5 Things You Can Do With Your Pension Money

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So what is a pension? When you stop working your pay will stop but all the bills won’t ! A pension is the money that you will live on when you stop working. It will replace the salary that you earned before retirement and is the most tax-efficient form of saving available.
An age of 55- 60years “ll be a perfect age to have your retirement, when you receive a good quantity of amount to sustain your rest of life. Now a question arises what you do with that amount ? When thinking about retirement funds, you’re probably most worried about having enough money to live comfortably. What people forget to plan for is their eventual passing. For the sake of your spouse or other family members, make sure things are set up correctly. It’s not enough to just make the money; you have to protect it as well – and ensure it gets into the right hands after your death.

Senior Citizens’ Saving Scheme
the Senior Citizens’ Saving Scheme is a must-have in their investment portfolios. SCSS can be availed from a post office or a bank by anyone above 60. Early retirees can invest in SCSS, provided they do so within three months of receiving their retirement funds. SCSS has a five-year tenure, which can be further extended by three years once the scheme matures.
Currently, the interest rate in SCSS is 8.6 per cent per annum, payable quarterly and fully taxable. Currently, SCSS offers the highest post-tax returns among all comparable fixed income taxable products. The upper investment limit is Rs 15 lakh and one may open more than one account. The capital invested and the interest payout, which is assured, has sovereign guarantee. What’s more, investment in SCSS is eligible for tax benefits under Section 80C and the scheme also allows premature withdrawals.

Post Office Monthly Income Scheme (POMIS) Account
POMIS is a five-year investment with a maximum cap of Rs 9 lakh under joint ownership and Rs 4.5 lakh under single ownership. The interest rate is set each quarter and is currently at 7.8 per cent per annum, payable monthly. The investment in POMIS doesn’t qualify for any tax benefit and the interest is fully taxable.

Bank fixed deposits (FDs)
A bank fixed deposits (FD) is another popular choice with the retirees. The safety and fixed returns go well with the retirees, and the ease of operation makes it a reliable avenue. However, interest rate over the last few years has been falling. Currently, it stands at around 7.25 per cent per annum for tenures ranging from 1-10 years. Senior citizens get an extra 0.25-0.5 per cent per annum, depending on the bank. Few banks offer around 7.75 per cent to seniors on deposits with longer tenure.

Mutual funds (MFs)
When one retires and there is a likelihood of the non-earning period extending for another two decades or more, then investing a portion of the retirement funds in equity-backed products assumes importance. Depending on the risk profile, one may allocate a certain percentage into equity mutual funds (MFs) with further diversification across large-cap and balanced funds with some exposure even in monthly income plans (MIPs). Retirees would be advised to stay away from thematic and sectoral funds, including mid- and small-caps. The idea is to generate stable returns rather than focus on high but volatile returns.

Tax-free bonds
Tax-free bonds, although not currently available in the primary market, can also feature in a retiree’s portfolio. They are issued primarily by government-backed institutions such as Indian Railway Finance Corporation Ltd (IRFC), Power Finance Corporation Ltd (PFC), National Highways Authority of India (NHAI), Housing and Urban Development Corporation Ltd (HUDCO), Rural Electrification Corporation Ltd (REC), NTPC Ltd and Indian Renewable Energy Development ..

Immediate annuities
Retirees could also consider the immediate annuity schemes of life insurance companies. The pension or the annuity is currently around 5-6 per cent per annum and is entirely taxable. There are about 7-10 different pension options, including pension for lifetime for self, after death to spouse and post that the ..

Rent from Real Estate
Rent from Real Estate Real estate is another good way to generate regular income. Real estate investment is high risk high return affair. You can generate income by renting property purchased by you. There are risks involved in this option risk like not getting tenants or right tenants or fall in property rates.

Bitcoin ( Crypto Currency)
So there are 2 ways to answer this question. One is theoretical and the other being practical.
People have already covered the theoretical aspect beautifully even you find all information in web. So let me take the practical route (besides theory was never a forte).

I got interested in bitcoins for the first time around 7–8 months back when one of my relatives made some money out of it. Please note I have used the word “interested” instead of heard. I had known about bitcoins for around 15 months but I got interested in it when I knew someone made money out of it.
So I read up about it (mostly the same stuff which is mentioned in answers) and decided to give it a chance. Before I progress ahead, here is bitcoin price chart in USD since 1 November 2016.
Do you see the growth? From $730 to $2050 in six months which means 180% jump!!

Now to be honest if i had asked me what was my view back in November then I didn’t have a clue. If you ask me now then also I don’t have a clue as to why this is appreciating at this crazy rate. All I have is some news like Japan legalising it, Russia thinking on it etc Therefore I believe if one has some small risk capital (and wouldn’t lose his sleep if the entire money is lost), then one should definitely invest. Now there are 2 ways to do it –
• Mining
• Investing
For mining just invested in it through Zebpay or through Crescendo Tech (We soon launch our portal on bitcoin from where you ‘ll buy bitcoin with a discount a Rs1500/-). Started with a very small amount but slowly grew your position. But please remember even after growing your position, it was never a significant amount of your portfolio. And if you had made a loss on it, you would just keep fine. Along the way you also invested in other ALTCOINS especially Ripple (XRP). You really liked what they were doing. And you glad to share that journey so far has been monetary rewarding.

Closing Comments (A Conclusion)
• Put only that much amount which you are comfortable in losing. Don’t go overboard.
• I still don’t understand the rationale why these currencies are going through the roof. I don’t have a mathematical model therefore I believe whatever money I made was purely from my good luck. There was no special skill involved.
• Please please first read about latest developments and speak to different people who have invested in it to gain from their experiences.
And finally All the Best to you!!! May you make tons of money.

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