Retire, and Earn More

There are products, where either the income or maturiry amount is tax-free. Retirees, who receive lump sums, can take a close look

- Vineet Patawari

If planned well, your retirement can genuinely open up new horizons for your second innings in life, where you can enjoy peace, dignity and financial security. Since it is essential to have a monthly income that meets your expenses post-retirement, there should be a steady income stream, apart from the pension. Employees often receive lump sum of money upon retirement, which they mostly have no idea about where to invest.

Stacking up your retirement money in one place can attract taxes as well as inhibit your asset growth. Why invest everything in one scheme or fund, or worse, leave it lying in your bank when you can create a short and long-term return plan to keep your cash flowing?

If you are wondering how to create a diverse investment portfolio that pays off well and saves your taxes once you cross ₹3 lakh income tax exemption for senior citizens here is expert guidance. You can invest in products where either the yearly income or the maturity amount is tax-free. There is an array of investment alternatives:

Equity Or Equity Mutual Fund

Long-term capital gains from stocks and equity mutual funds are taxable at 10 per cent on the income over ₹1 lakh, making these two products ideal for your portfolio.

However, avoid overinvestment in stocks after retirement because they have an element of risk. Stocks must make a part of your portfolio because you need to generate returns that are higher than inflation to maintain your current lifestyle.