Retirement is unavoidable. Everyone who is alive and working has to retire at a certain period. The retirement period can be chosen as early retirement or fixed as in between 60-65 years. It is a known fact that after retirement, some of your expenses are useless like maintain an office wardrobe or the travel expenses from your home to your office, but some new expenses definitely increase like medical expenses. Obviously, if you retire, you will lose your monthly salary and have to live on the definite amount of pension only. Is there any method to enhance your monthly income after retirement or have a huge corpus …show more content…
Monthly cash-flow in advance, save the investor from the market risk Relatively low rate of return, does not at par with inflation, lack of liquidity during investment period,
Safe Income, Fixed Annuity Get a safe and definite income Invest in money market, banking instruments like FD, RD, or government bonds A steady and regular income, immune from market risk Very low interest rate and hence low income for small savings
Growth, Variable Annuity Capital appreciation and big corpus Invest in equity market High yield in short period, good income with a probability of high growth Highly risky, subjective to market risk
A smart financial planner only chose a diversify retirement planning that have all the three above components, means some part of income assures a guaranteed return, some assure safety against market risk and some in the equity market to get high yield. In a more simplified term, a diversified investment for retirement can give you all three-needed covers,