FD: Opportunity for retirees to diversify their investment portfolio
By Neelima Shankar
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Once you reach the retirement age, your investment options begin to shift into an entire new path. Earlier where maximizing returns may be of primary importance, stability in income is given the highest priority after retirement.

Although financial experts have been advising to have a significant prudent reserve for one's after retirement years but with a pre-set amount of funds, investment for old age from thirties and forties become difficult. At the same time it is also important that an assured and a regular income is coming your way subsequent to retirement and therefore investment is a must for retirees. However it is a complicated proposition.

Since retirees do not have any alternative sources of income like salary to rely upon, a stable income becomes the main motive of their investment. High risk-high return avenues typically take a back seat at this stage. So given such a constraint, there are only a limited range of options for the retirees.

Traditionally Senior Citizens Savings Scheme (SCSS) and Post Office Monthly Income Scheme (POIS) were one of the most common avenues in the portfolio of a retired person. Although there is a high range of safety attached to these schemes, cap on the upper investment limit makes them outdated. Even if they are safe and come under the methodical financial planning, one can enhance their financial portfolio by looking into a host of alternative long-range investment options including fixed deposits with monthly income plan.

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(Comments Posted : 1) Post Your Comments
1. Senior Citizen Savings Scheme should be insulated from attachment
by any court of law. However the amount of protection may be lowered upto Rs.5 Lacs each individual by the Govt. This will give life to those who are weak and can not protect themselves from the most sophiscated criminals which the Govt. of India even can not imagine of their procedure. But it is as true as the death.
Pandya (Posted: Jun 21, 2012)
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