Retirement plans

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2014 A lumpsum was received during retirement of a govt employee. It is clear from provisions that Such amount received by govt employee is not taxed.

Could you please suggest some tax free areas to invest the amount? (except investment in securities)

Nikhil Kaushik

Nikhil Kaushik (Expert)
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04 March 2014 it would be advisable to mark a major portion of such funds in interest bearing securities only. some portion can be invested in balanced mutual funds scheme. but in no manner you should have a very high beta for overall portfolio.

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2014 Could you please advise on other ideas other than the investment in securities and mutual fund?

Basically this advise is for a person who has no knowledge of stock market. And hence, what are the other options available for tax planning?

Thanks in advance.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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04 March 2014 well I wont suggest other avenues for a senior citizen.

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2014 What about deposit in banks or other schemes?
How far tax planning can be done in this area?

Thanks in advance.

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2014 What about deposits in banks or other schemes?
How far tax planning can be done in this area?

Thanks in advance.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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04 March 2014 deposits in banks are anyways covered in interest bearing stuff. most of the schemes are in fixed interest zone only. you can add some variability by using balanced mutual funds..thats max you should do..

if the person is not hard-pressed on cash, then the above should suffice.

where he/she is short of cash (in relation to future requirements) you can go for reverse mortgage to release cash locked-in fixed assets.

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