Investment Pattern Of Retired Individuals Essay

1213 words - 5 pages


For most people, the regular income comes in the form of a salary, which is paid monthly.
Because of the regularity of income during our working life, we usually adapt our spending
To fit in with our income patterns. By the time retirement comes around we usually have our
Income and spending patterns well practiced, although these may change a little in retirement.
During retirement, or at some stage before, we also need to plan what we are going to do with
Our retirement savings. Usually this will involve looking at what to do with our superannuation
Money and any other savings that we may have accumulated along the way. In view of the
Above ...view middle of the document...

These data are based on the survey done by us
POMIS (Post Office Monthly Income Scheme)

POMIS is a very simplistic, safe and sure way to receive a monthly income for retired people. Retirees can invest their lump sum retirement benefit under this scheme and can earn as high as 8.4% annual interest and that too, without taking any default risk on their money.
The best feature of this plan is monthly pay-out of interest, which is the most critical need of distribution phase (retirement years).

Features of POMIS –

* Rate of interest is 8.5
* Maturity period is 5 years
* Auto credit facility of interest
* Minimum investment is INR 1500 and maximum investment is INR 4.5 Lacs for single account and INR 9 Lacs for joint account

SCSS (Senior Citizen Saving Scheme)

any resident individual who has attained 60 years of age can open this account. Joint account can be opened only with spouse. Investment under this scheme qualifies for the benefit u/s 80C of the Income Tax Act, 1961. Besides tax benefits, this scheme offers a high rate of interest at the rate of 9.20% per annum with quarterly interest pay-out.
Premature closure is allowed. Monthly Income Scheme (MIS) and Senior Citizen Saving Scheme (SCSS) are the best for Senior Citizens who desire monthly/quarterly interest. Invest in MIS / SCSS and transfer interest into RD account through SB account through written request and earn a combined interest of 10.5 % (approx.).
Bank Fixed Deposit

fixed deposit is a financial instrument which allows for money to be deposited with banks for a fixed duration ranging from 15 days to 5 years and above, and earn a higher rate of interest than conventional savings account. On maturity the investor receives a return which is equal to the principal plus the interest earned over the duration of fixed deposit.
Senior citizens who opt for a fixed deposit scheme are sometimes allowed an additional 0.5% on top of the regular return on offer. Deposits for 5 years or longer qualify for a tax benefit u/s 80C of IT Act, 1961.
Reverse Mortgage

Retired personnel, who could not acquire many assets for themselves besides a house, can now liquidate the value of house and survive during their retirement period. In a Reverse Mortgage, the borrower pledges a property that he already owns (with no existing loan outstanding against it) and the bank in turn pays a series of cash – flows for a fixed tenure to the owner. These can be thought of as reverse EMIs.

The draft guidelines of reverse mortgage...

Other Papers Like Investment Pattern of Retired Individuals

Advance Institute of Competetive Studies Essay

1589 words - 7 pages be involved in planning, marketing, budgeting, processing of loan, investment management etc. In fact, Mr. O.P. Bhatt, the recently retired chairman and Managing Director of SBI India started his career as a probationary officer in the year 1972. Is there a better way to say that the right candidates with talent can make it to the top echelons of the banking industry! Roles and Responsibilities of PO Good communication skills and an ability to

Social Security - Privatize Yes/No Essay

2506 words - 11 pages Security funds are invested in federal securities, mainly long-term bonds. In 1997 a government advisory panel proposed that some of the revenues be invested in stocks and bonds to generate higher returns. The panel was divided over whether the money should be invested by the government or by individuals, as well as the amount that should be shifted from government bonds. Both approaches have their critics. Some regard government investment in stocks

Get Free Gems!

1022 words - 5 pages barriers for future matters. This scheme is initiated by Government for elders for their further customary income flow. This is an assured return income for seniors during their retirement. This is a secure form of investment scheme as since it is backsides by Government, so principal and interest is sured to be receivable. Who can subscribe An Indian resident who retired voluntary and attained at the age of 55years can subscribe to this

Assets Paper

1321 words - 6 pages provided by this pattern. As well as the 7 person team was hired in order to serve over the board of investment named ATTIMCO; 16 investments which have satisfied the present staff of 16 members along with a total of 10 experts (Fulman, 1997). There are about 56 outside managers and these managers are investing money chore on all centers throughout asset classes (Fulman, 1997). With exact same sort of investment tradition as well as minimum cost

