At MintGenie, we go a step further in making sure all your personal finance related questions are answered. You have a question, we get it answered. In this series, we take up a question related to your money and ask four financial advisors to give their views. You get four detailed views to help you make an informed choice.
Q. I am retiring by the end of this year and will get ₹50 lakh from my GPF account. How do I invest this lumpsum money to generate monthly income and yet extend this capital till the age of 80?
Viral Bhatt, Founder of Money Mantra, says:
“Out of 50 lakhs, first of all, you have to diversify your allocation, 20 lakhs for 3-5 years, 20 lakhs for 10 years, and 10 lakhs for 15 years. 20 lakhs can be invested in fixed deposits 3-5 years (combination of fixed deposits and corporate fixed deposits like hdfc and bajaj finance) - monthly interest.”
“20 lakhs in the schemes like senior citizen postal scheme or pradhan mantri vay vandana for 10 years - monthly interest. 10 lakhs in the investment options like - a combination of conservative hybrid funds and debt mutual funds and can take withdrawal after completion of 2 to 3 years,” he added.
Preeti Zende, Founder of Apna Dhan Financial Services, says:
“If you are retired and a senior citizen then you can choose Pradhan Mantri Vyay Vandan Yojana (PMVVY) and Senior Citizen Saving Scheme (SCSS). Here you can invest ₹15 lakh in each scheme. SCSS offers quarterly interest and you can choose monthly, quarterly or yearly interest as per your income requirement."
“One more option is POMIS (Post office monthly income plan), wherein you can invest ₹9 lakh jointly with your spouse. Apart from these government backed-schemes, one should take some exposure to equity mutual funds for inflation hedged return for your need in later years in retirement,” she said.
Prathiba Girish, Founder of Finwise Personal Finance Solutions, says:
“You can invest 10 lakh in safe debt instruments. You can withdraw 20K per month from this adjusted for inflation for the first 4 years. Ie. Ages 61 to 64.”
She added, “Invest the remaining 40 lakh in a mix of Hybrid and Equity funds. Even if they give you 9% returns (annualized) you will be able to draw inflation-adjusted (7%) 20k per month until age 80 and still be left with a decent amount (46L), which can be an estate.”
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