I have just retired and received Rs 1 crore in retirement benefits. Where should I invest it to earn a monthly income of Rs 50000 ?

Question

Based on the limited information, I would suggest you to invest Rs 15 lakhs each in Senior Citizens Savings Scheme (SCSS) and Pradhan Mantri Vaya Vandana Yojana (PMVVY). You can Invest Rs 60 lacs in Secured Non Convertible Debentures(NCDs) and bank fixed deposits.

The interest offered by NCDs is higher than SCSS, PMVVY and bank fixed deposits, but you need to choose them carefully.

Consider the NCDs issuer’s credibility ,the lock in  period ,and the frequency of payouts. For regular cash flow ,choose the monthly interest payout option for all the suggested products.The interest income from these products will be taxed according to the slab rate applicable to you.

If you do not have any other taxable income ,then investing Rs 90 lakhs in these products will earn you a monthly income of Rs 50000.

You may invest the remaining Rs 10 lakhs a good large cap fund for at least five years or in an accrual fund for 3 years, but go for these investment only if you can take risk. You should also build an emergency fund by parking six months’ income in a liquid or low duration debt fund.

 

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