Financial Risk Management

1021 words - 5 pages beneficiaries of risk controlling. From a retired to the largest financial institution, all the society should think of ways to alleviate the effects of potential risk in marketing and trading. Basically, for detailed explanation, person and institutions could be divided into three groups to analyse due to different scale. The first group is the collection of individuals who focus on the personal finance management. The content of personal

The Desire to Retire

1526 words - 7 pages Americans plan to do upon retiring from the work force. Without the promise of retirement, many would find it very difficult to get out of bed and head to work each morning. “Retirement is a fairly recent phenomenon. At the beginning of the nineteenth century, few people retired, because they simply could not afford to do so. As white – collar jobs replaced a predominantly agricultural economy incomes rose and people had more money with

The Lie of the Century

2617 words - 11 pages arouse suspicious." had personally lead many to be naive enough to believed that their investment is "safe." However, the most mysterious factor that contributed to the growing of Madoff's operation was the willingness to "ignore" the red flags from Madoff's operation by many financially knowledgeable individuals. The words "ignore" is to be emphasis in Greenspan's analysis because red flags did appear many years before Madoff's confession, and few


3414 words - 14 pages Tweedy, Browne Company LLC Investment Advisers Established in 1920 ______________________________________________________________________________________ Managing Directors Christopher H. Browne William H. Browne John D. Spears Thomas H. Shrager Robert Q. Wyckoff, Jr. WHAT HAS WORKED IN INVESTING: Studies of Investment Approaches and Characteristics Associated with Exceptional Returns What Has Worked In Investing is an attempt to

Gm History

1353 words - 6 pages unusual among developed economies for the contribution to healthcare funding made by employers rather than the state or individuals. As of 2004, GM was paying the healthcare costs of an estimated 1 million retired employees. Such costs were high and unpredictable. In terms of the economic situation, sales of passenger and commercial vehicles generally decline during recessions. Consumers are less willing to spend money or take out loans to buy big

Unit 4 Assignment 1: Enhance an Existing It Security Policy Framework

698 words - 3 pages computers. Third party connections must comply with requirements as stated in the Third Party Agreement. 4.1.8 Personal equipment that is used to connect to Richman Investment's networks must meet the requirements of Richman’s Investment-owned equipment for remote access. 4.1.9 Organizations or individuals who wish to implement non-standard Remote Access solutions to the Richman Investment production network must obtain prior approval from Remote Access Services and InfoSec.

Sample Final

5241 words - 21 pages their seventies and retired. Which one of the following sets of portfolio statistics might best suit their situation if their primary investment goal is current income with limited risk? A. beta of 0.83 and a dividend yield of 6.3% B. beta of 0.86 and a dividend yield of 4.6% C. beta of 1.6 and a dividend yield of 6.4% D. beta of 1.1 and a dividend yield of 5.4% 33. Ten months ago, Junior purchased a stock for $14 a share. The stock pays a

Related Essays

Lee Chatered Method Study Essay

1461 words - 6 pages estimation to mortality, this process can be extended to include years for which the previous age specific data didn’t include. * Comment on the nature of the individual longevity risk from the point of view of a retired person. Then describe the components of the mortality risk for an insurer (or a pension fund) dealing with life annuities. Income drawdown is the main issue of generating individual longevity risk for individuals. Income

Controversial Issue Essay

1006 words - 5 pages CHAPTER 10: LONG TERM LIABILITIES There are two ways for a company to raise money: Debt VS. Equity Chapter 10 covers Bonds –a type of debt financing. Individuals, companies, and governments often issue bonds in order to raise funds to finance large projects (ex. prop 1A on the November ballot was to help the state of California raise capital to develop a high speed train). Bond – a written promise to pay an amount (par value) plus

Prohibition Essay

632 words - 3 pages that arouse. After years of protest the Congress passed the 21st amendment in 1933 which repealed the 18th amendment (Carnegie 1) Prohibition played a major role in The Roaring twenties by changing American culture in a major way. Prohibition is looked at as a major failure in American history, mostly because it did very little to stop people from obtaining alcohol, but did a lot in growing The Black Market, In which Individuals like Al Capone

Relying On Social Security Equals Disaster

1305 words - 6 pages . Individuals should weigh their retirement options and choose the plan that will pay out the best when the time comes to retire. Here is a breakdown of popular retirement plans. (found by Global ira, 2010.) * “401K – This type of investment is one of the easier options to choose because many employers offer 401Ks as an incentive for retiring from their company. In addition, most employers match the funds that accumulate in an employee’s