How to Save Tax for Senior Citizens?

Once you retire from your job, you’re earning stops unless you plan to work as a freelancer or a consultant. The insecurity that comes with retiring from a job can easily be dealt with providing you make some smart financial investments. The idea is to remain independent even after retirement and not depend on your children or your relatives. Well, you can not only make both ends meet but also earn a fair amount to add to your savings with some of the following ideas. 

You have painstakingly earned money over the years and it certainly has to be invested right and make  to stand you in good stead during your retirement years, read, and generate a fair bit of income. Get your earnings on point with a little bit of planning and managing your existing finances efficiently. This will certainly provide you with a secure future. You have to segregate your requirements and plan out exactly how much you need for your daily uses and how much you can set aside for saving and spending in a few indulgences. Your requirements may range from regular medical check-ups, for those impromptu vacation plans, daily shopping and so on. With a smart bit of investment, you can enjoy your after-retirement years to the hilt. Travel to exotic places you always dreamed of but never had the time for, enjoy a fairly luxurious life to make your retirement years worth living. Retirement Income Ideas

Fool-proof Financial Planning for Senior Citizens in India

The following financial plan for seniorcitizens will help you save money and additionally you will get to earn some extra income as well by saving taxes.

1. Financial annuity options: Selecting an insurance policy that offers you quick income should get the maximum priority as it caters to a number of your requirements. You can get an impressive 5-6% of such annuity plans. You can also get good tax deductions with the help of these annuity schemes. You can choose a plan which of course caters to your needs and also offers a pension for whole life. This scheme offers you a good pension in your lifetime and goes to your spouse after your death and finally after the death of your spouse goes to the immediate heirs.  

2. The Senior Citizens’ Savings Schemes (SCSS) caters perfectly to your needs:  This scheme is designed for senior citizens so obviously you should go for it once you retire. The requirements are, you need to be at least 60 years old and more to go for such a scheme. Your money will progressively increase especially when you invest in this scheme for a long time. Try the Post office or the Bank to apply for these schemes.

3. National Savings Certificate (NSC) to your rescue: A government-backed savings certificate, this is a perfect investment option to invest your funds in. This earns fixed interest and gets compounded in the future. You can also enjoy high tax deductions thanks to the Section 80 C of the Income Tax Act. This is certainly one of the greatest investment options and you need to start on this certificate as soon as you can.

The above-mentioned financial planning for senior citizens can help meet up with your requirements and provide satisfying results. You have spent years working hard and saving every penny now it is time to invest right and reap the benefits of years of hard work. You deserve to sit back and spend your sunset years without worrying too much about financial matters. So, now you know what a little bit of smart investing can do for your future!

Try these Retirement Funds to Avoid Tax Erosion

When it comes to financial planning after retirement starting early is the wisest thing to do. Where and how should you invest is going to impact your life in the most crucial phase. This is when you need your money to speak the most, the time when your salary ceases to be credited to your account. With varied investment plans fighting for your attention, planning ahead for your retirement portfolio not only helps you generate a monthly income but in some cases helps you meet up your long-nurtured financial goals.

Best Retirement Plans – How to Keep your Future Secure and Free from Financial Problems

Follow the below-mentioned tips and tricks to make your retirement plan work. 

·         Early Start is An Apt Start

What does starting early mean? It means starting the financial journey in the first or second month of the financial year. Informed and calculated investments equal good investments. Once you have ample time on your hands to make the necessary changes. Investments that fail to meet up with your expectations can be substituted with investments that match your financial goals and frankly this can be only possible once you start early. 

·         Making the Right Investments

The next thing to take note of is to explore and understand the tax-saving options. Any individual taxpayer can think of saving as much as Rs.1.5 lakh per annum according to the Income-tax Act, 1961 falling under the purview of section 80C. This involves a number of things such as paying off the home loan payment, insurance premium, and school tuition fees for two children and so on.

Check out the below-mentioned retirement plans. There is a host of retirementplans, but the most popular ones are the following:

•ELSS funds: The equity-linked mutual funds are what everyone is investing in for higher returns and ELSS scheme is particularly lucrative because it has the lowest lock-in period, only 3 years. These are the best options for you to try as it helps beat inflation and ensures long-term high returns, as they invest in stock markets. Another lucrative feature of ELSS funds is that they become tax-free after you hold them for more than a year.

•Public Provident Fund (PPF): One of the most popular tax-saving investment. There are more pros to this scheme than cons as it offers guaranteed returns, it becomes tax-free once it matures and it protects your capital too. The only con of the PPF is its long lock-in period, as long as 15 years.

•National Pension System (NPS): It is an equity-based scheme and the maximum exposure to equity can be 50%. The cons of the NPS are that you can withdraw the money only after retirement and another being it is fully taxable. You also have to use a major portion of your corpus, read 40% to buy annuity post your retirement. 

•Tax-saving fixed deposits:  These works for most retired persons as they have a reasonable lock-in period of five years and offer pretty impressive returns besides ensuring capital protection as well.

Besides the above-mentioned retirement planning schemes, there are also Senior Citizens’ Savings Scheme, unit-linked insurance plans, and National Level Certificate. So amongst a host of retirement plans, which one should you choose? You will think that you are having way your fingers in too many varied pies, read investments but that is the best way to protect your retirement capital and guarantee a substantial income every month. In other words, diversification is the key.

 Diversify More

Keep your portfolio diversified by building one that includes a mixture of both equity as well as debt. In most cases, young people should invest 50-70% of their tax-saving investment portfolio in ELSS funds. Invest the rest of your money in PPF and FDs. 

Track your Funds

Evaluate your ELSS funds periodically since your performance is linked to the volatile stock markets trends. Ensure you check your ELSS funds quarterly. Funds which keep faring poorly can be replaced by another fund to ensure your portfolio funds stay secure.

Staying invested in ELSS funds is the order of the day now as they help in tax saving and also enables wealth generation. So, invest right and build the right retirement portfolio to help you tide over your retirement years with ease. As they say, life begins at 60, and if you have finances aided by the right retirement plans you will be able to explore the finer nuances of life even after retirement.