalize your ultimate investment plan after you get an idea about the final return of all the different combination of investment amount, interest rate, term of investment and the tax deduction.