My dad is 51 years but he has no investments. How should we plan his robust retirement corpus?
My father, aged 51, currently has no investments. He owns two properties and has one ongoing loan of Rs 20 lakhs. He has his money saved in the Provident Fund. His annual income is Rs 10 lakhs. Recently, a bank representative proposed a scheme whereby he would need to invest Rs 2 lakhs per year for the next 10 years. In return, he would receive Rs 1.61 lakhs annually for the rest of his life, with the provision for the same benefit to be extended to my mother after him.
Given this new investment opportunity, what is the best strategy for my father to plan his investments going forward?
Name withheld
Reply and investment advice by Rajani Tandale, Senior Vice President, Mutual Fund at 1 Finance
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